Archive for category: Business News

Highlighting the Importance of Non-disclosure Agreements For Any Industry

Everyone who intends to engage in business needs to know the importance of non-disclosure agreements and what these are. This is especially important for startup companies and for firms developing innovations and that have trade secrets.

Non-disclosure agreements (NDAs) or confidentiality agreements (CAs) form part of a business agreement. These allow the business owner to discuss confidential information about their product or service without fear that the information would be stolen or misused.  The agreement prevents suppliers, subcontractors, creditors, and clients of the business owner from using the confidential information for the purposes other than what has been agreed on. Some companies require employees to handle confidential information to sign NDAs or CAs to protect the company against competitors.

With NDAs or CAs in place, the business owner and the other party can confidently transact and carry out their business. Examples of trade secrets are recipes for a food product or the technology used in a computer application.

What Should a Non-Disclosure Agreement Contain?

There is four basic information that makes an NDA more effective to protect business trade secrets.  First, it needs to specify the confidential information that it protects. Second, the agreement should identify the actions which can be interpreted as information disclosure.

Third, NDAs and CAs should specify how long the non-disclosure period lasts.  This can be a specific number of years or for perpetuity. And lastly, there are penalties which the party violating the NDA or CA suffers if they break the agreement.

NDAs or CAs do not cover when the public report information since the information is by nature submitted to government agencies and may be accessed by the public.  In some cases, courts may order the disclosure of some of the information, and the NDA or CA ceases its efficacy.

Examples Of When Non-Disclosure Agreements Are Useful

All types of business have some information they need to protect to be competitive and succeed.  This can range from highly confidential ingredients and recipes of a food product, chemical formulas used in manufacturing, or a specific production process and technology used in manufacturing products.  It could also include basic information about clients and market studies and supplier information that have been built through the years makes the business sales stable. Innovations made by start-ups and long-established companies are also normally confidential until they are released.

Businesses need to deal with different entities with whom the information would be shared. This may include investors or creditors, subcontractors, or suppliers. Business owners, most especially startups, ought to install non-disclosure agreements or confidentiality agreements. This way, they can prove intellectual property theft and claim indemnity in the future. This emphasizes the importance of non-disclosure agreements.

How to Make NDAs and CAs More Effective?

NDAs and CAs need to be clearly worded and unambiguous, and understandable by all parties. You see, some entities who violate NDAs and CAs usually take advantage of loopholes in the contract.  To prevent this, businesses could do two things.

First, seek legal counsel’s assistance to guarantee that the agreement covers the basic information necessary in an NDA or CA. A robust NDA or CA is as important as the trade secret you want to protect. Consider this as part of your capital investment.

Second, document the NDA or CA meeting, so all parties understand in simple layman’s language what is covered.  You protect your company from long litigation if you have both the agreement and the meeting minutes discussing the NDA or CA on hand.

You may be looking for information about the current legal status of non-disclosure agreements, along with other important business news. Visit Top World Business now and stay on top of further developments in your industry.

Businesses Face Litigation When Legal Problems in Sales Crop Up

All businesses need to avoid litigation as much as possible. This is especially true with legal problems in sales that can result in costly compensation for the benefit of the plaintiff. For example, the e-commerce giant Amazon found itself liable in 2018 for selling a dog collar which was believed to cause permanent blindness for the female victim in Pennsylvania. (This was based on a ruling by the US 3rd Circuit Court of Appeals). Ironically, Amazon was not the manufacturer but had only sold the defective product on behalf of a third-party vendor.

Salespeople Are Not Automatically “The Bad Guy”

Although cases like that in Pennsylvania are rather extreme, they do happen. But many salespeople are actually quite ethical and sensitive to the needs of their customers. This means they go the extra mile to make sure that the products they sell do meet customer needs. It just so happens that some unethical salespeople in the past have put the selling profession in a bad light. And it is regrettable that people now see salespeople as “the bad guy” of trade.

Common Situations When Salespeople Might Compromise Ethics

One way that a salesperson can get in trouble is when a customer requests sensitive information about their competitor who happens to be the salesperson’s other customer. Another way legal problems in sales happen is when the company prohibits its salespeople from giving gifts to customers – but the salesperson sends the gifts anyway. Customers can get salespeople in trouble when they ask for freebies that salespeople aren’t ethically allowed to give. And then there are salespeople who decide to goof off during a workday, since they are basically managing their time on their own, legally. Problems like these may put the sales profession in a bad light.

Salespeople Shouldn’t Manipulate the Buyer or the Selling Process

Some salespeople manipulate buyers into buying something because they have a quota to meet. Some even lie about what their products can do or how these are used, hoping to close a sale. Unethical practices like these may end up harming the buyer and other people, as in the Pennsylvania case. Ethical salespeople do lose the trust of the public when others behave in unethical (and even illegal) ways. These salespeople just want buyers to purchase something. They don’t consider the impact on the image of other salespeople at all.

