SMEs and Start-ups
Small and medium enterprises (SMEs) and start‑ups are key drivers of innovation, employment and economic growth. Characterised by lean structures and agile operations, they are well positioned to respond swiftly to evolving market demands and emerging opportunities in a competitive market. However, if corruption and bribery risks are not properly managed, they may lead to reputational and financial damage, serious operational disruption, regulatory consequences, and in extreme cases, the complete collapse of a business.
The Private Sector Integrity Centre (PSIC) offers anti-corruption and integrity training to help SMEs and start-ups remain vigilant to corruption risks and uphold high integrity standards. We also provide corruption prevention advisory services and practical resources to help enterprises in strengthening safeguards and fostering an ethical culture.
Corruption Risks
- Proprietors or company representatives offer advantages to staff responsible for processing or approving license, permit or bank account applications in order to expedite approval or turn a blind eye to insufficient documentation.
- Applicants for subsidies offer advantages to handling officers, assessment panel members of funding programmes or representatives of potential investors for secure favourable treatment during the application process.
- Operators offer gifts or other advantage to public officials while having dealings with government departments or public organisations.
- Applicants submit false or fabricated supporting documents for applications.
- Company directors or staff appoint suppliers or contractors in which they have a financial or personal interest.
- Purchasing staff disclose quotation prices or confidential tender information to potential suppliers or contractors.
- Compromised staff accept personal advantages from suppliers or contractors in exchange for placing orders or conniving at the provision of substandard goods or services.
- Dishonest staff split orders or repeatedly invoke “urgent” or “special requisitions” to circumvent established procurement procedures.
- Staff manipulate order prices or collude with suppliers or contractors to inflate charges and misappropriate the price difference.
- Proprietors or sales staff offer advantages to representatives of corporate clients to boost sales or secure orders.
- Staff divert the company business to competitors or undisclosed associates for personal gain.
- Sales representatives grant discounts to customers who are not eligible under company policies.
- Frontline staff allocate popular or limited-edition goods to customers in exchange for bribes.
- Salespersons falsify sales records to fraudulently obtain commissions or bonuses.
- Goods receiving clerks conceal non-deliveries or accept substandard goods without proper reporting.
- Warehouse staff exaggerate losses or damage incurred during delivery to cover up pilferage.
- Warehouse or inventory staff misappropriate company goods for personal use or unauthorised resale.
- Accounting clerks expedite payments, approve reimbursements for false claims or deliberately delay debt collection for improper purposes.
- Individual partners falsify invoices or other documents to embezzle company funds.
- Finance officers grant credit facilities to ineligible clients.
- Dishonest staff inflate reimbursement or expense claims.
- Personnel staff show favouritism in appointments, promotions or transfers.
- Staff submit false documents, such as overtime records or medical certificates, to deceive the employer
- Managers or supervisors accept bribes to conceal subordinates’ poor performance, permit overtime claims or share improperly obtained wages.
- Administrative staff accept advantages from service providers or contractors in exchange for preferential treatment in arranging staff welfare benefits, such as insurance or medical coverage.
- Individual partners or staff divulges confidential information to third party for personal gain.
Resources
Integrity Training
The Private Sector Integrity Centre (PSIC) offers free anti-corruption and integrity training to help SMEs and start-ups build an ethical corporate culture and prevent corruption and fraud.
PSIC organises webinars on the “PSIC Channel” for business practitioners across various sectors and industries. Click here to view details of the upcoming webinars and enroll now!
PSIC provides free, tailor-made training for operators and staff of SMEs and start-ups.
Please contact us if you wish to arrange integrity and corruption prevention training.
