Anti corruption strategies are crucial for the survival of a business. Every country in the world experiences some level of corruption. That can also slip through to businesses and cause problems for the future of the company. Corruption risk is felt by many organisations so it is important to adopt a prevention approach that will suit the needs of the company, industry and country it operates in. When it comes to corruption, very little can be done to protect the business once the risk has materialised. 

Why do you need anti corruption strategies?

Corruption can have great consequences for workplaces. It can affect its reputation, its financial health as well as the employees. 

Reputationally wise

Corruption damages an organisation’s credibility, which makes it challenging to build or maintain trust with key stakeholders. Clients and customers are not inclined towards supporting a business which is tied to unethical or illegal acts so this results in lower customer retention and acquisition.

Corruption scandals can spread through the media causing irreparable damage to the image of the company. Depending on the size of the scandal, an organisation may take years to recover which gives competitors an amazing advantage. Another downside comes from the fact that corruption can make things complicated in a lot of areas. It complicates securing funds, or maintaining shareholder confidence, and businesses may avoid partnerships or contracts with a corrupt organisation to protect their own reputation and compliance obligations. Anti corruption strategies can prevent misconduct from hurting the company’s reputation.

Financially it can

Lead to fines and a lot of legal trouble. Fighting investigations or lawsuits can incur high legal costs, even if the organisation is found not guilty. The longer the legal issues drag on, the worse it is for the company as it attracts more media attention and as a result, less revenue. 

Corruption can also affect employees

When employees witness or suspect unethical practices, they lose faith in leadership, and begin to disengage. Talented employees may leave to find workplaces that match their values, leading to high staff turnover and higher hiring and training expenses.

Toxic conditions reduce overall productivity by causing stress, loss of motivation, and absenteeism. Corruption may also create a culture of favouritism or fear through which employees refrain from innovating, collaborating or raising valid concerns.

Without strong anti corruption strategies that will prevent these issues in the first place, recovering from the consequences may take a long time and a lot of resources. This means a lot of lost opportunities for growth. 

Anti corruption strategies

There can be many reasons for corruption in an organisation. Unethical practices may have become integrated into the company’s culture and practices. Or, it can arise in high-pressure contexts where employees, with considerable power, may bend rules and ethics in order to reach their personal objectives.

Another contributor is workplace culture – specifically, a culture that discourages whistleblowers by viewing those who speak up as the problem rather than addressing potential misbehaviour. A lack of transparency and accountability might also increase corruption. 

Now that certain risk factors have been established, it is important that the anti corruption strategies address them. 

  • Frequently update anti corruption policies
  • Introduce a whistleblower process
  • Choose the company’s leadership carefully
  • Use technology to prevent and detect suspicious activity
  • Conduct due diligence on third parties
  • Focus on training

Frequently update anti corruption policies

Many businesses have some sort of anti-bribery policy but the impact depends on their effective implementation.

Clearly communicate to employees the company’s policies and expectations relating to bribery and corruption. This includes establishing what constitutes acceptable practices regarding gifts, donations, sponsorships and political contributions. Ongoing training is required to remind employees of these responsibilities and increase compliance.

Employers should ensure that their policies outline approval processes for certain purchases, especially over a significant amount of money. Frequently updating the policies not only ensures that new details are added, but the policies are not forgotten after they are written. Every time a policy is updated, it should be given to employees to read it through. 

Introduce a whistleblower process

Creating a whistleblower process facilitates the employees to report misconduct easily and confidentially. For example, our customers can use the Polonious whistleblower hotline to record employee complaints, raise any concerns they have and help companies prevent harmful issues from escalating. 

Designate an independent individual or entity to follow up quickly on concerns raised. After each case is analysed, there should be a report generated that explains the results of the case. Moreover, a whistleblowing policy can be very beneficial and should include strong anti-retaliation warnings to protect whistleblowers and reassure them that their actions will be valued. 

Choose the company’s leadership carefully

Leadership sets the tone for an organisation when it comes to ethics, objectivity, integrity and transparency. Leadership must be visibly committed to anti corruption policies, with a zero-tolerance approach toward any instance of corruption, whether internal (of an employee) or external (of a partner).

Senior management should set a precedent that is aligned with the core values and code of ethics of the organisation which should guide all actions and decisions. Great managers and supervisors can set a great example of how employees should act and who they should strive to be. On the other hand, unethical leaders can make employees feel like they can get away with anything. 

anti corruption

Use technology to prevent and detect suspicious activity

Technology plays a vital role in creating a corrupt-free workplace as it brings greater transparency, better monitoring, and secure reporting of corporate misconduct. 

Companies can use software solutions to automate the tracking and categorisation of expenses. Such tools can identify abnormal or unauthorised spending trends, making sure that everything falls within organisational policies. For example, if employees travel a lot, the travel policy can be implemented into the software to warn the organisation if an employee is not following it. The employee will then be asked to give a reason as to why the policy was not followed. 

Another way to establish strong anti corruption measures is to use algorithms to detect unusual patterns in financial data, payroll, or vendor invoices. These systems can flag potential fraud for further investigation automatically. Polonious can be integrated with various software for this exact reason. Once your corruption detection software notices a red flag, all information is quickly sent to our system so investigators can take quick action and resolve the problem efficiently. 

Conduct due diligence on third parties

Anti-corruption laws apply not only to the organisation but also to all third parties the company does business with – agents, intermediaries, consultants, and other representatives acting on the company’s behalf. The organisation has a legal duty in many countries to vet these entities to make sure they are in compliance.

Strong systems and controls help organisations confirm the identity and legitimacy of third parties. Check their credentials and obtain executive management approval before entering into any contract with them. Moreover, for an organisation to do its due diligence, it needs to make sure all stakeholders, including buyers, suppliers, and investors, are screened against sanctions lists. This step is crucial for maintaining compliance with regulations and avoiding potential legal or reputational risks.

Focus on training

Strong policies are not enough when it comes to corruption. Comprehensive anti-corruption training for employees ensures that ethical practices become a way of life at an organisation. This training should be mandatory and happen twice or at very least, once per year. Frequency really depends on the industry and type of business. Moreover, the content should be updated to keep up with the changes in legislation or organisational activity. 

Employees who are directly involved in procurement, finance, and internal audit, should receive tailored training. These workshops need to be focused on identifying possible indications of corruption and the proper means of addressing it. If employees know how to recognise red flags early, corruption can be stopped before it even occurs. 

The company may also extend training requirements to any third parties, consultants, service providers, and other partners. Partners must follow the organisation’s code of ethics when working with or on behalf of the company.

To enforce this expectation more formally, insert a clause in contracts requiring adherence to ethical standards. For partners that have their own code of ethics, get a copy so you can make sure it aligns with your company’s values.

Anti corruption strategies: What if they do not work?

Anti corruption strategies are there to prevent the risk from occurring but there needs to be a backup plan for the scenarios where it does happen. Our clients use Polonious to help them investigate their whistleblower reports. We provide investigators with confidentiality and security, with our ISO 9001 and 27001 certifications highlighting our commitment to delivering a quality system. We ensure that the professionals we work with have all the tools they need to achieve a quick and efficient process:

  • Dynamic and customised dashboards
  • 27/7 whistleblower hotline
  • Automated reports and progress updates
  • Customer support and flexible workflows

If you want to address corruption in your business, reach out and book a free demo. We would love to show you how our system helps many companies around the world fast track their investigations and improve their compliance.