Exclusive: Four Signs of Bribery in Business
October 21, 2020 | Fraud
What Exactly is Bribery?
A quick explanation: Bribery is the act of offering or giving money/an item of value to someone in an authoritative role for the purpose of influencing their actions.
Though people often perform bribery in businesses for the sake of getting ahead in their jobs or to help the business make shortcuts, you’ll find that it also happens throughout all corners of life. If not in the workplace, you might experience acts of bribery with friends and family too.
The Consequences
The appearance of bribery in the workplace can see a business riddled with serious problems. These issues extend from financial loss to poor company culture, and eventually damage to brand image. And that’s all said without mentioning that in New Zealand bribery is considered a criminal offence with consequences including jail time and large fines.
Passive vs Active Bribery
Think you’ve spotted bribery in your workplace? There are two ends of the interaction to note: passive and active.
The term “passive bribery” belongs to the person on the receiving end of the bribe. On this end of the interaction, people often think the person is innocent. However, despite having a passive role in the transaction, if you accept a bribe it is still considered misconduct. In fact, it’s often the people receiving bribes who encourage/demand it in the first place.
“Active bribery”, on the other hand, is the term belonging to the person giving the bribe. People in this active role of a bribery transaction are often considered the initiator - but that’s not always the case. When investigating bribery scenarios, it’s not surprising to find the person in the active role to have been asked for the money/item of value. But despite who initiated the bribe, if the person in the active role follows through, they are just as guilty as the receiver.
How is Bribery Prevented?
Business owners typically avoid bribery by implementing a range of processes and qualification requirements throughout all areas of business. However, it can still sneak through the cracks. Because the truth is that bribery can tempt the best of people - including your hardest working employees and most trusted suppliers.
With it being so difficult to avoid, you’re better off focusing on how to catch it early and prevent the crime from damaging your business. To help you pick up on bribery, our private investigators have explained the four signs to look for...
1. Unusual Cash Payments & Invoices
Within all operating businesses, there will be a set foundation of processes to be used regularly. One area that especially requires this level of consistent organisation is financial management.
With the expectation of regularity across management practices, any sign of unusual payments or invoices can be quick warnings of financial misconduct.
2. Conflict of Interest with Third Parties
It’s more common for employees who have conflict of interest with a business competitor or other collaborative third party to commit bribery than those who don’t.
This doesn’t mean you should avoid hiring such people. Rather, make sure to verify their interest in the relevant position, draw up a protective contract, and keep the possibility of a conflict-of-interest issue in mind when assigning responsibilities.
3. Dismissive to Standard Business Rules
Discovering dismissive behaviour toward business rules and regulations is a big red flag for bribery in the workplace. Put simply; those avoiding standard procedures are less likely to care about compliance.
When assessing dismissive behaviour, do keep in mind that it could be stemming from other issues beyond bribery such as unhealthy company culture. Should this be the case, you must reassess what needs changing on a wider scale to enforce positive behaviour.
4. Preference for a Third Party Company
If employees in managerial roles are strictly sourcing services or goods from a particular company, without any good reason, their motives should be questioned.
Behind the scenes of these cases it’s common to discover bribery that has resulted in the employee’s personal gain. If concern of this issue has been raised in your own business, make sure to approach the situation carefully so as not to falsely accuse or spoil evidence.
Concerned About Bribery in Your Business?
The Investigators can help.
For decades our team of private investigators have been helping business owners combat bribery in the workplace. With our expertise and advanced technology on your side, you have the ability to investigate your suspicions, discover the truth, and gather admissible evidence.
Want to discuss your bribery concerns? Get in touch today for a confidential conversation with a private investigator. Together, we can discuss the best solutions for your business.
