|
Why “Vetting” is Essential to Preventing Business DisastersIndianapolis Private Investigator, Lauth Investigations can assist with comprehensive background checks and personal profile verifications. Proper background checking or “vetting,” of potential employees is imperative to all businesses. You should know WHO you are hiring. Investigating and evaluating a potential employee is essential to your business because this will determine whether the information on his/her resume is accurate through checks on past employment, criminal history, financial status, commercial records, education verification, and license verification.. Failure to properly determine the background of who you are hiring could end in disastrous results for your business. Failure to do so could result in financial and security risks for the business and/or employees. (1) National Statistics prove that background checks are necessary in order to catch any red flags within an individual’s background, and the statistics speak for themselves.
One example of how lack of background checking can go wrong involves Ron Schiller and NPR. Conservative activists who posed as members of the fictitious Muslim Education Action Center Trust were able to videotape Schiller making comments that did not align with NPR’s values and beliefs. As a result, amongst other recent controversial events, NPR was forced into heavy damage-control and may risk losing federal funding. While Schiller was intentionally set up by James O’Keefe in the video, this situation may have been prevented if Schiller and NPR did some previous “vetting” of the people that arranged the lunch meeting. (3) As evidenced by the recent NPR scandal involving Ron Schiller, it is imperative businesses conduct proper background checks in order to prevent business disasters. By taking the time to thoroughly investigate potential employees or business relations, your business can prevent future disasters, embarrassment, and damage control. Vetting is also an important process when it comes to companies merging or partnering. Just like you would do a background check on a potential employee, it is also important to do a comprehensive due diligence check on another company that you are considering merging or acquiring. This should be done before any major business decisions are made and before a merger contract is signed. The key players need to be thoroughly evaluated to weed out anyone who doesn’t align with your company’s goals and ideals as well as to keep out potential criminals or troublemakers. The other company’s background must be thoroughly scrutinized as well to determine any underlying business or financial concerns that you do not want to acquire. By determining a potential company’s background and assets, you will be preventing business disasters by determining the factual background of a company as well as lowering the risk of crime within the business. Vetting also occurs when non-profits need to evaluate a potential board member. Non-profits, and corporations, will seek out high-ranking players within the community who will be a valuable asset to the board. The position is more about how well the board member can serve the non-profit and whether their skills and values align with the non-profit. The non-profit will then do an extensive background check before an interview to prepare, and the areas that are searched are personal character, education, previous employment, financial stability, and past volunteering. Bridgestar suggests four key due diligence questions to ask the candidate in the interview, and these questions follow as:
If the candidate’s background checks out, and he/she seems like a beneficial fit for the non-profit or corporation, an invitation to serve on the board will be extended. (4) Another important vetting process occurs when a non-profit is seeking grants or donations, especially on a larger scale. This is an extensive and thorough examination, usually by an expert, prior to grant approval or clearance. (5) Angel donations are also another reason vetting must be done because in this type of donation, an affluent individual may provide large amounts of start-up funding in exchange for ownership equity. While the vetting process may vary, it essentially has the same purpose. The company distributing the grant or donation will evaluate the non-profit in order to determine whether or not it is a viable organization to give the money to. The grant application is evaluated to look for any mistakes or inconsistencies, and this evaluation is usually done by a committee. The agency will look into the financial background of the non-profit as well. Basically, the grant donor wants to make sure the organization is honest and will be using the money exactly as they indicated. Additionally, the non-profits themselves must check upon the agency offering the grant or donation. They need to make sure the donor company is also reliable and in good standing because it would be disastrous to receive funding from a company that is corrupt or does not fit the non-profits own values. The vetting process may start before a grant application is completed and will continue until the grant is approved. Once everything seems to be in good standing, the grant is approved and both sides are happy. (6) Please contact Indianapolis Private Investigator, Thomas Lauth for further information Sources used in this article: “Why Conduct a Background Check Before Hiring an Employee?” Author Unknown. American Databank. 2008-2010. “Employment Statistics.” Stelter, Brian. Mar 8, 2011. “Facing Lawmakers’ Fire, NPR Sees New Setback.” The New York Times. |
 |
© 1993 - 2010 Lauth Investigation International Inc. All rights reserved.
Home |
Attorney / Legal Support Investigations |
Corporate Internal |
Corporate Financial |
Insurance Subrogation |
Insurance Investigations |
Personal Investigations |
|
|