Business Strategist Roberto Lico - Brazil licoreis@licoreis.com.br
Dealing with Corporate Misconduct
The control of corporate misconduct has become one of the most significant challenges of our society.
The term corporate misconduct or misgovernance refers to frauds committed by corporate entities to willfully erode shareholder value.
The corporate misconduct stretches beyond malpractice in accounting, reporting, operations and misconduct.
Such improper corporate behavior is the product of (a) A culture of corporate greed and (b) opportunism and rationalism.
Important In the advanced capitalist societies, there prevails a culture of competition which spurs and motivates rule breaking.
Corruption Prevention Strategies To tackle the menace of corruption in any organization, most of the anti-corruption agencies have recommended the adoption of corruption prevention strategies.
I. Establish guidelines The company must set up a code of conduct that outlines company expectations for employee behavior. Identify common missteps and how to avoid them while unambiguously relating the consequences of ethical failings.
II. Promote training and knowledge Don't just offer code of conduct or ethics training to new hires. Routinely provide refresher courses to your existing staff. Bring in guest speakers to help employees build problem-solving skills so that they can react appropriately to workplace misconduct.
III. Provide tools Consider implementing a reporting system that allows your employees to disclose conduct violations anonymously, and identify procedures for staff to request private meetings with supervisors responsible for ethics oversight.
IV. Employ data monitoring Establish management review boards to investigate possible violations to the code of conduct. Set up reporting hotlines or email accounts that are capable of capturing relevant details including corresponding documentation or the names of potential witnesses.
V. Foster Ethical Behavior When evaluating candidates during the hiring process, you should consider their values and whether they fit into the company's vision. Distribute responsibilities across employees and departments, creating a system of checks and balances that reduce the risk of unethical behavior.
LRCL – Business Services Consulting Roberto Lico – licoreis@licoreis.com.br
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