February 28, 2005

Best Practices in Ethics Hotlines: A framework for creating an effective anonymous reporting program

By Tony Malone and Ralph Childs – The Network, Inc.

For many years, companies have been using hotlines to detect theft and fraud with great success. But until recently, some companies still considered them a luxury rather than a necessity. With the introduction of the Sarbanes-Oxley Act, lawmakers have further validated the need for this reporting mechanism. This paper by The Network, Inc. discusses best practice techniques for developing an effective ethics hotline program by examining three critical stages: planning a successful hotline program, communicating to stakeholders about the hotline, and reacting to hotline tips.