Ultimately it's the communities who suffer Not-for-profits are considered important by much of the population and many Canadians believe they improve quality of life. Communities rely on the hard work produced by not-for-profit organizations. Unfortunately, not-for-profit organizations are susceptible to misunderstanding of policies just like any other organization. And when policies are not administered correctly, fraud can happen. According to the 2014 Report to the Nations on Occupational Fraud & Abuse published by the ACFE, not-for-profits reported much lower median losses than their for-profit counterparts. Well this makes sense as for-profits are focused on revenue vs. community service. However, that doesn't mean that not-for-profits aren't easily harmed by fraud. Any form of misconduct can take away the focus of much needed programs to communities, as well as eliminating essential funding from governments and communities they serve. That could mean the downfall of that organization.
You've Heard the Slogan 'Truth in Advertising', Right? Here's the Latest 'Oops'! Anheuser-Busch, the makers of one of the country's most popular beers is under fire after a photo surfaced of a bottle of beer with the phrase "The perfect beer for removing 'No' from your vocabulary for the night".
"You have brains in your head. You have feet in your shoes. You can steer yourself in any direction you choose" - Dr. Seuss Establishing compliant and ethical behaviour among the masses, and regulating against non-compliance is a big step in the fight against fraud and abuse. All organizations have their own unique plan in operating their businesses and achieving success, but there's a similar foundation that sets the base of any effective program, in any industry.
How Strong Is It and Will It Stand up to Regulators? The below article is from the Corporate Compliance Trends blog, and seems to have made its way around the blogosphere. And for good reason, it just makes plain sense. It stresses the importance that one of the best ways for an organization to be a player in the global economy, is to hire a compliance officer and give him or her the responsibility, authority, and independence to implement an effective compliance program. If a company wants to play in the same playground with the big kids, then a strong compliance program is going to be the best way to do it.
With the involvement of global third parties, an ethics and compliance program is a huge asset, not expense The SEC and DOJ are very active at the moment in their enforcement efforts. Corruption is a very important topic for the government. In the US, FCPA enforcement actions are on the rise, so it's important to effectively manage your third party risk and incorporate this into a strong ethics and compliance program. This effort should be seen as an asset, not as a bother or an expense to the business. If you're a global organization, managing your risk includes identifying new and emerging threats and expanding the reach of your ethics and compliance programs to reach and mitigate those new and emerging threats. They are there. To ignore them is a recipe for disaster. It's like the game Whac-a-Mole. They keep popping up and you have to be ready, and fast, and hit them hard!