Page 29 - MidJersey Business - July-August 2014

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than not, by trusted individuals that we Bobby shared that he now understands outcome that no one wanted.

would never suspect.
the importance of his role in this whole As a manager of your organization,

By their nature, small businesses and troubling problem. As management, he what steps are you taking to protect your
non-proits are typically run on a shoe- has a responsibility to understand the most valuable assets—your employees—

string budget, which makes staing tight three components of unethical behavior from making dangerous decisions that
and internal controls limited. And while and often-illegal behavior: need, op- impact them and your business?

most people are trustworthy, external fac- portunity, and rationalization. Most
tors can create a need that, combined with importantly, Bobby knows that with some Chuck Gallagher is the president of the Ethics Resource Group and

opportunity and a dose of rationalization, minor changes Sue might have, although an international expert in business ethics. He provides training on
create the potential for unethical and tempted, been prevented from making
ethics and creating ethical cultures. Visit chuckgallagher.com, email
fraudulentactivity.
thosedangerouschoicesthat ledtoan
chuck@chuckgallagher.com,orcall828.244.1400formore.
When the perfect storm of fraud hits

and the illusion fades into reality, the dev-
astation that fraudulent activity creates

becomes clear. Every choice has a conse-
quence and the consequences of fraud are Is your company

signiicant and far-reaching.
In looking back on the situation, Bobby

could have seen disaster coming. Sue was afraid of

a trusted member of the church, holding
her position for more years than he had

been there. Not that longevity is a bad the “D” word?
thing, but church leadership could have

required a change of roles from time to
time, disrupting the natural low of funds.

Typically when things change, inappropri- Debt. It’s not a moral failing. It’s a legitimate business tool.
ate behavior comes to light.
Businesses use it to grow, seize opportunities, or just

But, beyond Sue’s tenure, she was quite manage their capital low. EisnerAmper can show you
protective of the money and monetary
how to approach debt in ways that are responsible,
processes for the church. Excessive control
is a signiicant sign that something might conservative, and—best of all—productive. So you don’t

be amiss. When people are unwilling to let have to think of debt as just another four-letter word.
go of their control, take a vacation, or insist
Read more about debt at EisnerAmper.com/debt.
that only they can do the task, leadership

should step back and examine the role and
function more carefully.

Finally, in Sue’s case, there never
seemed to be enough. Sue received calls

often from creditors. Consistently she
would either quickly hang up, showing her Let’s get down to business.® eisneramper.com
Michael Mattia michael.mattia@eisneramper.com
dissatisfaction with the call received, or 732.243.7149
take the call on her cellphone, out of ear

shot, and return to work irritated.

FINAL OUTCOME
In the end, Sue embezzled more than

$200,000 from the church where she was
trusted. The discovery was both a shock

and disappointment to Bobby and the
entire congregation. Every choice has a

consequence. Sue’s choices—made over

time—created signiicant consequences.
Today she is serving a prison sentence that

will leave a permanent scar on her and
those close to her.

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