Structures and Culture

Companies often provide financial incentives to employees to drive the achievement of objectives.  What do you do if your incentives increase the likelihood of violations?  What if senior management encourage or promote violations?

“Ohio School District Hit By Cheating Allegations,” Wall Street Journal, January 29, 2014 A2

“[T]op-down culture of data manipulation and employee intimidation.”  Changing test scores and playing with attendance statistics to make schools appear to be better than they are.  Criminal charges recommended. 7,000 student grades may be affected. Thankfully, no teachers accused.  Just principals and data collection folks.

What incentives do you have in place?  Do they incentivize the wrong behavior, especially by senior management?  What other checks do you have in place?

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Filed under Business Case, Controls, Data quality, Information, Internal controls, Risk, Value

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