Sexual Harassment & Corporate Culture Audits

Sexual Harassment & Corporate Culture Audits

Sexual harassment in the workplace can create a hostile environment for employees and decrease workfroce morale.

The #MeToo movement has fundamentally changed the conversation around reporting and documenting allegations of sexual harassment in the workplace. Victims of this harassment have previously been restricted by a pervasive culture of silence and shame within the workplace—a culture where reporters are vilified and characterized as dishonest people with an axe to grind. Now, with many victims of sexual harassment publicizing their experiences in the workplace, more and more people are feeling empowered to seek justice for their treatment.

The Equal Opportunity Commission (EEOC) reported in their annual fiscal report that sexual harassment filings had an overall increase of 13.6% from 2018. The EEOC also denoted that they secured nearly $70 million for the victims of sexual harassment through enforcement on behalf of administration. These are just a few ways that the EEOC is attempting to make themselves the new champions of workplace harassment reporting in effort to improve the culture around reporting and enforcement. The EEOC seeks to empower employers to create a corporate culture within their organization that does not demonize reporting and encourages thorough investigations of all claims. By fostering this open and transparent workplace culture, employers create spaces for their employees that are safe, respectful, and thriving environment.

For a myriad of reasons, employers may have difficulty in performing due-diligence on sexual harassment claims. Whether the employer does not find the complaint credible, or as a result of oversight, when no investigation is conducted into the complaint, the organization opens itself up to subsequent litigation and a public relations nightmare. However, there are affirmative defenses for employers who can document their attempts to create a safe environment for their employees. One of the ways employers can document this is by submitting their organization to a corporate culture audit.

A corporate culture audit is one of the best investments that an employer can make in 2019. These audits are typically conducted by independent risk assessment firms and in some cases, even private investigators. In essence, a corporate culture audit is basically a check-up for a business or organization—not unlike taking your car in for scheduled maintenance. An auditor will enter the work environment and conduct a series of assessments based on a previously-set agenda. The goal of the auditor is to review internal processes and the physical location (if applicable) and identify issues that could have negative consequences for the corporation or organization, such as faulty investigation procedures for internal complaints.

Not only can these audits protect businesses and organizations in the aftermath of a sexual harassment claim, but corporate culture audits can also improve your business from within. What we know about the cycle of corporate culture indicates that when employees feel valued, they are more engaged and more productive as a result. The audit also evaluates the organization’s internal operations for efficacy and efficiency. By identifying flaws within internal operations, corporations can modify those procedures to increase productivity. Corporate culture audits are an invaluable opportunity for organizations to bolster their business and improve the overall health of the workplace.

If you want to give your business a tune-up, call Lauth Investigations International today for a free quote on our corporate culture program. We are an independent private investigation firm specializing in corporate investigations and crimes against persons. We have an A+ rating with the Better Business Bureau and scores of 5-star ratings on Google. Call today and learn how we can improve your business from within.

Corporate Culture Audit: What to Expect During an Audit

Corporate Culture Audit: What to Expect During an Audit

corporate culture audits

Pervasive internal issues are the malignancies that contribute to the decline of any corporation. While they come in many shapes and iterations, issues like communication, employee engagement, and employee relations can quickly derail a corporation’s mission. That’s why corporations across the country are electing to undergo corporate culture audits in order to get a full picture of what the internal issues are so they can make concentrated efforts towards improving their business.

No two culture audits will ever be the same—which is as it should be. Every company or organization is fundamentally different from one other, not only due to its structure and size, but because no workforce should be evaluated with the same measuring stick as another. It’s imperative that the context of every single corporation be fully explored. Full context can include, but is never limited to things like corporate mission, vision, values, internal operations, structure, and leadership.

Undergoing corporate culture audits is the first real step in addressing pervasive issues within the workplace. Think of it as an annual physical or checkup with a physician for your business. When you go to the doctor, you undergo an examination, and the specialists run tests in order to determine how healthy you are—a corporate culture audit is no different. A corporate culture auditor comes in and evaluates the level of functionality within your corporation so you can start implementing strategies to improve and grow your business. Here are some things that a corporate auditor might look at when they evaluate a corporation or organization:

  • Is everyone in the company invested in the same things?
  • What are the valued differences between your corporation and the competition?
  • What are the key measures of success within your company?
  • What is the functionality of the leadership in place versus the leadership required for success?
  • What are the environmental factors that are contributing to the decline in culture?
  • What is the history of your company’s culture from its foundation?
  • What are the subcultures that have formed in your organization and what is their role within the company?

