powerpoint presentation 02

Theft Reimbursement, Twice : 

Case Study Theft Reimbursement, Twice

Overview : 

Overview AP Clerk working for an unspecified non-profit company steals $16,563 by altering checks Assistant Controller makes an insurance claim Bank reimburses the company Insurance Company also reimburses the loss Controller decides to keep the money until the court case is settled

Key People : 

Key People AP Clerk – Stole the money Assistant Controller – Discovered the theft Controller – Decided to keep both reimbursements and earn interest on the money for a period of time

Ethical or Moral Issues : 

Ethical or Moral Issues Employee committed theft Controller felt justified in earning tax-free interest on the duplicate payment Time spent in court Aggravation employees endured Bank should have never cashed the altered checks Assistant Controller was afraid to call attention to the matter because he hired the clerk

Who was hurt? : 

Who was hurt? The non-profit spent time and money dealing with the theft and court case The bank was out $16,583 The insurance company was out $16,583 until the money was returned (if it was returned) The AP Clerk lost her job The co-workers felt violated and abused

What should have been done? : 

What should have been done? AP Clerk – Should have been trustworthy Assistant Controller – Should inform the CFO of the Controllers intentions Controller – Should return the money immediately

Courage of Ethical Conviction : 

Courage of Ethical Conviction AP Clerk would have found honest ways to handle her financial issues Assistant Controller Would have not worried about what the Controller thinks about being transparent with the intentions Would not care that he may look bad himself for having hired the AP Clerk Controller would have returned the money without rationalizing his unethical decision making

Conclusion : 

Conclusion Rationalizations for unethical behavior: Controller - Denial of injury & victim Thinks the bank deserves to pay interest after their mistake Does not consider the effect on the Insurance Company’s cash position by keeping the money AP Clerk – Entitlement Felt it was OK to take money she did not earn Assistant Controller – Appeal to higher loyalties Did not want to question the Controller