Business Ethics Current Event – Article Example
Business Ethics Current Event Fraud’s Triangle of motivation communicates an unshareable need, which arises withinan individual’s life. It has been argued that this one of the areas of the Fraud’s triangle that an organization has least, if any, control over as well as being the most difficult to access and offer. This need can arise from a wide range of things from ordinary and common life issues to ones that are more nefarious. With increases in that need in an individual, the risk of the person acting in contrary to an organizations policies and code of ethics also increases.
The problem with the motivation factor in the Fraud’s triangle results from the need perceived by employees as being unshareable. In recent times, such things as changes in finance terms can cause embarrassment and prevent an employee from sharing their hardships with their employers. There are varieties of things that can motivate people to violate ethics policies or commit fraud. Such include, a corporate controller taking part in an extra-marital affair, sales representatives being affected and infected with AIDS, sales person being addicted to heroin and a chief operating officer being blackmailed among others.
Depending on the laws as well as policies within an organization, email and internet use could be monitored, which could bring issues that could affect a person’s motivation. Another way that motivation factors can be monitored is through those employees with supervisory responsibilities receiving training about the Fraud Triangle. This helps raise supervisory awareness for the commitment of fraud for an organization to address the problem. Consideration of the Fraud Triangle’s motivation factor is also important in helping an organization prioritize identified compliance risks.
Hanson, John. Incorporating the Fraud Triangle into Compliance Risk Assessments: The “Motivation” Factor. Retrieved on 21st April 2012 from http://www.corporatecomplianceinsights.com/incorporating-the-fraud-triangle-into-compliance-risk-assessments-the-motivation-factor/. Print.