5 Reasons To Run Employee Screening

Being HR professional, we have to deal with rigorous recruitment cycles, and for this, we must meet with several candidates before closing the vacancy. Every HR person has their style of evaluating the candidates, but one thing that needs to be kept in mind before making the final hiring decision is to “Never judge a book by its cover” (Stonehouse, 2017), since at times we might overlook some critical points, perhaps due to a fancy resume or qualification. Every HR professional should consider a crucial step before taking a candidate on board: run employee screening.

According to Business Week – 16% of executive resumes contain false academic claims and/or material omissions relating to educational experience. The U.S. Department of Labor estimates that the average cost of a bad hiring decision can equal 30% of the first year’s potential earnings.If you are an HR professional and reading this article, then I can assure you that other HR professionals must be thinking, “is it worth investing additional time and money in pre-employment background screening service?” Let me tell you the key benefits that you can gain from conducting pre-employment background screening services:

1. Better Compliance: it keeps you out of legal issues

Let’s suppose one of your employees commits fraud in your company, and after investigations, you came to know that the employee did the same with previous employers. At this point, you will regret not conducting their background check, as if you had conducted their employment and criminal check, then you wouldn’t have hired them in the first place.

2. Ensures credibility when performing sensitive tasks

In addition to legal issues, some background checks can verify a candidate’s creditability in performing their on-job duties. For instance, when a candidate is being hired for the accounts department where petty cash and the company’s account handling are their primary responsibilities, their employment check may come across that his previous employment has concluded due to mishandling of accounts.

3. Safer Work Environment: keep employees and clients safe

Conducting Background checks can also convey a message throughout the company’s stakeholders, especially its clients, that all employees hired in the company have gone through rigorous checks. Therefore, the data shared by the clients are in safe hands, thus increasing the overall integrity of the company and its staff.

4. Verifies education and certification

The increase in the number of fake degrees has amplified the importance of pre-employment check of educations. Therefore, all degrees and certificates of the applicant under consideration should be verified. The outcome of verification is not just about checking an applicant’s honesty but also verifying the legal status of the degrees and their issuing authorities.

5. Stronger hires, more savings: it gives an overall picture of the applicants

Apart from the interviews, pre-employment background checks can help the interviewer to make their hiring decision accordingly. For instance, candidates may have successfully cleared the interview process, but in their employment checks, the company found that they had resigned from their services after they were accused of sexual harassment by colleagues. Irrespective of how competent a candidate is for the vacancy, such red flags regarding the candidate’s behaviour can completely change the hiring decision and safeguard the company from future issues.

It is indeed worth spending extra time and money on pre-employment background screening because making a wrong hiring decision can not only increase recruitment cost and time but may also incur the cost of damage that employee has given to the company, whether in the form of litigation’s or damaging the company’s goodwill.

5 Reasons To Run Employee Screening
5 Reasons To Run Employee Screening
5 Reasons To Run Employee Screening
5 Reasons To Run Employee Screening
5 Reasons To Run Employee Screening

 

So, if your company is not conducting background screening! Think Again!

Being in HR, you might be creating liability for the company by making the wrong hiring decision. It’s never too late to correct your actions, so contact us, and we can provide our employment background screening services. As it is rightly said, I quote, “better safe than sorry” (Bateson, 2008). 

CRI Group, based in London, works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management and Due Diligence solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

References

  1. Bateson, J., 2008. Building Hope: Leadership in the Nonprofit World. United States Of America: Greenwood Publishing Group.
  2. Stonehouse, R. A., 2017. You’re Hired! Job Search Strategies That Work. 1st ed. s.l.:eBookIt.com.

 

 

CRI Group celebrates International Anti-Corruption Day

Wednesday the 9th of December marks the International Anti-Corruption day since the passage of the United Nations Convention Against Corruption on 31st October 2003. Based on AntiCorruptionDay.org, as the world is recovering from COVID-19 pandemic, this year “the campaign for International Anti-Corruption Day will therefore focus on measures to reduce the risks of mismanagement and corruption without compromising the speed and flexibility demanded by the health crisis, while ensuring an inclusive recovery. This year’s motto “RECOVER with INTEGRITY” focuses on recovery through corruption mitigation and emphasizes that inclusive COVID-19 recovery can only be achieved with integrity.”

