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Fraud Exprosed Whot you Dont Could Cost your company millions - Joseph W.

Joseph W. Fraud Exprosed Whot you Dont Could Cost your company millions - Wiley Publishing, 2003. - 289 p.
ISBN: 0-471-27475-5
Download (direct link): fraudexposedwhatyoudont2003.pdf
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Schon’s formulation has antecedent roots in an intelligence concept called “news content analysis.” During World War II, British intelligence services placed a high premium on getting their hands on every newspaper they could find from enemy and axis countries. They studied these newspapers avidly to make predictions about what was happening in those economies and societies. Their theory was brilliant in its simplicity. They understood that editors were not only in the business of correcting style and spelling, but also functioned as filters. In this role they literally decided what was news and what was not. For every story printed there are dozens that are discarded. Thus does the editor make informed judgments about what is important in that town, region, or country. While their individual judgments may be flawed or skewed, cumulatively dozens or hundreds of editors produce an accurate portrayal of a society and its issues. Thus is the power of the press. One may like it or dislike it, but it is true, and the insightful advocate of any issue is well advised to be aware of it.
Even press exposure may not be a permanent panacea. Columnist Jonathan Alter recently wrote of the events of 9/11, six months later:
Some days, the country seems to have changed little. After a brief surge, recruitment figures for the armed forces and community service are up only slightly.... Getting hassled at the airport, once a gladly fulfilled patriotic duty, is growing tiresome____Buying habits,... changed almost not at all.16
Joseph S. Nye, Jr., Dean and Don K. Price Professor of Public Policy at the John F. Kennedy School of Government at Harvard, Former U.S. Assistant Secretary of Defense for International Security Affairs, and Former Chairman of the National Intelligence Council, spoke to these issues at a conference sponsored by that university in May 2002. He commented on the vicissitudes of public opinion and of the need for senior politicians and policymakers to seek to craft a sustaining level of public support for a counterterrorism effort that might last years, if not decades. Although he did not mention Edelman or his formulations, he was counseling against the sort of crisis mentality that sets inherent time limits for
action and, thereby, success. The thrust of his comments was that crafting this level of public support over the long haul was going to be a significant challenge.17
Earlier research also commented on the tendency for pressing issues to remain unaddressed over long periods. James Bowman, in 1989, conducted a survey of 750 public administrators who were members of the American Society for Public Administration and found that most were hopeful that interest in public-sector ethics was more than a transitory issue. While they saw the need for the public sector to improve its ethical standards, many felt there was insufficient, sustained energy in the body politic to maintain needed momentum. Adding to this sense of frustration was the fact that over half these administrators believed that supervisors were from time to time under pressure to compromise standards, usually by their superiors, and well over half thought that organizations had no consistent approach to encouraging ethical behavior and discouraging unethical acts.18 Such findings remind us again of Schon’s ideas about “ideas in good currency.” Employees are attuned in many ways to what is going on about them, and the organization that does not tend to its ethical dimensions, and certainly tolerance for occupational fraud is among them, may do so at some degree of peril.
Such inertia has consequences. The U.S. Merit Systems Protection Board conducted a study of 2,800 employees who left the federal government in Spring 1989. Of the 10 most common reasons for leaving, five—job stress, inconsistent policies/procedures, poor manager-employee relations, unfair promotion practices, and low morale—could be considered relevant to the status of the ethical environment in the workplace.19
This may represent our greatest challenge. If the horrific events of 9/11 can begin to fade, at least in their ability to affect human awareness and choice, how will our little fraud problem ever gain enough attention to be dealt with properly? Perhaps this is both a curse and a blessing. Fraud certainly has some emotional component; no one likes being cheated, but if we seek to ground our future efforts on a base of vengeance or moral indignation, we may also fade fairly quickly. Perhaps we are better served, in the long run, to view this as a purely business decision. We have the opportunity to improve financial performance in a cost-effective manner. That may lack sex appeal, but it may be more enduring. As the Pennsylvania Dutch in the section of Pennsylvania where I was raised were fond of saying, “Kissing don’t last. Cooking do.”
The development, adoption, and implementation of more consistent codes of conduct and controls may be more welcome than some might think. As far back as 1961 a special Harvard Business Review study of business practices indicated that most executives favored the establishment of codes of conduct in their areas of endeavor, and 71 percent said doing this would raise the standards of conduct in their fields. Perhaps most surprising, 88 percent said they would welcome such developments, since they believed they would be better equipped to resist unwarranted pressures to commit wrongful acts.20
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