Corruption has encircled every industry and the corporates do not lag behind. When on the pathway to achieving success you come across unwanted obstacles and to avoid these, bribery or corruption seems the easiest way out. Either the corporation as a whole can be involved in the misdoing or an individual working with the organization could be the criminal.
Corporate Crime involves financial crimes, insider trading, tax evasion, anti-trust, bribery, siphoning company funds, embezzlement, falsification of financial documents and data, public corruption etc. Most of these crimes are committed because the margin of getting caught is minimal. When you get the extra profit without much ado then why not take a wrong step is the general attitude.
It is difficult to stand without leaning on a pillar in our country. While establishing a business, road blocks do emerge and sometimes it becomes mandatory to accept the illegal mode as it poses a hindrance to ones career. Thus we see a rise in corporate crime.
Corruption also helps in accelerating growth. Accepting commissions in order to help in acceleration is also a crime. The day people stop giving bribes, the acceptors will automatically reduce but this thought is easier said than done.
Properly constituted audit committees and board risk committees play an important role in the sustained growth of a corporation and eliminate the risk of corporate crimes. If an effective monitoring process is designed, the crime rates can decrease. For the crimes that pose serious threat to the environment or human health, strict restriction on the companies committing these crimes should be imposed. It is said that he who does not prevent a crime when he can, encourages it.
-Arti Bakshi
"Human Resource- A Magazine for the Discerning Professional
www.humanresource.net.in
