Tag Archive: Scandals Prevention

Ways to Prevent Corporate Scandals

It is pretty normal to find scandals amongst many corporations, even though there are instances where the staff and management had no idea that there was something building. This leads to loss of jobs and the fall of big corporations as the fraudsters do everything to cover their tracks. We therefore have to try and find ways to prevent scandals from happening, and that is what we are going to look at in this article.

How Scandals Happen

Scandals in businesses often kick off as something that is small, becoming progressively worse with time. A good example is if a co-worker overlooked a minor safety regulation but chose not to say anything in order to save face. In most cases, the minor safety regulation will keep getting worse with time but the co-worker will be afraid to say it because he over looked it right from the start. In the end, it will turn out to be a major safety regulation, and it will be too late to fix it. This is the same sort of thing that occurs with financial fraud and other wrong doing.

Reward Honesty

Rewarding honesty is one of the most effective ways of preventing scandals in businesses. It even works better than encouraging honesty. Many companies have policies where they emphasize on the code of ethics, but still pay and promote salespeople based on the sales figures alone or give bonuses to supervisors based on short-term profits without any other consideration. If the company’s incentive structure rewards employees who get results without considering how they do it, means that some employees can get those results using unprofessional means. Bonuses and performance reviews should be based on upstanding professional behavior as well as results.

Ways to Prevent Corporate Scandals

Changing the Culture

If you let the culture of dishonesty build within the corporation, chances are that it will be very difficult to root it out. You’ll find that even the honest employees will be under pressure to join in the dishonesty. In this case, one can encourage and reward disagreement. Let the employees know that it is not wrong to disagree with the management and with each other, and always be open to criticism and unpopular opinions. This will encourage the honest employees to speak up about any prevailing practice instead of turning a deaf ear and letting it build into a scandal.


Employee’s that have been honest in the past may be tempted to take shortcuts if he is under financial pressure. For example, a mortgage broker can assist a client to submit false documents for a home loan for the sake of getting a commission. To prevent such things from happening, one has to remove any possible opportunities by instituting a carefully planned set of internal audits and controls. Some companies require all major tasks to involve multiple employees, ensuring that neither employee is in a position to falsify the work without being observed.

Health Diagnostic Laboratory Patients Face Bills Years After Blood Work

We are now going to take a look at Health Diagnostic Laboratory, a company that went under and has since then been bought by True Health Diagnostics. True Health Diagnostics LLC is a diagnostics company that provides clinical laboratory testing services, diagnosing, managing, and preventing the progression of cardiovascular diseases, genetic disorders, diabetes, and other metabolic conditions. It offers early-stage diagnosis and monitoring services in the areas of cardiovascular disease monitoring, prediabetes and diabetes, pancreatic beta-cell function, genetics/DNA and pharmacogenetics/DNA, stress and inflammation assessment, hormones, and routine tests.

The company also provides personalized and nutrition consulting, such as individualized initial consultation; follow-up consultations; Webinars; personalized plans for healthy eating, activity, and stress management; guidance on navigating food allergies and intolerances; and weight management plans. In addition, the company offers laboratory management services to hospitals and hospital systems. True Health Diagnostics LLC was founded in 2014 and is headquartered in Frisco, Texas.

When True Health Diagnostics acquired Health Diagnostic Laboratory, HDL were going through some steep financial problems after a scandal erupted there. They were paying doctors illegally and when the scandal was unraveled, the company took a downward spiral. The sale by Health Diagnostics ends a decline that began with a whistleblower-based federal investigation into claims the cardiovascular testing laboratory, along with Singulex Inc. of California, paid physician’s kickbacks for patient referrals, according to the Department of Justice.


Scandals can be avoided, and the best way to do this is to follow the steps that are mentioned above. With the required measures in place, and tackling the problem from an early stage, this root evil can be avoided.