Evaluating Unethical Decision Consequences Of An Organization

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Evaluating Unethical Decision Consequences This paper provides an identification of potential means whereby Information Technology (IT) managers, acting on the organization’s behalf as purchase agents with IT vendors, participate in fraudulent activities. Further included are a series of recommendations for measures and actions that chief information officers or chief technology officers should consider as mandates to reduce fraud and other unethical practices while protecting the reputation of the organization, and the infrastructure of the computer systems of the organization. Finally, the paper elaborates regarding how these identified measures reduce the frequency of fraudulent activities. Identification of Potential Information…show more content…
Identified Types of Fraudulent Activity At almost any stage, there is a potential for fraud occurring in the IT procurement process. Fraud activities may include a range of activities on the part of a fraudulent manager. As reported by the ACFE (2010), these fraudulent activities on the part of procurement managers potentially include various actions that negatively affect the organization. Accordingly, some identified types of fraudulent activities reported in the ACFE (2010) study included categories such as: selecting only information technology projects that provide higher return values with specifications tailored to limit competitive bidding, or instituted through abuse by the IT managers of confidentiality. Moreover, other potential fraudulent activity might include manipulations in the preparation stage of the contract resulting in limits to the submission of and evaluation relative to contract bids, as well as the potential for instances of false invoice and over-billing, or contract underperformance and an inability to meet the contract specifications (ACFE, 2010). Consequently, as stated by the Office of the New York Comptroller (2010), procurement activities that involve corruption commonly fall into one of three general categories: • Demand for payment occurs when an Information Technology Manager receives improper bribes or kickback from the customer, in exchange for
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