Ethical standards regarding reimbursement claims

Reference no: EM13259540

You are employed as a senior manager in an insurance organization. One of your responsibilities is to randomly review claims for reimbursement that have been submitted by people who have traveledon the organization's behalf.

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 knowing you 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, and refuse to resubmit the claim."

Require:

What do you think of Andrew's argument?

Should you have approached him differently?

What should you do now and why?

How might the company's control system be designed to foster high ethical standards regarding reimbursement claims andother issues?

Reference no: EM13259540

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