The True Costs of Unethical Business Conduct
- According to the Association of Certified Fraud Examiners (ACFE), the typical organization loses 5% of annual revenues to fraud.
- A small business embezzlement study revealed that 4 out of 5 organizations that are victims of embezzlement had an average loss of $807,443.
- The National Restaurant Association estimates that employee theft is responsible for 75 percent of inventory shortages.
- A report from an EEOC Task Force stated that in 2016, the EEOC recovered $164.5 million for workers alleging harassment – not including the true cost of decreased productivity, increased turnover, and reputational harm.
- In 2017, there have been 17 EEOC lawsuits against restaurant and hotel companies that have cost just 10 of them more than $14 million in penalties. In one case, a popular restaurant closed its doors for good.
- The 2013 National Business Ethics Survey findings show that members of management are responsible for six of every 10 instances of misconduct, and more than one in five workers who reported misconduct said they suffered retribution as a result.
A Simple, Secure, & Affordable Solution
Given the financial and reputational risks – especially considering the velocity at which social media travels – organizations must take steps to prevent, detect and deter fraud, theft, and misconduct. But how?
Employee tip-offs continue to be the most common method for fraud detection. According to an ACFE survey, almost double the tip-offs were received by those businesses with anonymous reporting hotlines, and tips submitted by email and online forms were more common than by telephone.
Ethics Suite offers a secure and confidential method designed for hotel, restaurant or bar employees to report anonymously (or not, if they choose) through three simple, confidential, and clearly independent reporting sites: HotelEthics.com, RestaurantEthics.com, and BarEthics.com. Reports are accepted confidentially and shared with the business owner or their designated representative. We believe this is the most effective way for an organization to remain informed about conduct that may impact its business, and to resolve them internally before they spiral into larger, costly or public problems.
Ethics Suite also provides a secure back-office system to our subscribers, MyEthicsSuite, that offers the ability to document and track each report, actions taken in response, and final resolution. It also offers a range of analytics designed to capture unit, chain, regional and other metrics to help measure the impact of prevention, detection, and resolution efforts.
Demonstrate to your team that you are committed to providing a workplace that operates with the highest ethical standards, and protect your hard-earned reputation. Email firstname.lastname@example.org or visit our website to schedule a short web demo of the reporting sites and the MyEthicsSuite report tracking and management software.