In the last chapter I asserted that SMEs should honor confidentiality. There are, of course, exceptions. Not all confidential information needs to remain undisclosed. The circumstances that justify disclosure, however, are rare and easily identified. Here are the three circumstances when SMEs can openly tell others what was obtained in confidence.

First, if confidential information is later disclosed publicly through no wrongful act, it is no longer confidential. This should be obvious but is frequently overlooked. Frequently, SMEs obtain information in confidence and they assume it will be confidential forever. It rarely is. Even top-secret military records are eventually declassified. SMEs should remain attuned to the public information in their industry, especially about their clients. Information that was previously protected often becomes publicly available.

Second, the law may require at least limited disclosure of private information. Mandatory reporting laws in instances of abuse require some SMEs to report illegal behavior. In my experience, legally required disclosures are rare and should only be performed after obtaining appropriate legal counsel.

Third, SMEs can obtain permission to disclose confidential information directly from the other party. Just because your clients don’t want to disclose information themselves does not automatically mean that they don’t want you to disclose the information either. This is particularly true with client successes. A company may not be inclined to boast of its own accomplishments, but it may be comfortable allowing others to speak for it. A wise advisor once told me, “Every time you receive confidential information that makes someone look good, seek permission to share the experience.” I have been surprised at how frequently people say yes.

Even when one of these three exceptions apply, SMEs still should not disclose confidential information without documented evidence of the exception. Verbal authorization is rarely enough. In the absence of documented justification, SMEs should never disclose confidential information. Ever.