Ethics hotline brings new level of transparency to university conduct

Early in November the Michigan Tech community started a new service to assist in the responsible monitoring of university conduct. Together with EthicsPoint, an industry standard in confidential reporting services, the Internal Audit office introduced the Michigan Tech EthicsPoint Hotline. The hotline provides faculty, staff and students a means to report inappropriate or unethical activity when they fear repercussions for their whistle-blowing.

EthicsPoint has set a standard for reporting services in college and university systems. Founded in 1999, EthicsPoint was started by a group of fraud specialists who pioneered reporting services on the internet. “We’ve been interested in this for a number of years,” stated Amy Hughes with the Internal Audit office.

The Internal Audit office started looking for a reporting service solution after receiving the blessing of the Board of Controls. The search was prompted by a desire to make the daily activities of Michigan Tech more transparent and improve the level of conduct amongst Tech employees. The search was strongly supported by the university’s external auditors, who work closely with private companies and have experienced the positive results of such services.

“The Board and the admin understood the need for reporting and identified this would provide the service needed,” said Hughes.

Reporting services have become more popular with the advent of the Enron era and the passing of legislation like the Sarbanes-Oxley Act of 2002. The Public Company Accounting Reform and Investor Protection Act of 2002 was sponsored by Senators Paul Sarbanes (D-MD) and Michael Oxley (R-OH) and established the Public Company Accounting Oversight Board. The purpose of PCAOB is to oversee proper practice and reporting in auditing and accounting firms.

The act further provided legal protection for persons who whistle-blow on illegal activity in their companies. Title VIII, Sec. 806 states that no company, employer or agent of the company or employer may “may discharge, demote, suspend, threaten, harass, or in any other manner discriminate” against a person who reports illegal activity within their company.
While SOX, as it is commonly called, applies only to private-sector companies with public offerings, the policies it establishes apply in a university setting as well.

The system Michigan Tech and EthicsPoint have established provides a double-blind reporting system through two communication channels. A person may either call a special “Michigan Tech Only” toll-free number and report their claim through a phone service representative, or may report a claim through the MTU claim page at https://secure.ethicspoint.com/domain/en/report_custom.asp?clientid=1914....
When a report is made, the reporter receives a user ID and password so their name or personal information is not transmitted to the university. If the university decides to investigate a claim they may post questions for information to the user ID. The user will not know who is posting questions, nor will the university know who the user is. This ensures maximum protection for whistle-blowers and a last-stop avenue for reporting.

The service is available for faculty, staff and students. Ms. Hughes did suggest, however, that every option available should be exhausted before turning to the EthicsPoint reporting system.

“I think this is a really positive move on the part of the Admin to support, especially the Board.” said Hughes. “And hey, it’s better than a suggestion box.” she joked.
Hughes had no comment on the volume of reports gathered through the EthicsPoint system to date.

Further information on the EthicsPoint system, and the gateway through which one may file a report on the Web, can be found through the Internal Audit office’s site, the Faculty/Staff page, and the Affirmative Programs page.