Matteson Ellis Quoted Regarding Bribery Impact on Employee Morale by Latin American Corporate Counsel Association

"Bribery is most damaging for employee morale"
Latin American Corporate Counsel Association
11.29.13Matteson Ellis was quoted about a recent Harvard Business School study finding that the most significant impact of a bribery investigation is its detriment to employee morale, given that employees expect company managers to lead by example. According to Ellis, managerial involvement in corruption cases can create a host of issues. "It can more strongly suggest corporate liability. . . It can raise questions concerning how pervasive the activity is. Senior management is supposed to establish a 'tone from the top' in support of compliance. When senior management is involved, the very opposite is true," he said.

The study also found that when bribery cases were detected by internal controls systems as opposed to government findings, there was less impact on the business. "If internal controls systems are working, people feel more secure. Controls ensure an element of fairness in an organization," Ellis said. "No anti-corruption compliance programme can prevent 100 percent of wrongdoing. But when companies detect wrongdoing and deal with it responsibly, it sends a strong message throughout the organization."
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