Ideas to Maximize Hotline Effectiveness
It could be a good sign if the phones aren’t ringing at your organization’s hotline – or it could be indicative of a failing ethics and compliance program. Ron Kral discusses how to maintain a successful hotline program.
Is your whistleblower hotline alive or dying a slow death? Whether it’s an effort to jumpstart your hotline program or simply to harvest ideas for continuous improvement, you will want to keep reading.
It’s been 15 years since Rule 10A-3 of the Exchange Act directed the NYSE, Nasdaq and other national securities exchanges and associations to require a listed company’s audit committee to establish formal procedures for addressing complaints thanks to the Sarbanes-Oxley Act. Specifically, listed public company audit committees were required to establish procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls or auditing matters on a confidential and anonymous basis. Thus, the whistleblower hotline trend was born.
Of course, many other organizations voluntarily jumped on the whistleblower hotline trend, and rightfully so. Surveys by the Association of Certified Fraud Examiners have historically concluded that tips are by far the leading detection method of…
