You are employed as a seniormanager in an insurance organization. One of your responsibilitiesis to randomly review claims for reimbursement that have beensubmitted by people who have traveled on the organization'sbehalf.
By chance, you have pulled a falsifiedclaim that was submitted by Andrew, one of your closet friends. Youdecide to confront your friend with your findings. Andrew knowingyou are a friend, replies; "Sure the claim contains falseitems. Everybody does it, and it is almost expected!"
Stunned by his confession, you tell himthat he has to resubmit an accurate reimbursement claim. Andrewresponds; "Look, I don't feel that I get paid enough inthis lousy organization, and this is my way of getting a few extradollars each month. You know how they have been working all of usto death after the layoffs. I'm entitled to do this, andrefuse to resubmit the claim."
Require
1.What do you think of Andrew's argument?
2.Should you have approached him differently?
3.What should you do now and why?
4.How might the company's control system be designed tofoster high ethical standards regarding reimbursement claims andother issues?