Money In Society

Throughout the decades, corporate scandals involving fraud or embezzlement have been reported periodically over the world. As far as managerial fraud is concerned, there has been several cases whereby top management such as directors, high level executives or managers in different industries engaged in unethical activities for personal financial benefits. Ironically, these so-called white-collar crimes were often committed by highly educated people with certain level of reputation and who are supposed to have much knowledge on ethics and professionalism. But why would these people allow themselves to take such risk of destroying their reputation and bright future? Is making fast money a huge temptation that muddled the thinking of these managers?

However, the main reason, in my opinion, is the temptation of money. Money plays an important role in our daily lives. Without money, we cannot survive. It is a common belief that once you have money, you have all the necessities, be it food, water, shelter or clothes. Furthermore, it is in human nature not to stay contented with what we have and keep wanting more. This is especially so in our society where money is not only required for our daily needs. Money represents a person’s power, status, and level of success. It fulfils the luxury needs of an individual. Since money is so important, many would strive towards the goal of earning as much money as possible. There is also a saying that goes, “the love for money is a root of all evil”. The desire for having lots of money may lead to wrongdoings. Hard work may not necessarily be the best way to become rich since many work hard but did not get rich. When one see how others are able to accumulate wealth over a short time, one may imitate what others have done by taking the shortcuts. From the psychological point of view, this is often associated with enviousness and greed, which is hard to be satisfied. As standard of living in the society increases, people are seeking for a better life, and pressure might be felt constantly to earn more money. The drive for more and fast money is likely to induce one to participate in unethical business activities. As we all

Fraudulent news are commonly reported in many countries. These fraud cases range from small to big organization, involving different industries and amount of money. The types of fraud committed varies as well. In 2013, Tampa-based investment advisor, OM Investment Management LLC faced charges by the Securities and Exchange Commission (SEC). The fund manager, Gignesh Movalia was charged of raising money fraudulently and making material misrepresentations and omissions relating to OM Global Investment Fund, LLC which is an unregistered hedge fund. Due to the mismanagement of the representative, huge sum of money from the investors were lost. Movalia faced lawsuits from investors and legal action from the SEC. Movalia has been ordered to pay $1.6 million as a result of those actions. (Silvestrini, 2015) Another case related to managerial fraud was in Regina, Canada whereby three former managers from SaskTel, a telecommunication holding corporation, found guilty of both fraud and theft in 2007. The fraud amount was estimated to be $100,000 and the trio were found in possession of bikes, golf clubs and ski clothes bought using SaskTel money. The trio used the money gained from fraud to purchase items that they have always wanted, but never had the means to. Shortly after the trio were caught, they were dismissed and eventually sentenced to jail as a result of the theft. (Kraus, 2015) Another example of