We know that you value your employees and the reputation of your business. Maintaining ethical practices and compliance is increasingly challenging in a culture where decentralisation is widespread and the scope of risk is diverse. Can you be sure that your organisation has adequate procedures in place for colleagues to blow the whistle on issues such as fraud, corruption and discrimination in complete confidence?
Due to inside knowledge of systems and security checks, trusted staff may present the biggest threat to companies. According to figures produced by AIG, 85% of frauds are committed by a company’s own staff, and 55% by senior managers. While some frauds will be detected by good internal audit procedures, most will not, and even external auditors represent little challenge to the fraudster since it is not part of their duty to detect fraud.
Good intelligence is often the best defence and there is no better source of this information than from the vast majority of your employees who are honest and ethical. Corrupt and illegal behaviour often goes undetected because employees, aware these things are going on, fear the consequences to themselves and others of reporting them through existing internal channels.
Research suggests that employees place greater trust in a whistleblowing procedure which is not part of their company. In addition, the 2012 Corporate Board Member/FTI Consulting annual legal survey found that 84% of directors and 80% of general counsel say having an in-house whistleblower service is useful in helping mitigate risk to their business. An independent whistleblowing hotline not only provides a mechanism for exposing systemic fraud, it also serves as a useful catalyst for capturing other corrupt practices, such as discrimination and bullying, which can have an equally debilitating effect on corporate performance and reputation. You can read how we helped Centrica and The Co-operative Group in our case studies.
Outsourcing your whistleblowing hotline service with Expolink helps you meet your corporate governance responsibilities, including those associated with the UK Bribery Act. Knowing that your operations are running smoothly, securely and in line with the law is knowing that your business has a positive and progressive future.