Due Diligence Protects Your Clients and Your Business

Honesty, integrity, security…these are the characteristics that consumers demand today. Your company has worked earnestly to create its stellar reputation on the basis of these three principles. You recognize, however, that an organization’s reputation is only as sound as that of its individual employees. As a result, performing due diligence for all potential hires is crucial for the health of your business.

Due diligence has two meanings, both which are applicable to the hiring situation. The first implies that you have exercised care so harm is not caused to others. The second focuses on the purposeful research and analysis that is performed before completing a business transaction. In other words, if you thoroughly research a potential hire to verify that he/she should not pose any danger to your other employees or to your clients before making him/her an employee, you have done your due diligence.

Human Resource Professional Magazine intimates that “the reasons for performing pre-employment background investigations extend far beyond the legalities and potential exposure a wrong employee can create.” In fact, new case laws in many states make it possible to hold your company liable should one of your employees commit a crime or should your company withhold important information on referrals after your employees leave. Fair or not, your company can be held responsible for the misdeed of those you hire. Consequently, honoring the process of due diligence is more important than ever.

The media is filled with horrific stories about companies that failed to execute their due diligence. Ohio’s Stephens vs. A-Able Rents Company is just such a case. One of the defendant’s delivery men assaulted and raped a client to whom he was delivering furniture. The court concluded that A-Able Rents’ “…failure to conduct the pre-employment investigation directly contributed to the violence perpetrated on (the plaintiff) A-Able Rents showed a conscious disregard for the rights and safety of others.”

True diligence is what it takes from your company to protect the safety of your customers and your own business. Don’t leave your hiring practices up to fate. Please contact us today so we may help you ascertain the risks you are taking.

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