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HomeSME ZoneCorruption Risks and Common Malpractices
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Corruption Risks and Common Malpractices

icon_purchasingPurchasing
image_purchasing1Selection of suppliers and contractors
  • Company directors/staff appoint companies with financial or personal interests as suppliers or contractors
  • Compromised staff accept personal advantages from suppliers or contractors for placing orders
  • Purchasing staff leak quotation prices or tender information to potential suppliers or contractors
image_purchasing2Making purchases
  • Colluded staff allow suppliers or contractors to overcharge
  • Dishonest staff split orders to avoid exceeding procurement threshold or to conceal overpayment
  • Dishonest staff alter order prices to pocket the price difference
icon_sales_marketingSales and Marketing
image_sales_marketing4Sales
  • Proprietors offer illegal rebates to clients for obtaining business
  • Proprietors or staff offer festive gifts to public official while having business dealings
image_sales_marketing1Handling customers’ orders
  • Frontline staff divert the company’s business to competitors or secret associates
  • Staff disclose customer information to others
image_sales_marketing2Handling discounts and commissions
  • Sales representatives offer discounts to non-qualified customers
  • Salespersons falsify sales records to deceive company commissions and bonuses
image_sales_marketing3Allocating goods
  • Frontline staff allocate popular or limited goods to buyers who offer bribes
  • Compromised staff appoint or recommend less competitive companies as distribution agents
icon_inventory_stock_controlInventory and Stock Control
image_inventory_stock_controlReceiving goods and stock control
  • Goods receiving clerks cover up non-deliveries or accepting substandard goods
  • Warehouse staff overstate loss or damage caused during delivery in order to cover up pilferage
icon_accounting_financeAccounting and Finance
image_accounting_finance1Making payments and collecting debts
  • Accounting clerks speed up payments or delaying the collection of debts
  • Unscrupulous staff falsify invoices or other documents to embezzle company funds
  • Finance officers grant credit facilities to ineligible clients
image_accounting_finance2Processing claims
  • Dishonest staff overstate claims
  • Compromised finance staff approve reimbursements for false claims
image_accounting_finance3Handling of accounts
  • Individual partner misappropriates company funds or other properties
icon_personnel_administrationPersonnel and Administration
image_personnel_administration_1Daily administration
  • Staff submit false documents such as overtime work or sick leave certificate to deceive employer
image_personnel_administration_2Recruitment, promotions and postings
  • Personnel staff give favouritism in appointments, promotions and transfers
  • Managers or supervisors cover up poor performance of subordinates
image_purchasing1Selection of suppliers and contractors
  • Company directors/staff appoint companies with financial or personal interests as suppliers or contractors
  • Compromised staff accept personal advantages from suppliers or contractors for placing orders
  • Purchasing staff leak quotation prices or tender information to potential suppliers or contractors
image_purchasing2Making purchases
  • Colluded staff allow suppliers or contractors to overcharge
  • Dishonest staff split orders to avoid exceeding procurement threshold or to conceal overpayment
  • Dishonest staff alter order prices to pocket the price difference
image_sales_marketing4Sales
  • Proprietors offer illegal rebates to clients for obtaining business
  • Proprietors or staff offer festive gifts to public official while having business dealings
image_sales_marketing1Handling customers’ orders
  • Frontline staff divert the company’s business to competitors or secret associates
  • Staff disclose customer information to others
image_sales_marketing2Handling discounts and commissions
  • Sales representatives offer discounts to non-qualified customers
  • Salespersons falsify sales records to deceive company commissions and bonuses
image_sales_marketing3Allocating goods
  • Frontline staff allocate popular or limited goods to buyers who offer bribes
  • Compromised staff appoint or recommend less competitive companies as distribution agents
image_inventory_stock_controlReceiving goods and stock control
  • Goods receiving clerks cover up non-deliveries or accepting substandard goods
  • Warehouse staff overstate loss or damage caused during delivery in order to cover up pilferage
image_accounting_finance1Making payments and collecting debts
  • Accounting clerks speed up payments or delaying the collection of debts
  • Unscrupulous staff falsify invoices or other documents to embezzle company funds
  • Finance officers grant credit facilities to ineligible clients
image_accounting_finance2Processing claims
  • Dishonest staff overstate claims
  • Compromised finance staff approve reimbursements for false claims
image_accounting_finance3Handling of accounts
  • Individual partner misappropriates company funds or other properties
image_personnel_administration_1Daily administration
  • Staff submit false documents such as overtime work or sick leave certificate to deceive employer
image_personnel_administration_2Recruitment, promotions and postings
  • Personnel staff give favouritism in appointments, promotions and transfers
  • Managers or supervisors cover up poor performance of subordinates