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In a previous blog, I wrote about the unique challenges of conducting "C-suite investigations" — in other words, investigations into a member or members of an organization's senior leadership. It is not unusual that these types of investigations are prompted by a complaint made directly (and sometimes anonymously) to an organization's Board of Directors. When this happens, it can be difficult for a Board to know how to proceed, particularly if this is the first time they have faced such a complaint.
In this blog, I draw on my experience conducting investigations into complaints against C-suite and other senior level employees to provide guidance to Board members who find themselves in receipt of such a complaint.
Below are several issues for a Board to consider as it decides how to respond.
What assistance does the Board need?
Any process implemented in response to a complaint of this type comes with significant complexities. What exactly should the process look like? What information should be shared between the Board and leadership of the organization? Will the complainant participate in the process?
Given these complexities, the Board ought to consider retaining an expert, external investigator to handle the process. Not only will this provide the Board with expert advice, retaining an external party can assist with liaising between the Board and leadership of the organization as necessary. Additionally, it can demonstrate to a complainant that the Board takes their complaint seriously and intends to deal with it via a neutral, third party, which may encourage the complainant to participate in the process.
What is the nature of the complaint?
One issue for a Board to consider when it receives a complaint of this type is: what exactly is the nature of the complaint? Different types of complaints will call for different responses, and the nature of the appropriate response will help to determine the support that a Board needs in responding to a complaint.
If a complaint alleges a breach or breaches of an organization's policies – for instance, a complaint that alleges harassment, discrimination, or fraud – then it is likely that an investigation is the path forward. Indeed, depending on the nature of the allegations, an investigation may be required by relevant legislation. However, even if an investigation is not statutorily required, investigating an alleged breach of policy will result in factual findings about the allegations, which a Board can use to make decisions about appropriate next steps.
On the other hand, if a complaint alleges issues with management or widespread dissatisfaction among employees, a workplace assessment may be more appropriate. Such a process would gather information from employees or a sample of employees, allowing the Board to assess the prevalence of the concerns expressed in the complaint in order to determine whether a response is needed and, if so, what the nature of that response ought to be.
Who needs to know about the complaint?
A Board in receipt of a complaint against a member of senior leadership needs to carefully consider who needs to know about the complaint within the organization. It is likely that at least someone within the organization needs to know about the complaint, since the Board and/or its external investigator will need practical assistance with any process implemented to respond to the complaint, such as obtaining copies of relevant policies or email addresses of potential witnesses.
However, the Board should ensure that anyone within the organization who is informed of the complaint is not in a conflict of interest, nor are they a potential witness. Of course, this includes the person about whom the complaint is made, but it could also include other senior leaders in the organization who may have relevant witness information about the allegations.
Additionally, complaints against senior leaders are often highly sensitive. Boards should therefore ensure that they keep the number of people within the organization who they inform of the complaint to a minimum to preserve confidentiality as much as possible.
Who will lead the Board response?
In order to respond efficiently to a complaint of this type, the Board should consider designating one member, or a committee of members, to lead the response. This will allow for one point of communication between the Board, the organization, and/or the external party, which will reduce confusion and delay.
Final thoughts
Receiving a complaint against a senior leader presents a Board with a difficult challenge. However, by responding thoughtfully and relying on assistance as needed, a Board can ensure that it addresses these types of complaints with a fair and thorough process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
