Investigator selection is a crucial component of any successful investigation. In smaller companies where employees frequently interact and know each other on a more personal level, investigator selection is a very difficult task. Depending on the size of an organization, companies may use third party investigators, while others use internal staff. There are pros and cons to both, as internal employees are fully versed in company policy and procedures, whereas third party investigators are able to maintain neutrality, as it’s unlikely they have any personal interests vested in the outcome of the investigation. When selecting investigators, focus making decisions to reduce personal bias and increase investigator neutrality.

What to Look For:

According to guidance offered by the EEOC through their “Enforcement Guidance: Vicarious Employer Responsibility for Unlawful Harassment by Supervisors,” they conclude investigators should be selected based on their ability to objectively gather and consider  relevant facts pertaining to the investigation. Investigators should be well trained in all areas covered by the investigation, including evidence preservation, interviewing, determining statement credibility and areas of employment law. The EEOC also suggests the “harasser” shouldn’t be in a supervisory position to the individual conducting the investigation, as this could potentially impact the conclusions drawn from the investigation. In the Mediation Blog post, “Neutral Investigations of Workplace Disputes,” author Roger Benson writes:

“Here are some critical things to look for when evaluating candidates:

• In-depth understanding of the law of the workplace and the alternatives to a negotiated settlement.
• Experience, skill and personality to quickly establish trust and confidence in the integrity of the investigation process.
• Insight to gather all of the facts necessary to develop a coherent, thorough and accurate assessment of the dispute.
• Expertise to provide recommendations for a practical, cost-effective and durable resolution.”

The Strategichrlawyer.com article by Diane M. Pfadenhauer, “Workplace Investigations: Rethinking the traditional paradigm and advocating the use of third party investigators,” provides a list of some additional skills to look for when selecting investigators:

1. Knowledge of the industry- If special skills or experience are required for an investigation to be conducted properly, select an investigator who meets the particular requirements. Familiarity with the industry the investigation occurrs in is ideal, as the investigator already has an idea of what questions to ask, the evidence to look for and can add value to the investigation with their experience.

2. Knowledge of the workplace- Understanding workplace policies makes it easier for an investigator to conduct a thorough investigation into workplace misconduct. Knowledge of company operations and culture contribute to a stronger understanding of why company policies are designed the way they are.

3. An understanding of the legal process- Knowledge of the litigation process and laws governing companies in various industries increases the effectiveness of an investigation. This is particularly important in planning the investigation and anticipating where to locate evidence, resulting in a complete investigation.

4. Knowledge of the subject matter in question- When selecting an investigator, consider their area of expertise. If the investigation involves accounting or finance, have someone who is an expert in that field carry out the investigation. They will be better at understanding the misconduct and will know what questions to ask and evidence to look for.

5. Ensure attorney client privilege is preserved- During the planning stages of the investigation, determine if outside counsel will be used. If so, make it very clear who the counsel represents.

The Importance of Neutrality

When it comes to deciding between using internal or external investigators, there are many conflicting views as to which group properly maintains neutrality throughout the investigation. There is no right or wrong answer. Organizations need to evaluate and determine which source best suits their investigative needs. In Benson’s blog post, “Neutral Investigations of Workplace Disputes,” he discusses neutrality when using a third party investigator:

“People are more likely to cooperate and offer candid information if they see the investigator as someone interested in the truth and without a hidden agenda or pre-conceived ideas. They also see a neutral investigator as an indication of the employer’s good faith commitment to conducting a legitimate investigation.

In contrast to Benson’s opinion, others feel an investigator from within earns the trust of the employees involved in the investigation, as the investigator is a familiar face. Some employees are more likely to open up to someone they know and feel comfortable talking to, contributing to the success of the investigation. Internal investigators are already familiar with the culture, policies, and laws governing the organization, reducing the time spend educating an external investigator on these matters.  The decision to use internal or external investigators depends on a variety of factors, including the issue under investigation, the employees involved, corporate culture, company size and skill sets of internal employees.

