Fraud and misappropriation of funds are some of the challenges that businesses face today (Nicholas, 2017). Every year, many businesses report that they are unable to account for significant amounts or that they have identified fraudulent activities. These ills hinder progress as they cost businesses vast amounts that could be spent in projects and programs that spur growth. As part of my initiative to understand the damage that fraud does to business, I conducted an interview with the General Manager of Innovation Luggage, Mrs. Evelyn Negron. Through the interview, I learnt that accountability is vital for open communication, transparency and integrity to thrive in any organization.
Before interviewing Negron, I developed questions that I believed would offer me insights into the practices of this firm. The following are some of the questions that I posed. The responses that Negron gave to these questions are also provided.
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Today, many businesses encounter difficulties in developing strong relationships with their customers. What are some of the challenges have you encountered in your efforts to create deeper connections with your clients, shareholders and other stakeholders?
This is a challenge my company has faced. We try to develop strong relationships with al go out customer. And by doing that, we try to make a friendly environment and try to have a deeper connection with the customer over all. The more you can relate on a topic, the better. Other challenges are the customers who you sometimes cannot work with or we have to please. Those are the ones where you have to try and grow a deeper connection with In order to make them feel comfortable.
How about the company’s engagement with the larger community that includes investors and special interest groups?
Well, I would not say that the company has a very effective program for engaging with stakeholders who are not directly involved in our operations. While we understand that it is important to invite all concerned stakeholders, the company is focusing on attending to the needs of immediate stakeholders like customers and employees.
What are some of the measures that the company is implementing to respond to the needs of the non-immediate stakeholders?
To be honest, these non-immediate stakeholders do not add much value to the company’s operations. It is for this reason that we have chosen to focus our efforts on stakeholders whose needs are more urgent and significant.
Given that fraud is an ill that causes tremendous damage, what measures has the company instituted to shield itself against this ill?
Now we take precaution in terms of making sure that every payment or every type of business transaction we do is legit. The more precautions we take the better because that means that if we get a stop on a payment , there are ways to stop that from happening.
Other than the measures for preventing fraud that you have mentioned, what are the other initiatives that the company is pursuing to promote accountability?
Allow me to first confirm that we understand the importance of accountability and have take steps to promote this value. We have a training program through which we encourage our employees to demonstrate accountability in all their affairs. We also challenge our senior management and other leaders to provide an example that the employees can emulate. While we still face challenges, these initiatives have helped us to create a fraud-free environment.
What is the nature of the relationship between the senior management and other employees? Does this relationship hinder or promote the company’s operations?
The relationship between the senior management and the employees is actually very good. The manager has to be able to make the employees also feel comfortable so that when something actually goes wrong, they know who to turn to.
What actions does the company take against senior managers who violate its code of conduct with regard to accountability?
As I have already mentioned, the managers and the employees have a very healthy relationship. Despite this, we have had situations where managers mistreat employees. This goes against our values and code of conduct. In such situations, disciplinary action is taken against the concerned manager. The action could take the form of a demotion or unpaid leave. We have not had to fire any senior manager because we believe that we need to focus on rehabilitation.
How effective have these disciplinary measures been?
For the most part, these measures have been very effective. Most of the managers are strong believers in the company’s vision and help to promote our code of conduct. I am confident that our disciplinary programs remind our managers and employees to always uphold the firm’s values and promote its culture.
As regards accountability, what are the roles of the senior managers?
Yes, the senior manager has to make sure that the other managers are on top of everything that happens in the store. The managers are reminded that what happens in the store is also their responsibility. Managers have to do what they believe is the right thing in order to better the location of the store. So they operate and have to act on site without having to get an authority from the actual boss.
I understand accountability to refer to proper management of an organization’s resources. I would define business culture as the practices, values and beliefs that define an organization and set it apart from others. What are your thoughts on these issues?
First, I find that the definitions you have offered accurately capture the concepts of accountability and business culture. I would add that I think that these concepts are vital for the success of any organization.
What role does the business culture here play in enhancing accountability?
Here, this is enhancing managing the employees. Besides the manager has to make sure that everything is done correctly and that everything is at it should. They also have to be a manager towards the employees and be able to help the employee themselves when the help is necessary.
You have already confirmed in an earlier response that the company promotes accountability. Are there any benefits that the company has realized as a result of promoting accountability?
Yes, now managers are now taking the initiative to do a lot of things without having to wait for high authority. The manager that works at each location, know what's best for that location overall and they know what kind of clientele they have.
The interview with the manager challenged me to reflect on the importance of accountability. I understand that accountability comes in two types: vertical and horizontal. In their article on accountability, Ray and Elder defined horizontal accountability as “the degree to which people communicate, solve problems, and build accountability across an organization” (Ray & Elder, 2007). They add that accountability enhances trust among employees and organizational leaders. Essentially, vertical accountability is concerned with the internal mechanisms that organizations institute to address issues that they face and to promote openness. Horizontal accountability also provides companies with the fuel that they need to attain set goals. On the other hand, vertical accountability refers to the role that outside parties play in ensuring that organizations perform as they are required to (Stapenhurst, n.d). For example, customers and activists can demand that organizations operate in a manner that conserves the environment. Vertical accountability ensures that an organization’s operations are not compromised when internal mechanisms fail.
In addition to allowing me to understand the importance of accountability, the interview with the Innovation Luggage General Manager also enabled me to identify various examples of accountability in practice. One of these examples is requiring all employees to report their actions to senior leadership. I understand that when they are allowed to operate as they please, employees are less likely to be accountable. Requiring them to report their actions creates pressure that promotes accountability. Another example is from personal experience. I have found that being true to oneself is the most effective form of accountability. When individuals develop value systems that guide their actions, they are able to remain accountable at all times.
In conclusion, my interview with the Innovation Luggage manager was an enlightening experience. I was able to gather insights regarding the impacts of accountability on business operations. Through the interview, I was also able to identify the challenges that firms encounter as they attempt to uphold accountability. Now that I understand the importance of accountability, I would encourage all firms to take all necessary steps to promote openness and accountability.
References
Nicholas, D. (2017). The 5 most Fraud Scenarios for Small Businesses. Retrieved 19 th August 2017 from https://www.entrepreneur.com/article/290551
Ray, D. & Elder, D. (2007). Managing Horizontal Accountability. Journal for Quality and Participation, 30 (4), 24-28.
Stapenhurst, R. (n.d). Accountability in Governance. Retrieved 19 th August 2017 from
https://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/AccountabilityGovernance.pdf
