One of the most challenging issues for business worldwide remains to be fraud, no matter the country of operation, manufacturing sector or size.
Economic fraud destroys shareholders’ value, threatens enterprises’ development, endangers employment opportunities and undermines good corporate governance. Enterprises should therefore consider putting into place efficient and appropriate internal tools to combat economic fraud and to fight corruption.
Research indicates that companies that use effective guidelines and compliance programs are much less vulnerable to economic crime. Fraud can be detected by internal audit, external audit, risk management, corporate security and to a large extent, by whistleblowing.
Enterprises are encouraged to establish, within their organization a whistleblowing system, with respect to their size and resources.
A vigilant and responsible corporation believes in the conduct of the affairs of its constituents in a fair and transparent manner, by adopting the top standards of professionalism, integrity and ethical behavior.
In the attempt to provide its employee a secure and a fearless working environment, a responsible enterprise creates the “Whistle Blower Policy”. Whistleblowing, a procedure that is voluntarily implemented by a private or public enterprise, allows their employees to expose serious concerns, and report any unethical behavior. Under an established whistleblowing policy, the employee will feel comfortable reporting concerns without fear of repercussions.
This in return allows the company to appropriately deal with such concerns before an illegal act has been committed rather than after the damage has already been done. Delayed reporting may seriously harm the company’s reputation and make it face a serious risk of trial.
The rising recognition that whistleblowers can play a critical role in disclosing corporate misconduct has also led to considerable legislative activity in many countries designed to protect whistleblowers and to encourage them to raise concern.