Be Cautious of These Corruption Red Flags in the Workplace

Corruption is a serious issue that has detrimental effects on businesses across sectors and industries. It could topple even the most successful companies with mistrust and economic downturn. In a 2021 report of fraud and global risk, annually 10-25% of a public contract’s value may be lost to corruption. The risk of a corrupt practice is a two-way street, meaning that both the organization and the perpetrator will lose credibility and trust. Obviously, it is in everyone's best interest to stay away from corruption and bribery. 

Corruption in the workplace is a threat for organizational growth because it affects every party involved. Unfortunately, corruption in the workplace is done by and mostly affects employees. According to the previous report, weaknesses in record keeping (31%) or employee actions (23%) run risks as sources of corruption from within the company. In a blog entry, a managing director of an outsourcing company listed that corruption in the workplace, if not handled wisely, could hamper employee morale and performance. When the workforce witnesses such an evil practice but nothing is done by the management, they will be disinterested and unmotivated with their work, even choosing to quit for good eventually.

If you are not so keen on joining a company where corruption and bribery are tolerated, pay attention to these red flags!

Corruption red flags

1. Poor reputation

Allegations related to integrity, such as a reputation for illegal, improper, or unethical conduct. Make sure you have done a thorough research before signing up for a company. Make use of review websites such as Glassdoor to get a glimpse of what others think of and their experiences when working with them.

2. Unnecessary or inappropriate purchases

Excessive or unusually high compensation is one of the glaring red flags of corruption. This could manifest in many forms including, fee, commission, or volume discount provided is unusually high compared to market rate. Corrupt payments and bribes may also manifest in invoices. Watch out for frequent invoices that are unexplainable or be matched to any discernible output.

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3. Conflict of interest

It is acceptable for companies to have ties with some government organization and public officials. However, when rumors start going around about the company being the sole beneficiary of the said organization or officials, perhaps it is time to be more cautious about your workplace. Anyhow, you don’t want to get tangled when things turn ugly in the future.

How to respond to these red flags

Corruption and bribery should not be tolerated at any cost. If you witness someone commit misconduct at your workplace, please be advised that it is your responsibility to report it. Accountability is effective for everyone regardless of one’s position in a company. However, there are some tips for companies to better prepare themselves against these scenarios:

• Enforce a strict anti-corruption policy

• Penalties for corrupt behavior should be shown to all employees

• Train employees through a whistleblower program so they can report similar misconduct without risking danger to their career

• Start transitioning to digital record to prevent inconsistencies and gaps between invoices

In the attempt to stand against corruption, everyone’s participation is without doubt necessary. When an organization is willing to keep each other in check with utmost transparency, an honest and clean community is no longer merely a pipe dream. Until then, let’s keep trying our best to live with dignity!

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