Page 32 - GIADA Jan-Feb 2020

FEATURE

Importance of Whistleblower Hotline

as Part of Dealership Comprehensive

Compliance Program

By Max Zanan

No matter the size of your car dealership, process of identifying and fighting against The rapid detection of misconduct is
it is in your best interest as a dealership inappropriate and unlawful actions within especially important for small dealerships.
owner to put tools in place that protect the workplace. With the average duration of fraud until
the reputation of your organization. With detection being 18 months, it is clear that
each new car dealership employing an The Benefits of a Whistleblower Hotline knowing about instances of fraud as early
estimated 70 people on average in 2019, If your car dealership has yet to implement as possible can be the difference between
the best place to start is within your a whistleblower hotline as part of its staying in business and losing everything.
company. Implementing a comprehensive comprehensive compliance program, you A whistleblower hotline means you’ll know
compliance program that consists of may be interested to learn how you can about illegal behaviors sooner and save
regular audits, appointing a compliance benefit. There are a number of benefits money as a result.
officer, and providing online training is associated with a whistleblower hotline
a solid foundation. Unfortunately, these ranging from the protection of assets and Reducing the Risk of Violations
steps are not always effective when it comes reputation to the detection and prevention and Legal Battles
to rogue employees. of non-compliant behavior. Let’s explore The purpose of a dealership comprehensive
those benefits in-depth. compliance program is to ensure that
While the majority of your employees are your dealership meets auto dealer laws
good workers who hold the reputation Building Trust and regulations on both federal and
of your dealership in high esteem, One of the largest benefits of a whistleblower state levels. Without meeting legal
all it takes is one employee with bad hotline is that it builds trust within your requirements, your dealership is at
intentions to cause problems. That’s why company. When unethical or illegal conduct great risk of incurring penalties. When
a whistleblower hotline is a must for any is happening within your dealership, there implementing a whistleblower hotline into
dealership’s comprehensive compliance is at least one person (or many) that knows your comprehensive compliance program,
program. Today, we’ll be exploring what what’s going on. Unfortunately, those who you’re actively reducing the risk of hefty
a whistleblower hotline is and how it can are aware of misconduct may be reluctant fines and even criminal penalties.
benefit your car dealership. Let’s get started! to report it due to fear of retaliation.
When your employees have a method
What is a Whistleblower Hotline? A whistleblower hotline is an effective way at their disposal to sound the alarm on
A whistleblower hotline is a service that to encourage your employees to speak up. regulatory violations early on, there is a
enables your employees to anonymously By providing an anonymous method for greatly reduced risk of violations and legal
report unethical and/or unlawful behavior your employees to report misconduct, they battles. It’s a known fact that regulators are
within the workplace. When implemented will feel more comfortable in reporting more likely to lessen or eliminate penalties
as part of a dealership’s comprehensive wrongdoings. This builds trust between when dealerships have practiced due
compliance program this can be a you and your employees and strengthens a diligence in addressing issues. n
powerful tool in reducing the chance of focus on transparency.
illegal company actions. Car dealerships Max Zanan is the Founder and President
operating with a whistleblower hotline in Quicker Detection of Misconduct of Total Dealer Compliance, a five-star
place have a second line of defense against As you can probably guess, when automotive dealership compliance firm
rogue employees and protect the overall a dealership’s employees feel more that specializes in onsite audits and online
reputation of the company as a result. comfortable in reporting misconduct, training for all car dealership departments,
wrongdoings are detected much more including sales, BDC, F&I, HR, IT, fixed ops.,
Once a whistleblower hotline is in place, quickly. When you are made aware of etc. Total Dealership Compliance operates
your employees will have the power misconduct sooner, you’ll have the power to and manages DealershipFraudHotline.com,
to submit anonymous reports that are put a stop to it immediately. The protection now available for usage today.
directed to designated persons registered of the dealership’s assets and reputation is
by your dealership. This streamlines the key.

30 | GIADA Independent Auto Dealer JAN/FEB 2020