FINANCE NEWS: Survey finds sector is well prepared to show malpractice

Charities are better equipped than private companies to prevent the kind of accounting frauds exposed at Enron and WorldCom, according to a new survey from the Work Foundation.

Seventy-five per cent of public- and voluntary-sector organisations have formal whistleblowing policies setting out how their employees can report fraud or other financial malpractice, the survey found.

This compares with 32 per cent of private-sector companies. Whistleblowing policies can be used as a risk management tool to nip scandal in the bud, according to the Foundation.

But despite a formal commitment to whistleblowing, employers are demonstrating a lack of support with just 29 per cent of public-and voluntary-sector organisations stating the name of the regulator with which employees can raise concerns.

"Sector employers are still suspicious about workers going outside the organisations,

said Theo Blackwell, chief policy specialist at the Foundation.

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