Welcome to the Nexus of Ethics, Psychology, Morality, Philosophy and Health Care

Welcome to the nexus of ethics, psychology, morality, technology, health care, and philosophy
Showing posts with label Employee Fraud. Show all posts
Showing posts with label Employee Fraud. Show all posts

Wednesday, April 11, 2018

How One Bad Employee Can Corrupt a Whole Team

Stephen Dimmock and William C. Gerken
Harvard Business Review
Originally posted March 5, 2018

One bad apple, the saying goes, can ruin the bunch. So, too, with employees.

Our research on the contagiousness of employee fraud tells us that even your most honest employees become more likely to commit misconduct if they work alongside a dishonest individual. And while it would be nice to think that the honest employees would prompt the dishonest employees to better choices, that’s rarely the case.

Among co-workers, it appears easier to learn bad behavior than good.

For managers, it is important to realize that the costs of a problematic employee go beyond the direct effects of that employee’s actions — bad behaviors of one employee spill over into the behaviors of other employees through peer effects. By under-appreciating these spillover effects, a few malignant employees can infect an otherwise healthy corporate culture.

History — and current events — are littered with outbreaks of misconduct among co-workers: mortgage underwriters leading up to the financial crisis, stock brokers at boiler rooms such as Stratton Oakmont, and cross-selling by salespeople at Wells Fargo.

The information is here.

Wednesday, July 16, 2014

Executive Beware: The SEC Now Wants To Police Unethical Corporate Conduct

By John Carney and Jenna Felz
Forbes
Originally posted on June 26, 2014


With the appointment of Chairwoman Mary Jo White, President Obama made clear that a tough cop would run the Securities Exchange Commission (SEC) and make enforcement a top priority.  This pro-enforcement, “tough cop,” stance is nothing new to an agency with a storied history of investigating and civilly prosecuting some of the biggest frauds on Wall Street.  But what is new is the Chairwoman’s tactical decision to redeploy significant enforcement resources on small, non-criminal violations.  Chairwoman White underscored the importance of the SEC’s role as “tough cop” especially in cases “when there is no criminal violation,” declaring that the SEC “is the only agency that can play that role.”  These bold statements signal the SEC’s renewed focus on policing not only illegal, but also unethical, conduct.