Unethical or fraudulent behavior

Respond to two or more of your colleagues’ posts in one or more of the following ways: (***Respond to each Colleague 150 words or more)

· Ask a clarifying question about the situation that your colleague identified in which unethical or fraudulent behavior occurred.

· Provide an alternative step you would have taken to address the described unethical behavior or to detect and mitigate it.

· Share an insight you gained from the actions your colleague proposed to help prevent situations of unethical or fraudulent behavior.

Return to this Discussion in a few days to read the responses to your initial posting. Note what you have learned or any insights you have gained as a result of the comments your colleagues made.

1st Colleague to respond to:

Many school districts experience fraudulent and unethical behavior, causing many financial issues that hinder schools and the district as a whole. A former school district, I have experience with experienced unethical financial behavior.

The principal is over the school’s budget and has the authority to disburse monies to budgets. They also have the authority to place certain people in charge of departmental budgets as well as oversee these budgets.

This particular principal became extremely secretive with the budget and prevented department leaders from accessing the budget (s). A couple of employees challenged the principal about this because programs were mysteriously cut, coaching jobs were cut because there wasn’t enough money to pay assistant coaches, teacher supplies were no longer available, and the petty cash from clubs and sponsorship was depleted.

Unfortunately, these accounts had been used for personal use by the principal, and a couple of people challenged this and went to the school district. It turned out the principal had been using the funds for personal use and romantic gifts for the secretary.

As a leader (Principal) it’s important to have your team (Assistant Principals) heavily involved in overseeing important campus issues. Having checkpoints will help with keeping things transparent and honest. Furthermore, I would have asked to see the budget and completed an audit, and in the event, I would have found discrepancies, I would have reported this to the financial manager (accountant). The best thing to do in situations like this is to handle it directly and quickly. The major problem is that kids suffer from programs that have been cut. It’s easy to detect what is happening because everyone can see what is happening in the building, and parents were calling to find out why certain things were no longer available.

Again, having the administration team involved with the budget helps with accountability. Also, to have department leads and finance manager involved as well. Having teacher representation to help with the school budget is also another way to help safeguard against unethical behavior. In a school environment, having things transparent is always best.


Fostering an ethical organization from the bottom up and the outside in

July–August 2014

Megan F. Hess, Earnest Broughton



2nd Colleague to respond to:

· Describe the situation from either your professional experience or your research in which unethical or fraudulent behavior occurred. If you are describing an example from experience, please do not report the real names of either the company or individuals. If you are using an example from research, you must include the reference and citation of the source.


In my previous role as a Medicaid caseworker superiors treated many employees unethically and poorly. This organization lacked integrity, which means we adhere strongly to a code of ethics, implying trustworthiness and incorruptibility (Byars & Stanberry, 2018). Integrity in the workplace is vital to its success because it builds trust and loyalty with all stakeholders (customers, clients, employees, etc.). Superiors confidently showed favoritism, nit-picking, and micromanaging. Many employees barely make it past training or a year of employment due to the treatment and draining environment. I was employed for about 10 months before resigning due to constant nit-picking. An environment that lacks integrity, respect, ethical behavior, etc. creates a depressing environment. Every organization has rules and regulations, but the problem comes in when some rules don’t apply to certain individuals. When I finally addressed the issues professionally with my supervisor, she denied the nitpicking and favoritism as if I was the only one that noticed. It had gotten so bad they even would deliberately speak to a select few favorite employees and disregard others. When maybe two people left they liked parties were thrown for them but the rest of us got nothing. You could just tell how unethical these superiors were. If you want employees to behave ethically you must set an example. Accountability, honesty, and changed behavior can create a positive and stable environment.


· As a manager, explain the steps you would have taken or did take to address the described unethical behavior. What methods or techniques could have been used to both detect and mitigate the described situation?

· As a manager, propose what actions you could take to help prevent situations of unethical or fraudulent behavior in managerial accounting.


As a manager, I would have been concerned about why an employee felt the way they felt. I would have apologized for making them feel that way because realistically you can’t decide how you made someone feel. You must listen, understand, reflect, respond, and take accountability. As a manager, you must be committed to your team and clients/customers to hold yourself accountable and trustworthy. From my own experience when I voice my concern and my feelings, I love to feel heard and respected. As a manager I would ensure my employees feel safe, comfortable, trusted, and valued to avoid unethical behaviors. Follow and lead employees by example to ensure company guidelines and policies are being met. Building a professional relationship with employees and customers allows honesty and vulnerability. To behave ethically and without being fraudulent you must analyze information and behavior closely and properly.




Reference List:


Byars, S. M., & Stanberry, K. (2018). 1.1 being a professional of integrity. In Business ethics. OpenStax.  https://openstax.org/books/business-ethics/pages/1-1-being-a-professional-of-integrity

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