It is impossible to combat fraud effectively without involvement of all of the company’s employees. To effectively prevent and detect the fraud any unethical behavior should be treated as generally intolerable.
Business ethics and ethical conduct are more than just theoretical concepts: they are practical principles that should be complied with in the course of every business’ operations.
We carry out independent assessments, aimed at detecting the extent of employees’ awareness of, and readiness to comply with the basic principles of ethical conduct.
We may assist our clients in assessing the ethical principles applicable to the structures and activities of their companies.
Also, we assist our clients in developing the behavior codes that take into account the global trends in this field. We are capable of developing and implementing an internal policy and all required procedures related to business ethics.
A genuinely transparent and effective fraud prevention and detection system should be created in a zero tolerance atmosphere, with regard to unethical conduct, and only if individuals have the opportunity to share their suspicions and observations without fear for their personal security and possible sanctions from the management.
One of the most effective tools for the collection and analysis of information from employees and counterparties is a hotline allowing them to share their observations and suspicions openly. A modern hotline is a set of communication channels (dedicated telephone line, e-mail, internet forums etc.) for all concerned to provide their comments.
A hotline imposes constraints on potential fraudulent activities, and can be used as a tool for detecting potential economic crimes, as well as those that have already taken place.
The hotline works more efficiently if it is independent of the company whose employees and counterparties will use it. This is an obligatory condition for the companies that should comply with the Sarbanes-Oxley requirements as the true anonymity may be guaranteed only when the calls received are processed by a specialist independent on the company.
Deloitte has an experience of creating and managing efficient hotlines throughout the world.