Recently, 27% of companies have fallen victim to fraud. This number merely represents instances of fraud that have come to light. Estimates say that in reality this number could easily be doubled. In other words, one in two companies are faced with fraud, mostly committed by their employees.
Ethic Line is not only an easy and effective tool for reporting suspicion of fraud on the part of employees, but is also a strong tool for fraud prevention.
Recent developments with respect to the Companies Act and other relevant legislation make management responsible to a greater and greater degree for properly setting up the control environment. Independent Ethic Line itself represents a strong part of the control environment.
Such tools are common in the international corporate environment, but insufficient localization has had a significant impact on the efficiency thereof. Ethic Line not only provides a multilingual interface, but also supports legal compliance for every selected country.
Anonymity is one of the key elements to encourage individuals to file a report. If Ethic Line were not anonymous, hardly any reports would be filed.
The strongest part of the control environment is derived from the principle of independence. Reports obtained from an independent provider are free of any internal influence or misinterpretation.
Privacy and protection against misuse of any reports are guaranteed by the law firm. It is also guaranteed that any report will be used in compliance with the law, and will not be used to harm the interests of the client or any ethical rules.
The methodology for the collection, evaluation and privacy of the reports is in compliance with Slovak law 307/2014 Coll. and with International Standards for the Professional Practice of Internal Auditing, as issued by The Institute of Internal Auditors.
46% of companies is subject to fraud
71% of fraud was committed by employees
38% of companies suffered by loss over EUR 70t.
Data for Czech and Slovak market,
source: 2011 PwC Global Economic Crime Survey.
Secured website, telephone line, and a hard box at client’s office.
Notification and categorization by a law firm.
Online access on several rights’ levels for those charged with governance, management, founders and investors.
We guarantee implementation of the Ethic Line within 30 working days from contract signing. This includes key management personnel training, customization of the website and a telephone line, along with proposed implementation of internal directives, and internal and external communication.
International pharmaceutical company with turnover of over EUR 40 million. Trading with foreign currency beyond company’s rules and corporate governance rules revealed. Loss of EUR 1,7 mil.
International production company. Fraud committed in employee benefits misuse revealed. Loss of EUR 10 k in two years.
International company with 75 employees. Fraud in public tendering revealed. As a result, the company is now on black list for public tenders. Estimated loss of EUR 2 mil.
International company with 270 employees and turnover of over EUR 26,5 mil. Several instances of fraud revealed in misuse of employee benefits; the cases spread over more than 4 years. Loss of EUR 1,1 mil.
Marketing agency with 30 employees. Fraud committed through conflict of interests, and sale of own products over period of 5 years. Estimated loss of EUR 370 k.