Wow! What a difference an effective ethics and compliance program makes! According to ERC’s ‘The State of Ethics in Large Companies‘ report, “large companies with effective programs face half of the rules violations as those without effective programs.” And “87% who observe violations at large companies with effective programs report those violations for action by higher ups, compared to just 32% who report wrongdoing when programs are lacking.”

MYECCHO makes getting an Ethics Hotline affordable for smaller companies too!

Here’s a look at 2014 reporting stats culled from our client and industry Ethics Hotlines:
~1 report per 100 employees
~3/4 of reports are HR related
~3/5 of reports are anonymous
~2/5 of reports result in substantial action
~1 month closure time for reports


Business torts are civil wrongs that are committed by or against an organization.

Disparagement or Trade Libel or Product Disparagement or Slander of Title
“Business firms rely on their reputation and the quality of their products and services to attract and keep customers. That is why state unfair-competition laws protect businesses from disparaging statements made by competitors or others.”

Intentional Misrepresentation or Fraud or Deceit
“One of the most pervasive business torts is intentional misrepresentation.
Four elements are required to find fraud:
1. The wrongdoer made a false representation of material fact.
2. The wrongdoer had knowledge that the representation was false and intended to deceive the innocent part. (aka ‘scienter’)
3. The innocent party justifiably relied on the misrepresentation.
4. The innocent party was injured.”

Liability for harm as a result of foreseeable consequence.
Includes professional malpractice.

Liability without fault “is imposed for abnormally dangerous activities” such as storage of explosives and keeping of pets.
Product Strict Liability given in Restatement (Second & Third) of Torts: One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability… A product is defective when, at the time of sale or distribution, it contains manufacturing defect, is defective in design, or is defective because of inadequate instructions or warnings…

Crimes prone to be committed by businesspersons are referred to as white-collar crimes.

Fradulent making or alteration of a written document that affects the legal liability of another person.
Examples: counterfeiting, falsifying public records, materially altering legal documents.

Fradulent conversion of property by a person to whom that property was entrusted.
(Note: differs from robbery, burglary, and larceny where property was not entrusted.)

Bribery is one of the most prevalent forms of white-collar crime.
Giving of money, property, favors, or anything else of value for a favor in return.

Threat to expose something about another person unless that other person gives money or property.

Obtaining title to property through deception or trickery.

reference Business Law by Henry Cheeseman

  • Volunteer at a school, food kitchen, hospital, or anywhere you can be useful
  • Walk instead of driving
  • Shop local, eat local
  • Reduce, reuse, recycle
  • Donate to causes important to you
  • Plant a tree or a garden
  • Rescue an animal
  • Join a bone marrow registry
  • Commit random acts of kindness
  • Teach a child how to help make the world a better place

More great Dilbert comics.

Defense Mechanisms

Defense mechanisms, in psychology lingo, are strategies we use to “cope with reality.”
George Vaillant has identified a range of mechanisms, spanning from the unhealthy (such as denial and distortion) to mature. When reacting to circumstances at work, do you use these healthy strategies?
Sublimation: transformation of negative emotions into positive actions or behavior
Suppression: the conscious decision to delay paying attention to an emotion or need in order to cope with the present reality
Altruism: putting the needs of others before your own with no expectation of payback
Humor: overt expression of feelings without personal discomfort and without unpleasant effect on others