Dr. Kirsten Martin, Associate Professor of Strategic Management and Public Policy, partnered with Global & Experiential Education (G&EE) to develop the Business & Society Series course Corporate Fraud and Corruption to help students better understand the scope of corporate fraud and corruption, identify fraud and corruption in accounting statements, as well as appreciate the significance of trust in organizations and markets.
The latest iteration of this intensive experiential course took place January 8-11, 2020. Participants spoke with experts working in Washington DC’s many major regulators and law enforcement agencies including the SEC, FBI, DOJ, as well as criminal defense attorneys and whistleblower experts. Students also heard the perspectives of private industry ‘insiders’ such as general counsels and accountants.
Below is 2020 PMBA candidate Maisha Williams’ reflection on her experience taking this unique and important course.
I was surprised by the varying perspectives that each of the speakers brought based on their roles in the investigations. Having the opportunity to hear from prosecutors, FBI investigators, the SEC, a reporter, a defense attorney and an attorney representing whistleblowers was extremely powerful. It was interesting how those on the side of investigating potential fraud cases were less sympathetic to the defendants and more supportive of whistleblowers while those responsible for representing defendants believed that most people involved in fraud cases were good people at their core and just found themselves in bad situations.
Despite the varying perspectives, there were several common themes that were shared among all of the speakers. Each of the speakers mentioned that many defendants rationalized their behavior and would never quite admit their wrongdoing. The speakers also agreed that fraud was generally born out of an environment with weak internal controls and ineffective compliance offices where the company culture accepted small wrongdoing setting a tone for playing outside the rules.
I was surprised to hear how important both interpersonal skills and trust were in all of the speakers’ jobs in order for them to be effective. I was also surprised by how many people were aware of wrongdoing but did not speak up.
As a CFO, this course was extremely valuable for me in a very practical way. In my role, I am responsible for certifying my organization’s financial statements, establishing the culture and setting a tone at the top. I now have a better understanding of my responsibility as a CFO and have very concrete actions to take to ensure that I set a solid example for how people are supposed to behave and to create a culture that fosters openness and accountability in the event that anyone finds themselves at an impasse to ensure that they are incentivized to do the right thing all the time.
Maisha Williams is a ‘20 PMBA candidate at The George Washington University School of Business. She is Vice President of Finance and Administration & Chief Financial Officer at Marymount Manhattan College in New York.
To read more Business & Society Series reflections on our blog, click here.
To learn more about the Business & Society Series, click here.
