Today, thanks to globalization and the advent of the internet, most business organizations are comfortably able to expand locally, nationally as well as on a global platform. However, this has also led to an increase in corruption, embezzlement, and fraud in the company. We all might take it for granted, but it is known to cause severe damage to the company. This has created a growing need to make the companies more compliant and law-abiding with ethical practices at all levels.
One of the biggest threats to the integrity of an organization is bribery. It is the most prevalent form of corruption. Most of us are under the impression that it only affects big multinational companies, but the truth is entirely different. It affects all business as it is seen as the right way to secure competitive advantage.
If you have been following the Corporate Compliance news you would understand the real impact of bribery. According to the World Bank, more than $1 Trillion is paid as bribes every year with the UK being the most flourished destination to launder the proceeds of corruption.
Impact of Bribery on Your Business
Bribery poses a severe threat to any business of any size. It need not mean accepting only cash payment but can also take the form of lavish gifts, entertainment tickets, holidays, and even real estate. The bribe need not be magnanimous, but it can also be as small as a bottle of wine. Bribery can destroy the health of your organization, drain out the genuine talent, and eventually cause your business to crumble.
Ways to Introduce and Sustain Anti-Bribery Compliance
Understanding the severe risks of bribery and other notorious activities, most businesses are encouraged to adopt a Compliance Program for their organization many third-party and reputable Due Diligence providers like EthixBase offer their assistance to companies to implement and achieve all-round compliance in their organizations. They suggest some valuable tips to achieve anti-bribery compliance within. Let’s check out a few of those tips.
Conduct a background check on employees
It is believed to be a standard procedure, but very few companies bother about it. But it is a step that must never be ignored. It can prevent corruption right at the hiring level.
Running a background check can help you eliminate potential hackers, convicted felons, predators, and many untrustworthy people from entering your organization. You can understand the criminal background as well as the financial situation of the employee. Personal financial constraints are likely to make the person more vulnerable to bribery.
The background check can be cemented further with a credit check and a social media audit. This can expose any behavioral and integrity issues of the candidate.
Aggressively implement compliance rules within your organization
Compliance must be made a central priority in your organization. Regular compliance training must be conducted so that every employee are aware of all the rules and the possible consequences of being non-compliant. From the top and senior management to leaders at the lowest level; all need to take ownership of implementing ethical practices within the organization.
Specifically, conduct anti-bribery training
As bribery is the core of corruption in most companies; particular emphasis needs to be paid to its awareness and compliance. Anti-bribery training can render many benefits to your business like:
- It would create an educated workforce
Help the company to be more law complaint - Make every member capable of identifying different types of bribes
- Help all understand the fine line of distinction between hospitality and bribes.
- Get clear on steps to take to ensure compliance.
- Become knowledgeable about the penalties for bribery and corruption.
- Get aware of their responsibility to report incidents of bribery and corruption within the organization.
Become aware of the implications of bribery on their organization and even society at large. All this would help create a culture of integrity within the organization with growth and prosperity, touching every individual.
Understand your risks
Each business has its own vulnerable and risky areas which can promote corruption and bribery. You need to evaluate those risks individually and then design a program that fills the gap and eliminates the possibility of non-compliance.
Tone at all levels
Corruption and bribery are prevalent at all levels. Thus, it is critical that right from the senior management to the middle and lower management level; there is a zero-tolerance for bribery and corruption. It is vital if you are serious about getting a genuinely compliant environment.
Hire a third-party due diligence provider
It is always a smart idea to hire a third party to take care of the compliance aspect of your organization. The only concern you need to exercise here is choosing the right due to diligence provider like EthiXbase.
If you would like to know more about it, you can visit our website and get in touch with our representative. We would love to assist you.
