Why You Need Anti-Corruption Policy

By hrlineup | 26.04.2020

For decades, stories of corruption have revealed how one individual can have a massive negative impact on an organisation. These may include finance managers siphoning funds for years undetected, to a floor cashier creating an elaborate scheme to skim supplies. Management teams in companies are responsible for conducting risk assessments for corruption where they work. To ensure that employees resist the temptation to participate in corrupt activities, an anti-corruption policy should be put in place.

What is an anti-corruption policy?

Understanding the anti-corruption policy first requires an understanding of corruption. Corruption is the result of an individual abusing the authority that they have within the organisation. Most corruption is for personal gain for an individual, but with some cost to another or the organisation. Corruption involves more than just embezzlement or theft from the company. It also includes actions, such as offering bribes, giving favours to certain companies, discharging liability or even offering expensive gifts.

The anti-corruption policy includes the elements that the company considers to be corrupt practices. Through this policy, employees are clear on all the anti-corruption practices for the organisation, and what is corrupt.

Creating a company anti-bribery and corruption policy is just the first step when exploring how to prevent corruption in the company. The next steps are as follows: –

  1. Include a reporting process that allows for whistle blowing anonymously. Once a report has been made, it is essential to investigate it and take action if it is founded. Those employees who make frivolous or false reports should also face a consequence for doing so.
  2. Ensure that all processes and documentation within the company are transparent. This is important for any accounting records in the company. With clear and transparent information, it becomes an uphill task for corrupt individuals to carry out secret transactions that enable fraud and bribery.
  3. Get an external body or company to audit records and accounts for all employees. They are impartial and will report any incidences of corruption that are encountered. Should there be any suspicious transactions or issues arising, then disciplinary action should be taken.

An anti-corruption policy that is comprehensive will likely be several pages long. With long documents, there are some details that employees may not go through thoroughly. As a constant reminder, a company may come up with an anti-corruption policy statement. This should be clearly visible within the workplace and would always act as a point of reference for employees.

The goal of any company seeking success should be anti-corruption control through a comprehensive program. The program supports the policy, to ensure that there is clear communication and understanding for all the employees. Within the program, there will be learning on training and communication of any corrupt dealings. It will further affirm the ethical standards and code of conduct that employees at all levels are to follow. Finally, it will achieve the benefit of creating a workplace that is ethical, with compliance as the foundation for corporate culture.