The Swedish telecommunications group Telefonaktiebolaget LM Ericsson (or Ericsson as most people refer to it as and how my spell checker prefers) is an incredibly successful organisation.
The group provides services, software and infrastructure in information and communications technology.
Oh, and they were also recently fined $1 billion to settle bribery charges.
The company was founded in 1876 by Lars Magnus Ericsson and now employs nearly 100,000 people and operates in around 180 countries.
Not all of these employees were ethical though and Ericsson’s Egyptian subsidiary recently pleaded guilty to conspiracy to violate the anti-bribery provisions of the US’s Foreign Corrupt Practices Act.
This bribery had been taking place for 17 years and was reported to have netted the group business worth more than $400m.
US attorney Geoffrey Berman was quoted as saying “Through slush funds, bribes, gifts, and graft, Ericsson conducted telecom business with the guiding principle that money talks.” He went to say “Today’s guilty plea and surrender of over a billion dollars in combined penalties should communicate clearly to all corporate actors that doing business this way will not be tolerated.”
The bribery took place in a number of countries. It appointed agents and consultants to bribe government officials in Djibouti, China, Vietnam, Indonesia and Kuwait.
One example of the techniques involved was in Kuwait where an Ericsson subsidiary agreed a payment of approximately $450,000 to a “consulting company”.
No consulting actually took place but a fake invoice for the consulting services was issued to Ericsson.
As a result of this payment, inside information about a tender for the modernisation of a state-owned telecommunications company’s radio access network in Kuwait was obtained.
The end result was that the modernisation contract, which was valued at $182m, was awarded to an Ericsson subsidiary. In return Ericsson paid the $450,000 to the consulting company and improperly recorded it in its books as consulting fees rather than as a bribe.
IRS Criminal Investigation head Don Fort was quoted as saying that “Implementing strong compliance systems and internal controls are basic principles that international companies must follow to steer clear of illegal activity. Ericsson’s shortcomings in these areas made it easier for its executives and employees to pay bribes and falsify its books and records. We will continue to pursue cases such as these in order to preserve a global commerce system free of corruption.”
https://www.theexpgroup.com/wp-content/uploads/2019/12/ericsson-bribery.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-12-09 21:43:002019-12-10 21:45:53Ericsson fined $1 billion for bribery.
One of the five fundamental ethical principles is Integrity.
Being straightforward and honest is a vital characteristic of being a professional accountant.
Most people who are studying for their professional exams have one thing on their mind. Namely, to pass their exams but four students who were studying for their ACCA exams had other things on their minds and at the same time, were not the brightest individuals out there.
What they planned to do was to register for some Computer Based Exams (CBEs) and then whilst sitting the exams they would use their mobile phones to take photos of the computer screen showing the questions. They would then sell these photos with the questions on them via the internet.
The four individuals involved, Chen Yiyun, Hiujiao Ru, Zehui Gong and Ziying Wang decided to sell the questions on Taobao Marketplace, a Chinese shopping website.
They no doubt thought that this was an extremely clever way of making some money. What could possibly go wrong by taking photos of the questions and then selling them online?
One of the other fundamental ethical principles is that of Professional Competence.
Now, if these individuals had even a minuscule amount of Professional Competence, they would have reviewed the photos before selling them.
Alas for them they didn’t review them.
If they had reviewed them, they would have seen at the top of the computer screen in the photos their ACCA student registration number and the exam centre.
ACCA were made aware of the questions being for sale and made a test purchase on the Taobao Marketplace. Given the student registration numbers were on the screen, they didn’t need a team of top detectives to identify the individuals involved.
Unsurprisingly, the four individuals are now ex-students of ACCA having been found guilty of misconduct and they were ordered to pay costs ranging from £3,500 to £7,000.
https://www.theexpgroup.com/wp-content/uploads/2019/11/ACCA-exam-cheating.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-11-28 22:38:372019-11-28 22:38:38Exams for sale....
Until recently, Steve Easterbrook was the boss of McDonalds. He had been with them for a long time having started working for them back in 1993 as a manager in London.