International Anti-Corruption Day

 

Bribery and corruption stories 2020

Even with much of the world under partial lockdown during the COVID-19 pandemic, there’s been no shortage of bribery and corruption cases. Each of these stories makes it clear that organisations must have proper controls in place to prevent bribery and corruption. ISO 37001 Anti-Bribery Management Systems standard provides a comprehensive approach to mitigating bribery and corruption risk. In no particular order, we collated some of the top bribery and corruption stories we’ve seen so far in 2020. Click here to read the full list. 

Airbus

In February, French-based Airbus agreed to pay a record $4 billion in fines for alleged bribery and corruption spanning at least 15 years. The company reached a plea bargain with prosecutors in Britain, France and the United States. According to prosecution documents, Airbus used a global network of agents or middlemen for corrupt transactions, included payouts disguised as commissions to push airplane sales.

“Fallout from the Airbus bribery scandal reverberated around the world on Monday as the head of one of its top buyers temporarily stood down and investigations were launched in countries aggrieved at being dragged into the increasingly political row.” (Reuters, 2020)

Novartis

While the investigation into suspected corruption at Novartis began seven years ago, it appears that 2020 is the year the company can finally close this damaging chapter in its history. The resolution comes at a steep cost. The Swiss-based pharmaceutical company will pay a staggering $1.3 billion in a settlement for kickbacks, bribery and price-fixing.

“The latest settlements cover two different cases. In the first, federal prosecutors claim Novartis used ‘tens of thousands of’ speaker programs and events — some entailing exorbitant meals — as disguise to provide bribes to doctors. The goal, according to prosecutors, was to encourage doctors to prescribe its drugs, including Lotrel, Valturna, Starlix, Tekturna, Tekamlo, Diovan and Exforge.” (Fierce Pharma, 2020)

Ohio House Speaker Larry Householder

While political corruption is nothing new, his constituents were nevertheless shocked when Ohio House Speaker Larry Householder was arrested, along with four alleged co-conspirators, as part of a $60 million racketeering and bribery investigation. The alleged scheme is being described as one of the biggest public corruption cases in Ohio, U.S. history.

“All the charges are tied to what federal prosecutors said was a criminal enterprise dedicated to securing a bailout for two nuclear power plants in northern Ohio owned by FirstEnergy Solutions of Akron. The bailout is expected to cost the state’s utility ratepayers $1 billion.” (Cincinnati Enquirer, 2020)

Alexion Pharmaceuticals

Charged by the SEC with violating the FCPA by bribing officials in Turkey and Russia, Alexion Pharmaceuticals will pay $21.4 million to resolve an investigation that began in 2015. The Connecticut, U.S.- based company was also accused of failing to keep accurate financial records at subsidiaries in Brazil and Colombia.

“In Turkey and Russia, Alexion paid government officials and doctors at state-connected hospitals to promote use of its blood-disease drug, Soliris. Alexion retained a consultant in Turkey from 2010 to 2015 with ties to health officials. Alexion Turkey paid the consultant over $1.3 million for ‘consulting fees and purported expense reimbursements,’ the SEC said. … In Russia, Alexion paid doctors at government hospitals over $1 million from 2011 to 2015 to increase Soliris prescriptions. … The bribery resulted in Alexion being ‘unjustly enriched’ by about $6.6 million in Turkey and $7.5 million in Russia, the SEC said.” (FCPA Blog, 2020)

> Read the full list of bribery and corruption cases in 2020

Prosecution of corruption is like a dose of painkillers. It can help with the symptoms, but it won’t solve the problem. On the other hand, the anti-bribery management system is comparable to a healthy diet. No one is excited about it but some of us are more determined to choose an apple instead of cake. International Anti-Corruption Day is the best time for organisations of all sizes and industries take steps now to ensure that they don’t end up on a future list of top bribery and corruption scandals. Earlier this year, we published a series of articles how ISO 37001 standard could be implemented into the different industries – the first part of the article focused on automotive, aviation, insurance industries, while the second edition examined how pharma and healthcare, property, IT and telecommunications, food and beverage industries might benefit from ISO 37001 certification too.

