Setting Privacy Defaults will allow you to restrict which Privacy levels are allowed within certain areas of the application. You will pick the highest level of Privacy that you want to be used to restrict privacy beyond the default.
Every Record in the application must be Public Read/Write - Employees cannot place Read Only or Private Records in the application.
Every Record in the application must be Public Read/Write or Public Read Only - Employees cannot place Private Records in the application. New Records will default to Public Read Only but this can be changed.
The Records have no restriction on Privacy. Employees can place Public Read/Write, Public Read Only, and Private Records in the application. New Records will default to Private but this can be changed.
Note: When no default is set, new Records will default to Public Read/Write but this can be changed.