Question

Research shows that fraud occurs less frequently when employees feel:

a. Abused by management.
b. Threatened.
c. Challenged with unreasonable performance goals.
d. Ownership in the organization.

Answer 1

Fraud occurs less frequently when employees feel ownership in the organization. Feeling ownership fosters a sense of responsibility and commitment to the organization, reducing the likelihood of fraud.

Step-by-step explanation:

The research shows that fraud occurs less frequently when employees feel ownership in the organization. This means when employees feel like they have a stake in the company and are invested in its success, they are less likely to engage in fraudulent behavior. Feeling ownership fosters a sense of responsibility and commitment to the organization, which reduces the likelihood of fraud.

For example, employees who are given the opportunity to participate in profit-sharing programs or are offered company stock options are more likely to feel ownership in the organization and less likely to engage in fraudulent activities.

Additionally, research has shown that fairness in the workplace is important in preventing fraud. When employees perceive that they are treated fairly and respectfully by management, they are less likely to engage in fraudulent behavior.