Organisations worldwide lose an estimated 5% of their annual revenues to fraud. Corporate fraud, consumer fraud, tax fraud, and identity theft – these are just a few of the many ways fraud can take shape. It is therefore vital that everyone becomes more aware of the serious impact it has on businesses and our country as a whole.

Exxaro is committed to stamping out fraud and corruption. As part of our fight against corruption we have committed our support to the International Fraud Awareness Week through the Association of Certified Fraud Examiners (ACFE). Our CEO, Mr Mxolisi Mgojo, elaborates on this commitment, saying, “One of our cornerstone values is to speak the truth and be accountable for our actions, as it is the only truly sustainable way to do business. This responsibility goes beyond fulfilling legal requirements. As employees, we all have a duty to uphold our Code of Conduct, Exxaro policies and the law by performing our jobs in an open and honest manner. We will not hesitate to walk away from opportunities that are unethical.”

We are a proud participant of International Fraud Awareness Week. We hope to encourage other business leaders and employees to take proactive steps to minimise the impact of fraud by promoting anti-fraud awareness and education. If we can instil a culture where all stakeholders strive to contribute towards the eradication of corruption and fraud, everyone can benefit from a business’s success – instead of only a dishonest few.

Continuing on this theme, Mxolisi added, “To be a strong company on the outside, we have to be a strong company on the inside. When we take the time to do what is right, we act with integrity and build trust, making Exxaro stronger.”

How fraud takes place

It often comes down to either greed or financial desperation. When there is a lack of managerial oversight and the desire to increase personal or organisational wealth, a small percentage of individuals will take irresponsible actions that put themselves and their company at risk.

According to the ACFE, financial statement fraud causes by far the greatest loss to companies globally, second only to asset misappropriation and corruption. Organisations that lack anti-fraud controls suffer on average twice the financial loss.

Effective response to fraud prevention

Exxaro has a Whistle Blowing Policy which aims to promote a culture where suspicions of irregularities can be reported safely, without fear of reprisal or victimisation. We take reasonable steps to protect the identity and confidentiality of anyone who reports fraud. Our policy also states that we will provide clear guidelines on how to report fraud or corruption, and that we will make sure that both employees and stakeholders know about the policy.

Importantly, the policy requires that when fraud is reported, there is an effective response from Exxaro to appropriately deal with any stakeholders who are involved with fraudulent activity.

What should employees report?

Ethics, integrity and compliance with anti-corruption laws are non-negotiable for all Exxaro employees and business partners. Employees and other stakeholders should always report any of the following:

Criminal conduct, including corruption, fraud, and theft. Conduct that has endangered or is likely to endanger the health and safety of any individual or damage the environment. Unfair discrimination. Any action that could expose the company to a liability risk or prejudices the interests of Exxaro. For a summary of behaviour red flags to look out for in the workplace, have a look at this useful infographic.

How can you report fraud?

Anyone, from employees to members of the public, can report fraud by using the following communication channels:

Free call: 0800 203 579 Email: Exxaro@tip-offs.com You can also report concerns to your line manager, a member of the executive committee or board, or a corporate or business unit security or employee relations manager.

For detailed information about fraud and how to prevent it, visit fraudweek.com/fraudweek/resources.

With your help, we can put an end to fraud and corruption. Don’t support it, report it!