For many organizations, “getting it right” or “getting it wrong” is a matter of survival. This study talks about the issues like, ‘organisational fraud’, ‘ethics’ & ‘empowerment’ in an organisation and their relation to standards of good behaviour in order to explore various ways in which occurrences of ever increasing frauds can be checked. Organisational Fraud can be perpetrated by those outside an organization (“third parties”), by employees, or through the collusion of employees and third parties. Numerous surveys in recent years have reported that the majority of fraudsters are employees, with more than half of these being from management grades.
With just one fraud Blue Chips turns into potato chips!!!!!
While saluting the rags to riches (and now riches to rags?) stories of organizations, we must also remember that for a Public Ltd Co., the stakeholders interests are foremost, not just shareholders. There must be more transparency between the management and employees and also the clients and the general public. Something of this sort happened with Enron and its Auditing firm "Arthur Anderson", now Accenture. They used to say ' you can teach Accountancy to an honest person but not honesty to an (dishonest) Accountant'.
"You can fool some of the people all the time; All the people for some of the time but not all the people all the time" - how true!!!!! Table of Contents
OBJECTIVES OF STUDY
3.1 Types of fraud
3.2 Legal Elements of Fraud
3.3 How big is the problem?
3.4 Who are the perpetrators?
3.5 Why do people commit organizational fraud?
3.6 Red Flags of Organizational Frauds
3.6.1. Structural red flags
3.6.2. Personnel red flags
3.6.3. Operational red flags
3.6.4. Accounting system red flags
3.6.5. Financial performance red flags
4. ESSENTIALS OF ORGANIZATIONAL FRAUD
5. SATYAM SCANDAL
5.1 Lessons for HR Professionals
5.2 Lessons for India Companies
6. ORGANISATIONAL EMPOWERMENT
7. RISK OF FRAUD IS LESSENED IN EMPOWERED ORGANIZATION
8. IMPACT OF FRAUD
8.1 Macroview – Impact on Organization
8.2 Microview – Impact on employees not involved in fraud
9. ORGANIZATIONAL LEADERSHIP
10. FUNDAMENTAL PRINCIPLE OF ORGANIZATIONAL GOVERNANCE
11. FRAMEWORK OF GOOD ORGANIZATIONAL GOVERNANCE
12. WHAT CAN ORGANIZATIONAL GOVERNANCE DO?
13. COMMON SENSE APPROACH TO EFFECTIVE ORGANIZATIONAL GOVERNANCE
14. ISSUES OF ETHICS AND MORALITY
15. ORGANIZATIONAL LEADERSHIP AND CULTURE
15.1 Organizational Fraud Triangle
15.2 Lessons for Managers
16. HOW TO PREVENT FRAUDS
17. ROLE OF HR IN REDUCING ORGANIZATIONAL FRAUDS
LIST OF ABBREVIATIONS
|FBI |Federal Bureau of Investigation | |KPMG |Klynveld Peat Marwick Goerdeler | |OF |Organizational Frauds | |USA |United States of America | | | | | | | | |...
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