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Working with Non-Disclosure Agreements

by Karen Galanaugh, APR ©

Karen Galanaugh
Galanaugh

This was a busy work year for me and my public relations company: lots of clients, lots of work produced — resulting in many projects to consider as entries in the DPA communications contest. However, I am restricted from submitting nearly ninety percent of my eligible work because of non-disclosure agreements with clients.

As a communications specialist and accredited public relations counselor, I provide a range of services from publicity and marketing communications to guidance in reputation management and other complex issues. Often, when I am called in by a company for advice regarding sensitive situations, as a requirement of engagement, I must agree to keep the conversations and relationships confidential. More often than not, I am required to sign a legal document called a non-disclosure agreement (NDA).

Use of NDAs is a common practice in business consulting. Legal contracts between at least two parties, they outline confidential material, knowledge or information that the parties wish to share with one another for certain purposes, but wish to restrict access to by third parties — such as competitors or the public. An NDA protects non-public business information. And depending on the specific restrictive clauses in an NDA, the agreement can even prohibit the service provider from identifying the client. For instance, with most of my NDAs, I am not permitted to say that I consult for the client company or say what I do for them. In practical terms, I must not list the client name on my Galanaugh & Company marketing materials, provide the client name as a reference or enter projects in contests without special legal clearance.

The subtext, of course, is that the client could sue if the terms of the NDA are breached. And if a consultant refuses to sign an NDA, she risks not being hired and risks developing a reputation in the industry for not operating within common business practices.

I have NDAs with companies in healthcare, energy generation, manufacturing and technology. I’ve even had NDAs with celebrities. The non-disclosure agreements I’ve signed with them do not offer protections under the law like attorney-client or doctor-patient privilege — which restrict certain communications from being subject to discovery in a legal proceeding. Information shared with a PR consultant is discoverable in a court of law even with a non-disclosure agreement in place.

One NDA blankets all of my communications work for the client, including: media releases, public communications, letters, marketing and public affairs plans and campaigns, videos, public and intranet Web sites, scripts, external and internal newsletters, advertisements, blogs, brochures and articles. Consequently, I cannot submit work to the DPA communications contest because I may not claim any of the mentioned tactical work projects as coming from my company.

I understand the value of the NDA. It allows the client to discuss problems and challenges comfortably. And it allows me to have all the facts before I provide counsel. This year alone, I advised companies experiencing difficult business scenarios and community-relations pain. I’ve consulted regarding a new product launch and have assisted in the creation and execution of a PR plan to roll-out information about a business acquisition.

I have a love-hate relationship with non-disclosure agreements. Sometimes I want to shout to the world, “I helped that company succeed!” And shouting wouldn’t hurt business development for my company either. But the prudent behavior is to let the client claim victory. After all, that’s why they pay me.

So, I conclude, silence is golden — especially when it helps clients meet communications goals. When satisfied, they want to hire me again. Silence also can keep me from being sued. And it can provide the quiet necessary to hear pesky internal voices in ethical headlock over vanity and self-satisfaction.

This story originally appeared in the February issue of Delaware Press Association's quarterly newsletter DPA NewsBreak. It is reprinted with permission. Karen Galanaugh, APR, was the national contest director for NFPW’s annual communications contest from 2007 to 2010. The 2006 DPA Communicator of Achievement, she is the owner and principal of Galanaugh & Company LLC, Public Relations & Marketing Communications, in Wilmington. And — notwithstanding NDA restrictions on some of her work — she is also is the winner of many statewide, regional and national public relations awards. Contact Karen at kareng@galanaugh.com.