Does the implementation of a corporate ethical statement have any impact on reducing fraud and unethical behavior?
This was selected as Best Answer This is a good but vague question, so it’s difficult to answer. Corporate ethics policies are helpful because they establish standards of behavior for both management and staff. In this sense they encourage people to act honestly and ethically, and should have some mitigating effect on the instances of fraud or unethical behavior. However, an equally if not more important factor is the actual behavior of senior management. Members of staff are generally followers and pay keen attention to how management acts in times of crisis. If the senior management of a company will allow breaches of the company policy to stand without serious punishment or if they themselves are involved in such behavior, then the company’s ethics policies will be roundly ignored by all but the most serious and ethical employees.
