Many businessmen still regard the payment of illegal commissions as an accepted business practice. Illegal commissions refer to "undertable" kickbacks, which the recipient is not allowed by his employer to receive. These are different from legitimate business commissions which the recipient is permitted to receive under the terms of his employment, which his employer expressly approves of.

An example of private sector corruption is that of a purchasing manager in a private company who receives illegal commissions or kickbacks from suppliers. The duty of the purchasing manager is to source for and buy the best materials at the lowest prices possible on behalf of his company. If he accepts commissions from the suppliers for himself without permission of his company, he may place his personal interest above the interest of his company. His company may end up paying for inferior goods at higher prices because the suppliers will likely inflate their prices to recover the commissions they pay to the purchasing manager. This will ultimately increase the company's costs and lower its competitiveness.

Another example of private sector corruption is that of a bank manager obtaining kickbacks or commissions for granting overdrafts and other banking facilities without first checking the credit-worthiness of the applicant. This exposes the bank to unnecessary financial risks. Acceptance of illegal commissions would ultimately increase costs, undermine efficiency and tarnish the image of the companies concerned. More significantly, such unlawful payments in the private sector will adversely affect investors' confidence in Singapore as a major commercial and financial centre.

Companies should lay down clear guidelines for employees in line with their policy on commissions so as to ensure fair and honest business transactions, thereby protecting the companies' interests.