Services
Audit & Assurance
External, internal and joint venture audit services
Business Advisory
Management accounts, strategic planning, profit improvement, ESG
Corporate Finance
M&A advisory, selling a business, fundraising, valuations, due diligence
ESG
Baseline assessments, materiality assessments, carbon footprint and sustainability reporting
Hotel Accounting
Accounting function, automation, daily reconciliations and dashboards, accounts payable
Payroll & Employment
Payroll, global mobility, employee benefits, employment taxes
Private Clients & High Net Worth Individuals
Tax planning & compliance, tax residence and domicile, trust planning
Restructuring & Recovery
Business rescue, liquidations, administrations, insolvency, debt recovery
Tax
Corporate tax, customs duty, VAT, R&D, tax investigations, international tax
Virtual Finance
Bespoke service providing real-time information about your business performance
More from AAB
AAB PEOPLE
Full-service people consultancy – human resources, learning and development
AAB WEALTH
Financial planning, cash flow modelling, retirement planning
AAB Consulting
Business consultancy helping organisations with the challenge of change
Sectors
Business Services
Professional services, medical, recruitment and media
Construction & Property
Property developers, construction companies, housebuilders, landlords
Energy
Renewables, clean energy, energy producers, energy transition, exploration and production
Family Business
Specialist support for businesses owned/managed by families
Food & Drink
Food & drink producers, processors, importers, wholesalers and retailers
Industrial
Engineering, manufacturing, aerospace, automotive, shipping, distribution
Leisure, Retail and Hospitality
Fashion, entertainment, activity centres, hoteliers
Not For Profit
Charities, social housing, higher and further education institutions
Public Sector
Government, non-departmental public bodies, health boards, ALEOS
Technology
Software companies, tech start-ups, cybersecurity firms, and AI innovators.
About
AABout Us
Our story
Our Team
Meet the specialists
Careers
Join the AAB team
Diversity & Inclusion
Building a business where everyone feels they belong
Growing Sustainably - ESG
ESG – Our commitment to building a sustainable business
News
Latest news from across AAB Group
AABIE
AAB charitable initiative
AAB Wealth expands presence in Central Scotland with acquisition of Synergy Financial Planning
Insights
Blogs
Stay informed with cutting-edge news for business growth. Our experts offer industry insights and invaluable advice on accountancy and business strategies.
Case studies
Explore insightful case studies tailored to specific industries, offering invaluable lessons and strategies for success.
Webinars & Events
Engage with dynamic webinars and events tailored to your interests, offering valuable insights and networking opportunities.
ESG Diligence: The Key To Sustainable M&A Transactions
AAB / Blog / Turning a blind eye to transparency
BLOG4th Feb 2016
Why failing to set the tone at the top can prove costly
In recent years many organisations up and down the country have implemented whistleblowing arrangements and other controls, with the aim of encouraging staff to speak up and help stamp out fraud and other wrongdoing.
However transparency in the workplace must come from the top of an organisation right down to the bottom. Failure to set the tone in this way can prove costly.
The link between unethical behaviour and the “tone at the top” of an organisation has received much attention in recent years. Tone at the top refers to the ethical environment that is created in the workplace by the organisation’s leadership. Whatever tone management sets will have a trickle-down effect to employees of the company.
If the tone set by managers upholds ethics, employees will be more inclined to uphold those same values. However, if senior management appears unconcerned with ethics and focuses solely on their profit margins, organisations will be more vulnerable to fraud and wrongdoing as employees may feel that ethical conduct is not a high priority within the organisation.
Just ask construction contractor Balfour Beatty who recently paid out a six-figure sum to a whistleblower who accused his employer of unethical behavior by deceiving the Welsh Government and costing taxpayers significant sums of money. The whistleblower, claimed he was hounded out by his bosses after he made a disclosure about an £18.5m office building project in Cardiff.
The Welsh Government awarded a contract to Balfour Beatty to construct a building in Callaghan Square as part of a regeneration on a vacant site. The project was later halted but the firm was paid about £600,000 for work carried out.
The whistleblower said the firm’s true sub-contract costs had been hidden from the Welsh Government. Balfour Beatty told the Welsh Government its profits would be 3.3% of the total cost of the job, however, the firm had not submitted the lowest quotes received from sub-contractors and, unknown to the Welsh Government, would be making an additional £768,000.
The whistleblower raised concerns internally through the company’s whistleblowing procedures to his line manager, the company compliance officer and the commercial director who sits on the board – but was met by a mixture of bullying, denial and exclusion.
In November 2015 Balfour Beatty finally admitted liability for unfairly dismissing and failing to support their employee. They argued that it had not carried out criminal activity or breached legal obligations. Nonetheless, failing to set the tone at senior level within the firm has proved costly. The company paid £137,000 before the case was due to be heard at the tribunal.
In this instance the whistleblower should be applauded for showing courage to stand up and speak out in accordance with his firm’s whistleblowing arrangements. However, in setting the right tone, those in top positions of management have to lead by example and provide a safe mechanism for reporting violations. Failure to do so, will leave organisations counting the cost.
Contact Sean McAuley, Fraud Services Senior Manager, sean.mcauley@aab.uk for more information about whistleblowing services.