Successful investigations contribute positively to corporate reputations. On their corporate website, PricewaterhouseCoopers provides advice for selecting an internal investigator, stating:

“The company needs to ensure investigators are fully independent in forming their opinion. The measures taken to guarantee their independence must be explicitly documented. Given the complexity of most investigations, we recommend seeking expert advice from the very beginning of the process. We advise you to select parties not only with extensive experience and a wide range of applicable skills, but also with an impeccable reputation: corporate image is often a crucial factor in these investigations.”

Internal investigation software solutions, such as i-Sight, allow investigators to view cases in real time using dashboard controls.  At a glance, investigative managers can monitor the workloads of team members, detect emerging trends and identify issues. Dashboards communicate complex information quickly. They translate corporate data into rich, graphical presentations using gauges, maps, charts, and other graphics to show multiple results simultaneously. Dynamic dashboards also let investigators drill-through to other data sources and reports for more detail about what the dashboard represents.

Dashboards are extremely useful in identifying the roots of problems. In many companies, certain issues may become prevalent in a specific department or office location. The ability to identify these trends is extremely important as it provides insight into areas of potential misconduct risk. Understanding these risks ahead of time allows managers to provide additional training or prepare/update policies addressing these issues.

Dashboard reporting makes it easy to:

It seems to be that each week is busier than the last. Here are some of the things we blogged about this week- as well as some other pieces that caught our attention regarding internal investigation, human resources and ethics:

Tuesday:

• Blog Post- Best Practices in FCPA Compliance: Dell

“Last week one of our i-Sight clients, Dell, received recognition for their FCPA Compliance Program from the Open Compliance and Ethics Group (OCEG). Dell was granted GRC Capability Design Certification for meeting standards outlined in the OCEG’s “Red Book.” The GRC Capability Certification was designed to recognize company programs addressing areas of risk, including anti-corruption, employment compliance and government contracts. The GRC Capability Certification is administered to companies by the OCEG based on the findings in a qualified third-party report, adhering to the procedures outlined by the OCEG.”

Wednesday:

• Blog Post- CIMA Report: Ethics and Strategy

“Many business leaders and employees question the impact of ethics on an organization. Some wonder if corporate ethics even matter, while others swear by acting ethically. Today’s consumers, along with laws and regulations, place pressure on organizations to become more transparent and make business decisions in an ethical manner. Some studies even suggest consumers will pay premium prices for goods and services from companies known for being good corporate citizens. With ethics and compliance violations frequently in the news and gaining public attention, organizations are increasingly held accountable for their actions. From the tone at the top to written corporate policies, corporations are facing a reality where ethics matters.”

Thursday:

• Blog Post- Underwriters Laboratories Manages Counterfeit Investigations With i-Sight Case Management Software

“According to the Global Intellectual Property Centre, counterfeiting and piracy costs between $200-250 billion in lost sales each year— in the US alone. From DVDs to handbags to electronics, fakes seem to be popping up everywhere. The largest issue associated with counterfeiting is consumer safety. A product that hasn’t been tested by an organization, such as Underwriters Laboratories^®, can cause serious harm. For more than 115 years, Underwriters Laboratories^® (UL) has been testing products and writing standards for safety. The products that are certified by the organization – and only those products – carry the distinctive UL Mark. UL evaluates more than 19,000 types of products, components, materials and systems annually with 21 billion UL Marks appearing on 72,000 manufacturers’ products each year.”

Friday:

• Blog Post- “Our Reason For Being” – Patagonia on Accountability & Transparency

“Patagonia is a Ventura, California-based outdoor equipment and clothing company involved in a variety of environmental initiatives. Patagonia has been able to maintain their unique corporate culture throughout periods of rapid expansion. Focusing on accountability and transparency, Patagonia is an accredited member for the Fair Labour Association, committing to International Labour Standards and social responsibility. Many companies can learn a lot by examining the culture, labour practices and environmental commitments that shape Patagonia.”

