staff selection – staff management – staff review
Considering the threat of company-internal crime in the sense of acting of staff which is of relevance under criminal law and may cause damages for the company, a consulting of quality is required in the stages of recruiting, supervision and checks. Studies show, that more than half of the companies has been subject to economic crime and that in more than 60% of the cases staff on all hierarchy-levels have been participants to such acting. However, many cases remain undiscovered, as companies use to not identify the situation as a threat. Where satisfied staff represents the company´s worthiest asset, the dissatisfied, frustrated staff for a broad variety of motives is the biggest threat, which is notable in various forms.
The inhibition threshold falling, as criminologists report, is the result of a more and more complex economy. Where in traditional family-businesses every employee used to know the entrepreneur as a person, global stock-companies are blocking the direct view on the person(s) injured. Frustration, e.g. in regard of an out-staying promotion or the insecure labor-market-situation contribute to moral concepts collapsing. Fixed-term employment contracts, in addition, are also not necessarily contributing to an identification with the company.
However, the company may fight back: Crime on work can be avoided in most cases, if the management implements an internal control-system which is clearly communicated and consistently made use of. Effective controls, as e.g. by the four-eyes-principle concerning important decisions, as well as clear measures of value and consequent sanctions may contribute to improving the situation.
Also for the employees, it is important to also know the symptoms indicating internal controls being circumvented Therefore, staff should on a regular basis be sensitized to identify the respective signs possibly indicating irregularities.
These signs mentioned, however, are just indicating symptoms. A person in charge should never draw a conclusion too early, as such may easily result in a violation of personal rights. Wrong suspicion may harm the corporate good culture.
Embezzlement, fraud or industrial espionage do always require a motivation and a concrete opportunity to execute the crime. Although it can be hard to notice such motivation, one may limit occasions. Clear rules on compliance and a management in the capacity of a role-model may prevent crime from occurring within the company.
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