Can employers tell us what we can do in our private, online social networking, lives?

If your employer tells you to ‘stop doing that, you’ll go blind’ online, do you have to stop doing it? 

Short answer:  yes, with a but. 

As I specialise in long answers though – see below.  Caveat – I’m not a lawyer.  This probably misses a ton of stuff cos I’ve shortened it from the original, much longer, draft.  This is just for discussion, comment, and thought provocation at the moment.  It also has far too many Battlestar Galactica references. 

At law it is generally well recognised that employees have several duties of care that they owe to their employer . There are three core duties of an employee to their employer that have a clear link to an employee’s online social networking activities:

  • to work with care and diligence,
  • to obey all lawful and reasonable orders, and
  • to act with good faith and fidelity.

There are essentially two types of employee: a standard employee (on a time-service contract) and a professional or staff employee (on a task-performance contract) . Professional and staff employees, and especially those employees with client-facing roles, are generally held to a higher standard, particularly where their actions may tarnish the employer’s image.

The employee has a positive duty to be efficient, and to avoid negligence in carrying out the work. In the context of online social networking, an employee might breach this duty where their use of such tools affected their efficiency (for example, through cyberslacking) or using a social networking tool in an inappropriate way (for example, to store client material or to carry on client conversations).

An employee must also obey the ‘lawful and reasonable’ orders of their employer, taking all reasonable steps to carry out the tasks promised under the contract of employment. Criminal acts outside of the workplace may prevent the employee from carrying out their duties, and thus breach this duty. So if you joined an illegal OSN, or advocated criminal behaviour in an OSN (use your imagination but it probably involves terrorism, nazis, or pavlova) it might be difficult to keep doing your fracking job (sorry – Battlestar Galactica reference).

It is likely though that the activity would need to be very much at odds with the employee’s role for summary dismissal or discipline to be justified.

Employees do have a duty to act with good faith and fidelity (see especially Blyth Chemicals Ltd v Bushnell 1933 ). Employees must not act in a manner that is in conflict with the interests of their employer.

As part of this duty of good faith and fidelity, the employee must not disclose information where disclosure of such private information (for example, profits and losses, customers, methods and techniques, etc) might help a competitor. It is likely, for instance, that posting a blog topic about business strategy, or the file notes from an internal meeting, would breach the duty. The duty operates to limit the employee’s ability to comment upon the business of the employer.

I was flabbergasted to find though that in the Cockatoo Docks Case (1946) it was found that an employer was justified in summarily dismissing an employee who wrote an article in a Labor Party newspaper that was critical of his employer. Try that one on today! Although it is not likely that this decision would be followed today, there are clear parallels to be drawn with online social networking activities.

The biggest issue for bloggers and Facebookers everywhere? Tarnishing corporate image.

For this duty to be beached there generally needs to be a relevant link with the employer such as a uniform. In Rose v Telstra Corporation 1998 it was acknowledged that employers ‘do not have an unfettered right to sit in judgment on the out of work behaviour of their employees. An employee is entitled to a private life.’

In the context of online social networking, presumably this connection would exist where the employee discloses the name of their current employer, or where the individual is in a senior client-facing role so as to be likely to be identified from their profile by a customer or prospective customer.

Some employers use things such as AWA’s etc to prevent, for example, a mining company employer stopping an employee joining a group that is protesting the mining company’s actions.

As a general principle, employers seeking to rely upon this power of control must set out their expectations very clearly, and ensure that the employee has consented to such contractual terms and that the expectations have been brought to the employee’s notice. In particular, the duty that an employee owes to act in good faith and with fidelity operates so that the employee should not ‘tarnish the business’s image’. The business’s expectations of its employees however must be very clear if the employer seeks to control their employees’ actions in private.

Personally I’m coming to the view that if it’s your private blog or Facebook, keep your employer’s name out of it – it’ll be sweeter for all that way.

Image from Flickr User Akbar SimonseSome Rights Reserved.

Feedback on ‘Communicating financials to management: Developing effective reporting mechanisms’

Back in August, I gave a presentation for CPA Australia at Royal on the Park, which had as its objectives:

  • How to develop effective reporting mechanisms that ensures data of high integrity and quality
  • Responding to management information needs: how to develop a process that ensures timely response
  • Other key reporting and systems issues that affect how information is presented and used

I note incidentally that I haven’t posted my speaking notes online yet – I must do that.