Patagonia is a Ventura, California-based outdoor equipment and clothing company involved in a variety of environmental initiatives. Patagonia has been able to maintain their unique corporate culture throughout periods of rapid expansion. Focusing on accountability and transparency, Patagonia is an accredited member for the Fair Labour Association, committing to International Labour Standards and social responsibility.

Many companies can learn a lot by examining the culture, labour practices and environmental commitments that shape Patagonia.

Patagonia’s Culture

Patagonia began as a company operating out of a tin shed. In the mid 80’s, Patagonia had undergone significant growth and was one of very few companies in the US offering on-site day care services. Employees are passionate about the company, as well as the sports the company dresses and equips athletes for. Surfing, running, paddling, skiing, rock climbing and many other “quiet” outdoor sports are practiced by Patagonia employees. One of the things I find the most intriguing about the culture at Patagonia is the commitment to the preservation of the original company values and mission. When reading the company’s history on their website, they write:

“We have never had to make a ‘break’ from the traditional corporate culture that makes businesses hidebound and inhibits creativity. For the most part, we simply made the effort to hold to our own values and traditions. We can’t bring ourselves to knowingly make a mediocre product. And we cannot avert our eyes from the harm done, by all of us, to our one and only home.”

At Patagonia, many of the decisions are made as a team.  In regards to offering flexible work hours, Patagonia founder Yvon Chouinard told Inc. Magazine:

“Our approach to flexible work hours also came out of discussions with employees. Blurring the lines between work and play worked for us, because it was part of the core reasons we came to work every day. I honestly can’t remember ever having a problem with an employee taking advantage of our flexible hours. When your employees care about the mission of the company, they work harder.”

Fair Labour Association Member

In 2001, Patagonia decided to become a member of the Fair Labour Association (FLA). In 2008, the company was granted FLA accreditation for fulfilling all of the necessary requirements. Patagonia joined the FLA to increase transparency and accountability with their commitment to social responsibility. Becoming a member means Patagonia has committed to the FLA Workplace Code of Conduct. The Code addresses issues including forced labour, child labour, harassment/abuse, nondiscrimination, health & safety, freedom of association and collective bargaining, wages, benefits, hours of work and overtime compensation. On Patagonia’s website, they have posted a list of all of the manufacturing facilities used to make their products. They have also posted responses to a number of social responsibility questions regarding factory selection and working with factories to improve conditions for employees.

Patagonia also has to adhere to the Principles of Monitoring- Obligations of Companies. Company obligations include

• Establishing clear standards
• Creating an informed workplace
• Develop an information database
• Establish a program to train company monitors
• Conduct periodic visits and audits
• Provide employees with opportunity to report noncompliance
• Establish relationships with labour, human rights, religious or other local institutions
• Establish mean of remediation

The FLA strives to improve working conditions through the promotion of international labour standards. The FLA uses a process of independent monitoring to ensure member companies adhere to the FLA Code of Conduct. The information collected during the monitoring process is then passed along to shareholders and members of the public, allowing them to make responsible purchase decisions. As outlined on the FLA website, joining the initiative adds value to companies by providing:

A collaborative process that allows industry, civil society organizations, and colleges and universities to sit around the same table and discuss matters of common interest.

A system to perform due diligence on companies’ internal compliance programs through unannounced independent external monitoring and verification.

Innovative and sustainable strategies for improving compliance with labor standards.

Public access to all independent external monitoring reports via the FLA Web site.

A mechanism to address the most serious labor rights violations through our Third Party Complaint process.

Environmental Contributions

At Patagonia, they recognize that there’s no need for their product if there’s no land, rocks or water for people to explore. This understanding is the basis for the sustainability and environmental initiatives taken on by Patagonia. Environmental ethics have been engrained in the company’s culture from a very early stage. As the company grew, they continually worked to reduce any damage done to the environment through the creation of their products. Whether it’s modifications to distribution centers or selecting organic materials for clothing, Patagonia has remained on the cutting edge of environmentally friendly manufacturing.

