You are a staunch advocate for businesses to operate ethically. What does that look like in practice in today’s globalised corporate landscape, and how can companies ensure they are partnering with like-minded, integrity-driven entities?
In a highly interconnected world, ethical business practices mean embedding transparency and accountability into the entire corporate culture. This creates what I call an ‘ethical ecosystem’ that encompasses operations, supply chains, customer relations, and partnerships.
Having robust governance frameworks and regular auditing processes in place to ensure consistent ethical conduct is a critical aspect of internal and external accountability. Furthermore, companies should adopt stringent due diligence protocols when engaging third parties. My firm, Ethical Edge, advises clients to look beyond surface-level indicators – like marketing slogans or quick background checks – and perform comprehensive reputation analyses, stakeholder interviews, and thorough reviews of a prospective partner’s governance history. Essentially, a business wants to align with entities that not only claim ethical standards but can demonstrate them through proven track records, active compliance measures, and engaged leadership.
Many businesses only realise the importance of governance and risk management after facing a crisis. What are the key indicators that a growing company should proactively invest in governance advisory before problems arise?
The early warning signs that a company is vulnerable to a ‘crisis’ tend to be more subtle than the outright crisis. Rapid expansion, and especially international growth, places a strain on internal controls. Entering new jurisdictions with different legal frameworks or cultural business norms increases the complexity of risk. Leadership turnover can also be an indicator; if a firm’s executive team changes frequently, it may risk losing institutional knowledge that underpins governance structures. Companies should also pay close attention to mounting regulatory scrutiny within their sector, even if they have not been targeted themselves.
Finally, if an organisation finds it difficult to produce timely, accurate data for audits or external reporting, it is likely that governance procedures require strengthening. Proactive investment in governance advisory during these transitional or high-growth phases can prevent reputational damage, penalties or sanctions, internal fraud, and costly investigations later on.
Having worked extensively in financial and white-collar crime investigations, what are some of the most common governance blind spots that lead to fraud, and how can companies mitigate these risks before they escalate?
One of the most common blind spots is over-reliance on trust in key personnel without the appropriate checks and balances. Companies – and especially smaller ones – often concentrate authority in a small group, bypassing segregation-of-duties best practices. Another blind spot is inadequate monitoring of third-party relationships. Vendors, joint ventures, and international subsidiaries need ongoing scrutiny, not just one-time vetting.
Additionally, poorly maintained documentation, for example, where records are incomplete or inconsistently updated, frequently paves the way for illicit financial activities. To address these vulnerabilities, companies must implement layered internal controls (e.g. consistent reconciliation processes and approval hierarchies), robust whistleblower policies that protect and encourage employees to report suspect activities, and routine governance audits to ensure that policies and procedures are evolving alongside the business.
You place strong focus on ethics in ‘deep dive’ investigations, particularly in Open Source Intelligence (OSINT) and digital forensics. How can investigators balance thorough fact-finding with ethical constraints, and what are the key risks of crossing ethical boundaries?
Balancing thoroughness with ethics starts by establishing clear investigative parameters that respect privacy laws and client confidentiality obligations. With OSINT and digital forensics, it’s tempting to push the boundaries of what can be discovered online or through metadata. However, investigators should employ techniques and sources that are legally and ethically sound, ensuring we do not encroach on protected information or violate personal privacy.
Investigators must remain hyper-conscious of jurisdiction-specific regulations, such as data protection laws. Crossing ethical boundaries risks not only legal ramifications but also diminishes the credibility of the investigator and jeopardises trust in the process. By upholding formal codes of conduct, like the he Association of Certified Fraud Examiners (ACFE) Code of Professional Ethics or the Council of International Investigators (CII) Code of Conduct, and remaining transparent about investigative methods, professionals can mitigate these risks while still uncovering critical intelligence.
I also strongly recommend that investigation firms create a robust internal Code of Ethics. This document should align with the firm’s unique vision, mission, goals, and values. All client contracts should make expected investigator conduct, confidentiality and privacy of communications, shared information, and intelligence procurement clear to clients as well.
Beyond the technical aspects, let’s talk about the importance of the human factor in client interactions and communications. What best practices do you recommend for investigators and compliance professionals when handling sensitive cases with stakeholders?
When dealing with sensitive investigations, the human element is central to building trust and ensuring cooperation. First, clear communication of the investigation’s scope, objectives, and timeline sets realistic expectations. Active listening is just as crucial: encourage stakeholders to voice concerns or anxieties without judgment.
Investigators and compliance professionals should maintain a high degree of empathy, as it is important to recognise that these issues often carry personal and emotional weight for individuals involved. It’s also essential to keep all parties informed of significant developments: transparency, within reasonable confidentiality limits, helps preserve trust. Lastly, strict confidentiality protocols on all investigation and compliance matters must be upheld to prevent leaks or reputational harm. By combining professional expertise with compassion, we can build a collaborative environment that ultimately leads to more successful outcomes.
Your company Ethical Edge works often with a variety of innovative early-stage ventures, many in industries known for rapid evolution and regulatory uncertainty. What unique ethical and compliance challenges do these sectors face, and how can they build strong governance frameworks despite shifting regulation?
Early-stage companies in fast-moving sectors – like fintech, AI, blockchain, or platform services – often outpace the development of formal regulations. This can create a ‘grey zone’ where founders must make rapid decisions without clear legal precedents or ethical guidance. An equally pressing challenge is resource constraints, as startups in particular don’t typically have large compliance teams.
To address these risks, I recommend proactive collaboration with regulators and industry bodies – be part of the discussions shaping future regulations – and implementing adaptable governance structures with policies that can be updated as regulations mature. Ongoing training and awareness among all team members is also key, ensuring everyone from the CEO down to new hires understands the importance of compliance and ethical conduct. And finally, I would recommend early integration of compliance expertise, even if that means contracting part-time or external advisory such as Ethical Edge’s services, to embed ethical considerations from day one
Building a strong, flexible governance framework early on is a strategic advantage. By instilling an ethical culture from inception, these ventures reduce long-term risk and foster public and investor trust.
I believe that centring on ethics and robust governance from the outset is not just a matter of avoiding legal pitfalls: it’s a key driver of sustainable success. By employing best practices in diligence, transparency, and empathy, businesses and investigators alike can navigate a globalised corporate landscape in a way that promotes trust, innovation, and long-term growth.
Heidi J. T. Exner is a Certified Fraud Examiner (CFE), a Certified Internal Auditor (CIA), a licensed Private Investigator (PI) in the Province of Alberta, and she holds a Chainalysis Reactor Certification (CRC). She acquired her Bachelor of Arts (First Class Hons), Juris Doctor (JD), and Master of Business Administration (MBA) at the University of Calgary, and she plans to become a licensed attorney in the state of New York, USA. Bringing decades of international experience to the table, in 2023, Heidi formed Ethical Edge PI & Corporate Advisors with a vision to foster transparency, accountability, and trust in our global corporate landscape. Over the years, Heidi has served on numerous boards, councils, and committees within non-profits and major institutions across Canada. She is locally and globally celebrated for her academic, entrepreneurial, and community contributions: her list of accolades and awards is largely due to her philanthropic efforts and formidable work in the realm of white-collar crime.
