Correcting Misappropriation in the Corporate Environment

Abstract

This case study describes the experience of an organization in crisis. An audit conducted by the company's board of directors revealed that directors have been charging personal expenses to their company charge cards. The company is losing an average of $375,000 per year to this practice. The former chief financial officer has resigned after two years of bringing this to the attention of the chief operating officer and the chief executive officer. Now the organization has new management in these three positions, but they need to find a strategy to manage the situation, which remains the same. The application of strategy models, organizational culture theories, ethical decision-making theories, and leadership theories are recommended as solutions to correct the unwanted behavior. Finally, the implementation of an accountable plan is recommended along with policy and procedure surrounding expenses.