I recently read a couple of articles dealing with the relationship between not-for-profit organizations and the Canada Revenue Agency, particularly with respect to fraudulent charitable tax receipts and what non-profits can do about accidental profits.
The Ontario Securities Commission has announced that it will undertake a review of corporate governance practices and environmental disclosure requirements in 2010, as part of a broader corporate sustainability reporting initiative.
What's the significance of this announcement?
Employee fraud is on the rise, as organizations cut back on staff, and their internal controls slacken as a result. However, the monetary loss is just the beginning of the problem. A recent white paper from Grant Thornton LLP notes that, "Failure to crack down on this unethical—and indeed criminal—behaviour blurs the line between right and wrong. It creates a culture of entitlement that can extend across the business. And it can open the door to more significant corporate theft."