Fraud and Corporate Governance

In my opinion I would have to agree with this statement as a lot of research shows that if the leaders of a company are seen to do a task in an unethical or improper matter then it is seen as ok by others in the company ("Fraud, ethics and corporate governance - Dean Newlan | Insights Vol 12 - Nov 2012 | Faculty of Business and Economics | The University of Melbourne", 2016). This is similar to when I started my first job when I would see something some senior staff member doing and just assume that it was normal procedure until the next shift when I was told that I shouldn’t being doing that and it could get me fired if I wasn’t careful.

Similarly if there is a lack of promotion opportunities or discrimination over promotions, senior figures that see themselves above a company’s standards or short term goals in a hostile work environment then these can have a negative influence on employees and the corporate culture inside of a business and can create a toxic environment from which to work.

One of the best policies to prevent this sort of activities is to set out clear code of conduct that is included in the employee’s contract. This should include standards that are based on honesty, integrity and transparency. These standards should be enforced consistently and need to apply to all employees regardless of their hierarchy in the business (Dunkle, 2015).

References

Fraud, ethics and corporate governance - Dean Newlan | Insights Vol 12 - Nov 2012 | Faculty of Business and Economics | The University of Melbourne. (2016). Insights.unimelb.edu.au. Retrieved 27 May 2016, from http://insights.unimelb.edu.au/vol12/08_Newlan.html

Dunkle, R. (2015). Fraud Prevention Keys | Corporate Governance | Whistleblower Hotline |. Redflagreporting.com. Retrieved 27 May 2016, from http://www.redflagreporting.com/keys-to-preventing-fraud/