Social Media Fallout

You may have seen the article on Stuff.co.nz about the hotel employee who was dismissed for making disparaging comments on Facebook about a blogger; how would you handle something like this, do you have a policy about what staff (and volunteers) can say and do with their personal time, their person social media posts?

Have a read of the article, then have a think about how you would handle such a situation.

Hotel worker sacked over abusive Facebook post to columnist

A Sydney hotel supervisor has lost his job after making a sexist and offensive comment on the Facebook page of Fairfax Media columnist Clementine Ford.

The Meriton Group confirmed that Michael Nolan was no longer employed by the company, after he labelled Ford a “slut” when she spoke out publicly against misogyny and online harassment.

Ford, a weekly columnist for Daily Life, made a number of posts on her Facebook page on White Ribbon Day, which aims to prevent men’s violence against women, in which she highlighted recent examples of online harassment she had received.

Ford included screenshots of a number of abusive messages that had been sent to her, including images Ford said were a “little violent in theme”, and included unsolicited images of male genitalia.

Continue reading  the full article here

There are organisations that have internal social media policies, these generally state that an employee/volunteer won’t say or do anything that will bring the organisation into disrepute. They often will also point out the consequences should someone say or do something that could tarnish the reputation of the organisation.

But, is this acceptable, can an organisation state what an employee can or can’t do in their own time?

What’s your take?

Note: I don’t condone bullying, trolling or any such behaviour, so I am not defending the guys actions, merely raising a point of discussion.

Charity Rip-offs

Charities have a hard enough time making ends meet to enable them to deliver their services.

When we hear about frauds and thefts in the sector, either carried out by people in organisations or by others using charity as a means to make a quick dollar, or the blatant theft of collection boxes; it makes you wonder what type of people would rip of others in need.

Not only do the scumbags who fleece charities harm them directly, but they’re tarnishing the entire sector. When stories of what some have done break – people become concerned and wonder if the money they are giving is getting to where it’s meant to be.

In 2012, BDO released a report on Not-For-Profit Fraud Survey, with these among the results:

  • 12% of organisations suffered fraud in the past two years
  • Specifically, 75 organisations suffered 330 frauds in the past two years
  • Fraud totalling $2,916,616 was reported, with the average fraud being $8,838
  • Of the respondents who experienced fraud, 49% had suffered fraud previously
  • Almost one in three organisations with turnover exceeding $10 million suffered a fraud
  • 25% of respondents who experienced fraud believe the full value of the fraud was not discovered
  • Main factors contributing to fraud occurring were breaches of trust and overriding of internal controls
  • The most common type of fraud reported was cash theft (40%)
  • The average online payment fraud was $370,000
  • The average duration of each fraud was 14.5 months.

But fraud, or misrepresentations by people outside of the sector is harder to monitor.

The recent case of the woman who used an online giving tool to raise funds for non-existent cancer treatment, again highlights risks the sector faces with reputation management.

This case again will make it harder for people to make the decision to give; they will be thinking twice about whether the campaign, individual or organisation is genuine.

We all must do our bit to keep our eyes and ears open to anything that may seem odd, that may not be kosher and, if we’re concerned we should be checking with organisations to ensure everything is above board.

See also:

Not-for-profit Fraud Survey

Non-profit groups need to be vigilant about fraud – survey

Risk Management – Mitigating Fraud

Not-for-profit Fraud Survey

Having been around the non-profit sector for a number of years, I have seen some activity that has made my hair turn grey, and it’s good to see that BDO have released survey results on fraud in the sector.

Some interesting findings from the BDO Not-For-Profit Fraud Survey 2012 are summarised below:

HOW MUCH IS LOST TO FRAUD?

• 12% of organisations suffered fraud in the past two years

• Specifically, 75 organisations suffered 330 frauds in the past two years

• Fraud totalling $2,916,616 was reported, with the average fraud being $8,838

• Of the respondents who experienced fraud, 49% had suffered fraud previously

• Almost one in three organisations with turnover exceeding $10 million suffered a fraud

• 25% of respondents who experienced fraud believe the full value of the fraud was not discovered

• Main factors contributing to fraud occurring were breaches of trust and overriding of internal controls

• The most common type of fraud reported was cash theft (40%)

• The average online payment fraud was $370,000

• The average duration of each fraud was 14.5 months.

 

Who commits fraud and why?

The typical fraudster was a female aged in her forties and was a paid employee in a non-accounting role

• Only 9% of frauds were committed by volunteers

• Collusion was present in 20% of frauds reported, with a typical colluder being a female aged in her thirties or over fifty and a paid employee

• Respondents indicated that financial pressure and maintaining a lifestyle were the most common motivators for fraud.

Click here access the full survey results visit

 

BDO have also produced a policy and procedure toolkit, which has been receiving positive feedback to from those who attended the Fraud Workshops they did with the Charities Commission.  


Risk Management – Mitigating Fraud

It’s staggering to think that since 2009, our courts (New Zealand) have successfully prosecuted cases involving fraud of more than $3 million from charities. That’s a massive amount lost, taken – nah stolen from organisations trying to do good in the community. 

This does not include the recent prosecution of the charity worker who stole millions from an elderly woman, adding another $2.4 million to the sum stolen. 

Grant Thornton’s  NFPs Failing on Risk Management: NZ Report  highlights the lack of formal risk management, surely the sector needs to tighten up, individual organisations need to ensure they have good polices and practices in place. 

It’s time the sector looked at how to improve itself, the more ‘bad news’ the public hears about the sector – frauds, thefts; the more the potential the sector has to lose support it so badly needs from the community.

What are you doing in your organisation?