Telltale signs of a possible ethics scandal

BVWireIssue #184-4
January 31, 2018

When doing a company risk analysis, it would be helpful to know whether the organization is at risk of making headlines for corruption, fraud, or some other ethics violation. An article in the Harvard Business Review examined the thoughts of almost two dozen different experts to come up with certain conditions that make a company susceptible to ethical violations. One red flag is an overall atmosphere of urgency and fear, in which employees need to do whatever it takes for the company to survive (including maybe fraud). Another is a corporate culture of "success equals impunity," meaning that, when success is achieved through less-than-legitimate means, others in the company think the results justify the unethical behavior. These types of things could create a ticking time bomb.
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