Question

Unfortunately, there are many examples of supply chain fraud, corruption, counterfeiting and theft. Find an example in an article, and:

• Describe the circumstances, and

Explain the impact on the company, employees, community, environment, etc.

Again please provide an example in an article. and please link it.

Answer 1

1.Circumstances:

Today, in a complex business scenario corruption is at peak. Since to conduct any business we need to enter various contracts with diversified people to outsource the work, vast computer networking software’s installation etc.

Unfortunately, People involved in supply chain and the IT which is meant to secure the data, can cause a great loss to a firm due to leakage of information.

When we involved third party for the supply of our product, this may indulge in risk of theft, tempering with our products, replacing products, etc.

Supply chain is very vast and broad to measure the fraud that may happen over time.

2. Impact on the company, employees, community, environment, etc.

Employees are inner side of the corporate. This type of fraud may affect their performance level and interest in performing well. Company reputation, Goodwill will be demolished when fraud cases come out in the market.

Community and environment demands Corporate social responsibility from the business. These kinds of frauds may impact them badly and leave bad impression and loss of trust.

Corruption and frauds affect the customer base of any organization which ultimately results in financial loss to the Company.