http://www.nashuatelegraph.com/news/758027-196/fairpoint-employee-charged-with-stealing-and-selling.html
Summary:
Recently, Fairpoint Communications employee was caught stealing cooper cable from the company and reselling it in scrap metal yard. The employee was found guilty and charged with two crimes. The employee was a former worker for Fairpoint Communications who took the cooper wire directly from the FairPoint facility. There has been similar case in May 2010.
Connection:
In chapter 14.4 we learned about the importance of internal control of a company. As stated, internal control is a set of accounting procedures established to protect the assets from theft and waste, ensure accurate accounting data, encourage efficiency, and adhere to company policies. As we can see that internal control must be very strict in order for it to work but if the company has a strict internal control then why are there still be employees stealing cooper cables to resell at the black market? The company has trusted that employees should be honest and loyal to the company. Clearly, the company did not make this point clear for the employee.
Reflection:
When company encounter situation such as stealing, they need to make sure that they treat it properly and make the right decision. Obviously, the company does not want to the harm the relationship but at the same time let the employees know that everything they do must be for the company's benefits. However, in this case the title stated that the employee has already resigned so should the company treated as a regular stealing case or should the company go with the by-laws of the company to make sure that this sets an example for other employees in the company? I think they should work out a system where managers and team leaders are responsible to tell the employee what is ethical. But, of course, we all know that stealing is not right, then why would employees still do it? The company should seek to see where the root of the problem is. Maybe the employees are in short of money or in deep debts.
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