Establishing a culture of integrity, transparency, and support, as articulated by Albrecht et al. in Fraud Examination (6th Edition), is an essential approach for mitigating fraud in businesses. Leadership has to demonstrate honesty and integrate it into policies, codes of conduct, recruitment, and promotion systems to ensure that integrity is established as a collective company value. When leaders regularly show ethical conduct and equally reward integrity alongside performance, they create explicit expectations that deter justifications for fraud.

Transparency and support further strengthen this culture by facilitating clear communication and providing assistance tools for employees. Transparent channels, including whistleblower protections, feedback mechanisms, and explicit decision-making processes, diminish secrecy and foster trust. Simultaneously, assistance programs—such as counseling, financial education, and employee support initiatives—aid individuals in constructively managing emotional and professional stresses. Honesty, transparency, and help collectively reduce opportunities, pressures, and justifications for misbehavior, while promoting trust, loyalty, and enduring organizational resilience.

References

  • Albrecht, W. S., Albrecht, C. C., Albrecht, C. O., & Zimbelman, M. F. (2019). Fraud Examination (6th ed.). Cengage Learning.