Law enforcement, prevention and education are the key weapons in this battle Hong Kong is one of the least corrupt places in Asia in the eyes of business people, field analysts and ordinary citizens, according to a Transparency International Corruption Perceptions Index study of 102 countries. The city ranked second in Asia after Singapore, the study found. Much of Hong Kong's favourable reputation is due to the efforts of the Independent Commission Against Corruption (ICAC), which has done a remarkable job in fighting bribery and corruption. Its Advisory Services Group offers free and confidential consultancy services to government departments and private organisations in corruption prevention. When the ICAC was first established in 1974, it identified three points of attack for dealing with corruption - law enforcement, prevention and education. The Advisory Services Group was set up within the corruption prevention division in 1985 to help companies in the private sector evaluate their procedures and implement measures to avoid corruption pitfalls. The demand for the service has been increasing gradually over the years. 'This is partially because of the sluggish economy. Organisations were not aware of losses during good times. In tough times like those of recent years, business owners have been more cautious and have tried to find ways to remove loopholes to protect their companies,' said Eileen Lau Yuk-kam, senior assignment officer of the group. The free consultancy service starts with a thorough assessment of operational procedures and practices. Officers then conduct staff interviews and review documents to find out if there are any underlying problems such as theft, leakage of information, inflated purchase prices, dishonest employees, fictitious overtime claims, or other payroll fraud. Organisations should give clear guidelines and implement corruption prevention measures to prevent their staff from abusing authority and becoming involved in corrupt activities. The first item should be the adoption of a business ethics system. More than 70 per cent of organisations in Hong Kong have a code of ethics or conduct to help govern staff integrity. Additionally, the ICAC provides free training seminars to organisations on topics such as ethical issues, managing staff integrity and legislation governing corruption. This equips business owners and staff with the knowledge to detect warning signs, deal with ethical dilemmas and recognise the appropriate channels for complaints. There could be underlying causes, loopholes and incentives that lead to corrupt practices. 'Organisations must define guiding principles when selecting outside consultants, suppliers or contractors. As for the manufacturing industry, inventory control and stock management is more vulnerable,' Ms Lau said. 'Favouritism in recruitment and promotion or fake overtime claims are common malpractices in the human resources area. In recent years, information security has [become an issue]. Staff can now easily access confidential information, in a customer database, for example. Staff might see opportunities for personal gain and leak sensitive information to outside parties.' The group has many industry experts. Assignment officers are equipped with practical and comprehensive industry experience. 'Our team comprises quantity surveyors, information technology professionals, accountants and hoteliers. Most of us assumed management roles in our previous capacities. We are experienced and qualified to offer advice based on industry best practice.' All these prevention steps benefit employees and corporations. 'With clear instructions and an understanding of the grey areas, employees can be more at ease in carrying out their work. We do not only receive requests from business owners but also from the functional heads to evaluate their work procedures,' Ms Lau said. Employees are advised to make declarations about their concerns and then the management can handle the situation in a lawful and appropriate way. Risk assessment and control needs to be conducted on an ongoing and timely basis. 'The business environment might change, as well as the operational procedures, which would then require new control systems,' said Ms Lau. 'Fraud and malpractice will severely affect a corporation's image and bottom line. We are not causing unnecessary red tape and inflexibility; we are there to protect the company.'