Fraud in Family Businesses

This article is investigating fraud in Family Businesses in comparison to general businesses.
Fraud is an often occuring problem regarding internal corruption. It carries many risks for companies, especially family businesses.

Following an excerpt from the article:

...Family businesses often pose a greater risk of fraud because their controls over assets and data are inadequate. The family atmosphere often leads to more trust, which leads to less control over processes. Inadvertently, non-family members may be afforded the same level of trust given to family members.

About this blog

Corruption in Family Businesses

Family Businesses:     Less corruption based on exceeding trust and an intense sense of responsibility?

This blog is dedicated to the complex impact of corruption and moreover to the correlation between corruption and family businesses.

The idea is to investigate corruption in family businesses regarding internal and external spheres of activity. Generally this denomination is used for police corruption. In this case it seems adequate to use the terms for economical corruption in the same sense.

Mentioning internal corruption we are talking about fraud and abuse of position and power inside the enterprise with no direct effects to the environment.

External corruption in contrast means the relation based on corruption between the company and the environment. In the majority of the cases this topic will probably lead to political corruption.

An interesting issue will be the inspection of the differences between corruption in developed and emerging countries. Especially Asian markets seem to have a huge potential for corruptive behavior, mainly including governments, thus external corruption.