A survey found that employees were not hostile to corporate anti fraud measures and would welcome clarity

A new survey suggests that employees welcome an assertive approach to the mitigation of fraud risk.

Ernst and Young conducted research into employees’ perception of the effectiveness of fraud risk mitigation in 13 European countries.

The survey found that employees were not hostile to corporate anti fraud measures and would welcome clarity and encouragement to act positively.

In the report, Ernst and Young said: “Companies can set the expectation of conduct by employees, and should communicate that expectation clearly and repeatedly…establishing a corporate code of conduct is an important step.”

Ernst and Young added: “Companies with a code of conduct are better able to encourage and insist on desired behaviour from their employees, and to deal with the consequences of unethical behaviour.”

Key findings of the research included

1 in 5 (22%) of respondents believed there was an incident of suspected fraud, bribery or corruption in their company in 2006

88% of respondents strongly agreed that their company should have a fraud code of conduct

62% of respondents were aware that their company has a code of conduct

38% said their company had a whistle-blowing hotline

55% believed people in the company used the whistle-blowing hotline

41% believed third parties used the whistle-blowing hotline

66% agreed a code of conduct was useful in preventing and detecting fraud, bribery and corruption

57% felt people in the company were free to report a case of suspected fraud, bribery or corruption

61% felt fear of reprisals from the company was the reason for not reporting fraud, bribery or corruption

68% believed if they reported someone suspected of committing fraud, bribery or corruption the company would protect their rights

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