BACK TO CONTENTS A new era of transparency
It is more important than ever for organisations to develop a strong ethical culture driven relentlessly from top down. In addition to fi nancial penalties for non-compliance, incidents take up a huge amount of senior management time, with signifi cant legal and regulatory costs to put things right. Deeper damage comes in the loss of trust, which can impact sales, staff morale and recruitment and, ultimately, shareholder value. Organisations are now actively trying to embed a far greater ethically compliant culture, thanks to the Foreign Corrupt Practices Act and the UK Bribery Act.
Transparency should not be simply a formal requirement, but part of a wider social contract with all stakeholders. This mindset, allied with a clear risk appetite, resilient risk culture and an independent, forensic approach to potential breaches of behaviour, can help rebuild faith and demonstrate the integrity that is essential to retain a license to operate.
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RED FLAGS: SOME TELL-TALE SIGNS OF UNETHICAL OR ILLEGAL BEHAVIOUR » Certain suppliers dealt with outside of the appropriate department » Overriding management attitude of results at all costs » Lifestyle and income mismatch » Large number of purchases just below approval limits » Results always at or just above budget » Key missing documentation » Unnecessary, confusing or complex transactions entered into
To fi nd out more, please contact:
Hitesh Patel
Partner, KPMG in the UK +44 (0)20 7311 3571
hitesh.patel3@
kpmg.co.uk
Ian Jackson
Partner, KPMG in the UK +44 (0)20 7694 8207
ian.jackson@kpmg.co.uk
© 2014 KPMG LLP, a UK limited liability partnership, and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
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