From the October 2010 issue of Treasury & Risk magazine

Calling In Corruption

Increased enforcement and some sizable penalties have boosted corporate interest in ethics hotlines.

Gail Mills, director of human resources at Home Depot, is a big fan of hotlines. The $66 billion home improvement chain has had a hotline in place for employees and vendors for at least 15 years, she says. "In all that time, the hotline has always paid for itself, because as long as an associate is calling us instead of filing a lawsuit, going to the media, or going to OSHA, it allows us to fix the problem, and that's a huge benefit," Mills says. "It's worth whatever it costs us."

Hotlines may be old hat, but the growing ubiquity of all sorts of media to spread the word, enhanced enforcement against corruption by the Securities and Exchange Commission and the recent Dodd-Frank Act's promise of bigger bounties to whistleblowers are focusing new attention on what used to be just a red phone in the corporate counsel's outer office.


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