integrity (3)

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Your business’s culture is its ‘DNA’. It represents the unique way it operates; ‘How we do things around here’. It’s what diff erentiates your business and defines its values. Leaders set the tone for this culture and, in this sense, leadership is the dynamic way that each organisation is led by either an individual or group (eg, board or management).

Dishonesty within any business, be it internal or external, can result from many factors. One factor that is often overlooked is leadership – not in the sense of governance but as a key dynamic impacting culture and therefore engagement. Engagement is key. Failing to instil the right culture can lead to heightened risk of employee disenchantment, which can present itself in many ways – from simple acts of ignorance through to dishonest activity. It is often cited that pressure initiates symptoms that lead to dishonest behaviour. Pressure can encourage employees to act dishonestly as they use it to rationalise their conduct. That is the traditional fraud triangle.1

However, in all sectors, we overlook how pressure is associated with fraud and is directly attributable to leadership.

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