THE BOURNE FIRM
Make no assumptions. People say the darndest things. Never believe anything you hear until you verify it. One of the worst actions you can take as a director, officer or employee is an action based on incorrect facts.
Provide key notices. Notify people who need to know about the allegation. This may include the person responsible for investigating the claim, the human resources department, public relations personnel, you insurance advisor, your counsel and law enforcement. Be certain that this notification is identified as confidential.
Retain relevant information. Send a hold notice to employees who may have relevant information requiring them not to destroy or alter potentially relevant information if litigation or a government investigation may be anticipated. The consequences of not adequately preserving evidence can be draconian.
Determine lawyer involvement. Assess whether to conduct a confidential and privileged investigation for the purpose of obtaining legal advice. Relevant factors for making this determination include the allegation's seriousness, whether a credible reason exists not to so investigate, whether current procedures allow an informed decision, the cost of the investigation and the possible adverse consequences if the allegation is true.
Complete an investigation. An internal investigation may include a interviews of witnesses, review of documents and a forensic analysis. It is crucial not to imprudently limit the investigation, in particular to achieve a specific result. An investigation that is superficial, or based on an ulterior motive, can be more damaging than no investigation at all.
Provide a report. Report the findings from the investigation to whomever or whatever is responsible for determining any action to take as a result. Whether this report should be in writing is dictated by factors such as confidentiality, the need for substantiation and whether the report will be subject to discovery in litigation.