By Matthew Startup, Marketing –
Since the 2008 recession, people have been looking for ways to reduce corporate fraud. Lies and deception in finances were contributors to the recession. Almost more than at any time before, the government and its agencies are investigating just how large corporations operate.
Society has seen that the immoral and oftentimes illegal decisions of large businesses have consequences for themselves and for the country as a whole. When large-scale corporate corruption is discovered, many thousands of jobs are affected, the stock market adjusts down, and the economy as a whole is altered.
How Can We Stop It?
In one article about this subject, the author discusses one way companies can lower the chances of their executives and employees committing fraud — hire more female executives. Female execs are less likely to commit illegal acts, according to the author’s research. Having a woman CFO, for example, has historically been a safe move to help reduce fraud. When a company adds a few more females to their board, the chances of illegal acts drops dramatically.
The author said there are a few reasons that women exhibit more ethical behavior when reporting financial results. First, research found that women tend to be more driven by the desire for development and growth. Men, on the other hand, are more driven by money and the pursuit of power. These two things tend to lead men to make decisions based on economics rather than other factors, such as a sense of fairness or propriety.
Is There Another Way?
Many that work for the organizations responsible for auditing corporations struggle to stop the inaccuracies and the fraud perpetrated in the corporate world. They spend countless hours and millions of dollars trying to help law enforcement discover the truth. With everyone’s eyes on major corporations, can the government find an easier and safer way to ensure the credibility of corporate financial statements? Lie detection technology could play a significant role.
EyeDetect®, a lie detection system by Converus, could make all the difference in preventing the corruption that harms innocent victims by capturing culprits early on.