Mr Easterbrook no doubt had a lot of affection for the
company he ran but it turned out that he also had a lot of affection for a
colleague as he had started dating a lady who also worked for McDonalds.
Although the relationship with his colleague was consensual,
it didn’t go down too well with McDonalds.
According to the company, Mr Easterbrook had “violated company
policy” and shown “poor judgement” (by “poor judgement” I assume that refers to
him having the relationship rather than the choice of who he had the
Now, whilst some people may say that it was a consensual relationship
between two adults so let them get on with it, the key thing here is that it
was against company policy and the two people involved had agreed to the
company policy when they joined the firm so it’s a straight forward case of a
breach of that policy.
More and more companies are having either outright bans on
any relationships or are requiring individuals to disclose any relationships (I’m
not a legal expert here but it does raise some interesting questions as to what
is the definition of a relationship and how quickly after reaching that definition
you need to notify your employer – is it minutes, hours, days…).
Mr Easterbrook won’t be short of funds to carry on wining
and dining his new love as the termination package is pretty significant. He
earned nearly $16m last year and will receive 26 weeks of pay on his departure.
Bloomberg estimate that his total leaving package which includes
previously granted shares will be in excess of $37m.
That should buy a few romantic meals at Burger King for the
two love birds.
https://www.theexpgroup.com/wp-content/uploads/2019/11/McDonalds-boss-1.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-11-07 22:47:402019-11-29 13:34:10You can't McFlurry Love
Gone are the days when auditors were manually checking and ticking lots of pieces of paper. Today’s auditing techniques involve significant use of computers.
But how far can this computer use go? Will they be able to predict when accounting fraud is going to take place as opposed to tracking transactions that have already occurred?
The film Minority Report starring Tom Cruise was based around software that could predict when a crime was going to happen and the culprits would be arrested before they actually committed the crime. Although this film seemed well and truly within the realms of science fiction, two police forces in the UK have undertaken trials of a sophisticated computer software package which aims to predict where and when future crimes are likely to occur.
The software is known as Crush (Criminal Reduction Utilising Statistical History) and is used to identify potential crime hotspots based on a variety of data including crime reports, offender profiles and strangely enough even weather forecasts.
Once these upcoming crime hotspots have been identified then the police can allocate resources accordingly.
The system is produced by IBM and the UK tests are based on a successful roll out of the software in the US by the Memphis police force which resulted in a reduction of serious crime by 30%.
Back to auditing though and will the next step be predicting when a fraud is likely to occur using statistical analysis based on industry, profit movements, director’s personal life and spending habits (plus the weather of course)?
Given the reliability of some computers though, one thing for sure is that if you happen to live in a town called “Syntax Error” then you may have a surprise visit from a Tom Cruise lookalike with a briefcase and a calculator…
https://www.theexpgroup.com/wp-content/uploads/2019/09/robot-auditors.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-09-14 08:49:392019-09-30 12:27:22Will auditors become more like Tom Cruise in the future?
Does your weight affect the amount of money you earn?
That’s an interesting question and researchers from the universities of Strathclyde in Glasgow and Potsdam in Germany have come up with a potential answer.
They analysed data from nearly 15,000 working men and found that men within that the recommended Body Mass Index (BMI) health range earnt more than those who were outside of the range.
Individuals who were underweight on the body mass index were found to earn 8% less than those who were in the top end of the healthy bracket. They found that the effect was more prominent in manual jobs where no doubt the extra strength of the guys in the healthy weight bracket helped increase their earnings.
What was perhaps surprising though was that there was also a difference in earnings in white-collar office jobs. They found that in the more middle-class occupations the rewards peaked at a BMI of around 21.
It wasn’t just men who were impacted though. The study also looked at the weight and earnings of 15,000 German women and found that the slimmest earnt the most and the obese the least.
Jonny Gifford, of the Chartered Institute of Personnel and Development was quoted in the press as saying “it is depressing that, in this day and age, looks are in any way a factor in how much people are paid”.
I have to agree with him as organisations should employ people on the basis of their abilities as opposed to how heavy they weigh.
