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In: Accounting

Prepare short analysis report of maximum 2 pages ( 500 - 1000 words ) according to...

Prepare short analysis report of maximum 2 pages ( 500 - 1000 words ) according to the following case study . Read the case study and answer the questions :

Aamod was born in a small rural village in Bangladesh . He spent his childhood years looking after his family ' s livestock . The community upheld high values , such as honesty and respect , but the people were desperately poor . He realized that he would have to go to Oman and apply for a job at a construction company . As a young man , Aamod left his village in the mountains and took on the difficult job of getting to Oman . He went in search of one of his distant family members , who was working for a construction company near Sohar as a personnel assistant . He managed to find his relative , who managed to find him a job as a general construction worker and accommodation in one of the construction company ' s hostels . Aamod was dedicated to his work , and time passed quickly . Every month , he forwarded most of his wages to his family in Bangladesh . One day Aamod ' s family member called him into his office and informed him that he was due for promotion . He also told Aamod that he would be required to pay him 50000 TAKA ( about 200 OMR ) for his efforts . " This arrangement seemed strange to Aamod as he knew that it was not in line with company procedures . When Aamod asked about this , the personnel assistant replied that he had the authority to do so and that Aamod would not be promoted if he did not pay the 50000 TAKA . Aamod returned to his room and wrestled with the options before him . He had grown up with strong personal values , which included honesty and hard work , but his family needed the extra income . What was he to do ? After a restless night , he returned the next day to the personnel assistant ' s office and handed him the 50000 TAKA . He was immediately promoted , but he returned to his room with a troubled mind . A few weeks later , the personnel assistant was reported and investigated for fraudulent behavior . He was suspended from work , and the investigation revealed all his corrupt activities . The record he had kept on all employees who paid bribes to him was also found . All employees on this list were called in and charged with fraud . Aamod ' s name was on the list , and he was found guilty and dismissed from the service of the company along with all the others . Questions
1 ) Describe Aamod ' s personality and how the situation affects his personality to predict his behavior ?
2 ) What should Aamod have done differently ?
3 ) In what way could the construction company management have provided support to him prior to his wrongful act ?
4 ) How would you have acted had you been in a similar situation ?
Note : Each question carries 5 marks and will be evaluated based on originality , understanding of theory , use of examples and writing style

Solutions

Expert Solution

1.Aamod ' s personality-

Aamod was born in a small rural village in Bangladesh . He spent his childhood years looking after his family ' s livestock . The community upheld high values , such as honesty and respect .He had grown up with strong personal values , which included honesty and hard work

Aamod returned to his room and wrestled with the options before him . He had grown up with strong personal values , which included honesty and hard work , but his family needed the extra income . What was he to do ? After a restless night , he returned the next day to the personnel assistant ' s office and handed him the 50000 TAKA . He was immediately promoted , but he returned to his room with a troubled mind

2. Aamod should have complaint about this bribe to top management or to concerned Department as per companies policy.

3.

Clearly specify in the company rule book the implication if found committing a fraud. Ensure that employees understand them well. If needed arrange a training session that will help them get clarity. One can also establish a good communication channel for employees where they can file the report.

To start, many are conducting employee surveys to gauge overall sentiment on how employees feel about using their company's internal reporting mechanisms

How to Fight Bribery

Businesses need to develop corporate guidelines against corruption and bribery. These guidelines should clearly outline the workplace ethics. Corporate houses should ensure proper anti-corruption training for their staff.

If employees find that the organization and senior management are guilty of bribery, they need to alert the right authorities. There are organizations working to support and strengthen whistleblowers to report unethical practices at their workplace. Learning more about such support can help build courage to bring such practices to the limelight.

Auditor's are also appointed to report and investigate fraudulent behavior and corrupted activities or fraud.

Establish a Zero tolerance policy:

Clearly specify in the company rule book the implication if found committing a fraud. Ensure that employees understand them well. If needed arrange a training session that will help them get clarity.

One can also establish a good communication channel for employees where they can file the report. Assure them the information will be handled confidentially. It is wise to set up an anonymous phone service where employees are assured that their identity will not be revealed.

Employer options when theft is suspected:

Having strict internal controls help identify the fraud at the workplace and theft faster. When you find the culprit following actions can be taken

  • Send employee on a leave
  • Suspend the employee from work
  • Transfer the employee to another location
  • Terminate the employee, when you have solid proofs

4.I would have tried to bring the situation in front of Top Management or auditor's or to concerned Department as per companies policy


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