Published on International Ant-Corruption Day 9th December 2024.
Title: The Dark Side of Events: Navigating Corruption and Risk Management
Author: William O’Toole
Publication date: December 2024
Description:
The events industry is a multi-million dollar fast-moving industry, ergo it is a key target for corruption. With multiple revenue sources, complex logistics, a strict deadline and the need for quick decision making, it is vital the organisers are fully aware of all ways and means events can leave themselves vulnerable. This new volume from William O’Toole , takes the reader through all the stages, identifying the ‘weak spots’ and opportunities, and advising how to identify and prevent corruption. His core thesis is that mega corruption is empowered and accepted when petty corruption abounds. Addressing the mega corruption of mega events, without minimising the smaller and highly distributed petty corruption, is less than a band aid. He believes preventing corruption in events is a matter of ethics from the ground up. Laws and compliance are necessary, but ultimately it depends on people, on trust and integrity.
The Dark Side of Events applies the advanced tools of risk management found in the International Standards ISO 31010, 31000, 37001 to the prevention of corruption in events and includes a schema on how the text can be used as a training manual, teaching textbook and guide for events and event teams. The final chapter includes an ‘exposure to corruption assessment’ table. This provides events with a series of questions to assess their exposure to corruption. It will rate the event and event organisation and can be used in event tendering (bids) and proposals. International legal standards now increasingly mandate that major corporations, including event sponsors, exclusively engage in business relationships with companies that have established anti-corruption policies.
Written in a clear and user-friendly style, each chapter is designed to explore different aspects of the event process and where to be aware of risks of corruption. With over thirty real stories and examples from around the world, the reader will be fascinated by the depth and breadth of this dark side of events
Please leave any stories in the comments, or contact me on email events at epms.net
As a conference and music festival owner,operator and as events management for clients, there are varying degrees of ‘bribes’ depending if the client/owner is a government agency or a private driven event organiser. In some contexts I find that we tend to make way or give in to subtle bribes purely because it is seen as the right lobbying activities in lavish dinners, gifts or even allowing conflict of interest or nepotism get in the way. We get lost in the business of event planning and management and can easily see this as the way to get things done faster. Straightforward bribery such as commisions and incentivised trips (guised as ‘work trips’ to study other similar type festivals or events) can seem as part of the practise in some cases,especially in Asia maybe. All the types of corruption you have listed in your book is happening and I have come across incidents of this ,be it in the form of any of the above. My view is that client signs a mutual anti-corruption agreement holding both parties to the agreement and likewise event management company and event organiser signs such same agreements with their suppliers and or distributors. The corruption chain is long and will reach from top right down to the lowest levels. But nipping that in the bud will be the organiser/owner/government agency/association to take the lead with the event management company.
Thank you Gracie,
It seems that the mutual agreement is coming. Also it seems logical that the companies and teams with a clear an anti-corruption policy or code of conduct are the event companies a Government would want to hire. One reason, in other industry sectors, that you hire a member of the industry association is that each member must follow a ‘code of conduct’. This may not be perfect, but it reduces the risk. I am not aware of this in events, but I am certain it will need to happen. Bill
I previously worked at a………. as the Events & Operations Coordinator. My predecessor was old school and everything seemed to through paper more than digitally. As I was look through the boxes and boxes that she left behind and trying to match the paper trail to the event, I noticed some contracts were not signed at all, some were partially signed, some had no proof of insurance (which was a requirement), some I could only find partial payment for but find no proof of voiding any sort of payment. I also found checks that had been sitting in boxes for over a year. At one point I was dealing with a group that had to be rescheduled to COVID-19 and I had found a receipt, but based off the date could not determine if it was a deposit or the rest of the payment from a different year. When I called the accounting office, and asked if I gave them the name of a group could they send me all the payments they had so perhaps I could piece together what the payment was for accounting said, “Oh, we don’t have that information.” Really Accounting you don’t know who has paid you and for when and what services. While I may not be an accounting expert isn’t that your job. I found out later that my predecessor was part of a group that was nicknamed “The Untouchables.” Apparently the …….. at one point had to lay a bunch of people off and instead of laying those who were newer they laid off the older people which my predecessor was one of. This group then sued the………and won and was brought back to their jobs and paid I think whatever they were not getting while they were laid off. So then from now on, they were know as The Untouchables so basically they could do whatever they wanted without any sort of consequences. What she was doing I have no idea, but at least with the information that I could piece together at first glance I would think she was stealing from the ……. On top of that when I was sending payments to accounting, at first I was never told what my department’s accounting information was nor that I had to break it down to the various departments of: facilities/custodians, …. police, and parking. While my original supervisor tried to claim that was not true, I found that hard to believe as even our main points of contact did not know their own department’s accounting information so how was I supposed to send money to departments for whom I did not have their account numbers. Which begs the question while my predecessor was there what happened to the money that she did collect?
Thank you Katie,
The formation of mini kingdoms ( the Untouchables) within a company and bureaucracy is inevitable if it is not seen as a risk. The corralling of information and keeping it secret is part of the process. It makes the group indispensable to the functioning of the organization. It was interesting what happened after, as the company does not want any one to know. BTW I have edited your post to make sure there are no issues. Thanks again. Bill
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