Discussion of the Meaning of a Business Collusion: Collusion as it Pertains to Business

A lack of integrity or a more serious breach in policy, practice or ethics in business becomes evident when collusion is unmasked. Collusion can have serious repercussions and tragic consequences for employers and employees.  

What is the meaning of collusion as it pertains to business?

Businessdictionary.com suggests the meaning of collusion is an “improper secret agreement between two or more entities, to defraud or deprive others of their property or rightful share, or to otherwise indulge in a forbidden, illegal, or illegitimate activity.”

In business, collusion can happen on a small scale or a larger scale that involves many people. Even a minor collusion can escalate out of control and cause major problems for a business. For example, disgruntled employees enter into collusion for a business take-over. Illegal strike action results in closure of the business, much to the dismay of the unsuspecting owner.

Severe disciplinary action is necessary when collusion becomes apparent in business.

Collusion of different kinds constitutes reason for dismissal, particularly if it involves ongoing criminal activity between entities. For example, income tax fraud, inappropriate issuing and endorsement of paychecks or signing of illegal contracts authorized in collusion can destroy the credibility of a business and permanently damage its reputation.     

  

Business ethics, principals and practice, do not allow for secret agreements or collusion by those intending to deprive employers, employees or others of that to which they are rightfully entitled according to legitimate business plans. At the same time, financial or other business indiscretions by those in collusion may be difficult to discern when there is corporate greed, coupled with fraudulent practices by CEO’s, legal teams, bookkeepers and accountants.

Secrecy is a sign of collusion in a business, as transparency in business practices is no longer evident. Investigation into collusion may reveal evidence of on-going phone tapping, fraudulent e-mails, video camera taping, misuse of smart phones, etc. or other fraudulent practices. Mismanagement of funds is relatively common.             

Collusion is seldom the same in all businesses, as those who operate with illegitimate principles and practices tend to seek different, forbidden levels of activity and seldom anticipate being exposed. If caught, they are likely to deny involvement in collusion with others.

Court cases and lawsuits often follow incidents of business collusion. Discernment reveals differences in interpretation of the law, for example, moral rights versus legal rights as they pertain to business.

On a larger scale, collusion occurs in business on a global level and many times with tragic consequences. While business owners are aware of the possibility of collusion in business in many different realms, effective measures help to ensure global business platform stability.