The Diciest Of Corporate Governance Issues

They’ve gotten more expensive and the range of issues spawning them has grown wider, according to a post from law firm Farella Braun+Martel. Alleged fraud, financial crime, harassment or other violations of law may still trigger an investigation, but so too can “toxic workplace culture” and workplace misconduct. Once an investigation is set in motion and even before, when the decision is being weighed and the blueprint and personnel are still being strategized, companies have to grapple with some of the most difficult of all corporate governance issues. “This article,” the writers say, “will provide a high-level guide for any corporate director contemplating the initiation of an internal investigation as well as tips on how to conduct it effectively while minimizing costs.”

Among the questions addressed: Do we need to hire outside counsel? Will the results be disclosed, and if so to whom? How much should be written and how much should be conveyed orally only? How do we minimize disruption to the business? Under what conditions do we recommend an interview subject hire personal counsel, and under what circumstances should the company foot the bill? How extensive and wide-ranging should the process be, and what potential evidence needs to be preserved?

“The task of corporate directors investigating potential misconduct is certainly unenviable,” the writers conclude, “but, if done properly, directors can lead their companies out of perilous situations to emerge better off than before.”