What is window dressing?Explanation of fraud tactics, detection methods, and investigation methods
2023/ 8/ 16
What is a civil lawsuit (civil trial)?Explains cases where companies are sued and how to deal with them
2023/ 8/ 16
When corporate scandals such as information leaks, compliance issues, and harassment problems occur, especially in the case of large-scale scandals that cause public turmoil, it is difficult to resolve them through internal investigations alone. is also difficult.A "third-party committee" is important for conducting prompt and fair investigations, investigating causes, and considering measures to prevent recurrence.In order to restore social credibility, we will explain the basic knowledge of third-party committees that conduct accurate investigations from a neutral standpoint, and forensic investigations that support investigations by third-party committees.
What is a third-party committee?
A third-party committee is an organization established to investigate the causes of compliance violations, such as scandals, and to take measures to prevent recurrence. It consists of experts and stakeholders who haveIt is not a permanent installation, but is installed for each case when a corporate scandal occurs.They are voluntarily established by companies, and are sometimes called "special investigation committees" or "independent investigation committees."
What is the purpose of establishing a third-party committee?
When a company causes a scandal, it is also possible for the company to proceed with the investigation without setting up a third-party committee.However, investigations conducted by management and employees alone cannot eliminate the risk of inadequate responses.The purpose of establishing a third-party committee is to restore social trust through objective and fair investigations by outside experts.By entrusting the investigation to a third-party committee composed only of outsiders who have no interest in the company, we can show the public our sincere attitude toward preventing the recurrence of scandals.
How is it different from an in-house survey?
When conducting an internal investigation, it is common to appoint a director in charge, create an internal investigation team of employees under the direction of the director, conduct the investigation, and compile an investigation report.Unlike a third-party committee consisting of experts and related parties independent from the company, if an internal related party conducts an investigation, they can understand the actual situation of the company and conduct a quick investigation, but there are doubts about objectivity and neutrality. will remain.
How is it different from an internal investigation committee?
An "internal investigation committee" consists of the company's management team and audit department as the core, but also includes outside experts such as lawyers.Compared to a third-party committee, it has the disadvantage of lacking independence and neutrality as an organization.In particular, in the case of scandals involving corporate top executives, cases requiring a high level of expertise to resolve, and cases in which social trust has been significantly damaged, we ensure the objectivity of investigations in order to prevent suspicion of concealment or destruction of evidence. It would be wise to set up a third-party committee from the perspective of
Overview of the third-party committee guidelines by the Japan Federation of Bar Associations
Since the client of the third-party committee is a company, there is a problem that it is difficult to maintain complete independence.In the past, some third-party committees had insufficient independence from companies and insufficient proficiency of lawyers, resulting in investigation results that instead invited criticism.In response to this situation, the Japan Federation of Bar Associations established in 2010 the "Guidelines for Third-Party Committees in Corporate Scandals."Although there is no obligation to operate in accordance with the guidelines, there are currently many cases where third-party committees are established in accordance with the JFBA guidelines.
*"Third Party Committee Guidelines for Corporate Scandals" (related link)
https://www.nichibenren.or.jp/library/ja/opinion/report/data/100715_2.pdf
As for reports, an organization called the "Third Party Report Rating Committee" was established to increase social credibility. This helps improve the credibility of the report by
Activities of the third-party committee
The role of the third-party committee is to investigate and analyze the facts of corporate scandals and submit reports.With the cooperation of the company, we will investigate the cause by requesting the disclosure of internal documents, investigating PC data, and interviewing employees.After collecting and analyzing evidence, certifying and evaluating the facts, the results are submitted to the company.We also make proposals for recurrence prevention measures.
Independence and Neutrality of the Third-Party Committee
Since the investigation is conducted from a position independent of the company, no person with an interest in the company can be appointed as a member of the third-party committee, which is an organization that ensures neutrality and independence.It is also required that even if the results of the investigation are unfavorable to the company or its management, it must be included in the investigation report and that the contents of the investigation must not be disclosed to the company before the report is submitted.
Cooperation with companies, etc.
The cooperation of the company is essential for the third-party committee to proceed with the investigation.If a third-party committee asks for cooperation or response, the company must respond fully.All internal information and materials will be accessible to employees, employees will be ordered to cooperate with investigations as part of their duties, and if necessary, a secretariat will be set up within the company.Any refusal to cooperate or any sabotage will be included in the third-party panel's report.
