Business Issues
Legal Risk Exposure
Today, legal and regulatory compliance issues are a major focus for businesses. The threat of being found personally liable by the government, or industry governing bodies, is a major worry for many executives.
Read More
Regulatory Compliance (PDF, 400KB)
Less attention is paid to the legal obligations placed on executives to provide a safe working environment for employees. However, failing to provide a safe working environment can lead to considerable legal liability risk. This requirement covers a wide range of responsibilities. Workers should be protected from:
- Inappropriate or offensive content – such as pornography, profanity, and lewd language
- Harassment – whether sexual, religious or bullying
- Discrimination – by age, race, nationality or economic status
Workers also have several legal obligations towards their employers:
- To avoid defaming the organization or bring the company into disrepute
- To avoid using company resources illegally, for instance, by sending spam or storing illegal images
- To safeguard company security (for example, not revealing passwords)
- To treat email messages and other IT resources as business tools - acting in the best interests of the company and upholding company standards
Costs of Not Providing a Safe Working Environment
Email is also a means of bullying, harassing or airing prejudices against co-workers. The problem for a business is that emails create a trail of evidence, thus increasing the employer’s exposure to legal risk. The legal and peripheral costs of not providing a safe working environment can be substantial. In many cases, employees have sued their bosses for failing to protect them from offensive content, harassment or discrimination. Some examples include:
- Chevron Corporation – paid four female employees US$2.2million to settle a law suit. The women claimed they were sexually harassed over an extended period. The catalyst which prompted the case was an email entitled "25 Reasons Why Beer is Better than Women"
- Continental Airlines – paid a female employee US$1.7million in damages after a harassment law suit. The employee claimed that she had been subject to vulgar statements, pornographic imagery and was described as a "feminazi" by male colleagues in email
- Baker & McKenzie – one of the world's largest law firms was sued for US$3.5million for creating a "sexually hostile work environment"
The figures named in these examples do not include the additional costs of defending against and recovering from the incident. In each of these examples, the incident which infringed on the employees' right to a safe working environment was preventable. The additional costs would have included:
- Legal fees
- Loss of productivity as employees leave
- Distraction of other employees
- Time spent researching and engaging in legal procedures
- Recruitment costs for replacement employees
- Training and ramp-up costs for new employees
- Loss of reputation and good will for the organization
Acceptable Use Policies
Marshal content security solutions are an important part of a complete Acceptable Use Policy framework.
When an incident occurs, the employer's legal position is stronger if they have established clear written policies about the acceptable use of resources such as email. However, having a policy is not enough. The policy must be supported with education, consistent communication and reinforcement, and an effective method of monitoring and enforcement. Enforcement is normally provided via technology (such as Marshal solutions).
