Corporate Corruption Loss Prevention Strategy

Sep 11, 2022 | Commercial Lie Detector Test, Loss Prevention

During the past decade we have seen unprecedented levels of corporate corruption, financial misrepresentation and data misuse.  Such companies as Lehman Brothers, Cambridge Analytica, Facebook and Enron, among many others, have been beamed into the public spotlight. Scandals such as these significantly devalue shares and often irreparably damage reputations. The rebound effect is loss. The loss of reputation reduces investment as well as customer confidence. As a result the organisation may close down which leads to a loss of jobs. Loss prevention strategies have never been more important.

Ethical behaviour

Recent research by the EIRS (Ethical Investment Research Service) has revealed that businesses with strong ethics are more successful.  Shareholders are more satisfied and financial results far better.

Maintaining an ethical culture in the workplace is the job of senior management. However, many companies are becoming increasingly aware that it’s best to avoid the negative impact of unethical behaviour prior to it happening, rather than after the event.

Sadly, it’s not only the global private sector where ethics leave a lot to be desired.  The public sector is by no means devoid of unethical behaviour.  In almost every country violations in office are reported on a daily basis.

In times of austerity, desperation may affect a person’s ethics.  Lack of money, recognition or low job satisfaction are all reasons (or some may say excuses) for employees to ‘prostitute’ their principles. Alternatively, it may be that the complacent attitude of management makes theft or fraud easy with little risk of being caught. Corporate corruption and employee theft is often caused by placing temptation in the employee’s way.

To catch a thief

It’s usually not immediately clear who is stealing from you.  It is essential you identify the culprit before confronting anyone.  Accusing an innocent person will not only hurt their feelings, because you didn’t trust them, but could result in legal action.

Closely monitor those employees who were working when the theft took place. If you have CCTV it may provide the evidence you need.  If you don’t and theft is occurring regularly, you need to install security cameras.

Some companies ‘employ’ a private detective to masquerade as a staff member.

When you are in possession of solid proof, you’ll need to consider your next move carefully. If the theft is minor e.g. stealing stationery items, you may decide that a disciplinary warning is all that’s required. Nevertheless the employee should be reminded that stealing is a crime no matter what is stolen. However, if the matter is very serious legal action may be advisable.

 Preventing corporate corruption and theft

Theft in the workplace is never easy to handle.  It requires patience, time and often ingenuity to identify the thief.  It’s a hassle that most businesses can do without.  By far the best way to prevent it is to properly screen prospective employees.  Polygraph examinations are structured tests that determine what recruiters and employers want to know.  Ensuring they haven’t lied on their CVs, hidden criminal activity or kept important information from employers can be determined by a lie detector test. Safe is far better than sorry – protect your business from corporate corruption today by calling Lie Detector Test UK.

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