Illicit practices. How to combat it inside your company?

In order to maintain company integrity and reputation, it is important for companies to take steps to prevent and combat illicit practices in their work environment. Here are some tips to help keep your entity out of legal and ethical trouble.  

Employee Training and Awareness

The first step in combating illicit practices within your company is to provide training to your employees on ethics and compliance. It is important that they understand the values and policies of the entity they represent, as well as the laws and regulations applicable to their industry. In addition, raising employee awareness of illicit practices is key to ensuring that they know how to identify and report them. 

Creating Internal Communication Channels

An open and confidential reporting channel is key to combating illicit practices within the company. This allows employees to report issues without fear of retaliation and ensures that the company has a clear view of internal problems. In addition, it is important that the company provides feedback and quick responses to reports to maintain employee trust. 

Periodic Review of Internal Processes

Periodic review of internal processes is a good way to identify potential points of vulnerability and correct them before they are exploited for illicit practices. It is important that the entity has clear and well-defined processes for all activities, including hiring, payment of salaries, and procurement of goods and services. 

Enforcement of Sanctions

In the event of a violation of company policies or the law, it is important that the organization applies appropriate sanctions to violators. This can include anything from verbal warnings to dismissals, depending on the severity of the infraction. In addition, it is important that the entity notifies the proper authorities in case of serious violations, such as corruption or fraud. 

Some Actions to Combat Illicit Practices:

  • Provide employee training on ethics and compliance; 
  • Create internal communication channels for whistleblowing; 
  • Regularly review internal processes; 
  • Apply appropriate sanctions for violators; 
  • Invest in technology to monitor financial transactions and prevent fraud; 
  • Designate a compliance officer in the organization; 
  • Conduct frequent internal audits; 
  • Implement clear and strict policies on conflicts of interest. 

 

In summary, combating illicit practices within the organization is an ongoing task that requires a combination of training, communication, clear processes, and strict sanctions. By adopting these measures, entities can protect their integrity and reputation, and avoid legal and ethical problems. 

Published at: 21/03/2023

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