It’s mind-boggling to think that some of the most controversial scandals in our country’s history have taken place only in the last decade. Corporate scandal is a hot media item, with the misbehavior of employees at all levels facing public scrutiny. Information on corporations and their corporate culture is more visible than ever as experts continue to place more and more importance on work-life balance, and satisfaction in the workplace remaining the driving force behind employee engagement. As technology and the ubiquity of accessible information continues to advance, private United States citizens are becoming more informed about the largest corporations in the nation, how their behavior effects their corporate footprint, and how their own consumerism can affect these corporations.
BP Oil Spil
There’s no better place to start than at the beginning. In April of 2010, the oil and gas conglomerate BP began the new decade with an oil spill so catastrophic that we’re still talking about the environmental impact ten years later. The corporate scandal also involved devastating loss. The Deepwater Horizon rig exploded off the coast of the Gulf of Mexico, which broke open the will, dumping between 2.5 and 4.2 million barrels of oil into the gulf before it could be capped once more. For thousands of miles, the oil slicks contributed to the deterioration of marine life and had cost the corporation in excess of $65 billion dollars before 2020. In an article published in June of 2010, Peter Fairly of MIT Technology stated, “A culture of tighter safety and more experienced regulators might have prevented the BP Deepwater Horizon leak.” Under the terms of a settlement, BP agreed to pay the Natural Resource Damage Asessment Trustees up to $8.8 billion for restoration work to rebuild the natural environment that was damaged by the spill.
Foxconn Suicides
Later in 2010, there was an alarming string of suicides at a plant run by Foxconn, a Chinese corporation that produces roughly 40% of the world’s consumer electronic components—technology that builds our smartphones, gaming consoles, and other forms of smart technology. These tragedies were covered heavily in American media as questions arose to the quality of labor conditions in these Chinese plants. In subsequent investigations, it was revealed that workers could be working 12-hour shifts, with less than a dollar (U.S.) in their pocket for food. While the suicides received a great deal of coverage, and had public relations repercussions for corporations that utilize Foxconn exports, there have been at least 8 additional suicides at the same factor have been reported since 2010.
FIFA Corruption
Few things are more universally loved across the globe than soccer, or football, as it’s known in the rest of the world. In May of 2015, millions of soccer fans were shaken by the FIFA corruption corporate scandal. The Department of Justice indicted the Federation Internationale de Football Association leadership on charges of racketeering, wire fraud, and money-laundering. The indictment outlined various instances of an excess of $15 million dollars in bribes taken by executives for preserving advertisement marketing rights for decades. The scandal lead to the resignation of President Sepp Blatter in June of 2015 after he managed to escape indictment. Millions of dollars in legal costs and loss of corporate sponsorship severely damaged the reputation of the organization, netting losses of $122.4 million.
Theranos & Elizabeth Holmes
The scandal surrounding the health technology company known as Theranos was a cluster 15 years in the making. Once again a corporate scandal that effected public health, both the executive and the corporation were villified in the media. Stemming from a fear of needles when she was a child, founder Elizabeth Holmes was seeking to develop a technology that would lead to higher accessibility of blood-testing throughout the world. Her device supposedly would be able to perform a smattering of biological tests from a single drop of blood. The Wall Street Journal published an expose in October of 2015, exposing more of the company’s deception and further implicating some of Holmes’ colleagues in the scandal. Holmes was charged with massive fraud in March 2018. Formerly thought of as a young genius, she is scheduled to stand trial in 2020, facing up to 20 years in prison and millions of dollars in fines.
Big Pharma & the Opioid Crisis
Corporate scandal is at it’s worst when it comes to public health. The ever-growing opioid crisis in the United States is hands down one of the most pervasive scandals of the last decade. In 2017 alone, there were over 70,000 drug overdose deaths in the United States. Of those overdose deaths, 67% came from an overdose of opioids. From the Midwest to the Northeast, opioid deaths spiked between 2016 and 2017. As of November 2019, six pharmaceutical companies were under federal investigation and were facing federal charges for their responsibility for the opioid crisis. Amongst other big pharma companies, Purdue Pharma reached settled for billions of dollars for communities in 23 states that were affected by their shipment of opioids, forcing the company to ultimately filing for bankruptcy. The settlement set major precedent as the first of it’s kind in our American legal system.
