Christopher Bauer makes a quick and effective case for why companies can afford to boost their ethics, compliance, and accountability programs in his LinkedIn post, “250,000 Reasons to Up Your Ethics, Compliance, and Accountability Game”. I loved this article, and I recently opined briefly on the topic in my recent blog post on the Avon FCPA action. I’m afraid many view FCPA actions as the cost of doing business, but Bauer makes a great “dollars and cents” case as to why we need more accountability in corporate America.
Bauer’s case is simple – lack of attention to ethics, compliance, and accountability leads to significant bottom-line risks that can have impacts ranging from millions of dollars to more than a billion dollars. He breaks it down further by using the example of discrimination on the job. Each instance of discrimination costs a company an average of $250,000 per instance and frequently triples if litigated. Bauer’s pitch is that it would never cost anything close to $250,000 for a single department to bring in a consultant to help that department create a better focus on ethics, compliance, and accountability. My guess is that he could accomplish this objective for one-tenth the cost of a single incident.
There are simple, cost-effective steps every company can take to implement a philosophy of “inspect what you expect” when it comes to ethics, compliance, and accountability. Automated monitoring and analysis allows companies to analyze every single travel and expense, p-card, or accounts payable transaction to ensure that these transactions and the subsequent payments are consistent with company policies. Companies using Oversight Insights On Demand™ for T&E have told us they see decreases in non-compliant spending as high as 70% in the first six months of monitoring. They see travelers adhering to preferred supplier policies and reducing their requests to reimburse personal expenses as business expenses. The companies can also quickly identify erroneous, duplicate expenses.
Some of our customers add anti-corruption and bribery (ABC) analyses so they can identify risky behavior that may be indicative of potential Foreign Corrupt Practices Act (FCPA) issues. By “inspecting what they expect”, these companies tell us they are able to both promote a culture of policy compliance and assist travelers in making the right decisions.
As in Bauer’s example, these automated monitoring and analysis solutions are achieved at a relatively small cost for a very high return. Our customers often pay for their Insights On Demand monitoring and analysis in as little as 30 days. See more about how Insights On Demand works.
Why not “inspect what you expect”? You can take a free test drive of our software and see how it feels.