Conditions that may allow corruption to occur
Corruption can occur in many situations. It is more likely, however, where some of the following occur:
- policies and procedures are absent, unclear or not adequately enforced
- employee training is inadequate
- checks such as audits are lacking
- communication and reporting lines are unclear
- employee supervision and performance management are inadequate
- employees have high levels of discretion in their decision-making
- employees develop close relationships with external stakeholders
- accepted ethical standards are lacking
- the corporate culture condones rule breaking and short cuts.
The ICAC has identified specific functions that are associated with corruption risks and provides corruption prevention guidance on managing each of these functions.