Fraud Examination
Fraud Examination
5th Edition
ISBN: 9781305079144
Author: W. Steve Albrecht, Chad O. Albrecht, Conan C. Albrecht, Mark F. Zimbelman
Publisher: Cengage Learning
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Chapter 4, Problem 1DQ
To determine

The creation of a culture of honesty, openness, and assistance in organizations.

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Answer to Problem 1DQ

To encourage the development of a culture of honesty, openness, and assistance in organization. Organizations should hire ethical individuals as the workforce, creation of a positive environment and implementing necessary employee assistance programs.

Explanation of Solution

Organizations hire ethical employees with good code of conduct by thorough background verification. The recruiters of the organization should be provided with proper training in hiring policies and practices for hiring ethical individuals for employment. Organizations should recruit employees, affirming the matters set in the resume and job application are true. Such affirmation should be received in writing from employees and by accepting the terms of termination if any falsification of information in the application and resume. The recruiters should cross-check the employee credit information and other law enforcement records for any civil or criminal records. Implementing such ways of recruiting help organization to promote the culture of honesty.

Recruiters should educate the employees with acceptable and unacceptable work ethics. Organizations should provide a code of conduct of the organization to every employee and make them aware of it. Openness is created in organizations by allowing employees to walk and talk to any person in an organization without any set of rules. Showing positive and transparent corporate practices can create openness in organizations.

Implementation of assistance programs can be done by organizations for dealing with employee health, financial and relationship problems. Assistance can be created in an organization by providing legal assistance, financial assistance, wellness centers, conflict resolution, assessment and counseling centers for employees.

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