"Power is gained by sharing knowledge, not hoarding it." ~Hubspot founder
No? Are you sure? Your Code of Ethics should properly steer all business decisions in the right direction and not crash and burn in the process. Crashing and burning stinks. Your Code should show employees and customers you are a responsible company. It should not leave employees confused.
Anonymous employee tips are a critical ingredient of detecting workplace fraud and other wrongdoing. Promoting a speak-up culture in the workplace where employees can bring forward any ethics and compliance concerns creates a significant advantage for an organization.
We recently published an article in National Defense Magazine called "Whistleblower Hotlines: A Valuable Tool". An effective ethics reporting tool, implemented as part of an ethics and compliance program, can not only help an organization detect and resolve potential misconduct issues, but it can also help support a culture of integrity and responsibility within the workplace. Misconduct in the workplace can be devastating. The Association of Certified Fraud Examiners’ “2016 Report to the Nations” estimates that, on average, organizations lose 5 percent of revenue per year due to fraud and other misconduct. Many organizations have implemented active and deliberate misconduct-detection processes. “Active” means that a person, or an internal control method, has been put in place and is instrumental in looking for fraud and other misconduct. Compare that to “passive” detection, in which the organization learns of unethical activity only after the fact or by accident.
Considering implementing a whistleblower hotline? Effective compliance programs should have an ethics reporting hotline. It's an effective means of communication between employees and management, allowing employees to bring forward ethical concerns to the company rather than reporting externally to media, or other agencies. A recent article explains that confidence in using a reporting hotline is a result of both the employee and company not being known to each other.
A weak link could spell disaster.