Corporate governance and ethical culture have become increasingly important to businesses who are destined to succeed in our adverse economic environment.

A significant result from KPMG's Fraud Barometer again revealed that "business fraud rose by 78% in 2018." This result, although concerning, seems somewhat less alarming when one considers that various global studies over the past decade have shown that occupational fraud is more likely to be detected via whistle-blowing tips in organisations that promote suitable reporting mechanisms.

The King IV Report on Corporate Governance for South Africa focuses on ethical leadership, ethical culture and ethical responsibility. Of particular relevance is the fact that this report makes special provision for the introduction of safe reporting mechanisms in a bid to further encourage stakeholders to maintain and monitor organisational ethics.

Whistle-blowing hotlines have proven to be one of the more convenient, cost effective and most widely chosen safe-reporting mechanisms for organisations today, and have become an essential component to any corporate fraud risk management strategy. What better way to encourage stakeholders to report fraud and misconduct within an organisation than to provide them with an easily accessible tool that facilitates anonymous reporting, 24 hours a day to an independent service provider? Such a mechanism not only exemplifies ethical leadership, but also encourages ethical culture and ethical responsibility within the workplace.

KPMG has been a leader in providing FairCall services to companies of all sizes and geographical complexities since 1996, when the Global Centre of Excellence was first established. KPMG FairCall currently has experienced Forensic Call Centres across the globe. In terms of reporting, the following global trends have been noted at our Centre of Excellence over the past 18-months:

• There has been an overall increase in the number of disclosures received by the KPMG FairCall Centre of Excellence
• The majority of disclosures are received via telephone, despite there being four other reporting mediums available to potential whistle-blowers
• Electronic reporting mediums currently feature secondary to the telephone. There has also been a definite upswing in these reporting mediums
• More than 30% of disclosures emanate from anonymous/ partially anonymous whistle-blowers
• There has been a significant upswing in the number of urgent disclosures. Such reports usually require expedited reporting protocols
• There has been a noticeable increase in the number of 3rd party disclosures (i.e. reports made by external parties, including customers)
• There has been a marked upswing in the number of disclosures received outside of our local business hours

The KPMG FairCall Centre of Excellence operates 24/7/365 from an undisclosed location in South Africa with various forensic hubs worldwide. Operated by forensic professionals, KPMG FairCall is a proven, confidential and anonymous way for all organisational stakeholders to report suspected fraud and misconduct. KPMG FairCall has an extensive global footprint and currently operates in more than 60 countries worldwide. KPMG FairCall offers whistle-blowers support in 35 languages via combined phone and web intake, and facilitates further reporting via email, post, fax and mobile app.

The KPMG FairCall Centre of Excellence is overseen by Amber Engelbrecht, an associate director at KPMG in South Africa. 

For more information on KPMG FairCall, please email: amber.engelbrecht@kpmg.co.za M: +27 (0) 82 7188 851 E: candice.padayachee@kpmg.co.za W: www.kpmg.co.za