56.8 F
Washington D.C.
Thursday, September 29, 2022

Companies Need to Pay More Attention to Everyday Unethical Behavior

In the last two decades we have witnessed many large-scale corporate scandals –think Worldcom’s accounting fraud, Citibank’s near-collapse, Enron’s bankruptcy – in which pervasive rule violations by both managers and lower-level employees led to massive ethical meltdowns. These and other scandals have sounded the alarm on the need to monitor corporate corruption.

The typical response from policy makers is to propose a patchwork of reforms to address various corporate transgressions. These proposals have established requirements for more accurate reporting, criminalized financial misreporting, created independent monitoring bodies, and improved corporate governance practices. But by and large, they focus on preventing gross and blatant violations of the law – and they ignore the more banal, ordinary acts of unethicality that are far more common in organizations.

Numerous studies have documented the prevalence of practices such as stealing office supplies, inflating business expenditures reports, and engaging in behaviors that raise conflicts of interest. While these may sound negligible, these violations reduce trust over time and alter prevailing business and legal norms. Their aggregated effect can be quite harmful.

Read more at HBR.

Homeland Security Todayhttp://www.hstoday.us
The Government Technology & Services Coalition's Homeland Security Today (HSToday) is the premier news and information resource for the homeland security community, dedicated to elevating the discussions and insights that can support a safe and secure nation. A non-profit magazine and media platform, HSToday provides readers with the whole story, placing facts and comments in context to inform debate and drive realistic solutions to some of the nation’s most vexing security challenges.

Related Articles

- Advertisement -

Latest Articles