1% for the Planet is an organization Patagonia founder Yvon Chouinard launched in 2001 with Craig Matthews. Participating companies are asked to contribute 1%of their sales to the organization, which then distributes the contributions to 2080 environmental groups around the globe. Patagonia has been contributing 1% of their revenues to environmental causes since 1985, which has equated to over $34 million in donations to grassroots groups.

“Our mission is to preserve and enhance the integrity of the UL family of Marks and to protect the safety of consumers around the world from the potential hazards associated with goods bearing counterfeit UL Marks.  The ability to capture data and build enforceable cases in i-Sight is helping us fulfill our mission.”           —Judith Lykins, Manager, Anti-Counterfeiting Operations

According to the Global Intellectual Property Centre, counterfeiting and piracy costs between $200-250 billion in lost sales each year— in the US alone. From DVDs to handbags to electronics, fakes seem to be popping up everywhere. The largest issue associated with counterfeiting is consumer safety. A product that hasn’t been tested by an organization, such as Underwriters Laboratories^®, can cause serious harm.

For more than 115 years, Underwriters Laboratories^® (UL) has been testing products and writing standards for safety. The products that are certified by the organization – and only those products – carry the distinctive UL Mark. UL evaluates more than 19,000 types of products, components, materials and systems annually with 21 billion UL Marks appearing on 72,000 manufacturers’ products each year.

Challenges

At UL, they feel one of the risks associated with tough economic times is an increace in the instances of counterfeiting. In fiscal year 2008, the value of goods seized by U.S. Customs and Border Protection increased by 38.6%. With counterfeiting on the rise, UL knew they needed a customized case management solution to fit their needs.

One of the major challenges at UL was the ability to build a criminally enforceable case. These cases require detailed tracking of information and coordination with law enforcement agencies. UL originally utilized a simple database; however, the application was not capable of capturing e-mails or attachments and didn’t provide investigators with a comprehensive “visual” of each case. Other challenges UL wanted to address when selecting a case management vendor were:

• Handling very large quantities of data regarding UL mark counterfeit cases to capture, track and retrieve efficiently.
• Traveling investigators couldn’t log into a secure, centralized system from remote locations.
• UL lacked consistent, easily produced reporting to measure its activities and successes.

Solutions

UL decided, after much research and review of other software systems, that i-Sight Case Management Software from Customer Expressions was the best match for the team’s processes.  i-Sight centralizes all cases in a hosted, web-based, globally accessible system. The flexible software is configured with terminology and categories matching UL’s specific processes, and templates for letters and reports with the UL branding. Customized reporting with i-Sight provides insight, enabling UL to improve processes and make better decisions. Here are some additional benefits UL has experienced with the implementation of i-Sight.

• i-Sight mirrors UL’s investigative process.
• The Web-based software enables investigators and law enforcement personnel to view case information from anywhere in the world.
• All history, data and supporting documents are stored with each case and can be accessed quickly.
• Templates for letters and reports keep outgoing information consistent and are easy to produce.

Results

“Having a centralized repository for all information has been extremely helpful,” Lykins said. “We can easily find information and can generate letters and reports quickly and consistently. ” In turn, UL now has the ability to provide  authorities with complete documentation to help expedite enforcement actions. All of these factors contribute to UL’s corporate mission of promoting safe living and work environments – and doing so efficiently.  i-Sight has provided UL with the necessary intelligence to build in resources where needed to be most effective. Additionally, the anti-counterfeiting team at UL has expereced the following results since deploying i-Sight Case Management Software:

• Reduced time to find required case information and send requested letters or reports.
• The team handles an increasing number of cases without adding staff.
• Alerts and reminders help investigators take next steps in a timely manner.
• UL runs reports on valuable information such as types of cases, volumes, and achievements, aiding decision-making.

To read the Underwriters Laboratories^® Case Study in its entirety, check out “i-Sight Case Management Software Helps Underwriters Laboratories Manage Counterfeit Product Cases.”

