Question

You have recently graduated from college with an MBA. Upon graduation, you start working for Roosevelt Power Plant. The boss, Mr. Jones, invites you into his office. Mr. Jones describes to you a large fraud that has recently taken place in the company. He asks you what actions should be taken to ensure that fraud does not occur again. After analyzing the company, you compile a list of actions that will be needed to prevent fraud from occurring again. Upon presenting the necessary steps and controls to be taken, Mr. Jones notices your suggestion: "Create a culture of honesty and create a positive work environment for employees." Mr. Jones is enraged and wants to know what a positive work environment has to do with the prevention and detection of fraud.

Answer 1

Explanation:

Honesty in the workplace:

• Honesty can give good reputation
• Will stay focused on the work and the environment
• Will keep commitments and thus increase productivity
• It will increase the sense of responsibility to achieve success at higher rates
• Increases mutual respect and thus gives good collaboration

Positive work environment:

• Employee feel safe
• Ability to achieve one's best
• Gains greater energy to contribute
• Provides an happy environment
• Yields positive result from both individual and team work

These these factors will help Mr. Jones to understand that fraud will be prevented and detected.