If you encounter business news that talks about salespeople in a negative light, try to keep an open mind about it though. Because many salespeople do their work honestly and ethically too. True, it will take some time to clean up the salespeople’s public image but it can be done. It will also take quite a lot of Public Relations activities to make the sales industry seem safe and free of any problems. It would also help if everyone in sales followed a common Code of Conduct to protect salespeople everywhere.

If you would like to stay abreast of news about the world of business, do visit the Top World Business site now. We may have the information you urgently need right when you need it.

Family Businesses or Regular Companies: How They Compare With Each Other

If you own a company, you probably may be wondering about the line of succession you will create, to assure its survival. For some people, family businesses are a better option. This is due to the level of familiarity between the founder and management. It also reflects the relationship between the top bosses and the next generation of leaders. However, others may be confused between family businesses or regular companies, since families are not always capable of managing the line of succession.

The Advantages of Family Businesses

The most obvious advantage of a family business is that the founder’s own children will be able to inherit a fully-functional company after coming of age. The founder will be able to train his or her children regarding the inner workings of the company. The founder may also train their children in company duties when they are given specific roles.

But some company founders debate the logic behind this. They argue that both family businesses or regular companies have to comply with government regulations for their industry. They may also think someone from within the ranks of employees might be better suited to take over the reins. Once the founder steps down, this successor would manage the company on their behalf.

The Case of Chung Mong-Koo

Hyundai Motor founder Chung Ju-Yung designated his son named Chung Mong-Koo as his successor. However, Chung Ju-Yung did not foresee that his son would eventually be convicted of embezzling Hyundai Motor funds. The funds were given, in return for preferential treatment by the Korean government. This is a good example of the logic of assigning an intelligent and capable leader who is not related to the company founder. Chung Ju-Yung should have appointed someone from within the employee ranks as his logical successor. That would have been better for Hyundai Motor.

The Hyundai Motor experience shows that companies survive not just because the founding family will be assuming the reins of power eventually. There should be leaders who are trained in managing the different parts of the firm. The bigger the company, the more well-trained the corporate leadership should be. A competent leader should have the educational background, experience and on-the-job training that will prepare the company for challenges in the future. Assigning kinfolk to the company leadership can sometimes be detrimental for the welfare of the company and its people.

Family Quarrels Can Tear Apart A Company

Another major difference between family businesses or regular companies is that a family member can have disagreements with other relatives. This can destroy the esprit de corps of the company since the line of succession depends on family ties. Even ordinary rank and file employees may find themselves taking sides in a corporate family quarrel. But members of management in a regular company can resolve disagreements logically for the good of the organization, rather than for self-interest only.

A family quarrel can be petty, cruel and selfish, making the company atmosphere charged with negative vibes. Ordinary employees may find it unpleasant to work in a company torn apart by family quarrels. Corporate leaders may resign, bringing with them their most loyal followers from employee ranks. To resolve this, the founder of the company may have to shut it down or sell it instead. This is the logical result when family members don’t get along.

If you need more information about the corporate line of succession and other business news, visit us at Top World Business. We may have the right information you need for your company’s situation.

What is Diversity in the Workplace and How it Affects Corporate Vision

Businesses have become very global-oriented, and it will stay that way for a long time. In case your business does not observe this yet, you might as well start today. Diversity in the workplace is not only focused on the gender, race, are cultural background, etc., of an employee. There is more to hiring people that come from diverse backgrounds.

Even if not everyone shares the same interests and beliefs with others, each person’s uniqueness can contribute a lot in the workplace.

Here are the advantages of having diversity in the workplace:

New Perspectives are Shared

When people are hired from different backgrounds, cultures, and nationalities, you bring new perspectives to the table. This can lead to more benefits, such as better ways to solve problems and higher productivity. You will have more success by gathering more information because your team can split up strategically.

Bringing fresh perspectives in the company can be intimidating for hiring managers. People can be afraid to introduce unpopular opinions, but they give you peace of mind. A diverse team improves your decision-making abilities significantly.

Improves Levels of Productivity

Diversity combines different talents. All of them are for a common goal using their skills. Your company will also benefit each employee because they can learn from the experiences of others. The knowledge gained from them can be applied to their job. Employees coming from all backgrounds bring new perspectives to the workplace. Therefore, they can introduce new ideas that will make others think outside the box.

Improves Overall Reputation

It is impossible to be in the room and not participate in the discussion. This is especially true when you have a business, and you cannot miss out on the things that your competitor does to beat you. That is why almost all organizations want their workplace to have diversity. They do this to meet their quota or diversity requirements and the positive impact it brings.

Workplace diversity has an important role in building a company’s good reputation. This will lead to better profitability and equal opportunity for everyone in the company. Therefore, organizations that have diversity have a positive global reputation. When this happens, your brand will improve, and there is more respect for your fair employment ethics and practices.