Many business leaders and employees question the impact of ethics on an organization. Some wonder if corporate ethics even matter, while others swear by acting ethically. Today’s consumers, along with laws and regulations, place pressure on organizations to become more transparent and make business decisions in an ethical manner. Some studies even suggest consumers will pay premium prices for goods and services from companies known for being good corporate citizens. With ethics and compliance violations frequently in the news and gaining public attention, organizations are increasingly held accountable for their actions. From the tone at the top to written corporate policies, corporations are facing a reality where ethics matters.

The Chartered Institute of Management Accountants (CIMA) prepared a study to provide insight into the issue of ethics and how it can be integrated into every day business practices within the financial industry.

Incorporating Ethics into Strategy: Developing Sustainable Business Models

The Chartered Institute of Management Accountants (CIMA) conducted a study to learn more about how finance professionals incorporate ethics into corporate strategy to ensure long-term sustainability. In the report based on the CIMA study, they include an interesting fact about the impact of ethics on organizational success. Authors Victor Smart and Danielle Cohen write:

“Of the 28 companies that fell out of the world leading S&P 500 index in the past ten years, comparatively few casualties were claimed by shifts in technologies and markets. More were victims of massive fraud (as with Enron and WorldCom) or had leaders who’d failed to create a sustainable business model.”

Identifying factors leading to a company’s demise should demonstrate the consequences of unethical business decisions. Learning from failure is sometimes the best way for a message to get across, yet, many business leaders still turn a blind eye to unethical acts within their own companies. When managers and top level executives ignore ethics violations, it becomes hard for them to be taken seriously and set a positive example for their employees.

Here are the 5 main conclusions of the Incorporating Ethics into Strategy: Developing Sustainable Business Models study:

“1. Strong ethical policies that go beyond upholding the law can add great value to a brand, whereas a failure to do the right thing can cause social, economic and environmental damage, undermining a company’s long-term reputation and prospects in the process.

2. Once they have adopted an ethical approach, companies will often find there are bottom line benefits from demonstrating high ethical standards.

3. The ethical tone comes from the top.

4. High quality management information on social, environmental and ethical performance is vital for monitoring the environmental and social impacts of a company and for compiling connected reports showing how effective its governance arrangements are.

5. Management accountants have a particular ethical responsibility to promote an ethics based culture that doesn’t permit practices such as bribery.”

These conclusions emphasize the need for an increased commitment to corporate ethics. Many companies tend to believe acting ethically costs more than the company gains. However, respondents from the study have reason to believe otherwise, as bottom line benefits within their companies have been attributed to ethical actions. Another conclusion the study made was that the company tone is established at the top. This is a topic we have discussed in great length in previous articles, as the success of any ethics and compliance program rests on the shoulders of top company executives.

Study Recommendations

The Incorporating Ethics into Strategy: Developing Sustainable Business Models study recommends taking the following actions to integrate ethics into corporate strategy:

“1. Ethics must be embedded in business models, organizational strategy and decision making processes.

2. Senior managers and business leaders must demonstrate an ethical approach by example. This will show that middle and junior managers will be rewarded for taking an ethical stance.

3. Non-executive directors should act as custodians of sustainability, with the particular duty of ensuring that their executive colleagues are building a sustainable business.

4. Managers must come to problems with ‘prepared minds’, looking at ways in which an organization can benefit from an ethical approach rather than one that relies narrowly on cost cutting or compliance.

5. Finance professionals must play an active role as ethical champions by challenging the assumptions upon which business decisions are made. But they must do so while upholding their valued reputation for impartiality and independence.

6. Management accountants are encouraged to help ensure that their businesses are measuring performance on an appropriate timescale that will deliver sustained and sustainable success.

7. Business leaders should use the skills of the finance team to evaluate and quantify reputation and other ethical risks.

8. Finance professionals need to take social, environmental and ethical factors into account when allocating capital, so that sustainable innovation is encouraged.”