 

CRI Group’s continuous fight against bribery and corruption risks

At CRI Group we understand, that corruption and bribery affect any organisation, large or small, public or not-for-profit. It has the potential to cause severe harm to your business, including financial loss, dire legal consequences, damage to your brand, company’s reputation and sustainable development. Therefore anti-bribery needs to be managed correctly and effectively. ISO developed ISO 37001:2016 ABMS standard helps organisations promote an ethical business culture. “Designed to help your organisation implement an anti-bribery management system (ABMS), and/or enhance the controls you currently have. It helps to reduce the risk of bribery [and corruption] occurring and can demonstrate to your stakeholders that you have put in place internationally recognised good-practice anti-bribery [and anti-corruption] controls”.

The first step of demonstrating your organisation’s commitment to implementing an effective anti-bribery management system solutions is to commit to ISO 37001 solutions. In order to offer you ISO 37001 training and/or certification, CRI Group launched an Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence. ABAC® offers a complete suite of services and solutions designed to educate, equip & support the world’s leading business organisations with the latest best-in-practice risk & performance assessments, systems improvement & standards certification. ABAC® programs protect your organisation from damaging litigation & safeguard your business in the global marketplace by providing certification & training not only in ISO 37001 Anti-Bribery Management Systems but also in other internationally recognised ISO standards such as ISO 19600 Compliance Management Systems and ISO 31000 Risk Management Systems implementation.

ABAC® offers ISO 37001 Introductory, Internal Auditor and Lead Auditor training to upskill the teams and organisations who want to show a proactive way of demonstrating your organisation’s commitment to ethical sustainability. Your employees will be able to recognise any form of corruption, and report it. Our trainers are the best in the business. They’re passionate about sharing their knowledge with you and/or your employees. ABAC® trusted experts have years of hands-on and business experience – they bring the subject matter to life with relevant and contemporary examples.

Companies should take a zero-tolerance attitude towards corruption and put policies in place covering issues such as gifts, supply chains and whistle-blowers, in order to promote a fair and just environment. In business terms, integrity pays: the world’s most ethical companies prove a clear correlation between ethical business practices and improved financial performance.

Recently, ABAC® also launched ISO 31000 Risk management e-training – even though this course is for risk management in general, ISO 31000 implementation and training give businesses a broader view of all risks associated with their organisations and how to overcome them. ISO 31000 training is focused on improving your and/or your team’s skills in implementing ISO 31000 Risk Management which will help organisations see both the positive opportunities and negative consequences associated with all types of risk, and allow for more informed, and thus more effective, decision making, namely in the allocation of resources.

> Learn more about ISO 31000 training

Expand Your Third-Party Risk Management Strategies

CRI Group is launching a third-party compliance verification and certification program – 3PRM-Certified™ – across the Middle East, Europe and the Asian region. This Third-Party Risk Management (TPRM) program can help organisations establish the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with their business.

Third-party relationships are critical in business today and include partnerships with suppliers, distributors, consultants, agents and other contractors. While such affiliations are essential to the success of your organisation, the consequences of inadequate due diligence cannot be overestimated. The risk of data breaches and supply chain disruptions continue to rise with COVID-19, so does the need for an effective TPRM program. Whether you’re a TPRM professional looking for a certification to advance your skillset, or the leader of your organisation considering how to better equip your team with the best knowledge and skills, the 3PRM-Certified™ program is an all-in solution.

Support International Anti-Corruption Day – consider ISO 37001, ISO 31000 and ISO 19600 as invaluable tools of your Third-Party Risk Management Strategy. Combined with due diligencebackground screeningbusiness intelligence and compliance solutions, ISO standard certifications and training can lift your overall risk management process and help your business mitigate risks from third-party affiliations, protecting your organisation from liability, brand damage and harm to the business.

Read more about the 3PRM-Certified™ program

 

Supporting International Anti-Corruption Day 2020

Find below CRI Group’s resources helping you to know more about bribery and corruption risk. It does not wait and can happen anytime – we encourage you to think about anti-bribery and anti-corruption not only on International Anti-Corruption Day 2020 but all year round. Explore our other resources, or sign up for risk management, compliance, anti-bribery and anti-corruption related news, solutions, events and publications in your inbox. We will be happy to hear from you if you have any questions at all – contact us today or get a quote for any anti-bribery, anti-corruption, risk or compliance management solutions through our ABAC® Center of Excellence. Explore our recourses and expert insights in the Q&A sessions now:

Q&A: Corporate Fraud and Corruption in Pakistan

Q&A: Corporate Fraud and Corruption in the UK is growing, FAST!

