The importance of code of ethics training in anticipating fraud
According to a Report to The Nation 2020 survey, a code of ethics plays a major role as an anti-fraud control that can prevent fraud, amounting to 81%. However, there are still many companies that do not realize how important it is in minimizing losses due to fraud.
Thus, in many companies a code of ethics is only part of their regulations that are not disseminated to their employees – many small companies do not even have a code of ethics.
A code of ethics is essential for a company. It serves as an internal guide as well as an external statement of the company’s values and commitments. A well-written code of ethics defines the mission, values, and principles of the organization and links them to standards of professional behavior.
The code articulates the values the organization seeks to support in both its employers and employees. It is a benchmark that can also be used to measure the performance of individuals and companies.
In addition, a code of ethics can also be a form of risk management. It establishes ethical and moral standards in a company so that every employee and superior will be held accountable for all behaviors, especially behaviors that violate the code of ethics. A set of ethical standards documented in the code of ethics explains to the general public that the company is working in the public’s interest.
If the company is working transparently, it raises public trust and significantly reduces the possibility of internal scandal or corruption.
Avoiding unethical business practices will not only help create a good reputation but also keep the company safe from litigation. Money scandals and bad business practices can cause detrimental losses to a company.
Therefore, it is necessary to have a code of ethics and its accompanying training for employees, especially to report actions that are inappropriate or violate the company’s code of ethics.
Integrity Indonesia, with more than fifteen years of experience in the compliance sector, has been trusted by clients as a provider of whistleblowing systems, Canary WBS. Canary WBS allows secure activity reporting with a choice of anonymity level. Our service also provides training to empower employees to follow up on fraud cases. The training we provide is in the form of:
- Training of Administrators
- Training of ‘Trainers’
- Training of Employees
Contact us today for more information on the Canary WBS.
Written by Aqilla
Photo by Freepik