Last week one of our i-Sight clients, Dell, received recognition for their FCPA Compliance Program from the Open Compliance and Ethics Group (OCEG). Dell was granted GRC Capability Design Certification for meeting standards outlined in the OCEG’s “Red Book.” The GRC Capability Certification was designed to recognize company programs addressing areas of risk, including anti-corruption, employment compliance and government contracts. The GRC Capability Certification is administered to companies by the OCEG based on the findings in a qualified third-party report, adhering to the procedures outlined by the OCEG.

In the OCEG press release announcing the award, Gracie Renbarger, Chief Ethics and Compliance Officer for Dell was quoted, stating:

“We are delighted to receive the OCEG certification as it recognizes our most recent efforts, and our overarching goal has been and continues to be centered on ways to most effectively operationalize Dell’s longstanding and unwavering commitment to act legally and ethically in all we do.”

Carole Switzer, President of OCEG stated:

“While not a point in time certification of FCPA compliance, the certification is an acknowledgement that Dell has taken significant, proactive steps to design a program that will enhance its ability to appropriately prevent, detect and react to non-compliance.”

FCPA Compliance at Dell

As a company, Dell strives to be a good corporate citizen. Focusing on environmental responsibility, corporate accountability and social responsibility, Dell recognizes the impact each of these issues have on attaining financial goals, maintaining a positive reputation and the company’s long-term success.

There are 8 components outlined by the OCEG companies must comply with to gain recognition for their risk management programs. As stated in the Red Book, the 8 components include:

• Culture and Context- understand the culture and environment in order to address current issues and prepare for the future.
• Organize and Oversee- make sure the GRC program is integrated into all areas of the business. Assign responsibilities to management, such as decision making authority and accountability to achieve the goals of the program.
• Assess and Align- evaluate risks and opportunities to implement activities to further mitigate identified risks.
• Prevent and Promote- set an example. Use a variety of tactics and rewards to promote and encourage favourable actions from employees.
• Detect and Discern- identify current and potential opportunities for misconduct and GRC failures.
• Respond and Resolve- address, respond and resolve issues of noncompliance and unethical conduct. Handle each issue on an incoming basis in order to address and resolve each matter immediately. Also, strive to prevent the same issues from occurring again in the future.
• Monitor and Measure- continually measure and modify compliance systems to ensure the system remains effective in preventing unethical and noncompliant events.
• Inform and Integrate- record and manage compliance system information in order for it to flow properly throughout the organization.

The “Red Book”

The OCEG Red Book was developed to help companies develop workplace policies and programs to encourage compliance and reduce risks. The 8 components listed above are suggestions from OCEG members and business leaders, outlining what it it takes to establish effective risk mitigation initiatives.

OCEG’S goals in creating the GRC Capability Assessment and Certification program are to:

“Help organizations evaluate the design and operating effectiveness of their GRC systems.

Reduce the cost of such evaluations by eliminating the time and expense of creating custom review procedures.

Raise the overall level of maturity and quality of organizational GRC globally by helping individual organizations create their prioritized improvement plans.

Provide external judgment and recognition of sound practices.”

Select appropriate investigators for each case. Selecting an investigator becomes a difficult task when employees know each other on a personal level. Even if there is not a direct reporting relationship between an employee and the investigator, ensure there are also no personal biases that will interfere with an investigator’s judgment. Depending on the size of an organization, companies may use third party investigators, while others use internal staff. There are pros and cons to both, as internal employees are fully versed in company policy and procedures, whereas third party investigators are able to maintain neutrality, as it’s unlikely they have any personal interests vested in the outcome of the investigation.

Choose investigators who will remain neutral and enter the investigation without prior judgment regarding the situation. In order to conduct a proper investigation, companies must be able to prove the investigation was conducted in a fair, unbiased manner. If an investigation is proven to be biased, companies  face various consequences, as they have not fulfilled their obligations to the investigation.

