Contemplating an Internal Investigation?
Here Are Some Dos and Don'ts

By Ellen Zimiles and Scott Moritz
Directors and Boards E-Briefing, October 2006

Permissible tactics, PR concerns, safeguards, and other
considerations for boards in authorizing an investigation.

The scandal embroiling the Hewlett-Packard board of directors has brought the subject of corporate internal investigations to the fore in the media and in corporate governance circles. Indeed these recent events are enough to have made some management and directors somewhat reticent about using outside investigators. Yet one thing remains undeniably clear: Companies will continue to be obligated to conduct internal investigations when they are in receipt of allegations of fraud or misconduct. At the same time, board members have become increasingly aware that they must uphold the highest level of integrity and ethical standards as they exercise their responsibilities to the company and their shareholders. What the H-P case has brought into focus for many is the importance of achieving a better understanding of the methods typically utilized by investigators working on behalf of the board. Read more