Corporate Fraud and Corruption

Recent large-scale corporate collapses, such as Lehman Brothers, Enron, Worldcom, and Parmalat, highlight the implosion of traditional models of fraud prevention. By focusing on risk factors at the micro level, they have failed to take into account the broader context in which external auditors operate as well as the crucial importance of such factors as corruption, organizational culture, corporate social responsibility, ethical values, governance, ineffective regulation, and a lack of transparency. Corporate Fraud and Corruption engages readers by showing how evidence-based, multi-level micro and macro analysis of fraud risk and protective factors inform effective fraud prevention, in turn minimizing financial catastrophes. Krambia-Kapardis focuses on her own empirical research into the aetiology of fraud to showcase a holistic approach to fraud prevention. This book also features major case studies from the United States, the United Kingdom, and Australia.

"This book eloquently combines deep scholarship with practical analysis of the darker aspects of the recent financial crisis. While no one contends that the near destruction of western banking resulted entirely or for that matter significantly, from fraud and corrupt dealing, it is manifest that abuse played a role. Krambia-Kapardis, examining in particular the failure of transparency and, thus, accountability, presents a challenging discussion of the issues, particularly for those in the financial and accounting professions. The concerns voiced so well in this highly relevant work should not be ignored by those who are concerned with maintaining the integrity of our economies." - Barry Rider, Professorial Fellow, Centre for Development Studies University of Cambridge, UK

"This book, focusing on unethical behaviour as the root of fraud, corruption, and financial crisis, provides a timely and insightful examination of the causes of corporate collapse. Beyond its comprehensive analysis, the book offers an innovative three-pillar holistic model for preventing corruption and corporate fraud, with an ethical component at its centre. The emphasis on the importance of ethical values at an individual and societal level, and of ethical programmes for companies, sets this volume apart while equipping professionals with invaluable practical solutions." - Marianna Fotaki, Professor of Business Ethics, Warwick Business School, University of Warwick, UK

"From the Medici Bank fraud to the Madoff case, from Abacha to the Petrobras scandal, there is no doubt about the terrible consequences of grand corruption and fraud - not only for the economy. Grand corruption, as defined by Transparency International, increases poverty, undermines development, and affects governance. As expressed by the author, a holistic approach is needed not only to sanction but to prevent corporate fraud and corruption in the private and public sector." - José Ugaz, Peruvian Jurist; Professorof Criminal Law, Pontifical Catholic University of Peru; Ad-Hoc State Attorney of the Republic of Peru for the Fujimori case (2000-2002); and Chair of the Board of Transparency International

Autorentext

Maria Krambia-Kapardis is Associate Professor of Accounting at Cyprus University of Technology and Chair of Transparency International - Cyprus. Central themes that underlie much of her research are forensic accounting, fraud prevention, and anti-corruption, as well as corporate social responsibility, corporate governance, and business ethics.

Inhalt

Foreword; Michel Dion

1. Financial Crisis, Fraud, and Corruption
2. Financial Crisis Prevention through Regulation
3. Ensuring Corporate Ethical Behavior
4. Private and Public Sector Governance
5. A Holistic Model of Corruption and Corporate Fraud Prevention