frost, pllc | 425 west capitol avenue, suite 3300 | little rock, ar 72201 | 501.376.9241 | employee...

Leading an Ethical Team

T.J. Boyle, CPA

June 2015

Frost, PLLC | 425 West Capitol Avenue, Suite 3300 | Little Rock, AR 72201 | 501.376.9241 | www.frostpllc.com

Why Do We Care?• Employee satisfaction increases due to the

emphasis on safety and integrity,

• Management proactivity increases due to identified trends in the areas of safety, harassment, discrimination and other costly issues,

• Profitability increases due to controlled costs such as insurance, workers compensation and governmental fines,


• Malicious lawsuits are more easily defeated,

• Theft is detected more quickly, if not deterred altogether,

• Reputations are protected when small problems are caught before becoming big

• Management spends less time on headaches and more time on constructive efforts

• ALL OF THIS LEADS TO

Why Do We Care?


Examples• Enron

• Politicians

• Mortgage Industry

• NFL


Where Does It Affect Hog Companies?

• Fraud in the workplace

• Hiring Practices and Other HR Practices

• OSHA Violations

• Animal Welfare


KEYS TO ETHICS IN THE WORKPLACE


Corporate Governance• Tone at the Top

• Policies and Rewards

• Management must “Champion” this

• Communicate the Process


• Discuss often (reinforcement)–WE create SAFE food for the WORLD

–WE treat animals HUMANELY

–WE treat others with RESPECT

• Effective Deterrence

Corporate Governance (cont.)


Risk Assessment• Identify Risks

• Assess Risk

• Determine Response


Prevention• Ethics training

• Anti-Fraud training

• Assess performance and compensation (do they match the companies goals)

• Reviewing exit interviews


Prevention (cont.)• Looking at segregation of duties

• Authority Limits

• Documentation of the risk assessment and controls

• Continuous monitoring


Detection• Anonymous fraud/ethics hotline

• Reconciliations and Review

• Physical inspections and observations

• Internal audit

• Data analysis


Report and Investigate• Prompt and confidential review• Investigation team• Evaluate the allegation• Protocols– Timeliness– Secure evidence– Objectivity– Notification (law enforcement, auditors, insurance)


Report and Investigate• Investigate– Interviews– Evidence– Computer forensics

• Reporting & Communications• Corrective Actions– Criminal– Civil case– Insurance– Improvements


Conclusion• Organizations benefit in many ways:

– Employee satisfaction

– Management proactivity increases due to identified trends in the areas of safety, harassment, discrimination and other costly issues,

– Profitability increases due to controlled costs

– Malicious lawsuits are more easily defeated

– Theft is detected more quickly, if not deterred altogether,

– Reputations are protected

– Management spends less time on headaches and more time on constructive efforts


T.J.Boyle, CPAFROST, PLLC

[email protected]

mailto:[email protected]

frost, pllc | 425 west capitol avenue, suite 3300 | little rock, ar 72201 | 501.376.9241 | employee...

Documents

west capitol avenue

little rock

insurance slide

response slide

process slide

continuous monitoring

big management

management proactivity