june 2017 13 Internal audItor
the proliferation of personal
activity increases discoverable
data on networks.
sixty percent of employees in the U.S. say they have connected to their orga- nization’s Wi-Fi network using per- sonal devices to send personal email,
send text and instant messages, and post on
social media, according to a Harris Poll survey
of more than 1,000 respondents sponsored by
e-discovery software company kCura.
All this personal activity is greatly
increasing the data that is potentially discoverable in a lawsuit or regulatory action, subjecting organizations to potential sanctions,
the report notes. A 2016 Osterman Research
study found that organizations store a mean
of 49 gigabytes of email data per user.
Having a clear data retention policy can
help organizations, but 63 percent of respondents say they don’t know whether their
organization has policies on email retention
or checking personal email at work. Seventy
percent use inbox folders to file information.
“When corporations don’t take the steps to
govern their information ... they could face an
array of legal headaches, IT frustrations, and
high costs,” says David Horrigan, e-discovery
counsel at kCura. — T. MccoLLuM
the culture impact
tone at the top and visible support from management are crucial in
shaping the organization’s ethical values, says pilar caballero, chief
compliance officer at ryder systems.
How can a board or management best change a toxic
culture or nurture a positive culture? While the board has
oversight of the alignment of the company’s culture with its
strategic vision, it is difficult for a board to directly shape corporate culture. management is in the best position to impact
culture. the tone at the top and management’s visible support
of a compliance and ethics program are crucial. For example,
how management responds when its most beloved, top-performing employees misbehave sends an important cultural
message as to what is tolerated and the collective values of
is culture always to blame for misconduct? While culture is frequently a significant factor when misconduct occurs, culture is not always the only culprit. rogue employees can behave
poorly, contrary to company culture, and create liability for companies. how a company reacts to
misconduct by an employee or group of employees can say a great deal about the company’s culture and goes a long way toward cultivating the right tone. leveraging information and resources
from internal audit, human resources, finance, and legal helps keep a pulse on the culture.
von Dadelszen, joint head
of Fraud with the U.K. Serious Fraud Office, says in the
survey report. “That seems to
me to be a risky and unpredictable analysis, given the
unethical behavior are more
relaxed among the young
generation, the report notes.
Seventy-three percent of
Generation Y ( 25 to 34 year
olds) respondents say they
can justify unethical behavior
to help a business survive.
One-fourth of Generation Y
respondents say they would
offer cash payments to win
or retain business, compared
to only 14 percent of all
other surveyed age groups.
Generation Y also has
low standards for management and co-workers. Most
( 68 percent) report their
company’s executives would
act unethically for business
reasons, while 49 percent say
their colleagues would do so
to advance their career.
Such findings suggest
that company executives and
boards aren’t setting the right
ethical tone, with 77 percent of director and senior
manager respondents saying
they could justify unethical
behavior to help the business
survive. “There is worrying
evidence of a lack of leadership from senior executives
to tackle bribery and corruption,” says Jim McCurry, EY
EMEIA Fraud Investigation
and Dispute Services leader,
“which may be negatively
influencing the younger generation workforce.”
— cLauDia gesio TTo
Visit InternalAuditor.org to read an
extended interview with Pilar Caballero.