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A Question of Ethics 


Kitty HaileyA Question of Ethics is a monthly column by Kitty Hailey, the nation's premier investigative ethicist, and author of the highly acclaimed book Code of Professional Conduct, standards and ethics for the investigative profession.

Piece of the pie

Dear Kitty:
I run a small investigative firm. In fact, it's just me. Sometimes I can't handle all the work I get and have considered either referring it out or sub-contracting it to another investigator.

Is it unethical of me to ask for a referral fee: just a little "thank you" for sending a lot of money to someone else in the form of a very good job?

Am I breaking any laws or violating any moral code if I want a piece of the pie? After all, I could have had the whole pie if I kept the job, but the client would have had to wait for their work to be done because I'm so overburdened at the time.

What do you think?

Sincerely, Pastry Lover

Dear PL:

I'm constantly amazed that investigators don't understand the art of business. As a whole we are generally afraid to share and insufficiently generous with one another. The attorneys with whom we work are constantly referring out cases to one another for a piece of the action. Personal injury attorneys work on a percentage of the final settlement agreement for referred cases and can often reap hundreds of thousands of dollars at the end of a case for their simple act of "generosity."

Repeat after me: "I am allowed to make money."

Good, now say: "It is not a sin, a crime or a violation of any moral code to request a referral fee from a professional colleague."

You're really in the swing of it. So, now say: "I'm going to remember to send 10% of the retainer deposit, a gift certificate for dinner at a nice restaurant, or a basket of flowers to any investigator who refers a job to me." (Gift commensurate with the value of that case).

Good business is about networking, sharing and making everyone happy.

The Code: (Fees 2:5) deals with compensation for services rendered. It specifically states that an investigator cannot accept work on a contingency fee as it could compromise the fair and unbiased search for evidence. Neither can an investigator accept fees in the form of a bribe or incentive. However, referring a job to another individual without impacting upon the results of that investigation is perfectly legal and ethical. Sharing the largess that is afforded the other investigator is nothing more than a good business practice that might perpetuate future sharing of casework.

So feel free to ask for your piece of the pie. Just be sure to specify if you want peaches or cherries. Some investigators haven't a clue about the intricacies of these delicious rewards.

Ethically yours,
Kitty

Editor's Note: Kitty Hailey's column "A Question of Ethics" appears exclusively in the monthly edition of Cluesonline. The column above appeared in the August 2004 issue.

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