![\"\"](\"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-content\/uploads\/sites\/3\/2022\/12\/evan-wise-gpkuxa5ivci-unsplash-1-300x200.jpg\")
Conflict of interest is intrinsic to human life and is often the root cause when it comes to fraud cases that involve corruption and bribery. According to Transparency International, a conflict of interest is a complex and sometimes ungraspable concept. Merriam-Webster defines the terminology as a conflict between the private interests and the official responsibilities of a person in a position of trust.<\/p>\n
An example of a situation in an organization\u00a0would be a member of\u00a0the\u00a0board directors that works part time as a consultant for a company that competes with the company that the board member sits in. There are many more examples that could fall within the definition of conflict of interest.<\/p>\n
As conflict of interest results\u00a0in\u00a0costly fraud\u00a0cases, organizations should take measures\u00a0to minimize potential of conflict of interests\u00a0from arising and prevent it from morphing into fraud. This could be done\u00a0through enhancing transparency, accountability, and integrity.<\/p>\n
Conducting a background check\u00a0is important, primarily when your organization is hiring an employee for a strategic position in which conflict of interest is likely to happen. The reverse directorship check and Politically Exposed Person (PEP)\u00a0are parts of\u00a0a\u00a0background check that must be performed before finalizing the hiring decision.<\/p>\n
Both checks can help your organization to identify any potential conflict of interest by the candidate. By conducting\u00a0the\u00a0PEP check, for example, your organization can identify if the candidate is registered as a member of a political party or legislative\u00a0which may create a situation where a conflict of interest might arise in your organization.<\/p>\n
Integrity Indonesia provides background screening services. Our screening is conducted through Prisma<\/a><\/strong>, our proprietary screening platform that can be integrated with our client HR information systems.<\/p>\n Many organizations, companies in this case, can agree that the purchasing department is vulnerable to what we call \u00a0\u201cvendor fraud\u201d. A conflict of interest could lead to fraud that involves the vendor and employee. An example would be\u00a0if\u00a0a purchasing manager accepts a gift from\u00a0a\u00a0supplier and awards the supplier a contract.<\/p>\n First, with a segregation of duty, there would be a clear division between the employees\u00a0who receives goods\/services, who processes the payment and who reconciles the bank account. Second, conducting due diligence would uncover any potential risks on the vendor.<\/p>\n Integrity Indonesia offers you a due diligence service through Know Your Vendor\u2122<\/a><\/strong>. Our\u00a0solution helps our clients mitigate supply chain risks by providing a consolidated panorama for due diligence on third parties.\u00a0In addition, as\u00a0the\u00a0Indonesian government has set the\u00a0Anti-Bribery Management System as a corporate liability\u00a0standard, due diligence has become a requirement.<\/p>\n Organizations\u00a0should manage any potential conflict of interest through transparent communication. In a transparent culture, organizations\u00a0would maintain adequate\u00a0record systems, educate its employees about conflict of interest, and encourage employees to report any red flags of any potential\u00a0conflicts\u00a0and of the fraud stemming from these\u00a0conflicts.<\/p>\n <\/p>\n Preventing Politically Exposed Persons From Exposing Risks to Your Company<\/u><\/a><\/strong><\/p>\n How the Research Directorship Benefits Your Company<\/u><\/a><\/strong><\/p>\n <\/p>\n Photo by\u00a0Evan Wise<\/a>\u00a0on\u00a0Unsplash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Conflict of interest is intrinsic to human life and is often the root cause when it comes to fraud cases that involve corruption and bribery. According to Transparency International, a conflict of interest is a complex and sometimes ungraspable concept. Merriam-Webster defines the terminology as a conflict between the private interests and the official responsibilities […]<\/p>\n","protected":false},"acf":[],"featured_image_url":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-content\/uploads\/sites\/3\/2020\/03\/evan-wise-gpkuxa5ivci-unsplash.jpg","_links":{"self":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/5828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/comments?post=5828"}],"version-history":[{"count":0,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/posts\/5828\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media\/5826"}],"wp:attachment":[{"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/media?parent=5828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/categories?post=5828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cms-corporate.integrity-asia.com\/id\/wp-json\/wp\/v2\/tags?post=5828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\n
Also Read:<\/strong><\/h3>\n