Tough times can prove tempting to employees who lean towards cutting corners, flaunting rules and theft of product or services. The Kroll Global Fraud Report (2008/2009) is full of sobering statistics about the extent of fraud in business throughout the world in companies both large and small. The report conducted by The Economist Intelligence Unit states that 85% of the companies surveyed had been affected by some kind of fraud in the past 3 years, an increase from 80% in the previous survey.
The report breaks down statistics and recommendations across 10 industries; financial services, professional services, manufacturing, healthcare/pharmaceuticals, technology, natural resources, travel & leisure, retail, consumer goods and construction. Problems can range from check mishandling schemes that net cash for restaurant servers to large scale procurement for non-business purposes and financial mismanagement.
The fastest growing types of fraud involve compliance breaches and theft of information. I’ll be talking about keeping employee information safe tomorrow, October 7th at Eastern time, during a webinar on record keeping. You don’t want to be like the employer who inadvertently delivered a long list of confidential employee information to identity thieves when they thought they were providing data for an insurance rate quote!
Make certain that someone, or one position, in your organization is designated to keep up with compliance issues even when you use an external expert for assistance. The potential for lack of follow through or misinformation increases when there is no specific responsibility for implementation.
If you don’t have ethics or compliance policies, it’s never too late to write them. Absent guidelines even the smallest employer should not assume that everyone will naturally act in the most ethical fashion.
What steps have you taken to reinforce ethics and compliance?