When corporations make the investment to evaluate their corporate culture, it’s important that they choose a vendor who offers a comprehensive audit program. With the rise of the #MeToo movement, the Equal Opportunity Commission (EEOC) saw an overall increase of 13.6% of sexual harassment filings in 2018. That’s not counting other filings for discrimination based on age, race, and sexual orientation. This has placed corporations on high alert as the nation’s capitalist climate gears up for change in their workplaces. This means that when leadership opts for a corporate culture audit, it’s important that their money is well-spent, and one of the best moves to make is hiring private investigators to handle the audit.
Many corporate culture audits are performed by independent risk assessment firms, which is to be expected. Risk assessment firms specialize in identifying the weak points in a business from their workforce background to their brick and mortar security. However, if leadership is going to invest in improving their corporate culture, it’s important that they pick a program that offers comprehensive services. While risk assessment firms might employ highly capable auditors capable of identifying security oversight or performing background checks, every business is different, and it’s important that the program selected fit every business true-to-form. That’s where a private investigator can be an invaluable asset.
Private investigators as a profession have a lurid
reputation for following philandering spouses and people suspected of worker’s
compensation fraud. The same tool chest that allows them to perform those
services is the same one that makes them ideal candidates to perform corporate
culture audits. Private investigators have an eye for detail, diligent drive,
and a meticulous ability to evaluate and make recommendations based on what
they’ve observed. These are the types of professionals you want when it comes
to assessing the culture of your business or organization.
Independent risk assessment firms are just as excellent in
identifying the risk factors that put a business or organization at risk, such
as vulnerabilities in their securities, faulty hiring processes, and at-risk
employees based on their history—but what about the human element within a
corporate culture audit? Corporate culture audits are so much more than
comparing documents and surveying brick-and-mortar locations. It’s also about
understanding how current employees function in a workplace ecosystem. Private
investigators, with a wealth of experience in evaluating human behavior and
emotions, can be the boots-on-the-ground investigators who can speak with
current employees and collect data on their impressions of the current work
environment and how the culture can be improved. Some of the questions private
investigators may address include, but are not limited to:
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?
By answering these questions and calculating the human responses, private investigators can provide executive leadership with recommendations based on more than what exists on paper; for example, the last item on that list regarding the identification of subcultures. Private investigators do not only look at the behavior of individual employees, but also how those employees relate to each other. In workspaces where there are employees of 10 or more, it is hyper-common for subcultures (or groups) to form. This happens when individual employees gravitate towards one another as a result of their shared interests, goals, or gripes. Their comradery can either contribute to the cycle of corporate culture, or undermine it. When a subculture forms because the employees all have similar degrees of dissatisfaction with their job (regardless of the reason), their validation of one another in solidarity can be a cancer within the organization. This is why it’s imperative to hire corporate culture auditors who have a high level of understanding of human behavior—they can provide a comprehensive picture of how their current employees are contributing to the cycle of corporate culture.
While
private investigators may not be able to dismantle subcultures, they can change
the conversation within those subcultures. Groups of employees who bond over
poor treatment from a supervisor or frustration with current internal processes
will have to find other things to talk about once these issues are addressed
and remedied appropriately. This is one of the ways that we improve the cycle
of corporate culture. When employees see pervasive issues being addressed by
leadership, they are inherently more engaged in the process, which can increase
the quality of communication, the level of productivity, and the overall health
of the workplace. Private investigators are some of the best professionals to perform
these audits ultimately because they have a grasp of human behavior that allows
them to accurately pinpoint the issues and make recommendations to leadership.
