3 Most Common Types of Corporate Crisis

What is a corporate crisis? While exact definitions may differ, a corporate crisis is generally defined as “an event, situation, or public initiative that threatens the company’s ability to effectively operate its business. A crisis can escalate into a disaster or long-term impediment to business growth if not handled with efficiency and sensitivity to all involved.” This is a large umbrella that encompasses many of the internal issues we associate with companies, including (but not limited to) fraud, theft, misconduct, and harassment of all kinds.

A majority of corporate crises fall into one of three categories: personnel, systemic, and contextual.

  1. A personnel crisis is an internal issue that is a direct result of an individual employee or a group of employees’ bad behavior. Theft by personnel is one of the most widely-reported crises in corporations throughout America. The scope of this problem can be as small as stealing office supplies all the way up to executive embezzlement. Sexual harassment is a type of personnel crisis receiving a welcomed new level of attention in corporations. In the age of the #MeToo movement, corporations are viewing their workforce very differently when it comes to identifying potential predators in their midst in the name of a “pound of cure.” Prudent steps taken when vetting potential hires and current employees has saved companies difficulties down the line, especially in legal fees and public relations.
  2. A systemic crisis refers to a major breakdown in operations negatively impacting business. A common example is food service corporations that receive a sudden influx of food poisoning complaints. Source of the outbreak may be traced back to how the supplier or distributor handled the food product, and suddenly, there’s a systemic crisis: A misstep in operations led to a large sum of incidents. Systemic problems manifest themselves in many forms, including external theft. Repeated theft, both in cyberspace and the real world, is often the result of insufficient security within a company. Consequently, the company incurs loss because they remain vulnerable. Companies who have chronic turnover due to employee misconduct may have flaws in their vetting system for potential employees. That is another example of a crucial operation where a breakdown occurs and erodes a company’s profits with labor hours to hire a new individual to fill a vacant position.
  3. A contextual crisis has exponential consequences for a business relative to its size. These are the types of crises that companies cannot anticipate, because they influence public perception of their brand based on real-life events. A major news story like a mass shooting, or a major criminal case, or a lawsuit, can negatively impact a brand even if that event is not directly associated with that company. These external events can drastically change a company’s internal operations, and can weigh heavy on employees at every level. Sexual harassment is another example of this type of crisis in motion. The media coverage regarding high-level Hollywood executives like Harvey Weinstein and his alleged history of abuse have executives in companies of all shapes and sizes revisiting their human resource policies and practices when it comes to addressing sexual misconduct in the workplace. Internal operations receive a major overhaul to the benefit of a healthier work environment for everyone.

When it comes to corporate crises, not all businesses will be able to afford specialized investigators to work in-house to resolve issues that arise. Even if they can afford these professionals, investigators employed by the company—regardless of the quality of their work—by definition cannot provide a truly objective solution to any problem. Because they’re employed by the corporation, they have a potential stake in the outcome of the investigation, whether that stake be real or perceived. Hiring an independent professional, like a licensed private investigator, to conduct an external investigation is the best way to ensure that the solution is objective. This is particularly important personnel crises, because terminating personnel based on an unbiased investigation is kerosene for a disgruntled employee that can manifest itself with many devastating consequences—most commonly wrongful termination lawsuits. Private investigators can assist in systemic crises as well, like the example of repeated thefts with regards to security. Private investigators who specialize in different kinds of risk assessment can identify a company’s vulnerabilities to thieves and scammers, and provide them with a game plan to improve their security.

If your business has encountered a corporate crisis, call Lauth Investigations International today for a free consultation. Learn how we can provide you with an objective solution to your corporate crisis. Call 317-951-1100, or learn more about our services here.

