Corporate Fraud and Corruption Rocket in 2009
Despite the fragile green shoots of economic recovery predicted by some, corporate fraud and corruption are still on the increase worldwide.
LONDON, ENGLAND, December 04, 2009 /24-7PressRelease/ -- Hikes in corporate fraud (http://www.marcusevans-corruption.com/) and corruption tend to go hand in hand with difficult economic times. People become desperate and are more willing to take bigger risks. Corporate fraud and corruption take many forms. Here are some of the most common to look out for throughout 2009 and into 2010.
There's bribery, where a person gives or receives something of value to influence a transaction. When times are tough and contracts are like gold dust, some people are tempted to leverage decisions by bribing the decision makers. On the other hand, an illegal gratuity involves giving or receiving something valuable after a transaction has been completed, as a reward for influencing the outcome.
Extortion is no longer the exclusive province of the Mafia! Demanding a sum of money - or goods - with threats and menaces to a business or person, is becoming more common. Less sinister but just as damaging is conflict of interest, where an employee has a vested financial or personal interest in the outcome of a transaction.
A kickback is where a supplier overcharges a customer then gives a percentage to the person who pushed through the transaction as a reward. And, last but never least, there's corporate espionage. This can involve the theft of trade secrets and intellectual property, as well as copyright piracy.
Marcus Evans' Daniel Leu comments, "Sadly, insider fraud tends to rocket during a recession. This recession is no different. In a sense things are a lot worse. Last time we had a recession there wasn't such a thing as ecommerce. Since then communications technology has evolved beyond imagining. And opportunities for corporate fraud and corruption have evolved in line with new technology."
Marcus Evans (http://www.marcusevans.com/) recommends that businesses take six key steps to mitigate the risk of corporate fraud and corruption. Familiarise yourself with the enforcing legislation on corruption in CEE.
Develop a robust anti-corruption compliance programme. Identify suitable tools for investigating fraud and corruption. Manage and resolve any issues related to criminal law. Get to grips with conflict of interest. And implement a value-based ethical culture among your employees.
The only real way to prevent corporate fraud and corruption is to keep your finger on the proverbial pulse. Open your eyes to the dangers and take every possible step to avoid potential problems. "Forewarned is forearmed" concludes Daniel Leu. "You can only take action when you are fully aware of the risks and how to handle them".
About Marcus Evans
Marcus Evans employs more than 3500 people in almost 40 countries. They deliver intelligence and business products across a wide range of commercial sectors including Capital Markets, Life Sciences, Defence, Healthcare, Information technology and Legal.
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