The accountability for unscrupulous actions lies where?
In an ethical scenario called "e-Factor!®", a supervisor with more than two decades of service finds themselves in a predicament: they believe they are exempt from mandatory supervisor training. This scenario, inspired by the New York prison escape, underscores the importance of a strong internal control system and ethical values in organisations, big and small.
Management's responsibility extends to implementing and enforcing a robust internal control system for all businesses. However, selective exemption of policy enforcement, as seen in this scenario, presents a new ethical dilemma. By allowing one person to skip training, especially when it is required by law, an organisation risks significant fines and penalties.
The supervisor's lack of accountability is another ethical concern. Their exemption from training may be due to their length of service, not leadership skill or knowledge. This could be interpreted as a license to break or bend the rules, potentially leading to a culture of unethical behavior within the organisation.
The supervisor's role in the scenario is significant. Apart from leading their own team, they are also responsible for training future supervisors. Their actions, therefore, have far-reaching implications for the ethical culture of the organisation.
A study reveals a direct correlation between training and improvement by employees in spotting, managing, or reporting misconduct. The appearance of playing favorites, as in this case, could impact employees by diminishing their trust in management.
The weakness of internal controls, as demonstrated in the New York prison situation, allowed prison workers to aid inmates, leading to a prison escape and costing the State of New York tens of millions. This incident underscores the importance of a strong internal control system in organisations, as its absence can have severe consequences.
In the scenario, supervisors are expected to model the behaviours the organisation wants to promote. Allowing special treatment could increase the risk that supervisors are less prepared for handling unethical or even fraudulent behaviour. Management's selective exemption of policy enforcement weakens the internal control system, potentially leading to a domino effect of unethical practices.
Some companies may allow exceptions to mandatory training for supervisors with extensive service, based on seniority or proven competence. However, enforcing strict training regardless of tenure is crucial to maintaining a strong internal control system and promoting a culture of accountability and ethical behaviour.
In conclusion, the "e-Factor!®" scenario serves as a reminder of the importance of a strong internal control system and ethical values in organisations. It highlights the potential consequences of selective policy enforcement and the role of supervisors in setting the ethical tone for their teams and the organisation as a whole.
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