Bribery and corruption is a rapidly growing problem here in the United States. Whether your business operates in the government or private sector, you may be the victim or indirectly involved with bribery and corruption and not know it.
Understanding The Meaning Of Bribery And Corruption Is Key To Being Aware It’s Happening
What is Bribery?
Bribery is legally defined as the “offering, giving, receiving or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty.” In short – a bribe is a gift that is given to an individual to influence the recipient’s actions or conduct.
Many times people assume the allocation of cash must be present to constitute “a bribe.” However, the scope of what constitutes bribery is much broader and includes the following:
- The recipient of property.
- The recipient of preferential treatment, privilege, emolument or any object of value.
In addition, a bribe can be provided to an individual in exchange for:
- The promise to conduct business
- To influence a public or government vote or contract
- Can be charged in both civil and criminal, State and Federal courts
What is Corruption?
While the act of bribery includes the acts of a provider and recipient, corruption can be more of a team effort. Corruption is “the abuse of a position of trust in order to gain an undue advantage.” This includes a criminal conduct of at least two parties including:
- The individual that abuses their position
- The individual that seeks to gain an advantage due to this abuse in position
Who Are The Worst Offenders?
Corruption can and often does occur in both the private and government sectors and is prevalent both in the U.S. and worldwide.
In fact, according to Transparency International’s worldwide survey, more than 27 percent of those responding admitted to paying bribes in exchange for public services and institutions. According to the survey, the five worst offenders worldwide include the police, judges, public officials and civil servants, political parties, and citizens themselves. A current example of a high profile bribery and corruption charge in the U.S. is the case against Ron Calderon, California Democrat State Senator that was indicted on federal charges of accepting nearly $100,000 in bribes from undercover FBI agents looking for him to steer legislation in their favor.
Read more about this case here.
How Can Bribery and Corruption Be Reduced?
There are two primary goals that any company or organization should consider to help reduce the chances of bribery & corruption:
- First, educate all company executives and employees about corruption and bribery; including the issues, risks and potential legal ramifications.
- Second, develop a process that allows executives and employees to safely report any “red flags” within your organizational structure.
The most effective way an organization can protect itself from corruption and bribery is to consider having your internal controls reviewed by an expert. The professionals at Veriti Consulting provide assessments of operational weakness and internal control deficiencies. This information is used to develop methods and strategies to prevent bribery and corruption from occurring.
Veriti Consulting’s team of CPAs, fraud examiners and forensic accountants have decades of experience investigating and analyzing suspicious financial activities such as bribery and corruption. If you suspect your business may benefit from an internal control review or other forensic accounting services, contact Veriti at (877) 520-1280 or by email at info@veriticonsulting.com