Best Way to Get Employees To Report Fraud
To motivate employees to report observed incidents of fraud or unethical conduct take consistent disciplinary action whenever employees are caught committing acts that either violate the law o r run afoul of the organization’s code of ethics or conduct.
Equally important: Publicize the company’s disciplinary actions. On a regular basis, issue a summary of the incidents of wrongdoing that were reported to management and that resulted in disciplinary action. As much as possible— without compromising the confidentiality of whistleblowers, or risking legal repercussions—spell out each incident that was reported and acted on, along with the specifics the disciplinary action taken.
White-Collar Crime Fighter source: Patricia Harned,PhD, President, Ethics Resource Center, a Washington,DC-based non-profit organization that conducts research on all aspects of corporate and non-profit ethics matters and evaluates effectiveness of compliance and ethics programs. Pat can be reached at pat@ethics.org.