When Corporate Investigations Cross the Line: Business Controls Helps Avoid Costly Errors.

DENVER -- The firestorm resulting from Hewlett-Packard's investigation of its board members could have been avoided with a few common-sense techniques, according to Steve Foster, executive vice president and chief operating officer of Business Controls, Inc.

As the leading corporate investigations firm, Business Controls advises that the first requirement is a clearly defined plan and process for conducting the investigation. The second is complete transparency of both the investigator and the company. And the third is knowing the legal and business implications of the investigation.

Preparation and planning

Before undertaking any investigation, careful, methodical planning is essential if the investigation is to yield the desired results Co and stand up under possible ethical and legal scrutiny.

Foster recommends first engaging the right resource. Organizations should select corporate investigation firms with a proven track record. He cautions that the largely unregulated investigations industry runs the gamut from seedy, fly-by-night operators to sophisticated, high-tech operations, and it's important to select an investigator with appropriate certification, training, and experience.

Crossing the line?

In the Hewlett-Packard matter, the company allegedly crossed an ethical and possibly a legal line by providing board members' and reporters' personal telephone numbers to its investigations firm. The investigators posed as the owners of the numbers to obtain telephone records of a board member, several former employees and two reporters.

While companies can legally institute undercover investigations within their own facilities, when they move beyond their physical boundaries, investigating employees' activities outside the workplace is treading dangerous ground.

Foster recommends finding a leak's source through less invasive means, such as sending a memo or e-mail to each suspected leaker with one detail changed in each, then waiting to see which version is reported in the media.

Veil Co or shroud? Co of secrecy

When an investigator claims its activities must remain secret so as not to compromise the operation, red flags should fly. "A reputable investigator always keeps the client fully apprised of its activities and results," Foster commented. By allowing an investigator complete secrecy, a company's management and board have no way of monitoring the process and may be held accountable for any wrongdoing on the part of the investigator.

"With a thorough understanding of the organization's needs and mapping those needs to the investigative objectives, a company can develop an appropriate, effective, and lawful strategy that results in litigation avoidance, and therefore cost savings," Foster said.

Business Controls has performed thousands of corporate investigations in 80 countries. Steve Foster is an expert in corporate investigations, and the ethical and legal implications of such activities. To schedule an interview with him, please contact Michelle Francis at [e-mail] or call 303-503-7353.

About Business Controls, Inc.

Business Controls is the country's leading incident reporting and corporate investigations firm. Its services include incident reporting, corporate investigations, and risk management and training services. Learn more at www.businesscontrols.com or call 303-526-7600.