Active Shooter Training in the Workplace

Active Shooter Training in the Workplace

Active Shooter Training in the Workplace

active shooterSo far this year, there have been 297 mass shootings in the United States. Seeing as how November 1st is the 305th day in the calendar year, it would appear that the spike in active shooter events in recent years will not slow down any time soon. While schools redefine their safety protocols and implement programs that prepare students for these events, employers throughout the United States are also beginning to understand the importance of preparing their workforce for an active shooter event. The year of 2017 broke the record for the most mass-shooting deaths every recorded—112 deaths, well exceeding the amount in any other year in recorded history. In 2018, the Bureau of Labor Statistics published a report that showed another spike in workplace homicides. According to them, there were 83 workplace homicides in 2015, a number that skyrocketed to 500 for the year of 2018 alone. A terrifying 79% of those cases were the result of an active shooter. As a result, the desire for employee active shooter training has never been higher, with NPR reporting that as of 2016, 75-80% of employers are seeking qualified active shooter training to protect their workforce. The Department of Homeland Security has a myriad of resources on their website for dealing with active shooters. One of them is a pocket-card that outlines the characteristics of an active shooter event, “Victims are selected at random. The event is unpredictable and evolves quickly. Law enforcement is usually required to end an active shooter situation.”  Active shooters may fire at random, using no discernible criteria for their victims, but that arbitration should not be misunderstood. Perpetrators are deliberate, focused, and simultaneously detached from their task, creating a fatal perfect storm. active shooter The Department of Homeland Security also have their own guidelines to how private citizens should react during an active shooter event: Run—hide—fight. Run At the onset of an active shooter event, individuals should immediately identify an escape route, most likely a fire exit. While keeping their hands visible, they should leave their belongings behind and run to safety as quick as possible, assisting others if needed. Hide Once they’ve reached safety (or if escape is impossible) the Department of Homeland Security recommends hiding immediately in a location out of the shooter’s line of sight. Individuals should block the door or manner of entry into their hiding spot and silence their cell phones and pagers. Sit very quietly and wait for first-responders to find you. Fight The Department of Homeland Security lists this option as an absolute last resort in the event of an active shooter in the workplace. Your life should be in immediate danger, and you should be well-positioned to act with physical aggression and incapacitate the shooter. Many third-party security companies also endorse the methods of Homeland Security, but there are others that take a different approach. Laurence Barton, a workplace violence expert, recommends employers seek training programs that promote a culture of safety and preparedness—not fear. In lieu of careful research regarding active shooter training, many employers opt for the simple, cost-effective route by showing employees the prolific training video produced by the city of Houston, which features graphic depictions of employees being shot. “When some companies have created these videos that show blood and guts—that’s not in any way the kind of learning that stays with people. In fact, it repulses them…employees get scared,” Barton says, “I just don’t believe scaring people is the way to teach them. It just promotes anxiety.” Aric Mutchnick, the president of a risk management firm called the Experior Group, agrees with Barton, “Cops or military guys like to have it very realistic because they think the more real it is, the more they can find out. That is true if you’re a tactical team, but you can’t apply tactical training to a civilian population.” Mutchnick points out that the equal distribution of choice laid down by the Department of Homeland Security—run, hide, or fight—is not only dangerous, but unrealistic, “It should be 90 percent run, 8 percent hide until you can run, and then as for fight, really? Are you kidding? I don’t know how you would even train on that.” Companies like Experior Group also recommend that a base knowledge of firearms should also be part of the training, not so employees can operate firearms, but so their knowledge can inform their escape. Civilians who are ignorant of basic firearm operations can easily be paralyzed by fear because they are uncertain of a weapons range or magazine size. This gives an active shooter ample opportunity to change their position and reload without fear of retaliation. active shooter Frozen with fear—it’s something we can all relate to. After all, many working people today are not acclimated to the viable, potential threat of an active shooter in the workplace. Aggressive, hyper-realistic training can compound the anxiety triggered by the increased probability of being involved in an active shooter event. That’s why Barton and other like-minded professionals epitomize on a feeling of safety, with straightforward and honest training that will leave any employee feeling prepared. “The chief learning officer has a huge opportunity to lead a discussion about workplace safety. [Employees] are yearning to be informed about how the world is changing and how threats get processed at work…You want to have a subject matter expert who works with law enforcement and can speak the language of all employees.” One thing that employers often overlook when considering active shooter training programs is a company that curtails the training to their individual brick and mortar location. As part of what they call “red ball drills,” Experior Group will evaluate the property to identify the specific issues that might present during an active shooter event. “The problems of a commercial building are not the problems of a hospital or a school,” Mutchnick says. “Run, hide, fight is s giant blanket they throw over the problem as a response, but it doesn’t deal with any site-specific issues.” All training dispensed by Experior Group is tailor-made for the culture and physical context of any business. When these issues have been identified, the instructor can direct employees the best manner of exit, should they have that option. active shooter The last thing to consider when choosing an active shooter training program is the credibility behind the operations. Some of the most prolific risk management and security companies are headed by former members of law enforcement or the military. This experience with weapons and chaos not only validates the content for many employers, but also leaves employees empowered with credible knowledge. However, former navy seals and swat team leaders are not the only option when it comes to the instructor. Lauren Perry, the vice president of operations for Trident Shield, often addresses training groups. Her specific style and feminine touch opens the dialogue in any room, allowing individuals who might not respond to an aggressive, alpha males to remain engaged in the training, retaining the information that might one day save their lives. Many employers often grapple with the cost of active shooter training for their employees. With many training programs averaging in the realm of thousands of dollars, employers often question whether or not active shooter training is even necessary. The Occupational Safety and Health Act of 1970 says, “Employers have the responsibility to provide a safe and healthful workplace that is free from serious recognized hazards.” The rise of active shooter events in the United States is most certainly recognized, with every event further inflaming the political world and conversations surrounding gun control. Given the statistics we’ve seen here, it appears as though it’s not a matter of if an active shooter even will occur, but when. Carie McMichael is the Communication and Media Specialist for Lauth Investigations International. She regularly writes on private investigation and missing persons topics. For more information, please visit our website. 

