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Why would employees defraud their employer or companies defraud the public?

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Inuk Lee eNotes educator | Certified Educator

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There are many reason why a person would defraud a company or a company defraud the public. In fact, there are so many reasons that could be mentioned that I will have to be selective. Furthermore, we need to keep in mind that all people are different. In light of this, let me give you a few common reasons.

First, many people...

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paulnwigwe | Student

The fundamental reason behind fraud is Avarice.Fraud of any kind is also perpertrated when there is no law against that kind of fraud or the laws are not enforced.Thus,there is no deterrence. Employee fraud apart from being motivated by the universal factor-greed,it can be spurned by economic downturn in the country or state i.e inflation(rising cost of living)which reduces the value of earned income especially when earned income is not upgraded as inflation rises.In some other cases,employee fraud can be spurned by negative management practices such as selective marginalisation,nepotism in promotions etc.Companies defrauding the public is usually with the intent to hide information about their dwindling revenues,to maintain the faith of their shareholders and entice prospective shareholders and investors.