High price for companies when guidelines are not anchored

In a complex and fast-changing world, doing business responsibly and ethically is a challenge for many companies. It is the responsibility of every organisation to ensure that all laws, regulations and guidelines are followed by all employees. But sometimes this is easier said than done, even for countries like Sweden that are highly ranked in the Corruption Perceptions Index.

Sweden is well known for its transparency and low level of corruption. But does this mean that Swedish workers are not exposed to risks?  

I'm afraid not. Experts say that the illegal workforce in Sweden is bigger than ever. That's because crime takes hold much more easily in a country where citizens trust the democratic process - and each other. This can make it harder to detect corruption in workplaces where we don't expect it to happen to us.  

Illegal labour is considered such a big problem that the Tax Agency has decided to focus on it specifically this year. The construction, cleaning and transport industries are just a few examples of companies where corruption and illegal work is a major problem (read more on the Swedish Tax Agency's website https://bit.ly/2RUo4WS).

So what is the real problem? Let's say the average wage for an illegal worker in Sweden is around 30-40 SEK per hour, but the customer is billed at 400 SEK per hour. That means a big profit margin. Money that is then often used to finance criminal activities such as money laundering and trafficking in people and drugs.

Corruption affects us all. It damages not only a company's reputation, but also sustainable economic development, especially in poorer communities that depend on public resources and on a functioning infrastructure.

Many may think that illegal work is not their concern. But it's often not a big step. Who cleans our schools and hospitals, who does your nails, builds our homes and delivers packages to our front door? Do they get paid a decent wage or are they just a cog in a corrupt system?

Companies today face increasing risks and compliance with laws and ethical guidelines. As a result, companies need to look beyond documents and policies to support their employees in understanding what this means in practice for them in their day-to-day operations. Employees need the right tools to make ethical decisions - and there needs to be a culture that values openness and where employees know where to turn in difficult situations. This is something companies need to communicate and train on regularly.

Companies need to take responsibility for their actions - today more than ever. But above all, they need to ask themselves: what is the real cost of doing business?

Would you like to learn more about how you can increase employee awareness of compliance and ethical issues?  

Welcome to contact us and we will tell you more.

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