Question

Envision yourself as the CEO/President of an organization with full responsibility to the company, management, shareholders, creditors, regulators, and the general public. Develop a philosophy regarding internal controls for the organization. The polar extremes are 1) “Keep employees/management away from temptation”, whereby the internal controls are very well-defined, or 2) employees/management will follow the good judgment of their leader, whereby you set a good example and trust is the theme until employees do something to betray that trust. As you develop this philosophy, provide 10 examples (from issues in our chapters, fraud events in the news, to justify your philosophy.

Answer 1

My philosophy will be based on trust and ethical leadership. Employees are the most important assets of an organization. It is very important to put your trust in them and also earn their trust and respect so that they put their hearts also along with their mind at work which leads to enhanced productivity. You don't have to be strict and controlling in order to get the work done because that way, it builds frustration and stress at work which hampers productivity of employees. My idea is to motivate and encourage employees to bring out the best in them and empower them to try out their ideas and creativity. Building trust is very important and that happens by being transparent, fair, and compassionate towards them. Not many leaders follow this approach, but those who do, are much respected and loved. They are the ones who can overcome biggest business problems because their employees are their sstrength.The revolutionising leaders like Sundar Pichai, Mark Zuckerberg, Indira Nooyi, Bill Gates etc. follow a similar philosophy and took their respective organizations to another level of heights. They succeed in building strong and enduring relationships with their employees and hence a very strong reputation for their organization.