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Tagged: Geosocial Investigations in 2018

Tagged: Geosocial Investigations in 2018

geo-tagging

Surveillance capitalism has multiplied the number of eyes on us at all times. Ubiquity of security cameras, traffic cameras, and cell phones with cameras have made it possible for law enforcement to track a suspect’s movements for entire city blocks. And that’s not counting the omnipresent eye of social media, where photo and geo tags can assist law enforcement and private investigators with locating suspects, witnesses, and collect information about a location without having to leave the comfort of their offices in what is now called a “geosocial investigation.”

Before the age of geo-data on social media, employees who called off work on Friday to enjoy a three-day weekend in Atlantic City had no fears of being discovered on Monday by a nosy employer who checked their social media. When social media was in its formative years, a private investigator would be lucky to be scraping the social media of a subject who was indiscriminate about what they chose to post on their Myspace page. Nowadays, employees have to be more cautious regarding posts about their out-of-work activities than ever, with many employees maintaining two Facebook pages—a work Facebook populated by posts that would not offend the most fastidious human resource employee, and a personal Facebook where employees reveal themselves, warts and all, with no regard for who might see the pages. Now, the new reality of surveillance capitalism has changed the world of third-party investigations forever with the assistance of geosocial investigations.

Geosocial investigations are a subset of social media investigations, where the focus of the research centers around a place, rather than a single individual. After all, if you fraudulently submit an FMLA claim that prevents you from working, you’d be very careful not to post any pictures of yourself enjoying vigorous activities, like yard work or hiking. However, if you’re in a group of individuals—all with smartphones and social media profiles of their own—it’s nearly impossible to prevent all pictures of yourself from seeing the light of the internet. This newfound culture of hypervigilance and surveillance may sound like it’s harder for law enforcement and private investigators to squeeze blood from the stone of social media, but where individuals might be protective of their own information online, their friends and relatives may not.

Deriving information on a subject from the social media profiles of their friends and family is a major tenant of geosocial investigations. Exposure online is not limited to pictures. Social media widgets that allow users to check in at specific locations, or add geotags to the photos they post, are also exposing malingering employees during internal investigations. Law enforcement can use this technology to search for social media posts geotagged at the time of an auto-accident in order to locate witnesses. By the same token, they can use it to identify people who are posting in restricted areas where civilians are not allowed. The effect of this technology allows a private investigator to “crowdsource” the information, saving themselves hours of tracking down witnesses and interviewing them.

Geo-social investigations are just one consequence of the world’s newfound surveillance capitalism. As the technology continues to mature and become more sophisticated, social media will continue to expose criminals and malingerers. Employers will see a rise in the exposure of employees abusing FMLA claims. Former employees violating non-compete agreements will be exposed before they have a chance to get a new business venture off the ground. Law enforcement and private investigators will be able to crowdsource investigations with the use of geo-social data.

Carie McMichael is the Media and Communications Specialist for Lauth Investigations International. For more information please visit our website.