China
COMPANIES OFTEN say that people are their greatest asset, but it is also true that the task of recruiting and managing people comes with risks.
When businesses stumble or crises occur in the workplace, the human factor is invariably the cause. Even the most tightly controlled organisations get caught out by security lapses and failures in ethical conduct, and studies have shown that many cases of serious fraud can be traced to a lack of employee vetting and inefficient hiring procedures.
Localising the human resources function in places where there is a limited supply of qualified personnel has often compounded the problem.
However, companies can minimise these difficulties by instituting key risk-prevention measures and undertaking detailed background investigations at the time of recruitment. They should also go one step further by putting in place an employee integrity programme which includes measures to reduce foreseeable risks.
Such a programme reduces the chance of a business being undermined by corruption or fraud perpetrated by employees. It also helps companies enhance their corporate reputation while improving the bottom line by protecting resources and building value.
A clear statement and ongoing education about a company's standards can minimise the likelihood of corruption, internal fraud or theft. It also creates a working environment with less negligent hiring, fewer compensation claims and fewer instances of non-performance or non-compliance.