Causes and Consequences of Corruption
Individuals can face serious consequences for corrupt practices in the workplace, but what about the consequences for businesses? Corporate consequences can be severe and quite broad, and to help prevent corruption, we’ll also talk about some causes and red flags to look out for.
Trickle-Down Effects of Corruption
Many times, when a business engages in corruption there are trickle-down implications and the corruption fuels other criminal activities within the business. A company can lose its existing shareholders and investors once the corruption is reported. And the damage corruption can have on a company’s brand is often irrevocable.
Consequences of Corruption for Businesses
We know that individuals can face fines, restitution, probation, and even jail for corruption, but businesses can also be dealt harsh penalties. They can be fined huge sums of money, face sanctions, be forced to sell off businesses within their organizations, and pay hefty lawyer fees. But there are other consequences for corrupt practices as well. For example, a business may lose a considerable amount of resources as a result of corruption. Business development opportunities may lessen or disappear once the corruption is known.
There are many causes and reasons for corruption. Let's look at a few causes now.
Weak government institutions contribute to corruption when they don't enforce laws designed to help citizens, and greed is another huge contributor to corruption.
Poor education and low literacy rates can contribute to corruption. This is because being limited in knowledge can lead to a limited awareness of what is right or wrong. These are just some of the many causes of corruption. Remember, corruption is a universal issue.
Poverty can fuel corruption when a person’s basic human needs are not being met. Corruption can also occur when the general population accepts corruption as a way of life.
Common Corruption Red Flags
Let's learn about some red flags for spotting corruption in the workplace.
Here are some myths to look out for:
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Unnecessary or inappropriate payments
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Invoices that are submitted without any actual work taking place
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Accepting subpar or low quality goods
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Nepotism or close connections between employees, suppliers, or contractors
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If you are working with a third party and notice that they do not seem to be qualified for the job at hand
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Travel expenses that are not backed up with documentation
The Most Robust Anti-Bribery & Anti-Corruption training on the market
Workplace training by EasyLlama goes far beyond increasing awareness. By educating staff about the ins and outs of bribery and corruption, including relevant laws and regulations, you can help them navigate the murky waters of business interactions. When it comes to bribery and corruption in the workplace, prevention training with engaging content and real-life scenarios is your best line of defense.
Helping over 8,000 organizations create a safer, more productive workplace
EasyLlama’s anti-corruption training course guides learners understanding FCPA and other anti-bribery legislation. Organizations should prioritize minimizing corruption risks by implementing a comprehensive anti-corruption course. The course covers:
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