Explain how fraud is different from other types of ethics violations and detail the three factors that are present every time a fraud is committed. Additionally, explain the special role of management in a fraud situation even if the managers themselves are not consciously participating in the fraud.
What will be an ideal response?
Fraud is a particular kind of ethics violation in that its goal is an employee’s
personal enrichment. This enrichment is accomplished through use of the employee’s occupational role to misuse the organization’s assets. When fraud involves stealing from the company itself, it is called embezzlement. According to Steve Albrecht and detailed in his “Fraud Triangle,” three factors are always present when a fraud occurs: motive (or pressure), rationalization (justifying the fraud to oneself), and opportunity.
Opportunity is of particular concern to management because they have the most control over whether or not opportunity for fraud is present. If managers have failed to create an ethical culture through ethics training or failed to establish proper systems of detection and sanctions for fraud, then they bear some responsibility when fraud is committed by subordinates.
You might also like to view...
Why is the image of telemarketers more positive in business marketing than it is in consumer marketing?
What will be an ideal response?
Types of initiatives associated with public relations include all EXCEPT those that ________
A) focus solely on selling the product or service B) explain why people should think about an issue C) reinforce a company's reputation by showing the company's core values D) support causes in the public interest
Dan asks his agent Jude to drop off some medicines at his mother's house. On his way back, Jude decides to have lunch at a diner two blocks from his workplace
While walking back to work, he jaywalks at a green signal on the road, causing a motorcyclist to hit the curb and injure himself while attempting to avoid hitting Jude. Under the concept of ________, Dan is liable for the injuries caused to the motorcyclist. A) coming and going B) intentional tort C) frolic and detour D) dual-purpose mission
Alice was briefly married at the age of 16 . She is now 28 years old and plans to marry Henry. Henry's sister found out about Alice's first marriage and then told Henry's parents. Alice now wants to sue Henry's sister for public disclosure of private facts. Does Alice have a case against Henry's sister?
a. No, because marriage is a public and not a private fact. b. No, because telling Henry's parents is not sufficient publicity for public disclosure of private facts. c. No, because the statement is true. d. No, because marriage is a public and not a private fact, and because telling Henry's parents is not sufficient publicity.