The word “illicit” is often thrown around in business conversations. But what does it really mean? In the simplest of terms, it’s anything that is “unlawful or unauthorized.” It’s a word used to describe activities that are deemed illegal or unethical by society.
In reality, the definition of illicit is broad and changes as social norms and laws evolve. It can refer to activities that go against established laws in the workplace, such as kickbacks or violations of antitrust legislation. It also applies to activities that would be considered immoral or unethical in certain circumstances, such as insider trading or bribery.
What is perhaps most noteworthy about illicit activities is that they are often hidden, revealed only after scandal or criminal proceedings. This makes it incredibly difficult for law-abiding business professionals to identify these activities and means that illicit activities often go unnoticed by authorities until significant damage has been done. This means that it is critical to be vigilant in monitoring workplace activity to ensure that laws and social standards are being followed.
Examples of Illicit Activity in the Modern Business Environment
The modern business environment is rife with examples of illicit activity. Coercion and proprietary information violations occur frequently in the tech and pharmaceutical industries. In other industries, bribery and compliance violations represent major issues. Even in seemingly innocuous areas, such as travel expenses, inappropriate reimbursements and violations of industrial safety laws can lead to serious legal and financial penalties.
In addition to direct violations, companies and individuals wishing to avoid illicit activities must also be aware of potential conflicts of interest. Especially in high-power industries like politics, finance and media, relationships can quickly become quite convoluted. Greed and ambition can lead to decisions being made in bad faith, and that is why transparency is so important. Intentionally or not, involvement in illicit deals can destroy a person’s reputation and career.
Consequences of Illicit Activity
The consequences of illicit activity are severe. In many cases, criminal penalties will be levied on individuals who are found to have committed illegal acts. Companies may also face heavy fines and other civil penalties, and certain segments of the population may be subject to additional sanctions, such as criminal prosecution.
Beyond legal implications, companies and individuals may also face severe public and professional backlash as part of the fallout of illicit activity. Reputations can be ruined and, in some cases, businesses can be forced out of business due to the damaging impact of an illicit scandal.
Identifying and Limiting Illicit Activity
Clearly, avoiding illicit activities is in everyone’s best interest. Adherence to ethical and legal principles should be top of mind for all business professionals, and continual education and vigilance is necessary to ensure proper conduct. Participating in activities which are unethical or illegal can lead to consequences which may be costly for the individual and the organization.
Organizations should also take steps to ensure that illicit activities are being identified and reported. This means establishing robust accountability and reporting mechanisms from the upper ranks of the organization all the way down. These systems should be regularly tested and monitored for effectiveness. Doing so can help identify and stop any activities that may be considered illicit in the workplace.