Suggested read for all C-Suite, managers and leaders……. when we read about fraud, we are rightfully shocked, condemn the accused responsible, check our own perimeters for breaches, etc. etc……….. but in reading this you will note how easy it is with the pressures and rules in corporate worlds to collaboratively fulfill a role, regardless. That doesn’t make it right or excusable, but there is the reality. Hopefully, as we become more transparent, others who have fallen into the collaborative -first-trap will realize the one important thing before it is too late…..that they can and must make a difference.
Excerpt…………Last month, Fastow made good on his offer. Why did he commit fraud? Why did a bright, aspiring, stereotypical MBA cross the line and misrepresent the true financial picture of Enron? According to Fastow, greed, insecurity, ego, and corporate culture all played a part. But the key was his proclivity to rationalize his actions through a narrow application of “the rules.”
Fastow’s message, an important one for all managers and potential managers, has two key points. First, the rules provide managers with discretion to be misleading. Second, individuals are responsible for their actions and should not justify wrongful actions simply because attorneys, accountants, or corporate boards provide approval.
Read full article………via If the Auditors Sign Off, Does That Make It Okay? – Lawrence Weiss – Harvard Business Review.
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