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Home --- Topics --- August 2023: When corporate growth stops, fraud and scandals are likely to occur.

August 2023: When corporate growth stops, fraud and scandals are likely to occur.

Why do corporate fraud and scandals occur? Under what conditions are companies more likely to commit fraud and scandals? In fact, when the business environment becomes severe, corporate fraud and scandals are more likely to occur when growth stops. When the business environment suddenly becomes severe and growth stops and starts to decline, many companies think that there is nothing they can do and start making "bad moves". In some cases, managers themselves take the lead in fraud and scandals.

August 2023: When corporate growth stops, fraud and scandals are likely to occur.

If the business environment becomes severe, profits will be cut and sales will not grow. Sluggish growth in sales and profits is also a problem for business owners.
When management becomes difficult, managers get impatient, thinking that they have to do something about it. Of course, managers cannot afford to do nothing, so it is necessary to analyze the situation calmly and try various methods. It's just that there are not many managers who are panicked and act hasty. Some managers take actions that lead to dishonesty and scandals.
People are more likely to make mistakes when they are in a hurry. They are unable to analyze calmly and tend to take short-sighted actions.
When the growth of a company stops, it is important that managers do not forget to analyze it calmly.
Why did the company stop growing? "What are the factors behind this?"
Is the market as a whole shrinking? Are your competitors leveling up? Is your company inefficient? Are your salespeople de-motivated? Tired of your product or service? Are people's consumption behavior changing? Are you losing consumer confidence due to frequent quality problems and troubles? Is it not profitable at high cost?
If you calmly analyze why the company's growth has stopped, you will be able to see the measures to be taken. If you don't see what you should do properly and act hastily, it becomes easier for injustice and scandals to occur.
When the business environment becomes tough and growth stops, managers should calmly analyze and find out what to do.

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