{"id":854,"date":"2008-08-15T13:58:45","date_gmt":"2008-08-15T12:58:45","guid":{"rendered":"http:\/\/www.corporate-eye.com\/?p=854"},"modified":"2020-07-29T09:58:53","modified_gmt":"2020-07-29T08:58:53","slug":"good-corporate-governance-ethics-hotlines-but","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/","title":{"rendered":"Good Corporate Governance \u2013 Ethics Hotlines, But&#8230;"},"content":{"rendered":"<p>BusinessWeek published its <a href=\"http:\/\/images.businessweek.com\/ss\/07\/04\/0409_best_mngt\/index_01.htm?popupWidth=770&amp;popupHeight=660\" target=\"_blank\" rel=\"noopener noreferrer\">Best Corporate Practices <\/a>in January. I noted with some interest that the #6 best practice was an Ethics Hotline.<\/p>\n<blockquote><p>All employers talk about ethics, but the ones who provide a way to report misdeeds are the ones most likely to catch problems. Confidential ethics hotlines allow employees to anonymously report bad actors without taking their chances on the dreaded &#8220;chain of command.&#8221;<\/p><\/blockquote>\n<p>This has implications for Corporate Governance.<\/p>\n<div class=\"pqRight\"><a href=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/08\/hotline.jpg\"><img decoding=\"async\" class=\"aligncenter lazyload\" data-src=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/08\/hotline1.jpg\" alt=\"\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 329px; --smush-placeholder-aspect-ratio: 329\/158;\" \/><\/a><\/div>\n<p>Most discoveries of fraud are by employees. Since Sarbanes-Oxley there has been much interest in Ethics Hotlines. You might think that there would be an increased employee use of these Hotlines. Well no, according to the Ethics Resource Centers&#8217; 2007 NATIONAL BUSINESS ETHICS SURVEY, employees seem to be reluctant to use these Hotlines.<\/p>\n<div class=\"pqRight\"><a href=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/08\/nonuse.jpg\"><img decoding=\"async\" data-src=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/08\/nonuse1.jpg\" alt=\"\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" style=\"--smush-placeholder-width: 359px; --smush-placeholder-aspect-ratio: 359\/262;\" \/><\/a><\/div>\n<p>Reasons why employees avoid hotlines include cultural taboos on &#8220;snitching&#8221; and lack of awareness. However the main reason is fear of retaliation.  Even when the hotline is outsourced, there might still be the fear that anonymity  cannot be completely guaranteed.<\/p>\n<p>The key learning is that Ethics Hotlines must be viewed as one alternative in a menu of practices to report ethics violations. Companies should not think that once a hotline is in place that nothing else needs to be done.<\/p>\n<div class=\"clearall\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>BusinessWeek published its Best Corporate Practices in January. I noted with some interest that the #6 best practice was an Ethics Hotline. All employers talk about ethics, but the ones who provide a way to report misdeeds are the ones most likely to catch problems. Confidential ethics hotlines allow employees to anonymously report bad actors [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[9,45],"tags":[337,8246,444,428,425],"class_list":{"0":"post-854","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-best-practices","7":"category-employee","8":"tag-best-companies","9":"tag-best-practices","10":"tag-corporate-leadership-development","11":"tag-leadership-development","12":"tag-leadership-skills","13":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Good Corporate Governance \u2013 Ethics Hotlines, But... - Corporate Eye<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Good Corporate Governance \u2013 Ethics Hotlines, But... - Corporate Eye\" \/>\n<meta property=\"og:description\" content=\"BusinessWeek published its Best Corporate Practices in January. I noted with some interest that the #6 best practice was an Ethics Hotline. All employers talk about ethics, but the ones who provide a way to report misdeeds are the ones most likely to catch problems. Confidential ethics hotlines allow employees to anonymously report bad actors [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/\" \/>\n<meta property=\"og:site_name\" content=\"Corporate Eye\" \/>\n<meta property=\"article:published_time\" content=\"2008-08-15T12:58:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-29T08:58:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/08\/hotline1.jpg\" \/>\n<meta name=\"author\" content=\"Ed Konczal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@lucynixon\" \/>\n<meta name=\"twitter:site\" content=\"@lucynixon\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ed Konczal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/\"},\"author\":{\"name\":\"Ed Konczal\",\"@id\":\"https:\/\/www.corporate-eye.com\/main\/#\/schema\/person\/67f213231438a46f6598c71574fe9c17\"},\"headline\":\"Good Corporate Governance \u2013 Ethics Hotlines, But&#8230;\",\"datePublished\":\"2008-08-15T12:58:45+00:00\",\"dateModified\":\"2020-07-29T08:58:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/\"},\"wordCount\":208,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/www.corporate-eye.com\/main\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.corporate-eye.com\/main\/wp-content\/uploads\/2008\/08\/hotline1.jpg\",\"keywords\":[\"best companies\",\"Best Practices\",\"corporate leadership development\",\"leadership development\",\"leadership skills\"],\"articleSection\":[\"Best Practices\",\"Employee\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/\",\"url\":\"https:\/\/www.corporate-eye.com\/main\/good-corporate-governance-ethics-hotlines-but\/\",\"name\":\"Good Corporate Governance \u2013 Ethics Hotlines, But... - 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