We’re all aware that “honesty is the best policy” when it comes to business, life and relationships.
Of course, every now and then, we all get by with a little “white lie” to smooth things over and avoid emotional distress—whether we tell the host, “the dinner was delicious,” or a good friend “you looked great in the those pictures.”
Yet, there is a fine line when it comes to the outcome of “extending” the truth. And for many nonprofit organizations, a small lie can snowball into something disastrous.
At a recent American Institute of CPAs (AICPA) Not-for-Profit- Industry Conference, Nancy Young of Moss Adams, an accounting firm, discussed the untruths people practice and how organization leaders can better detect them.
While every situation (and liar) is different, Young suggests there are nine clues to deceit that may be helpful when looking for the truth:
- Micro-expressions. These are involuntary expressions that pass across the face in as little at 1/25 of a second.
- Squelched expressions. These are techniques meant to cover up other expressions (smiles, for instance).
- Reliable muscle patterns. These expressions are not easy to control (such as a genuine frown).
- Blink rates. Often people blink more frequently during lies than during the truth.
- Pupil dilations. Large dilations reveal emotions that the person cannot conceal.
- Tears. These only show that someone is feeling strongly about something and should not sway the observer.
- Asymmetrical expressions. These usually show that the expression is being made deliberately.
- Timing. This should be the same with facial and body expressions.
- Duration. This should not be more than five seconds, 10 at the most, to be genuine.
Before jumping to a conclusion that employee dishonesty is not going to happen to you, consider this: The Association of Certified Fraud Examiners suggests that fraud and abuse cost U.S. organizations more than $400 billion annually. In addition, the average organization loses over $9 per day per employee to fraud and abuse; about six percent of an organization’s total annual revenue are lost to fraud and abuse due to fraud committed by its own employees.
How can you protect your organization from employee dishonesty?
Insurance is the best policy, in our opinion. And there is a coverage for just that: Not surprisingly named “Employee Dishonesty Coverage”, or also known as “crime insurance.”
Many organizations chose to purchase nonprofit employee dishonesty coverage as a package policy that addresses other liability and property exposures. However, some carriers make it possible to purchase the coverage as a stand-alone policy.
Contact a Georgia Nonprofit Insurance Problem Solvers today to learn more about this coverage, or other coverage that address the unique exposures of your organization! Our agency represents multiple insurance companies that specialize in nonprofit insurance, allowing us to “shop” around and find the best coverage option for you.
Contact us today to request a free Georgia nonprofit insurance indication online or calling 888.869.6509!