Question

Why even with all corporate controls, firms still experience frauds and unethical behavior from employees. Explain reasons from employer perspective and explain reasons from employee perspective?

Answer 1

Even with all corporate controls, firms still experience frauds and unethical behavior from employees and there are various reasons behind this:

Reasons from Employer perspective :-

The working Environment of the firm : Sometimes top management tries to post strict rules and regulations on employees to follow ethical behavior and because of this employees started doing unethical practices which are against the companies policies.

If the management does not act as per their commitments: It is but obvious that the management make many promises to employees for getting the work done and when the work is completed they forget about it. This will demotivate the employees and they start disobeying their seniors and also make complaints to their colleagues.

Sometimes the higher authority ask employees to commit fraud and they are not in the situation to deny for it and started doing fraudulent things for them and after sometime they commit frauds on their own.

Reasons from Employee perspective :-

Money : Some employees commit fraud to earn more. They start doing theft in the organization for their own benefits and encourage others also.

Competition among the employees : This is also one of the major cause of unethical behavior. To get higher positions and promotions in the organization employees started doing manipulations to show that their performance is better than others and because of this the ultimate loss is to be bear by company.

Doing other works in the working hours of company : If the colleagues are doing some other work in their office time this will encourage others to earn more by giving same time and earning more but this is against the ethical behavior of the company