ABSTRACT

Engaging employees as important, integral parts of the organization makes sense as a means of reducing fraud. This all might be counter-intuitive to the methods that some organizations might utilize to gain what they consider loyalty from their employees, fear of job loss. Organizations need to take a step back and re-evaluate the relationships they have with their employees, with a nod toward the fact that doing so should not only enable growth and stability but should also reduce wasteful costs and disruptive behavior such as fraud. Reducing fraud requires that both the customer and supplier organization work closely together in what should be a trusted relationship. The perception of detection is a power tool in the fight against fraud. Reducing fraud results in improved supply chain performance and is simply the right thing to do. Ethics educators will find it difficult to convince results-oriented students that the ends just do not justify the means.