In: Accounting
Why might some organizations push employees to behave in a dishonest or corrupt manner? Are there personal benefits to corruption that organizational culture can counteract?
Solution.Dishonest and corrupt operations in an organization result in unethical behavior on the part of the organization.These often arises due to the following enlisted reasons to push employees to behave in a dishonest or corrupt manner:
a.Greed- Greed of earning more profits can lead the organisation in investing for ways to earn more rather on service rendering efficiency. An organization will compare its employees in monetary terms rather than on their working morale or intelligence.This will lead employees employing unethical ways.
b.Reduction of time to process its activities-In the process of profit maximisation,a company can take more load of work then it actually can perform pushing employees to time pressure.Employees to meet its required target can indulge in corrupt practices.
c.Incapacity to differentiate between self and other- The process of maximising one's interests leads to alienation of employee's hardwork as they are not appreciated and remunerated fairly. This leads to lost of interest in working under norms and regulations and can bring corruption.
d.Setting of high targets- High performance pressure to overcome competitor's in an economic market to gain customers can lead to employees working in a dishonest or corrupt manner.
Dishonesty or corruption can be in any way in the form of lying,misrepresentation and fraud practices.
Organizational culture represents values,beliefs,assumptions and behaviors that regulate businesses in an environment.It recognises employee with their organization.Corruption will lead against one's proposed behavior under this.It will pull employees against their organisational expectations,experiences and perceptions.It will deem them to believe against workspace culture, way of treating and working with other employees and customers-person and market culture, restriction on freedom of developing and choosing fair ideas/business- adaptive and adhocracy culture, commitment towards goals/objectives and non involvement of leaders in case of unethical findings-task and clan culture.
Proper formulation,analysis of risks involved,launch and administration of anti-corruption program and reinforcement of rules and regulations can help an entity to avoid corrupt and unethical practices. Unethical behavior is a way of operating that society objects to.