Robust internal controls are vital for companies to detect and remedy fraud, waste and abuse, i.e., embezzlement, as a component of its financial oversight. Incorporating similarly robust internal controls for addressing sexual harassment complaints must be a priority, particularly when the targets of such claims are executive or C-suite leadership for publicly traded companies.
The rapid downfall of Steve Wynn at Wynn Resorts is a cautionary tale detailing why incorporating such systems is of paramount importance. The Wall Street Journal recently recounted several instances where implementing a dynamic internal controls system would have provided senior management, and the board of directors, with proactive measures to change the company’s culture prior to Wynn’s speedy demise from the company late last year.
