Ethical Issues
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Ethical issues.
Please see my comments below:
In summary as mentioned in the article ethical issue is due to lack of internal controls. It seems there were no policy and procedures for procurement to achive value for money. Further there is no extended procurement guidelines for purchases using credit cards. There were also no segregation of duties and no delegation of authority for purchasing (dollar value) approval.
Type of ethical issues:
1. No honesty and integrity.
2. Fraud.
3. Lack of arms length in procurement activity.
4. Non-compliance with the policy, procedures and regulation.
5. Misuse of authority and rights.
Impact on membership
Clearly it is misuse of member funds. Membership trust against the promises by HSU will be jeopardise. This results in decline in membership and reputation damage in the media.
Breaches
HSU internal policy and procedure.
Code of Conduct
External law and regulation applicable.
Q2: Consider your organisations code of ethics,
1) Does it have one, If your organisation does not have one, 1) why not, 2) how can your role influence its inception.
Human Resources and Legal team is responsible to ensure proper ethical policies are in place. The policy includes:
Risk management policy
Disciplinary policy.
Anti-fraud policy.
Code of Conducts policy.
Internal audit policy.
Whistleblower policy.
Conflict of interest.
2) How can your role influence its inception.
My role as an Internal Auditor is vital to ensure the company policy and procedures are communicated to all staff. We specifically perform internal audit on the policy and procedures as part of corporate governance audit.
3) How was it developed?
The policy is developed inaccordance with the Policy Development Framework. Policies are developed to act as guiding principles or rules that will assist in decision making and provide a robust framework for corporate governance. The purpose of the policy is developed to meet the requirements of the business function and assist ABC in meeting
objectives.