Fifty Shades of Red: Early Warning Signs of Corruption
Recent media reporting surrounding alleged acts of corruption and bribery by major multinational companies highlights the continuing need for businesses to review prospective partners and their networks.
Business managers can use publically available information to identify early warning signs of corruption even when you are effectively on the outside looking in.
“Red Flags” are risk indicators or barometers that are useful for assessing the potential for corrupt or other illicit behaviours in a business or transaction. A Red Flag will often not be direct evidence of corruption, bribery or a ‘deal breaker’ but they do need to be considered in the context of the transaction, industry, geography and the situation being examined. Importantly, managers do need to know which shades of red to look out for and which ones to look in to.