Anyway, best dash as I’ve got a packet of biscuits to finish…
https://www.theexpgroup.com/wp-content/uploads/2017/02/office-fitness.jpg433770Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-08-12 18:08:122019-08-17 22:03:02Pass the biscuits...
How many CEOs of top global companies were replaced last year?
Well, the answer may surprise you and what also may surprise you is the reason they lost their job.
PwC have been keeping track of the movements of the CEOs of the largest 2,500 global publicly listed companies since 2000 and the most recent data for 2018 has been released and it shows some interesting things.
In 2018 the number of departures of CEOs reached a record level with nearly 18% being replaced (up from 12% in 2010).
It was the reason for their departure though which raised some eyebrows.
CEOs can leave their jobs for a variety of reason and PwC categorised the reasons as planned (e.g. they were due to retire), forced (e.g. they did something a bit “naughty”) or M&A (e.g. they were no longer needed due to a merger or acquisition).
The latest split showed the 18% of departures as:
Planned – 12.0%
Forced – 3.6%
M&A – 2.0%
Digging a bit deeper though into the forced departures shows some worrying reasons.
Historically the main reason CEOs were forced out was due to poor results but for the first time the largest group of CEOs forced out was due to integrity reasons.
In 2018, 39% of those forced out were due to integrity reasons. Ten years ago in 2008 the corresponding figure was only 10%.
These integrity issues could include scandals such as improper conduct, fraud, bribery, insider trading, environmental disasters, misleading CVs, and sexual indiscretions, according to PwC.
So, in summary more CEOs are being fired and the main reason is integrity issues.
It’s always best to keep up to date with your tax affairs. Although most people don’t enjoy paying their taxes, it’s the law and if you don’t pay there can be serious consequences.
Over in Germany reports have emerged that make it fairly clear that you don’t mess with the German authorities when it comes to taxes.
An unnamed lady was behind in paying her taxes.
The authorities sent a debt collector around to collect whatever assets the family had to settle the tax liability.
According to the lady in question, two valuable items were identified.
One was the wheelchair of her paraplegic husband. Now, before even getting into the rights and wrongs of taking a disabled person’s wheelchair to settle debts, luckily for the family it was not an issue as it turned out that it was owned by a local association and was not the property of the family so the debt collectors couldn’t take it.
The authorities though have denied they tried to take the wheelchair and a spokesman said “Mobility aids for the disabled are absolutely exempt from being seized as collateral.”
One item though which was not exempt from being seized was the family pet.
Alas for Edda, the family dog, she was taken by the debt collector.
Edda is a pug and they are a pretty fashionable dog breed at the moment and the debt collector took the dog as settlement for the debt.
Edda was then listed on eBay and was sold to Michaela Jordan, a local police officer for €750 (approx. £650).
There’s a twist in the “tail” though in that the new owner has now sued the local authorities who sold Edda as apparently, she was advertised as being a healthy dog but has required veterinary treatment costing approximately €1,800.
We wish Edda well.
https://www.theexpgroup.com/wp-content/uploads/2019/06/Tax-collection.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-06-27 19:59:172019-06-27 20:01:00Dog seized to pay tax bill...
I’m all for equal rights in the workplace. It doesn’t matter whether you’re male or female. It doesn’t matter what the colour of your skin is or your religious preferences. The only thing that does matter is whether or not you can do your job.
Not everyone shares the same view though and in Russia, aluminium manufacturing company Tatprof is offering a bonus to its female employees if they wear a skirt and makeup.
Oh, and to get the bonus they have to send a selfie of them showing their legs and make up to their (mostly male) bosses.
The bonus is 100 Russian Rubles (approx. £1.25) and it’s been reported that 60 people have so far sent in selfies to get the bonus.
Some may say that there are 2 sides to the argument.
The first, and probably most obvious, is that this is a step backwards in the workplace. A person should be judged by their ability to do their job rather than what their legs and make up look like. It’s 2019 for goodness sake and not the 1950s.