About the selection committee and investigators
According to the JFBA guidelines, the number of members of the third-party committee should be three or more in principle.The main selection committee members and investigators are as follows.
<Main Appointment Committee Members>
・Lawyer (other than corporate lawyer)
・CPA
・Tax accountant
・Academic experts, journalists
Lawyers are often included in the selection committee because, in addition to legal issues, they are good at interviewing the target, collecting evidence, and finding facts.In the case of accounting-related scandals, it is customary for certified public accountants and tax accountants to serve as committee members.In addition, depending on the company and the project, academics in specialized fields and staff of research institutes may serve as committee members.
<Investigator>
・Lawyer in charge of investigation
・CPA
・Experts in digital forensics investigations
Since it is impossible to cover a wide range of investigations with the limited number of members of the third-party committee, the actual investigation is contracted to the investigator requested by the third-party committee. Masu.Lawyers, certified public accountants, and specialists in digital forensic investigations are usually involved, sharing information with the company's legal and risk management departments.
Investigation support for scandals by a third-party committee is "forensic investigation"
A forensic investigation is a forensic investigation conducted when an incident such as internal fraud or information leakage occurs.The knowledge of forensic investigative experts is indispensable for the investigation of misconduct by a third-party committee.Many of the forensic investigations are "digital forensics investigations" that investigate, search, and analyze legal evidence from digital data stored in storage media such as computers.
What is a Digital Forensic Investigation?
In these days when information is digitized, it is important to analyze digital data stored in e-mails, call histories, PCs, etc., in scandal investigations by third-party committees.Forensic investigations that handle such digital data are called “digital forensic investigations”.A speedy digital forensic investigation by a specialized investigative company is the key to an investigation before the company destroys or tampering with the evidence.
For digital forensics investigations, it is recommended to consult with a specialized investigation company.
In a digital forensic investigation, after hearing the scope of the investigation, we secure the device to be investigated as necessary, and use a dedicated analysis tool to properly preserve and collect the digital data so that it is not deleted or destroyed by mistake. We will analyze and report on the background and evidence of the scandal, but know-how is essential for a reliable investigation.
If someone without the know-how conducts an inappropriate investigation, they will misunderstand the handling of the data, and not only will they not be able to obtain accurate investigation results, but there is also the risk of secondary damage such as data being overwritten or corrupted. Be sure to consult a professional research firm with a proven track record.
Some research companies have AI technology that can conduct high-precision and speedy investigations
In digital forensic investigations that involve the collection and analysis of huge amounts of digital data, there are limits to human power alone, but the use of AI (artificial intelligence) technology enables high-speed and high-level investigations. There are also specialized research firms.
Be aware that forensic investigations involving complex and difficult processes take time to produce results, and in some cases cost enormous amounts of money.If you are an experienced research company that handles various patterns of cases, there is a high possibility that you can lead to a solution with detailed responses that match your case.
[Related article] What is a forensic investigation?Commentary on necessary cases, points to note, and examples
Digital Forensics Investigation Company FRONTEO Supports Investigations of Misconduct by a Third-Party Committee
FRONTEO, a leading company with an overwhelming track record of digital forensic investigations, is one of the companies that we would like to consider requesting an investigation when the need for a digital data investigation arises in a scandal investigation by a third-party committee.We have a wealth of experience in investigating various types of cases, including information leaks, data falsification, embezzlement, labor issues, harassment issues, and security cases.We have a solid track record of more than 2000 digital forensics, and the know-how we have cultivated over many years has become our ability to respond to a wide range of companies and problems.
FRONTEO develops its own AI engine and software equipped with it every day. Since the AI engine and software are developed in-house, it is possible to flexibly customize systems and special data unique to each company, and conduct optimal investigations for each company and project.We provide an accurate one-stop approach to data identification, preservation, processing, review, and preparation of submitted data.
If the establishment of a third-party committee or forensic investigation is delayed in a major scandal, leading to the concealment or destruction of evidence, public distrust will increase, and the risk of suffering enormous damage to the company will increase.Promptly establishing a third-party committee to conduct a forensic investigation and disclose it to the public is the best way to protect employees and restore trust in the company.With FRONTEO, which has an overwhelming track record in forensic investigations, it is possible to handle data quickly and appropriately in the event of an emergency.
