In addition, employees are prohibited from engaging in securities transactions on the basis of information not available to the general public and which, if known to outsiders, might affect their investment decisions. The dissemination of such information to others who might make use of that knowledge to trade in securities is also prohibited. Employees will be asked to sign a statement of confidentiality at the time of hire and periodically throughout their term of employment to acknowledge their awareness of, and reaffirm their commitment to, this policy. It is the policy of XYZ to ensure that the operations, activities, and business affairs of XYZ and our clients are kept confidential to the greatest possible extent. If, during their employment, employees acquire confidential or proprietary information about XYZ and its clients, such information is to be handled in strict confidence and not to be discussed with outsiders.
Employees are also responsible for the internal security of such information.
The model policy statement is consistent with general industry practice in its acknowledgment that protecting company and client confidential and proprietary information from disclosure is crucial. In particular, the leak of any confidential information or trade secrets to competitors could seriously damage an organization. In an effort to protect such information, companies set forth written policies advising employees of their responsibilities with regard to confidentiality and warning them of the possible consequences of breaching confidentiality in this area. Concern about disclosure of trade secrets to outsiders is especially great among employers engaged in high-tech, research, and manufacturing industries. The UTSA recognizes that the potential economic value of information can be protected and does not require that such information be actually or even potentially used in the trade secret holder's business.