Maintaining workplace confidentiality is important to protect the financial interests of the business and workplace morale, as well as to guard against legal troubles. A company has legal and ethical responsibilities to safeguard the private information it gathers and holds about employees, according to Jules Halpern Associates.
Keeping important business information confidential prevents external entities from discovering trade secrets. Employees may know strategic or proprietary information that the company doesn't want competitors to know about, for instance. Management may also have information or decisions that it wants kept confidential to protect employee morale, reports Jules Halpern Associates. Word of a potential layoff leaking could cause internal and external problems.