Fraudulent or corrupt acts may occur in your organisation right now. They may include a wide range of behaviors such as breach of trust, employee misconduct, fraudulent statements, assets misappropriation, criminal offence, and so on. The consequences of those fraudulent activities for organizations can go well beyond the direct financial loss to include regulatory investigations and media embarrassment leading to further damage to reputation, loss of staff’s motivation, loss of customers and ultimately destruction of shareholder value. Continue Reading…
Archives For Business Ethics
Back in 2008, in the wake of the subprime debacle as the financial crisis was affecting every corners of the world economy, equity-based compensation packages of senior executives and traders in financial institutions came under the scrutiny as one possible culprits for the excessive risk-taking behaviors that eventually led to the financial crisis.
IRONICALLY, equity-based compensation systems and in particular Stock Options were initially devised as a form of risk control to resolve the conflict of interests inherent in the agency problem in organizations Continue Reading…
In today’s world, business leaders talk a lot about ‘ethics’ and ‘values’. When speaking publicly about their organizations, they will usually stress the important role of corporate values in the success of their organisation. To be fair, a lot of efforts have been undertaken around the world to develop ‘values statements’ as well as to translate these moral principles into rules of conducts formalised into codes that are supposed to guide the behaviour Continue Reading…
Risk Management Demystified 