Whistleblowing System to Prevent Fraud
Fraud, unethical behaviors, or dishonest activities within a company cannot be avoided completely. However, they can be minimized when it provides a formal reporting policy such as a whistleblowing system for all employees. This will help the company to be well-informed on fraudulent activities inside and prevent its employees or ex-employees to unexpectedly disclose the details publicly, especially without the company knowing it.
A good whistleblowing system should provide comfort and security whenever employees need to raise questions or concerns. It should be free from all barriers, free to use, easily accessible, and able to facilitate two-way communication with the reporting party.
Benefits from Implementing Whistleblowing System
According to Association of Certified Fraud Examiners (ACFE), when a company integrates a whistleblowing system, it will have the opportunity to:
- proactively detect and address misconduct
- identify areas that might need improvement
- reinforce an ethical corporate culture and internal accountability
- comply with laws and regulations
- encourage internal reporting of concerns
- mitigate fines and penalties
- preempting any resulting bad publicity and the associated costs of the public disclosure and any possible legal action that might follow which ultimately resulting damaged reputation.
Any company that takes the decision to implement a whistleblowing system demonstrates that it is committed to being honest, fair, and ethical in all its activities.
Implement a whistleblowing system today with Canary™ Whistleblowing System to create a safe, secure, and ethical work environment. Our experienced team will ensure professionalism and confidentiality in handling all reports.
Sources:
- http://www.acfe.com/uploadedFiles/ACFE_Website/Content/review/diafp/08-Implementing-a-Whistleblower-Helpline.pdf
- http://justasktom.com/topic/managing-crises/how-implement-whistleblowing-policy