Corporate culture audits usually begin by speaking to leadership. As the old adage goes, “The fish stinks from the head.” Many problems within an organization can be traced back to problems with leadership, and corporate culture auditors evaluate from the top down. Even if a CEO or manager is engaged in supervision of daily operations, they may still be making daily mistakes that contribute to stalls in the process.

Once leadership has been evaluated, auditors turn their attention to internal operations. This involves looking at the chain of command, the productivity flow (how the integral processes move from employee to employee), and the quality of communication throughout the company. This might involve interviewing department heads, reviewing meeting minutes, and evaluating the environment of the workplace. This step is crucial, because regardless of the leadership or employees in place, if the ecosystem of the workplace is flawed, it can be difficult for even the most efficient, engaged employee to achieve success.

Evaluating the environment and internal operations is tantamount to establishing a bulletproof process for success—leaving the workforce as one of the final pillars to be examined by the auditor. When you seek a comprehensive picture of your employees’ level of engagement, it’s important for auditors to identify the subcultures that are either contributing or derailing your company’s mission and values. For example—there might be a cluster of apathetic employees, who are not only disengaging together, but their behavior actively encourages other employees to exhibit the same habits. This kind of apathy can be a cancer in your corporation and may spread to other parts of your workforce, further contributing to the decline of business.

Most importantly, at the conclusion of the audit, an investigator will prepare a detailed report with very explicit recommendations for how to fix the problems within the corporation or organization. This could include items such as the termination of toxic employees, the revitalization of internal operations, and necessary changes to a brick and mortar locations for increased security or higher accountability. Once the audit is complete, the burden of change lies with leadership to become beacons of change within the internal structure. Corporate culture begins to improve when leadership enforces changes from the top, allowing their example to trickle down through the organization in the form of higher accountability and increased engagement.

If your corporation is suffering from a corporate crisis, don’t hesitate. Corporate culture audits are pulling more and more companies back into the black every day. Even if the crisis seems relatively minor, it could be symptomatic of a larger problem within your organization. Call Lauth Investigations International today for a free quote on our brand-new Corporate Culture Audit (CCA) program. Our dedicated and qualified staff composed of former military and law enforcement officers will get to the bottom of your internal problems. With Lauth Investigations International, you can expect hands-on, comprehensive services, detailed reports, and expert recommendations. When it comes to your business or organization, you should only expect facts, not fiction.

Corporate Structure is Not Corporate Culture

Corporate Structure is Not Corporate Culture

The biggest mistake executives make when trying to improve their corporate culture…

The corporate culture within any company, without question, effects their bottom-line day to day. Just to name a few avenues, this occurs through operations, interpersonal relationships between employees, and a level of engagement from leadership that requires consistent enforcement of their established mission and values. Because a corporation’s internal culture often remains hidden from consumer view, it’s not uncommon for leadership to simply restructure operations. Unfortunately, if every aspect of a company’s culture is not examined, this solution is just a band aid.  

The Ice Berg Metaphor 

When concerning a corporation’s culture, we often use the iceberg metaphor as a means of defining it. Ten percent of a corporation’s values and culture are above the water where the public and consumers can see it, and the other 90% lies below the surface. It’s that 90% that directly affects a company’s employee morale, productivity, and bottom line. A corporation often places its highest priority on how they are perceived by their consumer base, and therefore that 90% of company culture and values are either placed on the back burner, or corporations find themselves at a complete loss of how to get in front of the issues. 

The reason restructuring internally does not improve a company’s culture in the long-term is because the effects of a company’s culture are cyclical, and have nothing to do with the chain of command or employee hierarchy. The graphic above illustrates how a healthy company culture affects a company’s day-to-day operations

Happy Employees 

Some other band aid fixes for happy employees include things like discounted vending machines in the breakrooms, or regular celebrations of major holidays and birthdays. These lovely notions might improve culture for a day or even a week, but the pervasive internal problems will remain. 

Engagement 

Happy employees are engaged employees. When a corporation’s culture is healthy, employees feel invested in the success of their companies. The company’s success becomes internalized as their own success, and they are more likely to be plugged in, to take initiative, and to think outside of the box when it comes to problem-solving. 

