CFE – Fraud Prevention and Deterrence — Question 8

According to Diane Vaughan, which of the following factors increases an organization’s inherent inclination toward committing crime?

Answer options

• A. Rewards are given to employees who challenge the status quo
• B. Management encourages employee loyalty through social functions
• C. Management separates employee performance goals from company performance goals
• D. All of the above

Correct answer: C

Explanation

The correct answer is C because when management separates employee performance goals from company performance goals, it can create a disconnect that may lead employees to act in ways that benefit them personally, potentially at the expense of ethical standards. Options A and B, while they may influence organizational culture, do not inherently increase the inclination toward criminal behavior as clearly as option C does.