Prevent Fraud & Misconduct

Fraud, Theft, and Corruption

American entities loses average of 5 to 6% of revenue fraud and theft the about 45% of all lawsuits brought against large and small corporations are employment related, much of which arises out of claims for discrimination, harassment, and which in our elections.

The direct costs of fraud and misconduct constitute an avoidable tax on the American enterprise system.

Did you know that . . .

• • 30% of all business failures are caused by employee fraud and theft.
  • fraud is 100 times more likely to occur in small firms like your local grocer than in big ones like Enron, Tyco, and Adelphia.
  • 60% of employee fraud and theft is committed by managers, owners, and senior executives.
  • more than 90% of firms convicted in federal court each year are privately held companies with fewer than 50 employees.
  • the average organization loses 5% of its revenue each year to employee fraud and theft.

Donald Cressey’s Fraud Triangle helps us understand that most people do not lie, cheat, and steal because they are bad people. Generally, employees commit fraud against and on behalf of organizations only when (a) they are under extreme pressure (a gambling or credit card debt, an addition, performance stress), (b) they have a clear opportunity, and (c) they can rationalize their behavior, effectively neurtralizing their conscience. Of course, unadulterated greed accounts for a significant portion of fraud, theft, and corruption as well. Ethics By Design works closely with the Association of Certified Fraud Examiners and other organizations to provide programs and resources that equip organizations to put good internal controls in place and to take other steps likely to reduce the extent of fraud, theft, and corruption. Our programs are embedded in our Assured Compliance program and are informed by the scientific knowledge and ethical principles used in all of our work.

Read more about our programs on Preventing Fraud, Theft, and Corruption . . .

Workplace Harassment and Other Misconduct

Workplace harassment, bullying, illegal discrimination, and other forms of misconduct damage employee engagement and productivity, leading to increased turnover, low retention rates, sabotage, and other impediments to excellence. The impact on productivity, profitability, and long-term viability likely exceeds the costs of fraud and theft. Almost all of it is avoidable. Under state and federal statutes and a growing body of case law, employers must take affirmative steps through policies and training to prevent workplace harassment. Our programs are designed to assist public, private, commercial, and non-profit organizations in meeting those requirements and cover:

• How to develop an effective anti-harassment policy
• What employee training must include
• What to include in a harassment reporting protocol and what kinds of reporting mechanisms are available
• What the harassment investigation protocol should include
• The basic requirements of an effective organizational ombuds office.

Read more about our Workplace Harassment Prevention Program . . .

Fraud, theft, corruption, sexual harassment, and bullying increase costs while providing no corresponding benefit—absolutely none. Ethics By Design is dedicated to helping organizations of all kinds and sizes eliminate these hidden cost centers, which probably exceed the direct costs of fraud, theft, and corruption.