ABSTRACT
Organizational wrongdoing includes an improper or unethical act on the part of any member or members of the organization. Regulatory agencies typically would presume that auditors in their role are best positioned, both from their role as well as professional competencies, to unearth any wrongdoing. Organizational wrongdoing is more of a norm than an exception, and the efforts should be toward managing the risk as best as the board can do. Organizational wrongdoing is a norm rather than just one-off deviant behavior. Also, self-regarding disposition of executives is likely to make them more vulnerable to moral temptations. A self-regarding disposition is vulnerable to promoting organizational wrongdoing. In respect of senior managers, Warren Buffett in his 2002 letter to shareholders contends that “when management takes the low road in aspects that are visible, it is likely they are following a similar path behind the scenes.”.