Q&A session with our CEO: the United Arab Emirates fighting Fraud and corruption

Prove that your business is ethical
ABAC® published the free Highest Ethical Business Assessment (HEBA) to evaluate businesses’ current Corporate Compliance Programs. Find out if your organisation’s compliance program is in the line with worldwide Compliance, Business Ethics, Anti-Bribery and Anti-Corruption Frameworks. Let ABAC® experts prepare a complimentary gap analysis – the HEBA survey is designed to evaluate your compliance with adequate procedures to prevent bribery and corruption across the organisation. This survey is monitored and evaluated by qualified ABAC® professionals with Business Ethics, Legal and Compliance background. The questions are open-ended to encourage a qualitative analysis of your Compliance Program and to facilitate the gap analysis process.

TAKE THE SURVEY HERE!

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management SystemsISO 19600:2014 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

ISO 37001:2016: a foolproof blueprint to prevent bribery?

Since its launch in 2016, ISO 37001 Anti-Bribery Management Systems standard has had its supporters and critics. Some regulatory bodies and compliance communities initially expressed concern regarding the lack of a body of evidence supporting the effectiveness of ISO 37001:2016 from certain standpoints. Critics asserted that the new standard failed to address broad compliance concerns, and questioned whether ISO 37001:2016 certification alone can prevent bribery and prosecution. These observations should certainly be weighed and considered, as any new compliance standard must be properly evaluated on its merits. In the case of ISO 37001, however, the critics have made some misjudgments in regards to the key factors they feel are in question with the standard.

One of the most important things to remember is that a standard like 37001 and all of its measures require a commitment and implementation by the organisation adopting them. ISO 37001 is a standard, administered by a certified body but ultimately implemented by employees of the organisation itself. The purpose of ISO 37001 standard is to provide a framework against which an organisation’s anti-bribery management can be assessed and certified, rather than a foolproof blueprint to prevent bribery.

 

The story behind ISO 37001:2016

First, some background: The International Organization for Standardization, or ISO, is the international standard-setting body composed of representatives from various national standards organisations. Founded on 23 Feb. 1947, ISO promotes worldwide proprietary, industrial, and commercial standards. Responding to an international need, ISO issued the 37001:2016 Anti-Bribery Management System standard to help businesses, nonprofits and governmental agencies reduce their risk of bribery and corruption by establishing, implementing, maintaining and improving an anti-bribery management system.

The ISO 37001 standard requirement, which references to ISO 19600 – Compliance Management System, specifies mandatory requirements for organisations when establishing/updating their anti-bribery management programs in a manner that is proportionate to the potential bribery risk. The reference to these requirements is referred to as “appropriate” and “reasonable”, hence directing organisations to undertake a subjective, diligent and rigorous review of current compliance framework, which will make ISO 37001 effective for them. According to Deloitte & Touche LLP, “[in ISO 37001:2016] it’s the substance, not the form, of a compliance program that determines its effectiveness”.

 

Anti-corruption versus broad compliance issues

Some of the concerns regarding the effectiveness of ISO 37001 are focused on whether it addresses broad compliance issues, like inequality, harassment, various types of fraud (outside of bribery and corruption), or similar offences. Seeing that it generally does not, as its focus is on anti-bribery and anti-corruption compliance, some take the view that ISO 37001 has adopted a simplistic approach. The scope of ISO 37001 addresses “establishing, implementing, maintaining, reviewing, and improving an anti-bribery management system,” whether as a stand-alone initiative or part of a broader anti-corruption. Therefore, implementing ISO 37001 standard requirements should be viewed as a way of enhancing, rather than replacing, an organisation’s existing anti-corruption compliance programs.