Improved Operations 

When employees are leaning into their positions and actively working towards a company’s goals, that leads to smoother daily operations. Engaged employees are constantly finding ways to improve their processes so they can generate higher rates of productivity within their positions 

Productivity 

When daily operations are streamlined, this yields higher levels of productivity within the company. An employee’s daily duties are no longer a monotonous checklist, but a recipe for success for their company. An engaged employee’s success is the success of everyone in the corporation, and the same is true of productivity. A single employee’s increased productivity is the entire company’s success. Not only does this set an example for all employees, but increased productivity is what helps a company grow, mature, and prosper. 

Happy Leadership 

This one is a no-brainer. Anyone who has ever been employed knows that a happy boss makes a happy employee. Leadership sees the increase in engagement and productivity and lean into that success. Good leadership will reward that success in tangible ways that will have long-term effects on the company’s culture. They promote or give raises to those employees who are giving 100%, empower those employees through collaboration and development, and are more open to the thoughts and ideas of employees who are contributing to their success. 

Morale 

When leadership is actively encouraging employees through a pure manifestation of the company’s mission and values, employees feel as if they are making a difference within their organization. This increases the feeling of purpose and desire for cooperative teamwork. These feelings inspire employees to continue their pattern of success through the diligent, genuine practice of a company’s established mission and values. Increased morale means happy employees, and that’s where the cycle begins anew, exponentially influencing a company’s success with each cycle. 

Structure is Not Culture 

The network of operations within a company will never have a direct effect on company morale. Poor daily operations due to structure are really just a symptom of unhealthy corporate culture—a manifestation of poor culture at work. To diagnose the problem, many corporations turn to independent firms to conduct corporate culture audits in order to identify the problems within a company or organization. These firms measure a company’s daily operations, their quality of communication, and interpersonal relations among employees—just to name a few factors. When a corporate culture audit is comprehensive and curtailed to the organization, the findings can be invaluable to leadership that seeks to grow and mature in tandem with their values. 

To Review…

 As mentioned above, employees who see a consistent display of established values from leadership, they’re more engaged and productive. It’s one thing to have the company’s mission statement and list of values posted online or on the wall within a workplace. It’s a completely different ballgame when leadership puts their money where their mouth is, and serves as an example for the entire workforce. That example can have a ripple effect creating an interpersonal trust between employees, in which they all feel like they’re on a team, working towards the same goal. It is in the nucleus of that atmosphere where real change and growth begin. 

How Healthy Corporate Culture Stops Whistle-blowers

How Healthy Corporate Culture Stops Whistle-blowers

The word whistle-blower can trigger many different feelings for Americans. Much of the nation has very dichotomous feelings about whistle-blowers, either lauding them as heroes, or vilifying them as saboteurs. Individuals at the center of these whistle-blower stories are cast in different roles depending on the route that external media decides to take. While spectators decide for themselves whether the whistle-blower had good intentions or otherwise, the real question we should be asking is what kind of corporate culture within their organization allowed these events to transpire?

Whistle-blowing is not to be confused with “leaking,” another term that often appears in these narratives. In short summation, whistle-blowing is actually defined under the Whistle-blower Protection Act, describing a disclosure of information that an employee “reasonably believes” demonstrates “a violation of law, rule, or regulation; gross mismanagement; a gross waste of funds; an abuse of authority; or a substantial and specific threat to public health and safety.” These actions amount to misconduct, and are actionable. “Leaking” describes the act of indiscriminately releasing company information, regardless of whether or not that information constitutes some degree of ethical violation. The term “leaker” can also be ascribed to a legitimate whistle-blower in order to discredit them.

In reality, it is a myth that most whistle-blowers are “snitches” who go directly to external sources like the press or watchdog groups to report their organization’s problems. In most cases that have been denoted as “whistle-blowing” there are documented attempts by the whistle-blower to try and resolve the issue within their corporation or organization. It’s when those attempts to resolve the issue internally are exhausted that whistle-blowers often find themselves without recourse, and go to the media in order to get their story out there.

