The Ethical Barometer

A PriceWaterhouseCoopers study found that frauds are uncovered as follows:

• 29% from employee tips
• 19% from internal audit departments (down from 26% in previous surveys)
• 14% from external tips
• Remainder of discoveries come through enforcement activities from state and federal agencies

In the survey of 5,400 executives, 43% said that their companies had experienced at least one “significant economic crime” at their companies in the past year.

My conclusion:  Culture matters — a culture that protects, encourages, and rewards employees who come forward with concerns. 

The AMSA has been concerned for a number of years about the money, gifts, and free samples that medical schools receive from drug companies.  Their concerns have been about the conflicts, the disclosure, and the levels of support from drug companies whose products are being tested at the schools and whose graduates will then be in a position to make patient recommendations on prescription drugs.  A recent survey found that just 54% of patients were aware of drug company contributions to the medical centers where they were being treated.  Another survey found that only 7 of 150 medical schools surveyed had strong conflicts of interest policies and enforcement mechanisms. There are some straightforward policies that could help. Continue reading →

Jack Welch has been asking audiences around the world the following question, “Over the past year, how many of you have received an honest performance appraisal that really tells you where you stand?”

Welch says the data conclude that 10% of employees can say, “Yes.”

We may have to revisit candor in annual reviews.