Fighting Fraud: protecting the cornerstone of communities everywhere Many communities depend on small businesses. They drive the local economy. They create jobs. They can be economic powerhouses. In British Columbia, small businesses account for one-third of the province's GDP, outdistancing the performance of the small business sector in other provinces across Canada.
A simple Thank-You packs a powerful punch Many companies are only just starting to embrace ethics reporting. They've gone through the implementation process with their vendor, if they've chosen to use a third-party system. Training employees on the new system has been done. Promotional materials have been handed out. Senior management has endorsed the system and has encouraged employees to report the wrongs they see. So when reports start to trickle in, there's one very important thing that has to be done before anything else: Thank the whistleblower.
Introducing an ethics hotline into your company? Introductions can be awkward. Introducing a new system into your company can be fraught with challenges. And blank stares... Many times employees are happy with the way things are rolling along and wonder why rock the boat? Other employees welcome new ideas. ACFE's 2016 Global Fraud Study consistently reiterates that the most effective method for reducing workplace fraud is by implementing an ethics hotline that allows and encourages employees, customers and others to report corruption and wrongdoing.
Communication is key! The process of implementing an ethics intake, or reporting, program into your company doesn't stop when the program has been set up, and employees can successfully log in and navigate around it. One comment we hear from some clients is that there has been no use of the system they implemented last year. "We've had zero uptake..."
What exactly does a third-party ethics reporting system look like anyway? And what on earth does it do? We've had these questions asked of us a few times. And they are valid questions. You've heard of it, but what exactly is it? What's involved? We'll drill it down in a nutshell. But give you enough information to walk away and say "ah, now I get it!" All companies, regardless of size or industry, can benefit from implementing ethics reporting into their workplace.
One-third of BC companies have reported being a victim of fraud. Yours doesn't need to be the next one! The fraud triangle originated from Donald Cressey's hypothesis: Trusted persons become trust violators when they conceive of themselves as having a financial problem which is non-shareable, are aware this problem can be secretly resolved by violation of the position of financial trust, and are able to apply to their own conduct in that situation verbalizations which enable them to adjust their conceptions of themselves as trusted persons with their conceptions of themselves as users of the entrusted funds or property. source ACFE.com The fraud triangle consists of three triangles.