We believe you can learn a lot from your employees and also satisfy laws on governance, by addressing Business Abuse!
Establish a Conflict of Interest Policy and a business abuse hotline for your employees, vendors and customers to report inappropriate activities.
This is not only good governance; it is good business and could result in significant returns on your investment. Most employees are interested in helping their employer. Many companies have internal complaint hotlines; however employees are often suspect of the contact anonymity and fear retaliation. This is especially important if you have retail stores. If you set up a third party hotline they will report waste, fraud and other matters, keep you in compliance with laws and it may even pay for itself through elimination of waste, fraud and abuses.
If you have 10 employees or more you are subject to a new provision of the New Jersey Conscientious Employee Protection Act (CEPA). This law was passed in 1993 but in April 2005 the New Jersey Commissioner of Labor issued a new version of the notice that employers must post to advise employees of their rights and obligations under the CEPA, also known as the New Jersey Whistleblower Law. If you do not post a CEPA notice you could be subject to a $5,000 fine! (See attached article from NJBIZ)
Section 301 of the Sarbanes-Oxley Act of 2002 requires publicly traded corporations to establish audit committees. These committees are required, in turn, to establish procedures for accepting employee complaints (both anonymously and non-anonymously) concerning questionable accounting or auditing matters.
Establish an Ethical Standards and Conflict of Interest Policy Statement (ESCOIP)
Every business should have ESCOIP. We could efficiently assist in the development and maintenance and provide for independent third party annual confirmation of compliance with you Policy, as well as, an independent whistleblower hotline.

  • Independent annual confirmation of compliance with ESCOIP
  • Independent mailing to provided mailing list, employees, customers, suppliers
  • Independent review of replies
  • Establish an independent whistleblower hotline
  • Initial review and follow up for presentation to management to consider further action