Hiring a new CEO, CFO, or COO can be a long and arduous process for many corporations. Sometimes, it’s easy to overlook risks in a high-ranking executive or trust dishonest information. Before making a decision, corporations should consider hiring a private investigator to perform executive background checks of a potential corporate officer. Doing so can stop an unscrupulous individual from tarnishing a company’s reputation and prevent possible litigation for negligent hiring.
Risks to Consider
Do you know if the candidate has a criminal record? Do they have a good reputation among other businesses in the market? Past mistakes aren’t always a deal-breaker, but they can provide some insight on a person’s character and ability to perform in a high-ranking position. Individuals will go to great lengths to hide their offenses or lie about themselves. A DUI may be an indicator of someone who has had a substance abuse problem, or a record of domestic violence could suggest a history of anger problems. A bad credit report could be a sign of future embezzlement problems. Some of the most common red flags that an executive background investigation should uncover are as follows:
DUI/DWIs
Domestic violence arrests/restraining orders
Bankruptcy
Arrests/convictions
Bad bredit reports
Theft/fraud
Reasons for leaving past companies
There have been several cases of executives who lied about their credentials or fudged their resumes. Consider the case of Scott Thompson, once CEO of Yahoo!, who lied about having a computer science degree. Or take note of Marilee Jones, Dean of Admissions at Massachusetts Institute of Technology (MIT), who never earned any of her supposed degrees. These people are able to get away with dishonesty because no one had thought to question them in the past. It’s easy to look at a candidate’s job history and assume that the other big companies they worked for had already checked their credentials, but clearly that is not always the case.
Too often, executives are able to hide these red flags for years until they are discovered by an investigative reporter or through someone within the company. A corporation that hires a shady CEO can face public embarrassment and loss in shares. In 2002, shares for Veritas SoftWare Corp. dropped 20 percent after it came out that their CEO had lied about his education. Thefallacies that jeopardized these corporations’ reputations could have possibly been prevented if a comprehensive executive background investigation had taken place.
Hiring a Private Investigator
Most basic background checks will uncover things such as names, addresses, past employers, and a criminal record. It may be tempting to perform a Google search of a candidate and call it a day, but this will only give you a very general outline of a candidate and won’t always be accurate. Nowadays, people have become more aware of their presence online and have found ways to cover things up. An online search won’t turn up as many results as an investigation will, either. Many official documents and records are not available publicly online, and some states have different laws regarding arrests and offenses. Hiring a private investigator to check out a candidate’s background can uncover information that an online search cannot. A typical executive screening may include a search of:
Employment history
Criminal records
Driving records
Education
Civil history
Executive background history investigations will provide corporations with a detailed report of a CEO’s character and work ethic before a hiring decision is made. An experienced private investigator knows what to look for and where to find it, in an ethical and legal way.These investigators will work with companies to provide an in-depth assessment of a potential executive’s background and ensure that a company has a clear view of the person they are hiring.
All over the country, immigrant workers spend hours harvesting the very fruits and vegetables that we put on our tables every day. However, many of these women face more than sore fingers and a blistering sun on the job. Verbal and sexual assault run rampant in the fields, and unfortunately the majority of these cases go unreported by the victims. When a report does come out, it often gets dismissed due to lack of evidence. Corporations in the agriculture industry that suspect sexual assault can hire a private investigator to conduct an internal investigation of the allegations.
Pressured by Power
In May of 2012, Human Rights Watch (HRW) released a 96-page report detailing the workplace abuse that farmworkers have faced and bringing to light the stories of those victims who had kept silent for so long. According to the report, women farmworkers are most often threatened by men who oversee them, and who are in positions of power. One particular worker was quoted in the report, stating:
“For me, it felt like an eternity. I wanted to scream but I couldn’t. Afterward, he said I should remember that it’s because of him that I have this job, and if I say anything, I’ll lose my job…. I was afraid to call the police, to do anything. I didn’t know what to do. My mind was completely blocked off.”
Nearly all of the workers interviewed by HRW reported being victims of sexual abuse at work or knowing of someone who had. Other victims shared similar stories, with supervisors bribing them with money or threatening to fire them if they spoke of the abuse. Although workplace sexual harassment appears to be commonplace in the fields, it is incredibly hard to pinpoint the amount. Many of these women do not have a choice and worry that they’ll lose the only source of income their family has. For some, sexual harassment has become part of the job.
A Growing Problem
Despite the efforts of organizations like Human Rights Watch and the Center for Investigative Reporting, the sexual harassment female farmworkers face still continues. Those who work in agriculture already face challenges such as low wages and long hours, so victims of abuse fall through the cracks. Thanks to these organizations and the women they spoke to, many more victims are coming forward. Even so, the allegations rarely result in justice, with most cases being dismissed or left up in the air. Farmworkers often do not have the funds to afford an attorney, and many of the cases lack physical evidence needed to convict the accused.
Consider the case of Evans Fruit Co., one of the largest suppliers of apples in the United States. A supervisor was accused of assaulting several women, including a 15 year-old girl. Both the victims and the supervisor had conflicting stories, but the company won the case in the end. In most cases such as this one, the alleged abuser is a repeat offender that won’t stop until he is caught.
Importance of Internal Investigations
Companies have begun to provide training on sexual assault to ensure that their workers understand their rights. However, many corporations hire farm labor contractors that oversee the hiring of workers and the harvesting of crops. The recent Supreme Court case Vance V. Ball State University has made it more difficult for employers to sue the supervisors that are abusing their employees. Many of these businesses are unaware of the abuse, thus tarnishing their image and resulting in a loss of employees.
Conducting an internal investigation of these allegations can help large companies weed out abusive employees and protect the innocent, as well as prove the legitimacy of these claims. Sexual harassment can be a difficult and emotional experience for everyone involved, which is why it is important to hire a professional investigator. Too often, these claims are not investigated deeply enough and as a result, seem to be unfounded. Thomas Lauth, CEO and founder of Lauth Investigations International, Inc., understands the importance of sexual harassment claims and the damage they cause to both the victims and the employers. The experienced private investigators at Lauth Investigations International, Inc. will work closely with your company in a thorough and professional manner.
Conduct audits quarterly. Even in the best run companies, mistakes happen. Regular audits help control the checks and balances.
Routinely review returns, financial statements, journals, etc. Ensure all the proper information is filled in completely. Never be afraid to ask questions and control the response time to answers.
Be knowledgeable of every facet of your business better than your most experienced employees. Never act like your too good for any job. Take time to work side by side with your employees frequently at every job position.
Make it a practice to always be the one to sign the checks. Never hand any employee a blank check (even someone you trust). Understand that everyone goes through hard times. Simply provoking opportunity leads to disaster.
Follow your gut. If you believe something is wrong, you’re probably right. Don’t wait too long to investigate for information is often subverted shortly after a theft.
Monitor workload by giving specific tasks and duties.
Keep up morale by having weekly staff meetings and confronting complaints.
Holding a balanced authority between employee and supervisors. Keeping personal business out of the workplace.
Have a healthy work environment. Prepare an open lunch and fitness program such as yoga or cardio at noon to renew energy throughout the day and improve morale.
