Issues that can severely impact a company’s reputation should be handled with care. It is best to tackle them at the first sign of trouble or when the first complaint of the issue is made. Failing to address corporate issues can lead to potential legal fees, workplace theft, as well as losing hundreds of thousands or perhaps, millions of dollars in damages.
Internal investigations or corporate investigations like those offered by Haywood Hunt & Associates Inc. can make sure that your business will be running effectively and efficiently according to company policies and federal laws while protecting your employees and yourself from unethical practices. So, when do you know that you need to conduct a corporate investigation? What is a corporate investigation?
A corporate investigation is when a company launches an investigation to get to the bottom of an issue, such as when employees or clients make a complaint or allegation. It usually takes more than one complaint about the same thing to get the wheels starting. Investigations can be about a number of things, including finding out if an employee has broken company policies or has broken laws that could place the company in a bad legal light.
Usually, a corporate investigation is conducted by a private investigation firm to ensure that a third party is going to be responsible for an investigation that could involve several people in the company. Using a private investigation firm can also help you identify potential risks before they happen as well as uncover information that can be used to take legal action in the future such as when you may need to file criminal charges against someone. Below are some examples of instances where you may need to conduct a corporate investigation.
Possible Fraud or Theft by Employee
Losses in the company are often because of small incidences of theft by employees such as taking home some office supplies or maybe padding certain expenses such as the meal allowance, although some can be as serious as stealing millions of dollars from the company fund.
Misusing Company Funds and Credit Cards
A lot of companies give their employees company-issued credit cards so that it will be easier to track and charge expenses. But sometimes, certain employees take it upon themselves to charge the company for things that were not used at work, such as going on vacations and buying certain things for their house and similar things.
Unexplained Resignation or Departure
The unexplained resignation or departure of a loyal employee is a red flag, more so if they end up getting employed by the competitor. A corporate investigation might be needed to make sure that proprietary information and trade secrets are not shared with the competitor.
Inappropriate Access and Use of Sensitive Information
Privacy is highly important in any organization, and security breaches must be taken seriously. Some employees might leak sensitive information about the stakeholders or customers. Some may share their login details with other people who are not part of the company. Instances like this warrant a corporate investigation.
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