How then are we going to, in the words of National Australia Bank CEO John Stewart, encourage “brave people … to confront bad behaviour”?
The traditional methods of having an open-door policy and internal hotlines are not working. A US study showed that about a third of American employees have witnessed unethical or illegal conduct in their workplace. Of these, over half did not disclose what they observed for fear of reprisals or being ostracised. Eighty-five per cent of all fraud is committed by employees.
Organisations in the private sector need to have structures in place to not only encourage but to facilitate reporting both internally and externally.
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In the 20th century it is a ludicrous situation where people are forced to put notes under doors or to ring a hotline and potentially face an inquisition.
Are we not losing sight of what is important – the information? Why are we so quick to condemn the messenger?
One solution is to use new technology to make tip-offs more effective and safer for the whistleblower by providing a secure website for the purpose. People who witness dishonesty, fraud, unsafe environments, unethical and other inappropriate behaviour in the workplace or in respect of business relationships and transactions could submit their information securely, confidentially and anonymously by completing an online form. This would have tremendous advantages over current hotlines and internal reporting. Hotlines can be expensive, particularly if manned by experienced staff, and the times of operation are generally limited. Many operate only during business hours.
A web-based solution would operate 24 hours a day, 365 days a year and be accessible anywhere to any person who has access to a computer and an Internet connection.
This would give the complainant the opportunity to make the report in their own time and in their own words. No face-to-face interview, no interrogation over the telephone, no fear of voice recognition and no misinterpretation as to what was said or not said. Just a promise that their information will be received and investigated.
Such a site would have the potential to be a powerful tool for management and employees. It would give executive management the ability to access the eyes and ears of their employees. It would give employees a mechanism that would provide them with an immediate voice so that their concerns can be received as soon as they hit the submit button.
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This is not mere “what if” conjecture. The US Securities and Exchange Commission has such a site at www.sec.gov/complaint.shtml. In Australia our firm, Your-Call, has built another such site at www.yourcall.com.au. Our proposition to businesses is that it is best to contract this activity out to a neutral third party in whom employees will have a greater degree of trust, and who has the technical expertise to run such a site successfully.
KPMG, PwC & Ernst & Young surveys place notification by employees as the most effective means of fraud detection. The Internet provides new and more effective ways to make this happen.
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