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Corporate Corruption

Corruption destroys the reputation and financial stability of a company from the inside

What is it all about?

Investigating cases where individuals with significant influence or decision-making powers within an organisation are unfairly exercising their authority to the possible detriment of the business in return for financial reward or other personal gain.

Why is it important?

Business stability and long-term growth rely upon the guidance and decisions of qualified senior staff. If these decisions are motivated by personal gain then the decision-maker is no longer acting in the best interests of the business and may behave in a way which damages the company either directly or in terms of reputation and image.

The Problem

Those in senior positions within a business often have a free rein over the day-to-day decisions they make even though their actions can affect shareholders, investors and other senior staff. Because of the hierarchy of accountability, there is often no need for such individuals to justify their decisions until action has already been taken. Where the true interests of the business govern management decisions, this structure works well but it becomes potentially dangerous when executives make decisions based on an opportunity for personal gain.

There are wider-ranging implications for businesses which are subject to regulation either formally by Government or informally by investor interests. The biased awarding of contracts, selection of expansion sites, cartel agreements and ‘under the table’ dealings can all tarnish a company’s image and often precipitate civil or criminal action. In the worst cases, history has recorded the collapse of companies of all sizes as a direct result of corporate corruption.

The Symptoms

Business decisions generally follow logical reasoning and it is an early warning sign when this trend is broken, especially where an individual or other business stands to benefit significantly as a result. Preferential allocation of contracts, research projects and acquisitions in the absence of supporting evidence might all indicate the presence of an undeclared incentive.

Unexplained accounting holes and incomplete legislative documentation are the hallmarks of far more serious corruption and are often discovered during the investigation of company insolvency and fraud.

The Solution

In virtually all cases, corruption occurs through personal gain being placed above corporate responsibility. This usually results in a trail of money or other benefits which TKM can trace to identify the individuals involved.

Just like legitimate business, corruption does not succeed without planning and communication. TKM should be involved immediately that suspicions are aroused to recover e-mail traffic and computer-based evidence which might yield valuable insight.

Investigation of corporate corruption is challenging and delicate work and TKM utilises a blend of highly experienced ICT and financial expertise to ensure that business stability is not compromised by the pursuit of personal gain at the expense of business security.

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