Anyway, feedback was good, even if I’ve not picked up any clients out of it :).  Here is the feedback the presentation received:

Session Title:    ‘Communicating financials to management: Developing effective reporting mechanisms’
Venue:     Royal on thePark, Brisbane
Date:     26/8/2008

Your overall Rating:    4.35
Technical Content rating:    4.52
Presentation Material rating:    4.43

All comments specific to your presentation

  • Good presenter. Liked the way he asked what people wanted out of session & made sure he covered those points.
  • Very good presenter. Showed a great awareness for presenting on & answering what we wanted to get out of the session. Terrific.

I continue to thank Alan Anderson for showing me his tactic of plain old ‘ask the audience what they want’ for presentations.  The audience, not surprisingly, always seems to appreciate it, and it’s hard to miss the mark if you can at least link back to those dot points.

Of course, if someone comes in for the wrong session it can be very entertaining.

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Optimising your financial reporting systems for long-term value

I presented for CPA Australia on Wednesday and Thursday of this week, firstly in Sydney, and then in Melbourne.  The topic was ‘Optimising your financial reporting systems for long-term value’, and was part of their streamlining finance processes conference.

Overall the presentations went fairly well.  There’s always a conflict between war stories, which are interesting and helpful, and content, which is helpful.  I try not to have a lecture, but I still managed to run out of time both times.  Note to self:  cut down, cut down, cut down.

Anyhoo, I promised that I’d upload an example survey tool and my speaker notes, so they are attached to this blog post.

You can download the Speaker Notes here, and you can download the full presentation here. The speaker notes are just the dot points I intended to cover off in the presentation.

The example survey can be downloaded here.

I stayed at the Sydney Marriott overnight – that was quite nice:

If you attended, please feel free to give feedback.  I hope something was obtained from the presentation, and if there are questions please feel free to give me a call.

Effective business reporting

I’m a great fan of the COBIT and VAL-IT frameworks, but I also like to try and reconcile complex frameworks. I also hire a translation company at https://www.espressotranslations.com/gb/french-translation-services-london/ to make them a bit easier to understand for our non-native English speakers. I also like to talk in terms of people, process and technology, as I think that conceptually we can easily get our heads around it, and it also helps us turn complex things into stuff we can use in a small business and specially in home based business.

Frameworks like COBIT provide us with a way of distilling out the unnecessary.  It is so easy with an IT area to have it seem so complex that you don’t know where to start.  COBIT lets us see what matters, and it provides a strong link between the strategic direction and management of the business, and allows us to identify from those business goals the things that the IT area needs to be doing  That is the fundamental basis of the Getting IT Right service line that I provide through my company, Applied Insight Pty Ltd. It isn’t just something I made up, it has a real basis in research into the practice of IT management.

So for the effective business reporting presentation, I have taken the people-process-technology relationship, added environmental factors in the context of the financial reporting system (so, financial capacity, regulatory compliance, and business strategy), and then linked this to the COBIT process framework (DS11 – Data Management).

This approach can be seen here:

And linking through, I can, using this approach, give you a framework you can use to diagnose and assess the effectiveness of your financial reporting systems:

I have done this simply by identifying the key words in the COBIT control objective identified – it talks about words like ‘complete’, ‘accurate’, valid’ etc (as referred to in blue), and then you have a coherent, flexible, approach to the delivery of effectiveness business reporting without the need to make it up (so we know it’s complete) but not so complex and rich that it can’t be understood.

If I as a business can take these factors and score them

in some way, I have a good approach for assessing the health of my business reporting systems.  And that is half of the purpose of the presentation coming up is anyway.

Introducing a guide for delivering ICT Services in SME’s

Some time ago as part of my commitments to the CPA Australia IT & Management Centre of Excellence, I was the primary author for a new guide called ‘Delivering information and communications technology services to small to medium enterprises’.  This guide joins the CoE’s other major publications on IT Governance and Business Management of IT in helping businesses manage today’s IT. 

Although I’m listed as the primary author, the new publication draws upon the combined experience of the CoE in making sure ICT does those things that the business needs doing.  Case studies are used to illustrate the advantages and disadvantages of using in-house, managed service provider, or completely outsourced approaches.  A practical approach to managing ICT in an SME so that the business can get what it needs from ICT is provided. 

This new guide is now available for free download on the IT Business Management section of the CPA Australia website. 

Please click the picture below if you’d like to download the complete publication. 

For reference, the other publications that are available are the ‘Business Management of IT’ guide and the ‘IT Governance’ guide:

 

The last two publications are available from the CPA Store.