There was a time when basic necessities meant food, clothes and shelter, as they were considered enough for our survival. However, ask a person today, would he/she be comfortable with just these amenities in life? If not 100%, for most part, the answer would be ‘no’. This has been a revolutionary shift—owing to rapid industrialization in the world.
It is said that everything comes with a price or in economic terms, every action equals opportunity cost.Leveraging the present sources at dispense, if humans can impact the Mother Nature, imagine the kind of damage they can inflict upon the business world.
Apparently, it’s in human nature to obtain a valuable asset at a lower price. This is what gives rise to corruption. That said, it’s not a newfound thing and has been prominent since many centuries. For example, when East India Company was ruling some Pargana in Bengal, its employees were selling commodities to Indian merchants discreetly. Even if one were to ignore this factor, the most surprising thing was how the commodities were being sold at a lower price than the market price.
This is called “Asset Misappropriation”. It takes place when an employee steals or exploits the organization’s resources. Posing a risk to business sector, in general, such cases can hinder the potential business growth.Corruption permeates almost every sector of the society. Public institutions are riddled by it, and in the private sector, it is regarded as the ‘cost’ of doing business.
Thus, understanding the past crisis situations of the investors or businesses can help the current businessmen and help in avoiding them in the future. For instance, as per the notice published on The Financial Express, a warrant has been issued by the Magistrate against the siblings Rahul Shukla and Sidharth Shukla’s Trend Corporation Limited, Bangladesh. This case was registered by Norwest Industries limited against Rahul Shukla— its former employee for absconding, to avoid a potential summon/arrest.
This is one of the many instances as, if not similar, a case has been filed against Dhirendra Singh, Chairman of Manpasand Beverages. According to the news posted on Business Today, his company has been accused of Goods and services tax fraud, where his son Abhishek Singh was also put behind bars.
That said, such misappropriation or scams are not limited to the subcontinent as most of the times what happens in one part of the world is often unheard of in the other, due to the difference in culture, language, and region.
However, the advent of advanced internet technologies has enhanced the scope of knowledge and made people more cautious and aware.
Recently, Canada-based Dave Murray, owner of the discredited home renovation firm “EcoLife Home Improvements” has been hit with fraud charges. Multiple community members alleged that after providing monetary deposits, the work was never completed, for Murray was paying off his fines. For these reasons, he was arrested as well.
Now, it wouldn’t be possible to highlight or report every such case but if a similar personality gets a job or relocates to a new location for the work, then he/she can misuse the existing conditions to his advantage.
Thus, a strong background verification process becomes essential. With outsourcing jobs gaining prominence and Industrial revolution 4.0 becoming a reality where everything is expected to be available on digital world, any sort of inaccuracy can lead to misappropriation of assets.
A thorough analysis would help companies to know about any of the previous scams/ allegations/corruption charges on the person they’re about to hire or join hands with. It forms the foundation of a good decision making process and can avert the potential risks and frauds in the future.