Criminogenic Business And Why It Is Important To Have Internal Systems And Checks In Place To Gauge The Moral Compass Of The Culture And Ethics Of Business.
The definition of CRIMINOGENIC is – having the propensity to commit a crime: causing or likely to cause criminal behaviour.
Building Ethical Businesses: Insights from the Study of Corporate Fraud.
The study of #Fraud is spread over a number of fields of academic study including jurisprudence, psychology, sociology, accountancy, and criminology, to name a few.
Diane Vaughan, an American sociologist, and professor at Columbia University once said:
‘Organizations can be criminogenic because they encourage loyalty. This in turn causes company’s personnel to sometimes perceive that the organization might be worth committing crime to maintain and further its goals.
The use of formal and informal rewards and punishments and social activity and pressures to participate, link employees needs and goals to the success of the company. When a company achieves its goals, its employees prosper.
In short, the interests of an organization and its employees coincide, and the situation may set stage for unlawful conduct by individuals on the company’s behalf’.
Having internal systems and checks in place to maintain moral compasses, ought to be applied at all levels in business. This is just one tool of many, to ensure that motivating factors to commit fraud are kept in check. Being mindful of the working environment and business culture at all levels including management, is the path to follow to establish the moral compass in building ethical businesses.
Professor Rosen is a solicitor-advocate in practice and principal of David Rosen & Co. He specialises in family law, divorce and financial settlements. David is a member of Resolution, and the Society of Legal Scholars amongst others. He is a full academic Professor of Professional Practice at Brunel University Law School where he lectures one day each week.
