HR Professionals Questioning Why Internal Fraud Not Caught Sooner
From Nazi Germany to the recent U.S. General Services Administration, evil has triumphed because good people did nothing.
Many people are asking why the rampant spending at the GSA was not reported earlier.
In a recent HR-oriented meeting, nearly half the attendees said they had experienced similar situations within their organizations which went undetected and unreported for long periods of time. Employee reluctance to “rat-out” fellow staffers and no in-place system for reporting such activities were cited as the main reasons for failure to act.
Indeed, a new study soon-to-be announced indicates that internal malfeasance lasts an average of 18-months before being discovered.
One suggested solution is to encourage an organizational culture that builds mutual trust.
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