Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...

Conflicts of Interest, Kickbacks, Bribes, and Employee Corruption
Employee Corruption
Mike, a real estate manager for ABC Company, is in charge of office space
for company operations in several states. His responsibilities also include
contracting with vendors for maintenance and build-out.
• Mike has electrical upgrade work done to his cabin by the same
contractor who provides services to ABC Company, and that job is billed
to ABC Company as though the work was performed at a company
location. Mike approves the bill for payment.
• Mike has improvements done to his home by the same construction
contractor he routinely hires to make office space alterations for the
company. Mike pays nothing for the improvements to his home.
Companies can mitigate exposure to employee corruption by:
■
Hiring ethical people.
■
Developing, documenting, and regularly communicating high ethical
standards for all business dealings and activities.
■
Ensuring that ethics program training and manuals include practical
guidance for the real situations faced by employees.
■
Insisting that company leadership set a high ethical example and “play
by the rules.”
■
Developing a culture that supports, and expects, the reporting of
ethical lapses.
■
Taking appropriate, consistent action when ethical issues arise and
violations occur.
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