The past several years have seen an increasing awareness among business executives, corporate counsel, and government regulators of the value of corporate self- examination. It also produces a number of more substantive benefits. Management Control Complete and accurate information is an essential factor in management control. But when charges of misconduct are in the air, the flow of accurate information to the top often becomes stifled. Rumors may be impossible to separate from facts.
Top management can become isolated without realizing it.
In a large corporation, a special counsel investigation may be the only practical means of finding out precisely what has happened. An independent investigation can be a management tool to cut through the confusion created by a burgeoning scandal and to reassert control over events. A complete and reliable factual record enables managers to make informed decisions during a time of crisis. With a detailed report as the basis for those decisions, the judgments and actions of management can be explained and justified. Serious allegations against a major company typically spawn numerous, sometimes daily, demands for detailed information from shareholders, public- interest groups, the media, and government agencies.