When you think of private investigators, you don’t usually
imagine the state of Kentucky as their stomping ground, but the flexibility of
a private investigator’s skills can be applied in any city, any state, as long
as the investigator meets the state requirements for independent licensure—and
Louisville private investigators are never hard-up for casework. The city of
Louisville, Kentucky is synonymous with so many well-known aspects of American
Culture. It’s the home of legendary boxer, Muhammad Ali, the annual Kentucky
Derby, Louisville Slugger bats, and Kentucky Fried Chicken. It’s a vibrant
cultural hub smack in the middle of America that combines metropolis energy
with southern charm. Despite the fact that it’s one of the safest cities in
America, Louisville also experiences a higher rate of violent crime than the
U.S. as a whole. With The speed, anonymity, and geo-social aspects of the city
make it an ideal place for a private investigator to set up shop.
Relative to its size and population, Louisville is
comparable to Baltimore or Glasgow (U.K.). It has a crime rate of 647 violent
crimes per 100,000 people. In 2017 the Louisville Metropolitan Police
Department fielded 4,428 violent crimes, 44% of the entire state total. That’s
an average of 12 violent crimes reported every day. Even police departments
that are well-funded and well-manned have difficulty juggling the caseload per
investigator, and that is where private investigators come in.
Private investigators as a profession have a reputation for seedy
surveillance and cloak-and-dagger tactics, but the same services that expose
cheating spouses and hidden assets can assist in casework for violent crime. In
a 2018 investigative piece, Louisville’s radio station WFPL 89.3 reported that
LMPD closed 51% of its open rape cases over the course of three years. However,
the Louisville station also determined that in a majority of those cases, they
closed them with the classification of “cleared by exception,” a status meant
for cases considered “exceptional situations,” often resulting in no arrests.
This has been characterized as Louisville’s PD attempt to improve their closure
rate. Jessie Halladay, a spokesperson for Louisville Metropolitan Police
Department said, “What it means is that we have done all that we can. We don’t
use that as a marker of success when we use ‘cleared by exception.”
Case closure does not mean there’s closure for the survivors
of these brutal crimes. In the best-case scenario of “cleared by exception,” it
could simply mean that the Louisville police hit a roadblock in investigative
methods such as witness location, evidence-gathering, or jurisdictional
boundaries that prevent them from investigating further. Private investigators
have a similar tool chest to that of law enforcement officers. Survivors of
violent crime without closure in their case can hire
private investigators to pick the case up where law enforcement left
off—locating vital witnesses, performing surveillance, and documenting casework
that can be helpful if the case is resurrected within the justice system, or if
the survivor wishes to face their attacker in civil court.
One of the nation’s foremost experts in missing persons, private investigator Thomas Lauth (Lauth Investigations) recently expanded his independent investigation firm to serve the Louisville population. “When cities like Louisville have difficulty closing cases within their respective police departments, that’s where private investigators can ‘pick up the slack,’ for lack of a better phrase. We can follow leads that law enforcement cannot and we can bring justice to survivors of violent crime who previously had no recourse.” With their autonomy, private investigators can pick up leads that law enforcement might have dropped, or locate witnesses that might have left the jurisdiction. Lauth went on to say that Louisville provides some unique opportunities for a variety of investigations. “Cities the size of Louisville have a level of CCTV surveillance that is beneficial in investigations for locating witnesses, getting accurate accounts of how an incident transpired, or capturing license plates for investigations involving vehicles.”
When police departments are overwhelmed, private
investigators can pick up the slack, and bring closure to victims of violent
crime or otherwise. They possess a similar skill set, juxtaposed with a level
of autonomy not afforded to law enforcement. This means jurisdictional issues
will never be a hurdle to stall case progression. Because private investigators
only have 3-4 cases on average at any given time, that means caseload will
never interfere with their ability to follow a lead in a timely matter. This
can lead to the recovery of new evidence, witness statements, and ultimately,
closure in your case. If you’re the victim of an unsolved crime, call Lauth
Investigations International today for a free consultation, and learn how we
can help you find justice today. Call 317-951-1100 today or visit our contact page.
