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Conducting Internal Investigations When Parent Is a Foreign Company
When suspicions of wrongdoing or illegal activity have arisen in your organization, an internal investigation should be considered to minimize damage to the organization's reputation and to limit the organization's exposure to criminal, civil and regulatory enforcement, and related action.
An internal investigation should be considered when there is a credible indication that a law or an important organizational policy has been violated within the global organization. The alleged misconduct may be at the parent or subsidiary level. Regardless of whether the allegation is at the parent or the subsidiary level, the organization has an obligation to investigate the allegation and remedy the situation promptly. What steps should the organization take to investigate the conduct? It is prudent that internal investigations regarding serious allegations should be conducted by external counsel that is not engaged as counsel for the parent or the subsidiary for other representation. Independence is the key.
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