Business ethics, restrictions on employment and knowledge management

Pages174-183
Date20 June 2008
Published date20 June 2008
DOIhttps://doi.org/10.1108/03055720810889815
AuthorCynthia M. Gayton
Subject MatterInformation & knowledge management
LEGAL ASPECTS OF KNOWLEDGE
MANAGEMENT
Business ethics, restrictions
on employment and knowledge
management
Cynthia M. Gayton
School of Engineering and Applied Sciences,
The George Washington University, Washington, DC, USA
Abstract
Purpose – The purpose of this paper is to address ethical and legal issues relating to employment
contracts and the effect on knowledge transfer.
Design/methodology/approach – Relevant literature for business competition, learning and
knowledge management and ethics were reviewed to prepare this paper.
Findings – This paper was an opportunity to express an opinion that employment contracts should
reflect economic realities of both the employer and the employed to encourage high-ethical standards.
Practical implications – Employers and the employed may be encouraged to forthrightly discu ss
issues relating to ethics and competition in light of changing economic conditions.
Originality/value – This paper offers a self-help perspective for employees, making them more
aware of employment contract terms and responsibilities. Employers may be encouraged to craft more
progressive contracts to not only protect business proprietary information and maintain ethical
integrity, but also assist employees in taking control of their futures.
Keywords Employment,Employment contracts, Business ethics,Information disclosure,
Knowledge transfer,Social capital
Paper type Viewpoint
1. Introduction to the issue
Few businesses can ignore market the market’s influence on employee behavior,
whether they are actively looking for new employment or holding fast while waiting
for the next layoff. However, a business’s reliance on outmoded employee control
mechanisms diminishes knowledge value. The US economy, in particular, depends on
fluid knowledge transfer. Most companies acquire knowledge through asset purchase s
or by hiring experts in a particular industry. As I have discussed previously in other
articles, the interests of companies, or knowledge acquirers (KA) and employees, or
knowledge holders (KH) are often at odds[1]. This paper will address the balance of
ethics and contracts to create a more robust knowledge economy. How successfully
these interests are balanced will depend in large part on flexibility.
Many, if not all, employees with access to business proprietary information sign
non-compete/non-disclosure agreements. In addition, professionals, such as engineers,
architects and others, are bound to abide by a code of ethics promulgated by
professional licensing organizations. Although violations of these codes are not
actionable in court, licenses may be revoked by the granting organization if
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0305-5728.htm
VINE
38,2
174
VINE: The journal of information and
knowledge management systems
Vol. 38 No. 2, 2008
pp. 174-183
qEmerald Group Publishing Limited
0305-5728
DOI 10.1108/03055720810889815

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