Workplace fraud fuelled by lack of trust

Fri 21 Nov 2008

Fraud in the workplace is made worse by a lack of trust between management and workers, says the Chartered Management Institute (CMI).

It released 'Workplace Fraud: the enemy within', a guide which tells firms how they can tackle corruption within their organisation.

"Fraud can be stopped in the early stages if robust detection procedures are in place," claims CMI director of policy and research, Petra Wilson.

However, companies needed to avoid adopting a 'Big Brother' role, she insisted.

The guide recommends firms develop a fraud strategy statement, establish a fraud committee, make use of technology and develop a culture in which fraud is considered unacceptable.

The Institute revealed nine out of ten workers think their boss does not trust them and only eight per cent have 'sign off' responsibility.

The Home Office has said businesses are more at risk from crime than homes are and recommends employers always check new workers' references.

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