Home' HR Monthly : October 2014 Contents October 2014 HRMonthly 37
October 2014 HRMonthly 37
“YOU HAVE A CHOICE TO DO
BUSINESS EITHER THE RIGHT WAY
OR THE WRONG WAY.”
KPMG PARTNER IN CHARGE, FORENSIC, GARY GILL
anti-corruption, gifts and benefits, con flicts of interest,
government engagement and political donations. Online
training in the code must be completed every year by
all employees, as well as some relevant contractors
and suppliers, and the code of conduct is referred to in
The company has set up its own whistleblower
hotline, independently ru n by Deloitte. There’s also an
internal whistleblower hotline, says Coventry, both of
which are “heavily used, which is great”.
Experienced corporate governance specialist Geoff
De Lacy, who’s held roles in major companies and
multinationals in both Australia and Asia, has many
stories of the challenges of managing fraud and
corruption. There was the 29-year-old employee of a
major accounting organisation in Indonesia sent out
to audit the books at a mine. The boss told him he had
two choices when it came to presenting his report and
opened one desk drawer stuffed with cash and then
another, which contained a gun. The auditor, newly
married with a pregnant wife, decided to hand in a
report that “essentially said nothing”, says De Lacy.
Arriving home that evening, the auditor found a new
car parked in his driveway, registered to him.
“I’ve heard a million stories but that one really got to
me,” says De Lacy.
a global coalition against
corruption operating in
100 countries, provides
resources and information
He mentions another case concerning an Australian
manufacturer with a plant in China. When the
Australian manager unexpectedly returned to his office
late one evening, he found the plant in full production.
A rogue team was running a third shift using the
company’s raw materials and machinery.
“These are extreme examples but any degree of fraud
and corruption is very serious. It can only be dealt with
by good training, clearly-stated corporate values and
exposure to experienced people, those who’ve seen what
can happen,” says De Lacy.
CEO of Transparency International Australia Michael
Ahrens, agrees that a robust compliance program is
essential for organisations. It should be endorsed from
the top down and supported by training and regular
auditing, he says.
“A nd the staff should be encouraged to feel proud
that they have operated in a clean way. That may mean
organisations have to opt out of certain projects where
corruption is rife,” says Ahrens.
KPMG’s Gill says the increasing attention from
law enforcement bodies means that there’s a move by
organisations, particularly multinationals, “to really
take this seriously”.
“Many of them have walked, and will walk, away
from business if that’s the only way to win the work.
The reality is that it’s probably going to cost you,
but there will always be others out there who will do
business on that basis.
“It will never go away; it’s human nature. But you
have a choice to do business either the right way or the
“It sounds simple, but it never is,” Gill says.
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22/09/14 5:31 PM
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