This is why those who work in corporate ethics and corporate compliance recommend a healthy corporate culture in order to prevent whistle-blowing from occurring in the first place. Healthy corporate cultures promote a climate of excellent communication in the pursuit of a common goal (usually outlined by a corporation’s established values or mission statement). When an issue is brought to the attention of leadership, and they are inspired by a company’s mission statement to do something about it, that is where true corporate progress occurs. The effects of a healthy company culture can actually be cyclical. When an employee reports an issue or misconduct to leadership, they might expect to receive some push back. However, when that employee is carefully heard, and taken seriously, it can foster a sense of value in the workforce, as they now know they are agents who can effect change. This inspires a higher level of engagement in employees, which leads to higher rates of productivity, which in turn leads to happier leadership, who are then more inclined to reward employees for their hard work. That all increases morale on behalf of the entire workforce, leading to a healthy company culture.

When the goal is teamwork and collaboration, there is no need to turn to external sources to shed light on an issue. A healthy company culture will create a climate where internal issues can be discussed and resolved through teamwork—not through media attention and public outrage. Whistle-blowers are not heroes or villains, depending on who you believe, but rather a symptom of dysfunction within a corporation or organization that cannot afford to be ignored.

Investigating Executives & White Collar Crime

Investigating Executives & White Collar Crime

Don’t let executive misconduct ruin your corporation…

When it comes to running a business, the executives who are the visionaries and decision-makers that shape a company should always remain above reproach. White collar crimes have the potential to pull a business up from the root with devastating consequences. Unfortunately, Americans know from media coverage and social media that there’s few things we are more attracted to than stories about high-ranking officials and the misconduct that negatively impacts their businesses—both in profits and in public relations.

Many will be familiar with the recent news of Amazon CEO Jeff Bezos’ high-profile divorce following allegations of infidelity, in which his ex-wife became the richest individual in history by virtue of divorce proceedings. The fallout from executive misconduct can leave a trail of legal fees, government sanctions, violations, and public relations-related crises that can devastate a company from the top down.

Thought to be coined in 1932, the phrase “white collar crime” now refers to a spectrum of frauds and other crimes committed by high-ranking executives and officials. The most common characteristics of white collar crime contain aspects of deceit, concealment, or violation of company policies and/or state and federal law. The motive is financial, with executives skimming off the top of a company’s profits for their own use. These crimes are sometimes thought of as “victimless crimes,” with no regard to how the fallout from a fraud or scheme can impact the company, and therefore the families of its employees. The types of fraud include, but are not limited to:

  • Bank fraud
  • Blackmail
  • Bribery
  • Cellular phone fraud
  • Computer fraud
  • Counterfeiting
  • Credit card fraud
  • Currency scheme
  • Environmental schemes
  • Extortion
  • Forgery
  • Health Care Fraud
  • Insider trading
  • Insurance fraud
  • Investment schemes
  • Kickbacks
  • Larceny/theft
  • Money laundering
  • Racketeering
  • Securities fraud
  • Tax evasion
  • Telemarketing fraud
  • Welfare fraud
  • Weights and measures

Corporate fraud and white collar crime of this nature remain one of the Federal Bureau of Investigation’s top priorities when it comes to identifying and indicating perpetrators. While involvement by government agencies may seem like the end of the line, there are ways companies can get out in front of executive misconduct by hiring a private investigator to investigate these matters.

Private investigators have a unique reputation as slick operators who fly under the radar, but they are invaluable professionals to companies in the throes of a corporate crisis because they are independent and objective. Objectivity is the priority when dealing with executive misconduct and white collar crime, as any allegations or evidence presented against the executive must be presented by an individual with no stake in the outcome of the investigation. Private investigators are independently contacted by a business or corporation to investigate the alleged executive misconduct, and can gather evidence and collect witness statements without the air of bias. Because private investigators are independent contractors, there is no fear of reprisal on behalf of coworkers and other employees at the company. This leaves no lead discounted or ignored. They can investigate employees at all levels, and determine how (if at all) the executive is receiving assistance in their fraud from subordinates. One of the most attractive qualities in a private investigator is that their objectivity makes them crucial witnesses in any legal proceedings that may result from the investigation.

Businesses and corporations should never be beholden to CEOs, presidents, and other high-ranking executives who behave badly. Executive misconduct and corruption are like aggressive weeds that must be pulled from the root in order for businesses to flourish. When it comes to rooting out bad leadership, consider hiring a private investigator to navigate a tricky investigative path that can end in quality operations and peace of mind for businesses large and small.

If you have a corporate crisis like executive misconduct, we can help. Call Lauth Investigations International, a family-owned-and-operated investigative firm with over 30 years of providing successful solutions to clients in Indianapolis and throughout the nation. Call 317-951-1100 for a free consultation, or to learn more about our services, please visit our website.