Whats it called?

[NickFitz]

Is the word you're thinking of nepotism?

No. Nepotism is "the practice among those with power or influence of favouring relatives or friends, esp. by giving them jobs."

ORIGIN mid 17th cent.: from French népotisme, from Italian nepotismo, from nipote ‘nephew’ (with reference to privileges bestowed on the “nephews” of popes, who were in many cases their illegitimate sons).

[Peoplesoft bloke]

Is the word you're thinking of nepotism?

[NotAllThere]

Let's just say that strong banking secrecy laws help considerably.

[oracleslave]

But given that that country has the highest level of executive fraud in the world, it isn't surprising.

Where's that then?

[expat]

US Govt. Halliburton.

[NotAllThere]

I'd go for fraud, if it could be demonstrated that he knew he wasn't getting the best possible price. He's defrauding the shareholders.

Once upon a time, a group of consultants working for a large consultancy, set up on their own. Their former manager didn't join them; instead he got a permie job in a large company, and recruited his ex-colleagues as the new consultancy partner. The manager himself did not have shares in the consultancy, but his wife did.

He started making sure that the consultants got the better jobs than the permies, but over-reached himself, and had to move on... to another large company in the same industry, that were just starting their global implementation project, as head of that project. Of course he took his consultancy across with him.

Little by little, he bought more of them onto the project, got rid of anyone who was a threat to his empire, and promoted the consultancy employees to the detriment of his own employers staff. As time progressed, he arranged for individual consultants to become permies in key positions within the host company. They also remained shareholders of the consultancy.

Eventually, it became so blatent that the executive had to take action, and, once the "hugely successful" project was over, he was transferred to another position without responsibiltiy, and a few months later, he quietly left.

The consultancy were bought out, but the chief players remain partners and/or shareholders in the new. The moles who remain in place have now negotiated a two-supplier only consultancy agreement. Guess who one of the consultancies is?

This is absolute, total criminal fraud, under the laws of the host country. But given that that country has the highest level of executive fraud in the world, it isn't surprising.

[BrilloPad]

I'm stumped trying to think of a name of a certain bit of business malpractice.

Someone within a large organisation sets up his own company which acts as a supplier to the organisation he's working for.
He then channels as many purchases as he can through his own company, adding a bit of markup and so making a bit on the side.

Whats the specific name for that?

I think fraud. Seen it happen once at a bank - director sacked immediately. He got another job at another bank - the first bank told them what happened in revenge.

Last I saw he was on tomorrows world promoting his rubbish FX price prediction program. No wonder the series ended if they had charlatans like him on.

[Spacecadet]

It's not specifically illegal afaik but it may well be in breech of the main co.'s terms of business / terms of employment.

Depending on the business sector there may be issues with competition/tendering rules which might tip it into illegality but thats all I can think of.

I think it falls under conflict of interest which, as you say, has no specific law against it.
However I think there is some case law which isn't exactly favourable

Anyway, i'm more interested in knowing what the practice is called

[DaveB]

It's not specifically illegal afaik but it may well be in breech of the main co.'s terms of business / terms of employment.

Depending on the business sector there may be issues with competition/tendering rules which might tip it into illegality but thats all I can think of.

[malvolio]

I'm stumped trying to think of a name of a certain bit of business malpractice.

Someone within a large organisation sets up his own company which acts as a supplier to the organisation he's working for.
He then channels as many purchases as he can through his own company, adding a bit of markup and so making a bit on the side.

Whats the specific name for that?

Virgin / Ford / GEC ....

[TykeMerc]

It's damn close to Embezzlement. (spelling suspect but CBA to check)

[pmeswani]

It's certainly a conflict of interest but can't think of a specific name other than corruption.

Deception?

[oracleslave]

It's certainly a conflict of interest but can't think of a specific name other than corruption.

[Spacecadet]

I'm stumped trying to think of a name of a certain bit of business malpractice.

Someone within a large organisation sets up his own company which acts as a supplier to the organisation he's working for.
He then channels as many purchases as he can through his own company, adding a bit of markup and so making a bit on the side.

Whats the specific name for that?