ISO 37001 is effective step-by-step guidance for those organisations which lack an anti-corruption framework and enables them to implement a compliance program without investing significant time in identifying the regulatory and non-regulatory requirements. In fact, ISO 37001 has incorporated Federal Sentencing Guidelines, U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) Resource Guide to the U.S. Foreign Corrupt Practices Act, the U.K. Ministry of Justice Bribery Act 2010 Guidance, and OECD’s Good Practice Guidance on Internal Controls, Ethics and Compliance. Former U.S. Deputy Attorney General Rod Rosenstein highlighted three hallmarks of a policy-effective compliance program, which are concurrent with ISO 37001 requirements and include: fostering a culture of compliance; dedicating sufficient resources to compliance activities; and ensuring that experienced compliance personnel has appropriate access to the board.

 

Prosecution of offences

Lastly, there is a widely held belief that obtaining ISO 37001 certification is an effective tool to avoid prosecution for bribery. These misconceptions have not been viewed favourably insofar as to Ms. Hui Chen, U.S. DOJ’s former compliance counsel, stating “Dan Kahn, the Chief of the FCPA Unit in the Fraud Section of DOJ’s Criminal Division, has been very consistent: prosecutors will not outsource their responsibilities”. Rightly so. ISO 37001 certification does not act as insurance to corporate liability for bribery, neither does it refute the need to perform due diligence, and it should be considered and implemented as per company’s risk profile. In practicality, implementing ISO 37001 can demonstrate to enforcement agencies and regulators that the organisation has taken reasonable steps to establish a compliance program to mitigate bribery risks, however, ISO 37001 certification will mitigate the consequences, if not a shield, an organisation from investigation or prosecution.

 

ISO 37001:2016 embraced by organisations and governments

It is important to note that organisations and governments alike are embracing ISO 37001 as the standard for prevention and detection. One example of this is in Malaysia, where the ISO 37001 standard was adopted across the government under Prime Minister Tun Dr Mahathir Mohamad. The new system has been received positively in both the public and private sectors, and Malaysia’s former anti-graft chief said “the people’s perception of the government’s seriousness to fight corruption had increased to 70.8 per cent last year from 59.8 per cent in 2016. He said that Malaysia has also shown improvement in its performance indicators in several important international studies and indexes” (New Straits Times, 2019). True to form, various heads of government in the country are following the directive. Defence Minister Mohamed Sabu recently “cautioned his officers to adhere to the Anti-Bribery Management System, which had attained the International Standards Organisation’s ISO 37001: 2016 certification” (New Straits Times, 2019).

Malaysia is not alone. In Peru, Singapore, and China (Shenzhen Institute of Standards and Technology [SIST]), the national standard bodies have adopted and localised the ISO 37001 standard. In Italy, the ISO 37001 accreditation scheme has been developed by Accredia; whereas in the UK, United Kingdom Accreditation Service (UKAS) has undertaken an ISO 37001 pilot program to develop an accreditation scheme. In the United Arab Emirates, Emirates International Accreditation Centre (EIAC) is undertaking the ISO 37001 accreditation scheme development with CRI Group’s ABAC Center of Excellence. ABAC® is an initiative launched by CRI Group and offers ISO 37001 training and certification services.

Hence, amid these positive developments, the outlook for ISO 37001 looks promising. ISO 37001 is not a “silver bullet” to foolproof an organisation from bribery or corruption, or avoid prosecution should those offences occur. It was never designed to be. Instead, it is a framework to implement the necessary controls and systems at the organisation level – across all levels – so as to be better equipped to prevent bribery and corruption moving forward.

 

Who is CRI Group?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business IntelligenceDue Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 19600:2014 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

  1. https://www.nst.com.my/news/nation/2019/09/522088/malaysias-war-against-corruption-paying-dividends
  2. https://www.nst.com.my/news/exclusive/2019/12/550439/graft-battle-mat-sabu-start-cracking-whip

 

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business IntelligenceDue Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 19600:2014 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

  1. Deloitte & Touche LLP, Focus on Five
  2. http://www.iso.org/iso/catalogue_detail. htm?csnumber=6503
  3. Worth MacMurray, New DOJ enforcement policy and ISO 37001 are aligned, FCPA Blog
  4. https://www.justice.gov/opa/speech/deputy-attorney-general-rosenstein-delivers-remarks-34th-international-conference-foreign
  5. https://create.org/news/iso-37001-year-review/
  6. https://huichenethics.com