| Employers set the tone for workplace conduct, | | | | develop a culture in which all employees are |
| ethics and compliance through the creation of a | | | | encouraged to raise their concerns without a fear of |
| company-wide ethics and compliance program. Ethics | | | | retaliation." |
| and compliance programs help establish a more | | | | When implementing an effective whistleblower |
| secure work environment. An organization committed | | | | system, consider using a case management system, |
| to ethics and compliance can reduce their exposure | | | | such as i-Sight, that supports multi-channel case |
| to risks, such as fraud and bribery, by enforcing | | | | entry. i-Sight can be integrated with existing HR |
| policies and administering consequences for all | | | | systems and hotlines. Depending on the type of |
| violations. Typically, if an employee knows they are | | | | incident or complaint being made, the complainant |
| likely to be caught or the penalty for violating | | | | may wish to remain anonymous. Aside from reporting |
| regulations is significant, they will be reluctant to | | | | observed misconduct to supervisors, placing intake |
| make risky decisions. | | | | forms on company websites and intranets, as well as |
| With an increasing number of sentences and dollar | | | | through a third party hotline, provides employees |
| values of fines handed out to both individuals and | | | | and members of the public with sufficient means for |
| corporations for violating laws, enforcement | | | | reporting incidents and complaints. When there are |
| agencies have demonstrated the need for ethics to | | | | multiple channels in place for reporting, those with |
| provide security in the workplace. | | | | information pertaining to an incident are more likely to |
| A Secure Workplace | | | | come forward. |
| Many of the new anti-corruption and anti-bribery | | | | Monitoring the Ethics and Compliance Program |
| legislations introduced, such as the UK Bribery Act | | | | Once company policies and procedures have been |
| and the FCPA in the United States, include clauses | | | | brought to life through implementation and training, |
| stating that an employer will not be held liable for | | | | employers must have measures in place to monitor |
| offenses committed by an employee so long as the | | | | the success of their ethics and compliance |
| employer can prove that adequate measures have | | | | programs. As there are no set standards for |
| been established for preventing illegal acts. According | | | | monitoring an ethics and compliance program, |
| to an Ethisphere interview, "The Road to a Model | | | | determining the success of the program can be |
| Ethics and Compliance Program," with Sven Erik | | | | difficult. Many companies turn to industry leaders in |
| Holmes, Executive Vice Chair, Legal and Compliance, | | | | ethics, benchmarking the elements found in |
| KPMG LLP states: | | | | leading programs against those established in their |
| "Every organization should put in place an ethics and | | | | own programs. I came across an Ethisphere article, |
| compliance program that ensures comprehensive | | | | "Expert Corner: Auditing an Ethics and Compliance |
| reporting, clear accountability and full and effective | | | | Program," by Dan Swanson and Jose Tabeuna that |
| oversight by the top decision makers. But to make | | | | provides a great list of factors to consider when |
| the program truly effective—to maintain | | | | developing a method for monitoring an ethics and |
| compliance, no matter how stressful the economic | | | | compliance program: |
| environment—it's even more important to develop | | | | "A summary of potential audit and related evaluative |
| a culture that's fully committed to ethics and | | | | approaches are as follows: |
| compliance" | | | | - Review compliance program design, structure and |
| In order to create a more secure workplace, | | | | processes |
| employers have to take appropriate action to put | | | | - Identify effectiveness indicators |
| systems in place that support workplace policies and | | | | - Perform gap analysis- how do your C&E |
| procedures. Companies need to encourage | | | | program features compare to established criteria and |
| employees to come forward with information to | | | | leading edge practices? |
| ensure a safe workplace, as awareness of an | | | | - Benchmarking- how do your program features |
| incident is the only way to correct it. Reporting | | | | compare to your peers? |
| systems, when used properly, help bring managerial | | | | Audit the program- assess implementation |
| attention to issues early on. Early detection of | | | | - Validate operational features of the C&E |
| workplace misconduct can assist in reducing financial | | | | program |
| losses, protecting employees and maintaining a | | | | - Gauge awareness and perceptions on the C&E |
| positive corporate reputation. In previous posts, we | | | | program and assess organizational culture (conduct |
| have covered various methods for developing a | | | | cultural assessment surveys, focus groups, etc.) |
| code of ethics, as well as building ethics and | | | | Audit compliance with standards |
| compliance into corporate culture. Once policies | | | | - outcome/impact analysis |
| and procedures have been put in place, it's important | | | | - Test whether transactions and activities meet legal |
| to measure the success of the ethics and compliance | | | | requirements and company policies and standards |
| program. | | | | Perform other analysis to evaluate whether C&E |
| A Whistleblower System | | | | program activities are reducing the risks of |
| According to the board of directors ethics and | | | | misconduct." |
| compliance section on the Deloitte website: | | | | Monitoring is critical to the success of any ethics and |
| "An effective ethics and compliance program requires | | | | compliance program. Policies and procedures must be |
| senior management involvement, organization wide | | | | consistently evaluated to measure their |
| commitment, an effective communications system, | | | | effectiveness and ability to mitigate risk. Updating |
| and an ongoing monitoring system. Successful whistle | | | | ethics and compliance programs is also necessary in |
| blowing procedures require strong leadership from | | | | order for a company to remain compliant with |
| the board and senior levels of management to | | | | updated and changing legal requirements. |