In: Accounting
What additional or meaningful response do you have on this student's paragraph below about characteristics of a person likely to perpetrate a large fraud, debated his decision over person with these characteristics, and gave reasons why a person is likely to be a fraud perpetrator than person with different characteristics? This is based on Chapter 14 in the textbook called "Fraud Examination" by Steve Albrecht.
After looking at the various fraud statistics, people who are most likely to commit large-scale fraud are employees who have the following characteristics: They have high positions within an organization, ambitious workers, greedy, and lack moral integrity. According to our text, "the size of the loss caused by occupational fraud is strongly related to the position of the perpetrator." This suggests larger frauds are committed by people in higher positions. These people understand company better; they are in better position to exploit weaknesses and cover their wrongdoing. In the same section, our text states that "one of the most common rationalizations for misconduct is a 'whatever it takes' attitude to meet strategic goals and objectives." This suggests fraud perpetrators are ambitious where they work hard to meet goals and objectives and will stop at nothing to reach them. At the same time, it suggests they lack moral integrity. Their ambitions are obviously stronger than their morals. They are willing to do something they know is wrong - to lie, cheat, and manipulate numbers for example - in order to be successful. By cheating to meet their goals and objectives it shows they are, at least partially, victims of the high-pressure, eat-or-be-eaten corporate environment. Maybe if they don't meet their objectives they will be fired and replaced by someone who can. At the same time, they are motivated by greed, because by meeting company goals they are most likely rewarded with bonuses or commissions.
Professional ethics in workplace and factors influencing ethical behaviour at work is an additional response i have to the students paragraph. Lacking professional and ethical behavior can be noted as a major characteristic of a person likely to perpetrate a large fraud,
Professionalism and ethics in the workplace are the guiding principles that an individual or the company has established. Being a professional requires more than wearing a nice suit. It requires ethical behavior that drives interactions with other employees, customers and leadership. It also guides how someone performs there job. Ethical behavior guides whether someone will perform minor infractions if one feels no one is watching.
Rather than how the student quoted the characteristics of a fraud perpetrator in the paragraph as people who are most likely to commit large-scale fraud are employees who have the following characteristics: They have high positions within an organization, ambitious workers, greedy, and lack moral integrity. it shall be better if it's said like fraud perpetrators in an organization are people who lack moral integrity and professional ethics. and many times those are employees who have high positions within an organization, ambitious and greedy workers.
the characteristics of being a fraud perpetrator can't be counted as person with different characteristics because when personal interest, career goals and objectives collide with that of organizations the means of achieving the same will rather keep the companies reputation and goodwill at stake.
high-pressure, eat-or-be-eaten corporate environment can be counted as factors influencing ethical behaviour at workplace.
In short Ethical/ Unethical choices in workplace can be said as a combination of individual standards and values, influence of peers and those in authority, codes and compliance requirements.