Consequences When Companies Fail to Properly Perform Document Destruction Shredding

Posted By : Aubrey Mead , on Apr, 2017


In the age of corporate social responsibility, document shredding is extremely important to a company’s reputation. Consumers are becoming increasingly aware of actions taken by corporations and highly favor businesses that promote sustainability. Document Destruction Shredding allows businesses to have a positive impact on the environment while adhering to federal and state privacy laws by securely discarding sensitive information. Failing to adopt secure methods for document destruction can result in costly consequences.

There are several consequences related to improper disposal of sensitive information.

Identity Theft

• When a business disposes of data in a non-complaint manner, it leaves customers open to become victims of fraud. Once someone’s identity has been stolen, it can take years to repair the damage. As a business, when customers are entrusting their personal information, it is important to show them the respect of properly handling their records. Cases often go unsolved, leaving victims distraught with nowhere to turn.

Loss of Reputation

• Customers are scrutinizing the actions of businesses and remove their loyalty if they do not agree with a company’s actions. If an investigation is conducted and it is found that a company improperly disposed of sensitive information, there would be an immediate distrust among customers.This could also result in a loss of revenue as it may take time to rebuild trust.


• Privacy laws are established by both federal and state agencies. Adherence to these laws is required when storing and discarding sensitive customer information. If a data breach occurs, an investigation will be conducted. This investigation includes a review of your storage and document destruction methods set in place. If it is found that those methods are not in compliance with federal or state laws, the government will levy hefty fines.

Litigation Issues

• Disgruntled customers suffering the effects of identity theft will likely want to seek damages for a company’s failure to protect their personal information. If the identity theft is proven to be a result of non-complaint disposal methods, the company will likely have to pay damages as well as paying court costs and lawyer fees. This, along with the fines levied by the government, can result in a great loss of revenue that could take years to recover from.

For companies wishing to increase their sustainability efforts, visit to learn more about Shred Confidential’s on-site and off-site Document Destruction Shredding services.

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