Internal investigations are integral for businesses in the Philippines to adhere to legal and ethical obligations, investigate wrongdoing, and alleviate risks. When there are concerns such as fraud, harassment, or breaches, a company retainer enters the picture to carry out an investigation within the company and try to unmask the reality of the situation and put the company on the right track. This article delves into the involvement of Corporate Lawyer Philippines in internal audits in the Philippines and explains the main steps taken, the significance of remaining impartial, and the legal issues concerned.
Steps in Conducting an Internal Investigation
Defining the Scope and Purpose of the Investigation
The very first thing to do in any internal investigation is to understand its limits and aims clearly. A corporate counsel engages in discussions with the management or compliance department to agree on the subject matter of the investigation. For example, whether it is about fraud, an ethical issue, or a violation of the rules, and what the objective of the investigation is. Regarding the investigation, it is important to set a boundary so as not to be overly prying into other irrelevant matters.
At this point, the lawyer also determines the essential parties involved in the investigation, the deadlines applicable, and the resources required to conduct the investigation. Additionally, it is important to prescribe the scope and objective of the investigation in writing as it will serve as the structure for the entire process and will help keep all the parties concerned on the same page.
Gathering and Reviewing Relevant Documents
When the scope is determined, the corporate lawyer collects the necessary documents and materials that can help him in the case. This may comprise emails, financial reports, internal documents, regulations, employee files, and any other information that may help clarify the matter.
Corporate lawyers in the Philippines likewise abide by data privacy laws, such as the Philippine Data Privacy Act, to ensure that the information they gather is properly managed. They ensure that all evidence is photographed and preserved in order, with no chance of them being lost or altered because of the investigation’s boundaries.
Conducting Interviews with Involved Parties
Conducting interviews is an essential step in the process as it enables the corporate attorney to obtain information directly from certain people. The said interviews most often include those employees who are at the heart of the situation, and persons such as bystanders or other individuals who can provide relevant information.
Corporate lawyers in the Philippines assist in conducting interviews by adhering to ethical rules by not applying intimidating measures. They likewise make it a point to ensure that the interviewees are aware of their rights, including the right to counsel, when necessary. In addition, they prepare relevant interview questions in advance to prevent deviation from the purpose of the interview and make a record of all the answers given. It is important to maintain a respectful and non-accusatory tone to be able to get sincere answers from the subjects and to ensure that the environment is neutral.
Ensuring Compliance with Legal and Ethical Standards
Adhering to domestic laws as well as ethical considerations is of utmost importance among corporate lawyers when it comes to conducting internal investigations. They make sure that the investigation adheres to the labor codes and privacy laws of the Philippines such as the Labor Code and Data Privacy Act especially when engaging in activities involving employees’ information.
Authorities may also be invited to take part in internal company investigations, which may involve cooperation with the police or any other legal structure outside the company. We will look at the outcome of the investigation and the applicable rules and standards and decide whether it is appropriate to take additional legal steps or other corrective actions.
Analyzing Findings and Assessing Implications
Upon collation of all relevant information and conducting interviews, the corporate attorney processes the information to analyze the different relationships, verify or refute other peoples’ accounts, and eventually draw some conclusions. They analyze very well the consequences their outcomes present to the business in terms of legal and operational issues. This entails, for instance, assessing if there were any infractions of the existing company policies, any threats to the organization’s good name, and whether there are any compliance issues that have to be resolved.
Corporate lawyers use legal reasoning to examine the facts, which does not leave room for unfounded conclusions. In some situations, they can call on third parties as experts, for example, forensic accountants in fraud cases, to carry out a more complete investigation.
Reporting Findings to Stakeholders
The last step in the internal inquiry revolves around the report’s actual composition that captures the results and provides the conclusions as well as recommended channels of action. It usually has an executive summary, the narrative of the investigation, an analysis of the narrative, and all relevant appendices.
The in-house attorneys deliver that report to the management or board of directors who will determine the action that the company shall take. The report is aimed at being straightforward and systematic to make the relevant stakeholders capable of making adequate decisions. In some cases, they provide recommendations such as reprimands, revising some policies, retraining some employees, or filing a lawsuit if it is necessary in light of the investigation’s results.
Key Takeaway
Undertaking an internal inquiry in the Philippines requires the services of a corporate lawyer. Where the fleshing out of the inquiry is done with utmost respect to the law and all mitigating factors. From the scope of the investigation to the collection of evidence, interview conducting, and analysis of evidence, a corporate lawyer ensures that all processes are thorough and in compliance with the applicable laws.
While corporate lawyers help protect the interests of the organization while ensuring ethical behavior is adhered to, they also help in resolving issues of the kind that would otherwise damage the image of the organization, resulting in the promotion of such values as accountability and transparency within the organization.
