3.2. What impact does corruption and fraud have on the Community​

Explanation:

The impact of corruption goes beyond the corrupt individuals, the innocent colleagues who are implicated, or the reputation of the organisations they work for. Ultimately, Victorians are the ones who lose out.

Corruption erodes the trust we have in the public sector to act in our best interests. It also wastes our taxes or rates that have been earmarked for important community projects – meaning we have to put up with poor quality services or infrastructure, or we miss out altogether.

It is in everyone’s interest to report corruption and misconduct.

Organisational impacts of corruption

financial loss

damage to employee morale

damage to organisation's reputation

organisational focus and resources diverted away from delivering core business and services to the community

increased scrutiny, oversight and regulation.

Individual impacts of corruption

disciplinary action

termination of employment

criminal charges

may affect relationships with family, friends and colleagues.

Community impacts of corruption

wasted taxpayer funds

loss of goods and services

lower community confidence in public authorities

disadvantage to honest business that miss out on government contracts.

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