Extortion in service and product provision

Staff abuse their authority to extort bribes and favours

Risk type: Practice

Risk driver: Internal

DESCRIPTION

Extortion in service and product provision is present when SME staff abuse their authority to extort bribes or favours from customers.¹ Here, there is no voluntary collusion between the customers and SME staff. Extortion can be coupled with threats if demands are refused or SME staff can deliberately slow down work to extort speed money. This risk is especially relevant for SMEs that are in a monopolistic position vis-à-vis the customers, i.e. when customers cannot easily change to a different provider.

RED FLAGS

• Customer complaints about inappropriate behaviour of staff
• Lifestyles of staff with customer contact not in line with their salary bracket (car, accessories, etc.)

KEY GUIDING DOCUMENTS

ICC, 2005, Combating Extortion and Bribery: ICC Rules of Conduct and Recommendations, International Chamber of Commerce (ICC)

FULL REFERENCES

1. ICC, 2005, Combating Extortion and Bribery: ICC Rules of Conduct and Recommendations, International Chamber of Commerce (ICC)