what's your ethics iq? aenc 2015 annual meeting - jonathan kraftchick
TRANSCRIPT
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SPEAKERS
What’s Your Ethics IQ?
Jonathan [email protected]@jkraftchick
If the confidence of the public in the integrity of the accountants’ report is shaken, their value is gone.
Who said this?
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How ethical do you think you are compared to other people in the room?
Rate yourself on a scale of 0 – 10, 10 being most ethical
Let’s Start with You
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Do we see what we are conditioned to see?
Situational Ethics
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What do you see?
Is dishonesty restricted to a few bad apples?
The Honest Truth About Dishonesty
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1
Is dishonesty a widespread problem?
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The Matrix Test
0.47 4.58 2.57
3.15 3.82 4.38
4.94 5.42 5.98
2.85 4.80 7.54
0.63 0.85 1.02
2.84 2.34 2.12
2.89 5.98 8.89
9.40 9.37 9.33
1.69 1.82 2.91
4.67 4.81 3.05
5.82 5.08 4.28
6.36 5.19 4.57
Dan Ariely 2012, "The Honest Truth About Dishonesty"
• Cheating is not directly correlated with the amount of financial gain.
• Getting caught does not have as great an influence on whether one cheats.
• More likely to steal things that are not directly related to money.
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How likely is the average golfer to illegally improve their lie?
Others Themselves
With a golf club 23% 8%
With their foot 14% 4%
With their hand 10% 2.5%
• Cheating is not directly correlated with the amount of financial gain.
• Getting caught does not have as great an influence on whether one cheats.
• More likely to steal things that are not directly related to money.
• More likely to be dishonest if you are annoyed or exhausted
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The Stroop Effect
We typically cheat up to the level that allows us to retain our self image as reasonable honest individuals.
The Fudge Factor
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Ethics culture has weakened
Ethics Resource Center 2011
The importance of attitude
Ethics Resource Center 2011
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Employees Observing Misconduct
29%
46%
67%
90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Strong Culture Strong Leaning Weak Leaning Weak Culture
% of Employees feeling pressure to compromise
standards
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a. Perception, Prevention and Protection
b. Opportunity, Incentive and Rationalization
c. Intention, Significance and Materiality
d. Raleigh, Durham and Chapel Hill
Which of the following represent the Fraud Triangle?
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a. 1%
b. 3%
c. 5%
d. 7%
When fraud occurs, the typical organization loses what % of its annual revenue?
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a. Tips and complaints
b. Internal Audit
c. Management Review
d. Confessions
The most frequent method to discover fraud is:
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Whistle Blowing
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Reporting & Retaliation
Ethics Resource Center 2013
Making the Whistle Louder
Ethics Resource Center 2013
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The Pond Story
If I look at the masses, I will never act.
If I look at the one, I will.
‐Mother Teresa
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