It's Fraud Prevention Month and fraud is a growing problem in any business. According to a 2013 survey commissioned by The Economist Intelligence Unit, every type of fraud examined in the survey saw an increase. Organizations saw an increase of 9% in 2013 from 2012. That’s a significant number in this context. We’ve come up with a few warning signs that might signify employee fraud in your organization.
Does your organization have an ethics reporting tool in place? If you are a public company, under requirements outlined by Sarbanes-Oxley in the US and Multi-Lateral Instrument 52-110 in Canada, you are required to have a whistleblower policy and process in place. Having a hotline in place that is easily accessible and trusted by your employees and stakeholders is very important. A powerful whistleblower hotline provides employees with a safe and secure vehicle for reporting incidents of alleged wrongdoing, while providing the organization with comprehensive reports allowing it to take action to investigate and rectify any wrongdoing in a timely manner.
Many companies have already implemented an ethics reporting program, others might be thinking about one for some time in the future. And still others may not have even considered it. You might think it’s too expensive, or that you don’t need one. With what seems to be an onslaught of corporate scandals in the media these days, ensuring that your existing program is ticking away nicely, or that your newly implemented program gets the company-wide press it needs, here are four misconceptions we’ve quickly put together about a whistleblower program.