Document Type
Article
Publication Date
2015
Abstract
This Article examines the significant problem of fraud within nonprofit organizations and demonstrates that current anti-fraud measures do not adequately reflect the important role employees play in perpetuating or stopping fraudulent activity. Psychological and organizational behavior studies have established the importance of (1) participation and (2) peers in shaping the behavior of individuals within the organizational context. This Article builds on that research and establishes that to successfully combat fraud, organizations must integrate employees into the design, implementation, and enforcement of anti-fraud strategy and procedures. Engaged, empowered employees will be less likely to commit fraud and more likely to dissuade their peers from fraudulent behavior. After examining the theory underlying the proposed approach, this Article sets forth directions and specific suggestions for designing an anti-fraud program that empowers employees.
Keywords
non-profit governance, charity, charitable, trust, fundraising, charities, not-for-profit organization, fraud prevention, cheating, employee empowerment, occupational fraud, misconduct, ethics, ethical decision making, employee monitoring methods, organizational values-first orientation
Publication Title
Cardozo Public Law, Policy & Ethics Journal
Repository Citation
Bradley, John M., "Empowering Employees to Prevent Fraud in Nonprofit Organizations" (2015). All Faculty Scholarship. 1446.
https://scholarship.law.upenn.edu/faculty_scholarship/1446
Included in
Accounting Law Commons, Business Law, Public Responsibility, and Ethics Commons, Business Organizations Law Commons, Criminology Commons, Criminology and Criminal Justice Commons, Law and Society Commons, Law Enforcement and Corrections Commons, Leadership Studies Commons, Nonprofit Administration and Management Commons, Organizational Behavior and Theory Commons, Organizational Communication Commons, Organization Development Commons, Policy Design, Analysis, and Evaluation Commons, Social Control, Law, Crime, and Deviance Commons
Publication Citation
13 Cardozo Pub. L., Pol'y & Ethics J. 711 (2015).