Every corporation needs an excellent in-house attorney to fight complex legal battles in their stead—someone to act in the best interests of the company and its future. In addition to the everyday intricacies of business litigation, house counsel may also have to field lawsuits from current or former employees who have a legal objection to something that happened during their tenure at the business. When employee lawsuits become a pervasive issue at a business, not only is the cost in billable hours exponential, but the legal judgements that result from these litigations can be devastating for companies. While litigation in general can be characterized as the cost of doing business, companies with healthy corporate culture experience a much lower rate of employee lawsuits. So, how can healthy corporate culture reduce the chance of a lawsuit?
Corporations across the United States are starting to understand the value of healthy corporate culture. Employee lawsuits aside, unhealthy corporate culture can have detrimental, snowballing effects that occur when employees are unhappy in their capacity and unengaged in their work. This is why corporations must improve their culture from within, so that employee retention and productivity remain high. Corporations also have millennials making up the majority of the workforce in the nation, complete with a set of values that propels them to seek a better work-life balance. This means that millennials are less likely to stay in a job where they are unhappy, and will simply seek a more amendable opportunity that allows them to have the work-life balance they desire.
When employees do not feel heard or valued by their employer, they’re far more likely to file a lawsuit related to their grievance. And unfortunately, no company is safe. In 2010, 99,922 EEOC charges were filed in the state of Florida alone, a datapoint that makes leadership wonder not if they’ll be the target of a lawsuit, but when. Employee lawsuits can drag out over months or even years, exponentially getting more expensive. The average settlement in an employee claim or lawsuit is $40,000. That expense alone can be devastating to a company, but that does not account for the disruption to daily operations, and the fact that litigation costs are on a steady rise. In 10% of cases, settlements result in $1 million or greater, a sum that could be the beginning of the end for many medium to small corporations.
The risk of a lawsuit can be even greater depending on the state in which it is filed. According to the Hiscox Group, a majority of states carry around a 10% change of having an employee lawsuit filed against them. However, in Georgia, the probability is 19%. In states like New Mexico, California, and Nevada, the probability can be as high as 55%. The area with the highest probability of litigation is the District of Columbia, with a terrifying 81% chance. The reason for the wide range in probabilities is two-fold: First, the legal standards in each state regarding discrimination and hostile work environments can vary. Secondly, the states with higher risks have more binding laws regarding litigation that can create extra hurdles for companies at the state level. This is why corporations must stay current on employment legislation, especially if they have locations across multiple states/jurisdictions.
So, how can corporations protect themselves against litigation from current or former employees? In-house counsel fields lawsuits when they are filed, but did you know there was a more proactive method to combatting employee litigation? The answer is simple: healthy corporate culture. When a corporation has a healthy corporate culture, it means that the employees feel valued by their employers in their capacity within the organization. It means that employees who feel valued are engaged, thereby greasing the wheels of internal, daily operations. This increased productivity means progress for the company, and the cycle of healthy corporate culture begins anew with leadership rewarding engaged employees for their hard work.
Research shows that the number one reason behind employee lawsuits is retaliation. In an average scenario, the employee reports an internal issue, usually regarding a form of discrimination. Following the inclusion of the investigation, when the employee cannot track for upward mobility, or a form of unwarranted disciplinary action occurs, they assume the reason is for reporting the previous issue. This can result in that employee filing a lawsuit for receiving unfair treatment on behalf of their employer. When organizations have healthy corporate culture, this is far less likely to occur.
If your company or organization needs a corporate culture overhaul, call Lauth Investigations International today for a free quote on our corporate culture audit program. We can help you improve your business from within and decrease the likelihood of employee lawsuits. When it comes to your business, you should expect facts, not fiction.
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.
