It is impossible to fight any fraud a business may be suffering from without the involvement of all the company’s staff.

Business ethics and ethical conduct have become more than just theoretical concepts: they are practicable principles, in compliance with which every business should organize its operations.

We perform independent investigations aimed at detecting whether employees are familiar with the basic principles of ethical conduct and act in compliance with them. We help our clients assess the ethical principles applied in their companies.

We assist our clients in developing codes of conduct reflecting all the international trends in this sphere. We can help develop and implement internal policies and procedures for business ethics.

In order to prevent and effectively detect fraud and various scams, it is crucial for companies to create an atmosphere of intolerance of unethical conduct. However, this cannot be a panacea for all businesses.

Only if people have the opportunity to share their suspicions and observations without fear for their personal security and possible sanctions on the part of management will a genuinely transparent and effective management system be created.

One of the most effective tools for collection and analysis of information from employees and counterparties is a hotline allowing them to share their observations and suspicions without fear.

According to an ACFE conclusion cited in their 2004 Report for the Nation, use of an anonymous method of information collection affects the amount of losses from fraudulent actions considerably. Generally speaking, recorded losses of entities not using anonymous data collection exceed those of entities which have implemented this method.

Furthermore, Russian and international companies subject to the Sarbanes-Oxley Act are obliged to operate a hotline.

Operating a hotline both imposes constraints on potential fraudulent action and can be used as a tool for detecting potential economic crimes and those that have already taken place.

This hotline will be more effective if it is independent of the company whose employees and counteragents will use it. It is mandatory for companies subject to the Sarbanes-Oxley Act, as true anonymity can be guaranteed only if the calls received are processed by a person independent of the company.

Deloitte has international experience in creating and managing effective hotlines.