USG FRAUD AWARENESS PROGRAM
Helpful Facts & Figures
Benefits of an Ethical Culture
 Companies that work to build and maintain ethical workplace cultures are more financially successful and have
more motivated and productive employees. HR Magazine, Creating an Ethical Culture, April 2014.
 Organizations that build an ethical culture outperform organizations that do not. Center for Ethical Business
Cultures, James A. Mitchell, 2001.
 When companies value ethical performance, misconduct is substantially lower: In 2013, only 20% of workers
reported seeing misconduct in companies where ethical cultures are “strong” compared with 88% who
witnessed wrongdoing in companies with the weakest cultures. Ethics Resource Center National Business Ethics
Survey 2013, HR Magazine, Creating an Ethical Culture, April 2014 .
 From 1997 to 2013, the annualized stock market returns of the Fortune 100 Best Companies to Work For in the
U.S. were 11.8% compared with the 6.4% for the Russell 3000 Index and 6% for the Standards & Poor’s 500
index. Great Place to Work Institute.
Workplace Misconduct - General
 Last year, 41% of U.S. workers said they observed unethical or illegal misconduct on the job. Ethics Resource
Center National Business Ethics Survey 2013.
 One in five U.S. workers who reported misconduct said they experienced retaliation in return. Ethics Resource
Center National Business Ethics Survey 2013.
 33% of U.S. workers who declined to report workplace misconduct said they feared they would be punished for
doing so. Ethics Resource Center National Business Ethics Survey 2013.
 Managers are responsible for 60% of workplace misconduct. Ethics Resource Center National Business Ethics
Survey 2013.
Fraud Statistics
 An estimated 5% of all organizational revenue is lost to fraud each year. Association of Certified Fraud
Examiners.
 87% of those committing fraud against their organization had never been charged or convicted of a fraudrelated offense. Association of Certified Fraud Examiners.
 An estimated 13.5% of U.S. Consumers (30.2 million people) are defrauded each year losing a total of close to $3
billion. Federal Trade Commission.
Detecting Fraud & Unethical Behavior – Importance of Ethical Employees
 More fraud and misconduct is discovered through employee tips than from any other source.
 43% of fraud is detected as a result of tips versus only 16% for the second most common source, management
review.
Impact of an Ethics Hotline
 For organizations with an ethics hotline, more than 50% of fraud is detected as a result of tips. Association of
Certified Fraud Examiners.
 Organizations without hotlines had to rely more heavily on external audits and management review. Association
of Certified Fraud Examiners.
Additional Resources:
1. Report to the Nation on Occupational Fraud & Abuse, http://www.acfe.com/rttn/docs/2014-report-tonations.pdf
2. FBI Financial Crimes Report to the Public, http://www.fbi.gov/stats-services/publications/financial-crimesreport-2010-2011