A Holistic Model of Corruption and Corporate Fraud Prevention

Abstract

We have seen in the preceding chapters that no consensus exists on the questions of what caused the 2008 financial crisis, who will perpetrate fraud against a corporation, and when and how fraud will be committed on behalf of a corporation. Similarly, there is no consensus on the best explanation for the phenomenon of corruption. Consequently, there is no general agreement about how best to prevent it. This state of knowledge, however, does not mean we must stop the search for effective ways to reduce the risk of another financial crisis by investing in the prevention of corporate fraud and corruption. One thing is certain: unethical behavior lies at the root of fraud by or against a corporation, corruption, and financial crisis. Already, we have seen that a lot of good work has been done at the legislative level pertaining to banks and other financial institutions in the United States, the United Kingdom, and within the European Union (EU) to reduce the risk of a financial crisis. We have also seen that when a firm commits itself to sustainability and invests in it, it not only does better financially but can even be saved from bankruptcy.