You Have a Wider Talent Pool

Employees do not only look for 9-to-5 jobs today that pay them well. They also want a space that boosts their growth, make them feel accepted, and challenges their skills. That is why companies embrace diversity to attract candidates who are looking for a progressive environment. Therefore, diverse companies will most likely attract the best talents.

A company that always looks for diversity in candidates will have a wider talent pool. Even if you must be selective on who to hire, being too picky might decrease the number of people you choose from. That is why when you embrace a diverse background, ethnicity, thought, and other factors are ways to find good talent to hire.

There are Better Insights and Less Racism

Since there is a more diverse workforce from different backgrounds, employees bring their skills to the table. Most of the time, they have the same level of diversity.

Having more knowledge and available skills allows companies to enjoy a diverse range of goods and services they can offer to specific markets. This is what entrepreneurs refer to as market diversification.

Employees spend every day with people from different backgrounds, which is why employees learn to accept and learn about new cultures. This reduces negativity like sexism, homophobia, racism, and similar to that.

Employees Perform Better

Diversity goes together with inclusion. If the work environment lets employees represent their cultures, train of thought, and cultures, they will be more confident to be themselves. This makes them happier and more productive.

If employees feel like they can’t be themselves at work because of prejudices, they will fear rejection and might not be productive at work.

Language Skills Benefits Your Business

Most of the time, language barriers and cultural differences can be obstacles for companies that want to expand their business. When you hire employees that speak different languages, it becomes possible for your company to work globally and interact with a wider range of client base. Your company also becomes more relatable if there are different nationalities in your company.

Diversity in the workplace is one of the main business news topics today that companies talk about.

Some Money Laundering Scams Across the Internet: Don’t Fall for Them!

If you come across job listings that ask you to pay or do money transfers for your employer, it signifies a money-laundering scam. The job sounds very easy, but it is just a façade to lure you into their scam. These kinds of fake jobs are never safe to do, so you should always be careful before believing it is a real job. Legitimate companies handle credit cards, payments, and transfers online. They do not need to involve a third party, and never use your account to do financial business for your employer.

So without further ado, here are some money laundering scams you need to be aware of:

#1 Paying in Advance Scams

Money launderers will make a large order and make an advance payment. Later on, they are going to cancel it and demand a refund. Most of their money will be returned to them, and less the cancellation charge. They will show paperwork showing their cash is in their bank account, and it is from a legitimate business transaction. That is fake.

You should train your employees to be wary of signs that show suspicious activity like large cash payments or orders that are not sensible. For instance, a transaction that is hard to see how the buyer makes a profit.

#2 Online Relationship Scam

You will meet someone from a long distance, and they seem to be excellent. You both get along and hit it off right away. The person will soon ask you to send them money via wire transfer, or you will receive money. They can even ask you to send money somewhere else. The reason they give you for asking you to do it sounds reasonable, like for visas, plane ticket, bills, medical expenses, etc. These are all lies, and you will start to suspect as well.

It would be best if you stopped communicating with the person right away. This is a sure sign of a money-laundering scam. Report them right away, and stay away from being embroiled in a financial crime.

#3 Promise of Quick Money

This scam could start as a phone call, message, or an unsolicited email that tells you about a job that requires very little work but offers a very high payment.

Criminals that practice this scam normally target people who are looking for a job or want to work online from home. Once your job is secured, you will be asked to fill out paperwork asking for your address, social security number, and bank information so they can deposit your paycheck. They can use the information you gave to access financial accounts you have.

Sometimes, you might not know that you are taking part in a money-laundering scam in your new job.

When you are looking for a job, only use popular and credible job sites, check the employer’s background, and not apply to jobs that sound too good.

#4 Honest Face Hoax

The scammers have a legitimate business, which lets them clean cash by mixing it with their earnings from the company’s legitimate activity. If the firm is honest, they might end up in business with a money laundering company. They could be a supplier or customer, which leads to damage if it gets discovered.

The best way to avoid this is to be diligent with your suppliers and customers. One sign could be that the company offers a lot better prices and terms and conditions than the normal.

#5 You Won a Money Prize

Out of nowhere, you will be told that you won a prize or the lottery. To ensure your prize, you will be asked to wire money, pay for shipping and handling fees, or improve your winning chances. They might ask for your credit card or bank account information. It would be best if you never did it. This scam is a classic one, and it has been viral.

It is a crime to be part of any foreign lotteries. If the sweepstakes or lottery company is legitimate, they will never ask for your personal information, mostly financial. These too good to be true prizes are rarely real, and they will only try to scam you. Also, real prizes do not ask for anything in return, especially money.

Stay Vigilant and Alert

Money laundering scams are very rampant, and you should always have your guard when doing anything related to money. It is common to find business news about money laundering scams, and you can easily research them because these fraudsters never stop.