White collar crime can have a huge impact on the reputation of a business. Instances of fraud, bribery, and other types of corporate crimes can hurt the future of a company once the news breaks and loyal customers, vendors and trading partners hear about the situation.
This not only effects the success of the business, but also the job security of all employees involved if the business goes under. A recent story on CBC.ca summarizes a similar situation in Canada’s west end.
There were a number of cases of fraudulent activity in British Columbia’s Okanagan Valley. The article describes how the impact and resulting legal action into the cases of fraud left more than the parties involved shocked. Other partners of the business, as well as customers, and anyone else who put their trust in these businesses, felt betrayed, cheated and disappointed by the situation.
What does this mean for Ontario businesses? It means that a company may want to consider investing in some form of balance and checks for it’s processes. It may not be enough anymore to rely on the honour system to avoid fraudulent activity within a company.
However, as the article points out, preventing fraud doesn’t mean that you can’t trust your employees. It just means that a business needs to make it clear that it will make sure employees, and other parties it deems necessary, follow certain procedures that reduce the possibility of any fraud or other white collar crimes.
If you are facing corporate crime charges, or have questions about criminal law and corporate law, it’s best to speak to an experienced defence lawyer. He or she can analyze your situation, explain how the law applies, and what your legal options are to pursue a desirable outcome.