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