Trying the most complex issues
for over 30 years.

Trying the most complex issues for over 30 years.

Corporate malfeasance

In the case of most large corporations, you will inevitably have to deal with misconduct. As an executive, however, you need to be aware of the potential ramifications of this type of crime, how common it is and how it could be happening right in front of your eyes, and you may not know it.

Corporate malfeasance, under the umbrella of “white-collar crimes,” occurs when a business, usually through a business employee, commits a crime to benefit financially. The gains can be personal or for the company. These illegal gains are unlawful and can cost you and your company’s reputation and harm your shareholders and the company itself.

Examples of corporate malfeasance

Types of corporate misconduct include:

  1. Fraudulent reporting of the company’s finances to make it look like the numbers are different than what they are.
  2. Using company assets for unlawful purposes.
  3. Using insider information to buy or sell ownership in a company before it is public.

While corporate misconduct is common, it can be challenging to prove, and it can bring down perfectly innocent individuals. Because it usually happens at the very top of the C-Suite, individuals who commit these crimes typically have a long history with the company and are trusted individuals.

As hard as it may be, however, to discover that misconduct has occurred, you can mitigate the situation and prevent further damage to your company, investors, and employees, including a decline in the value of the company and the loss of public trust.