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.
It’s important to remain very organized and transparent when conducting an internal investigation in order to protect the business or organization.
When conducting an internal investigation, it’s imperative that the investigation be comprehensive and impartial from the beginning. Depending on the size and resources of the company, this is not always possible. Corporate investigations, while necessary, can often be a monumental burden to a small business or organization. Many medium to small businesses/organizations do not have the budget to conduct a comprehensive, detailed investigation on an internal issue. This leaves them to their own devices in the pursuit of solving the problem. When there is no team in place to solve internal problems, workplace investigations tend to fall on the shoulders of Human Resources personnel. This means that in addition to their regularly scheduled duties, the HR representative must also embark on a deep dive into the internal complaint, covering all their bases with regards to the investigation. If even a small detail is overlooked in internal investigations, it can leave the corporation or organization open to wrongful termination lawsuits or other types of litigation.
Human resource employees are the salt of the earth within any business or organization. In many circumstances, they are the grease that propels the wheels of progress in internal processes. This means they constantly have multiple projects in-progress and always have a minimal level of supervision for the entire workforce. Factoring in the capacity for human error, mistakes are inevitable in an internal investigation. That’s why it’s imperative for human resource employees to have a comprehensive step-by-step plan when initiating internal investigations. While every investigation will be different and may require a different approach, many of the investigative beats follow the same pattern as outlined by the Society for Human Resource Management:
Conduct a comprehensive intake interview with
the complaining or initial witness, requesting the scaffold information for the
investigation, including the who, what, when, where, how, and why. It’s
important that the employee understand the need for discretion during an open
investigation into the complaint. This reminder for discretion must come with
the caveat denoting any confidentiality rules that would infringe upon an employee’s
rights to discuss their status of employment.
Once the intake interview is conducted, the
complaining witness and other eyewitnesses must put their statements in writing
to document this stage in the investigation.
Diffuse any flaring tensions within the case. The
more elevated the emotions, the more attention that factor of the investigation
requires. Even during an investigation into an open complaint, it’s important
that employees feel safe in their work environment. The workplace must be stabilized
and disciplinary action must be reserved until the investigator has the entire
picture.
Decide if the subject of the investigation—the individual
who is named in the complaint—needs to be placed on administrative leave or
allow voluntary leave during the investigation. It’s important that at all steps
of this process that any established no-retaliation policies be reinforced.
Identify what other resources are needed to
conduct this investigation. Regularly consult with in-house counsel regarding
the legality of the steps you are taking.
Based on the statements collected at intake,
identify the parties that still need to be interviewed and what questions will
be asked in that interview.
Interview the accused with the intent to find
the truth. Transparency is important at every stage of this investigation, so
provide detailed allegations from the complaining employee’s statements, and
allow the accused to provide comprehensive answers to the questions asked. Ask
for witnesses to their version of events. At the conclusion of that interview,
always ask if there’s anything else that the accused would like to add.
Re-interview subjects in the case as necessary
pending any new information or evidence.
Keep meticulous notes at all stages of the
investigation. Due to the possibility of litigation following the conclusion of
the investigation, it is imperative that transparency be maintained throughout.
Avoid editorializing in your notes and record only what you are told. Keep
secondary performance issues separate from the investigation.
Create a summary of your report based on all of
the evidence you’ve gathered and the witnesses you’ve spoken to. Resolve all
factual disputes first, moving on next to the emotional factors in the case.
Again, be sure to consult in-house counsel at all stages of the investigation. Determine
the best course of action at the conclusion of the investigation. Meticulously
document all disciplinary action following the conclusion. Remain alert for
forms of retaliation on behalf of all parties involved in the investigation.
If your business is ill-equipped to conduct an internal investigation, consider hiring a private investigator to find answers. Private investigators can have more flexibility than many other types of investigators, due to having an average case load of 3-4 cases at one time. Private investigators can also mitigate some of the costs of internal investigations by conducting a comprehensive investigation with minimal impact to the daily operations of a business or organization. Call Lauth Investigations International today for a free quote on our corporate investigation services. Or, if you’re seeking a long-term solution in improving your workplace culture, call for a free quote on our corporate culture audit program to improve your business from within. Call 317-951-1100 or find us online at www.lauthinveststg.wpengine.com
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.
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.
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.
