hat causes employees to risk their jobs for what usually amounts to a few dollars?
Since it is not practical to audit everything, firms often set target amounts for routine audits and for purchases/expenditures that require the approval of the next level manager. How might this practice encourage unethical behavior?
Do you think the employees believe they might get away with it?
yes, I think the employees believe they might get away with it. But Everything always has a way to cathch up to people.
the second one is harder than the first one.
Unethical behavior is sometimes encouraged by lack of oversight and supervision.
Employees may be inclined to risk their jobs for a few dollars due to various factors:
1. Financial pressures: If employees are under financial strain and feel the need to supplement their income, they may be tempted to engage in unethical behaviors for quick monetary gains.
2. Lack of job satisfaction: Employees who are dissatisfied with their jobs, wages, or career prospects may feel less loyalty towards their organizations, making them more susceptible to taking risks for small benefits.
3. Perceived low risk: If employees believe that the chances of getting caught are slim or that the consequences will be insignificant, they may be willing to take the risk for a small monetary gain.
Regarding the practice of setting target amounts for routine audits and approvals, there are several ways it can inadvertently encourage unethical behavior:
1. Pressure to meet targets: When employees are pressured to meet specific financial targets, they may resort to unethical practices to fulfill these goals. This could involve manipulating financial records, under-reporting expenses, or cutting corners to ensure the targets are met.
2. Lack of oversight: When audits and approvals are focused on specific amounts, employees may find ways to bypass these controls for smaller purchases or expenditures that fall below the threshold. They may assume that these smaller transactions will go unnoticed, increasing the temptation to engage in unethical behavior.
3. Normalization of unethical behavior: When employees witness others engaging in unethical practices without facing consequences, it can create a culture that normalizes such behavior. This can lower the perceived risk of getting caught and escalate the likelihood of more employees following suit.
To mitigate these risks, organizations should focus on:
1. Creating an ethical culture: Encouraging open communication, transparency, and ethical leadership can help foster a culture where employees feel supported and understand the importance of ethical conduct.
2. Strong internal controls: Implementing robust internal controls, including regular audits and thorough approvals processes, can increase the chances of detecting unethical behavior.
3. Providing fair compensation: Ensuring that employees are fairly compensated and have opportunities for professional growth can reduce financial pressures that may lead them towards unethical actions.
4. Education and training: Providing ethics training and education programs to employees can raise awareness about the potential consequences of unethical behavior and help them make better decisions.