It seems to be that each week is busier than the last. Here are some of the things we blogged about this week- as well as some other pieces that caught our attention regarding internal investigation, human resources and ethics:

Monday:

• Blog Post- Does an Ethics Oath Make a Difference?

“In a previous post, “Corporate Ethics Oath: A Tool For Understanding and Developing Workplace Ethics,” we discussed the MBA Oath introduced at Harvard Business School. In the same post we also discussed creating an Ethics Oath as part of a company’s ethics and compliance initiative. Since writing the post, there have been numerous discussions related to the effectiveness of these types of oaths. In order for these initiatives to be successful, they require support and enforcement from top level management right down to entry level employees. If employees aren’t held accountable for their actions, the opportunity to act unethically increases.”

Tuesday:

• Blog Post- Ethics and Values Best Practices: Timberland

“At Timberland, they bring a new meaning to “walking the walk”. Timberland is a company known for its incredible corporate culture and commitment to corporate social responsibility. Timberland is one of only 20 companies to land a spot on the Fortune 100 Best Companies To Work For List since its inception. Timberland has also been included in Ethisphere’s 2010 list of the World’s Most Ethical Companies. At Timberland, they understand the value employees bring to the company. Engaging in volunteer initiatives helps Timberland employees develop skills they can apply in the workplace, while contributing to a good cause and making a difference in the communities they operate in.”

Wednesday:

• Blog Post- Disability Law Compliance Tools

“Last week the United States Department of Labor (DOL) launched the Disability Nondiscrimination Law Advisor tool. The tool has been developed to help employers determine which federal disability nondiscrimination laws are applicable to their organization. Understanding an employer’s responsibilities under these laws assists companies in establishing corporate policies that refrain from discriminating against qualified job candidates who have disabilities. In a DOL press release regarding the Disability Nondiscrimination Law Advisor tool, Kathleen Martinez, Assistant Secretary of Labor for Disability Employment Policy, said ‘today, we made it easier for employers of all sizes to access the talents of the 36 million Americans with disabilities.’ “

Thursday:

• Blog Post- Investigating Workplace Health & Safety Incidents

“The focus of workplace injury investigations is prevention. Investigations involving on the job injuries require significant attention to detail. Investigations into these cases seek to identify the causes of work related injuries, helping employers take appropriate action to prevent future injuries. Proper evidence collection and the information gathered during investigation interviews contribute to the success of workplace incident investigations.”

Friday:

• Blog Post- HR and Foreign Corrupt Practices Act (FCPA) Compliance

“On May 18th, I attended a webinar, “The Role of HR in FCPA Compliance,” hosted by Tom Fox, a lawyer based out of Houston, Texas. A specific section of the webinar that really stuck with me was a titled “Doing More With Less.” This has been a major topic of discussion recently, as organizations deal with the effects of the recession and the growing demands of ethics and compliance. Organizations are carefully considering where to spend their dollars. Ethics and compliance departments tend to have their budgets cut first, as some employers have a difficult time determining the return on investment of their ethics and compliance initiatives.”

On May 18th, I attended a webinar, “The Role of HR in FCPA Compliance,” hosted by Tom Fox, a lawyer based out of Houston, Texas. A specific section of the webinar that really stuck with me was a titled “Doing More With Less.” This has been a major topic of discussion recently, as organizations deal with the effects of the recession and the growing demands of ethics and compliance. Organizations are carefully considering where to spend their dollars. Ethics and compliance departments tend to have their budgets cut first, as some employers have a difficult time determining the return on investment of their ethics and compliance initiatives.

In the Ethisphere article “Take it from the Top: When Deloitte Execs Made Ethics a Priority, it Filtered on Down,”  Deloitte CEO Barry Salzberg, said:

“Fortune 1000 companies are on average spending 18%  less on their ethics and compliance budgets during the current recession. But it’s during times like these that it’s most important to invest in your employees so that they can make better, ethical decisions.”

