Students at Colorado State University’s College of Business spent part of today discussing how and why CEOs at large companies like Tyco embezzle millions.
The path can sometimes be slow, with leaders quietly testing policies and procedures. But the end result could cost companies millions of dollars.
“It’s not that you have a healthy company with a great culture and you end up then having a corrupt backend on the financial reporting side,” said Eric Pillmore, senior advisor to the Deloitte Center for Corporate Governance. “It’s all part of the fabric of the culture of a company that creates an environment where people want to do the right thing.”
Pillmore said companies can be better equipped to catch problems if they have mentoring and guidance programs at all levels, and a greater web of accountability around the leader that challenges his or her decisions.
The event, called “Are we Feeding a Financial Façade?”, was funded by the Daniels Fund Ethics Initiative, which gave money to CSU and six other universities to beef up ethics curriculum for business students.
