Why Ethical Employees are the Key to Preventing Fraud, Bribery, and Corruption in Organisations.

 " GOVERNANCE DOES NOT PROTECT AN ORGANISATION AGAINST FRAUD, BRIBERY AND CORRUPTION. CHOOSING ETHICAL EMPLOYEES IS THE ONLY WAY TO PREVENT SUCH CRIMES"

                              

The statement above is a thought-provoking and intriguing statement. While I agree that ethical employees are essential to prevent such crimes, I cannot fully agree with the assertion that the governance does not protect an organisation against fraud, bribery and corruption. 

Effective governance is a vital tool in minimising the risk of fraud, bribery, corruption, and IT assets. It helps establish a culture of accountability, transparency, and ethical conduct, which serves as a deterrent to those who may be inclined to engage in such activities. Governance mechanisms, such as internal controls, risk management, and compliance process provide a framework for monitoring and mitigating risks, which can lead to fraudulent activities.

However, choosing ethical employees is equally critical. Ethical employees who are committed to integrity, honesty, and transparency are less likely to engage in fraudulent activities. In addition, they can serve as role models for others and help promote a culture of ethical conduct. 

If governance is not used as a tool to minimise financial misconduct , organisations may face severe consequences. These include repetitional damage, financial loss, legal sanctions, and loss of public trust. Moreover, the impact can extend beyond the organisation and affect other stakeholders, such as customers, suppliers, and investors.

In conclusion, while ethical employees are crucial to prevent fraud, bribery, and corruption, effective governance plays a critical role in minimising the risks associated with such activities. Organisations must implement robust governance mechanisms and foster a culture of ethical conduct to mitigate the risks associated with fraudulent activities.