Consider the costs associated with lawsuits, fines, a tarnished reputation, public backlash and the collapse of a company due to ethical violations. The money invested in preventing ethics and compliance investigations is well worth it. In today’s legal environment, organizations have been hit with some of the largest fines ever handed out for cases involving noncompliance, ethics violations and negligence. It’s much better to work towards preventing these issues from occurring than it is to have to respond to allegations exposing an organization’s wrongdoings.

Human Resources

In the webinar, Tom Fox discussed the use of HR departments in conducting FCPA investigations. The case he made was that organization’s HR departments already handle employee training and background checks. Members of the HR department are frequently in direct contact with employees and can be used as a cost effective solution for carrying out investigations. In a blog post Fox wrote leading up to the webinar, “The Role of Human Resources in FCPA Compliance-Part I,” he mentioned:

“A key role for HR in any company is training. This has traditionally been in areas such as discrimination, harassment and safety, to name just a few. There’s a training requirement set forth in the US Sentencing Guidelines. Companies are mandated to ‘take reasonable steps to communicate periodically and in a practical manner its standards and procedures, and other aspects of the compliance and ethics program, to the individuals referred to in subdivision (B) by conducting effective training programs and otherwise disseminating information appropriate to such individuals’ respective roles and responsibilities.’ “

For the same reasons as mentioned above, many organizations already use their HR department for investigations. Fox also discussed how employee training enforces FCPA compliance. In one of our previous posts, “How to Maximize Your Compliance Training ROI,” we discuss the importance of setting the tone at the top, message consistency for communicating rules and regulations, including real-life examples and outcomes of previous workplace situations, using multiple training methods and frequency and timing of training.

Effective training leads to a better understanding and desire to commit to compliance. When employees comply with laws and corporate policies, the risk for violations is reduced. When employees act ethically and make decisions based on company policies, a return on investment is identified, as employees have retained the information and reduced the risk of allegations being made against the company.

Investigation Systems

The US Sentencing Commission has outlined mandatory guidelines for creating an effective ethics and compliance program. Under Chapter 8, section 2.1, the USSC states:

“The organization shall take reasonable steps to: (A) Ensure that the organization’s compliance and ethics program is followed, including monitoring and auditing to detect criminal conduct. (B) Evaluate periodically the effectiveness of the organization’s compliance and ethics program. (C) Have and publicize a system, which may include mechanisms that allow for anonymity or confidentiality, whereby the organization’s employees and agents may report or seek guidance regarding potential or actual criminal conduct without fear of retaliation.”

With i-Sight Investigation Software, we offer an easy to use, cost effective case management solution for HR teams. i-Sight is frequently integrated with existing HR databases and systems that store customer or employee information.  Integration ensures users won’t have to re-enter information that already exists in another application, as the information is extracted from existing systems and pulled into i-Sight cases. This feature helps reduce redundant actions and helps investigators save time. i-Sight is web-based, storing cases in a centralized locations, accessible anywhere there’s an Internet connection. i-Sight is custom configured to each organization’s unique policies and procedures to ensure consistency throughout the investigative process.

In the post “The Role of Human Resources in FCPA Compliance-Part I,” and in the webinar, Fox discussed the benefits HR brings to internal investigations:

“Regarding investigations, HR can bring broad benefits to any FCPA compliance and ethics program through an efficient investigation process. It’s recognized that a Legal or Compliance Department may wish to take over and complete an investigation process. However, HR can bring a consistency in both the process and any discipline which is imposed. Such consistency reinforces the senior management’s message of commitment by the company to FCPA compliance and ethics. Such a function by HR can lead to an understanding of emerging risks. Lastly, it may be that employees are more willing to speak up to HR and the building of trust can be utilized to assist in overall risk mitigation. ”

To read an overview of the other topics discussed in the webinar, I recommend looking at these two articles written by Tom Fox on his FCPA Compliance and Ethics Blog:

The Role of Human Resources in FCPA Compliance-Part I

The Role of Human Resources in FCPA Compliance-Part II