A counter argument though was put forward by Anasasia Kirillova, who works for the company’s department of corporate culture and internal communications who said that “Many women automatically put on trousers, so we hope that [the campaign] will increase our ladies’ awareness, allowing them to feel their femininity and charm when they make the choice of wearing a skirt or dress”.
It seems the message is coming from the top of the company.
According to Ms Kirillova, Tatprof’s male CEO Sergei Rachkov “really wants to maintain the female essence in every female employee of the company, so that young women do not have male haircuts, do not change into trousers, so that they engage themselves in handicraft, project all their warmth into raising children”.
Now, I’m personally not convinced by this counter argument but what about opening up the bonus option to everyone in the company?
What about offering the bonus to men as well as women who send a selfie of themselves wearing a skirt?
https://www.theexpgroup.com/wp-content/uploads/2019/06/selfie-in-office.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-06-20 08:37:352019-06-13 11:43:21Would you send a selfie of your legs for a bonus?
Most of you have probably had an interview. In fact, some of you may have had a number of interviews but a boss of one of the top companies in Australia has recently disclosed a pretty unusual way of deciding who not to offer a job to.
Trent Innes, who heads up Xero in Australia said that he will greet the person when he or she arrives for the interview and then take them to the kitchen to offer them a drink before heading to the meeting room with the drink. Even if they aren’t tea or coffee drinkers they will generally walk away with a glass of water.
He explained in the Venture Podcast with Lambros Photios that after taking the drink back for the interview “one of the things I’m always looking for at the end of the interview is, does the person doing the interview want to take that empty cup back to the kitchen?”
He explained that what “I was trying to find was what was the lowest level task I could find that regardless of what you did inside the organisation was still super important that would actually really drive a culture of ownership.”
He went on to say, “You can develop skills, you can gain knowledge and experience but it really does come down to attitude, and the attitude that we talk a lot about is the concept of ‘wash your own coffee cup’.”
That’s quite a smart move by Mr Innes as he said that attitude was the most important trait he looked for when hiring people.
He said that “Especially in a fast growth company or a start-up environment or scale up environment – you need people with a really strong growth mindset and that comes back to their attitude.”
So, how many interviewees do you think offered to take their cups back?
Perhaps surprisingly, the number of people who offered to take their cup back to the kitchen was pretty high. According to Mr Innes only 5 to 10 per cent of the interviewees didn’t offer to return their empty coffee cup back to the kitchen.
So there you go. If you’re attending an interview and you go to the kitchen with the boss to get a drink, it’s probably a good idea to offer to take the cup back.
https://www.theexpgroup.com/wp-content/uploads/2019/06/coffee-interview-1.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-06-05 21:28:312019-06-05 21:28:32Best to take it back...
If you buy a Chelsea or Manchester United football shirt and it turns out to be a fake it can be annoying but if you buy medicines and they turn out to be fakes it could be a lot worse as it could kill you.
Illegal copies and fakes of products are one of the big problems facing businesses today (£300 billion is the estimated size of the global counterfeit market) but some scientists have recently developed what they believe could be a cheap solution to the problem.
The technology is currently being developed by a company called Quantum Base and in simple terms involves placing an extremely small microdot onto the product which gives off a unique light signature.
The microdot is really small and I do mean really small – it’s a tiny flake of atoms which is a thousandth of the width of a human hair. Not only will it be impossible for a human to see but it will be unique. The flake of atoms which will make up the microdot will be unique and cannot be cloned. They will be placed on the product at the production facilities and then the atomic structures will be recorded on a database.
The technique for preventing fake products is that when an individual buys a product such as medicine or designer clothes they can scan their phone over the label and an app on their phone will identify the light source from the atomic structure on the microdot and send it to the database to confirm whether or not it is on the database.
If it is on the database, it’s genuine. If it’s not, it’s fake.
An excellent way of identifying whether the product you are buying is real or fake.
As mentioned, the technology is still be developed and made ready for the market by Quantum Base but it looks very promising in terms of helping to eradicate the problem of fake products.
https://www.theexpgroup.com/wp-content/uploads/2017/08/counterfeit-goods-solution.png476847Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2019-05-30 09:22:192019-05-25 20:56:45Is this for real?
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