Fraud and Ethics: Do Generational Differences Matter? IIA ... · your network alive. 7 Notes: IIA OHIOCHAPTER–FRAUDANDETHICS: ... Microsoft PowerPoint - Slideshow_Fraud and Ethics_AMB_10.01.19

Fraud and Ethics: Do Generational Differences Matter?

IIA Ohio Chapter

Presented by: Ann M. Butera, CRP , PresidentThe Whole Person Project, Inc. [email protected]

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© 2019 The Whole Person Project, Inc. 82 Cerenzia Boulevard ▌Elmont, New York 11003 ▌516.354 .3551 ▌[email protected]

OBJECTIVES

By participating in this session, you will be able to:

• Describe the behavioral characteristics of three different generations in the workplace

• Describe the impact of generational differences on fraud risk

• Explain the effect of generational differences on ethical decision making

• Take away ideas to “even out” employee risk management responses

Notes:

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IIA OHIO CHAPTER – FRAUD AND ETHICS: DO GENERATIONAL DIFFERENCES MATTER? – ANN M. BUTERA


WHAT DO YOU THINK?

Is it okay to use your phone to look up information you don’t know?

Is it okay to use your phone to look up information you don’t know when you are taking a test or completing an assessment?

Is it okay to question what your manager tells you to do?

When you disagree with your manager’s instructions concerning what you should do, should you question the instructions?

Should organizations be measured on more than profitability and financial performance?

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\’eth‐iks\ n 1: the discipline of dealing with what is good and bad and with moral duty and obligation 2: a set of moral principles or values

JUST WHAT ARE BUSINESS ETHICS?

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VIEWS ON ETHICS

Influenced by:

Values

Beliefs

Perceptions

Education

Environment

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ETHICAL PERCEPTION: DO GENERATIONS MATTER?

Baby Boomer WorkersBaby Boomer Workers

Gen Xer WorkersGen Xer Workers

Gen Y or MillennialsGen Y or Millennials

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GENERATIONAL DIFFERENCES

Then . . . Now . . .

Get hired by a large firm to enjoy a long‐term, stable work environment and terrific benefits.

Get hired by someone who will serve as an effective mentor and show you the ropes.

Once hired, do your best and work your way up the corporate ladder.

Once hired, acquire as many skills as possible that will be needed to leverage your career.

Work hard and you will get promoted. Work hard to promote yourself and keep your network alive.

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GENERATIONAL DIFFERENCES

Then . . . Now . . .

Be loyal to the company. Be loyal to yourself…the company may not be here tomorrow.

Keep your nose to the grindstone and your ear to the ground.

Keep your eyes, ears and options open because you never know when a better job will become available some place.

Show up early each day ready to work. Thank to technology’s availability, I can work from anywhere anytime, and don’t need to be at the office to be productive.

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VARIED SOURCES OF MOTIVATION

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FRAUD CONSIDERATIONS

Focus on where money comes from, not just potential for financial loss as a result of fraud.

Differentiate fraud risk (is the money really there) from money laundering risk (where did the money come from).

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THE FRAUD TRIANGLE

Opportunity

MotivationRationalization

In 1953, Dr. Donald Cressey created this model based on interviews with inmates at Illinois State Penitentiary in Joliet.

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Bribery and Corruption

Counterfeiting

Embezzlement

Forgery

Identity Theft

Market Abuse

Misappropriation

Misstatements or Omissions in Financial and Disclosure Reporting

Money Laundering

Tax Evasion

Terrorist Financing

FRAUD AND FINANCIAL CRIMES

Who has opportunity, motive, and reason?

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TECHNOLOGY’S EFFECT ON FRAUD RISK

Who has opportunity, motive, and reason?

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AN APPROACH TO ETHICAL DECISION MAKING

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THREE QUESTIONS FOR ETHICAL DECISION MAKING

1. What action plan will do the most good for all and the least harm (i.e., consider the consequences)?

2. Which individuals have rights that must be upheld?

3. Which option will you pick and what message will it send about you and your character?

Make your decision based on the answers to all three questions.

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10 WAYS TO CREATE CONSISTENT ETHICAL BEHAVIOR AND FRAUD AWARENESS IN YOUR

ORGANIZATIONDefine what good looks like.

Walk the talk.

Hire people with shared values.

Develop a training program with company specific examples and situations.

Embed ethics and fraud training into new hire orientation.

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10 WAYS TO CREATE CONSISTENT ETHICAL BEHAVIOR AND FRAUD AWARENESS IN YOUR

ORGANIZATIONReconsider performance goals and objectives…are they realistic?

Rethink incentive plans….do they have unintended consequences?

Reward ethical behavior.

Focus the company on ethics and fraud consciousness one day each year.

Encourage complaint reporting for products, services, and behavior.

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Zig ZiglarAmerican author, salesman,

and motivational speaker

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Questions?

[email protected]

Ask me about my new book!“Mastering the Five Tiers of Audit Competency:

The Essence of Effective Auditing”

Over 30 years of experience speaking at internal audit conferences and consulting with audit departments of all sizes to provide auditors with the tools and techniques needed to improve risk management practices within their organizations.

Former Audit Committee Chair.

Columnist and webinar leader for Protiviti’s KnowledgeLeader.

MBA in Organizational Development from Adelphi University. Summa Cum Laude graduate of Long Island University/C.W. Post College.

Ann M. Butera

Owner & President of The Whole Person Project, Inc.CRP (Certified Risk Professional)

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Documents

Fraud and Ethics: Do Generational Differences Matter? IIA ... · your network alive. 7 Notes: IIA OHIOCHAPTER–FRAUDANDETHICS: ... Microsoft PowerPoint - Slideshow_Fraud and Ethics_AMB_10.01.19