Integrity in the Workplace

There is a common thread in all frauds, lack of integrity. The Merriam-Webster dictionary defines integrity as a firm adherence to a code of especially moral or artistic values. Integrity is tied to rationalization in Donald Cressey’s 1950’s hypothesis on why people commit fraud, later developed into what we now call the fraud triangle. The three key elements in the fraud triangle are opportunity, pressure, and rationalization.

The majority of today’s work force would agree that stealing $10,000 or even $500 from their employer is wrong. Where we have a disagreement are in questions like:

-         Is taking a pencil or pen home from work stealing?

-         Is taking an extra few minutes for lunch stealing resources from your employer?

-         Is using the internet for personal gain at work stealing resources?

-         Is padding your mileage because you hit traffic wrong?

-         Is using work resources for your own personal benefit ok?

I would argue 20 years ago the majority of workers would have said all off the questions above were some type of fraud. We live in a society where it is becoming more and more difficult to determine what is right and wrong. Looking into the future, defining what is wrong and right will be even more blurred for employees in another 10 to 20 years. In some aspects of society our moral base seems to be shifting, making it ever more important for organizations to have clear guidelines on values, integrity, and ethics.

What exactly does that mean for your organization? Fraud prevention will be key in preventing future losses caused by fraud. Your father’s and grandfather’s organizations may have had a higher moral standing which required less fraud prevention. We now need to educate employees on the exact guidelines of what is ethical and moral. Fraud prevention needs to be on the forethought for new projects and business opportunities in order to stop fraud before it happens.

If your organization would like to continue a discussion on this topic, or other fraud related topics, please email me at [email protected].