The Ethics of Management Control Systems in the Banking Industry.
Abstract
In this paper we review the conventional analyses of management control systems, to conclude, first, that the “illusion of control” can mislead managers into believing that everything can be controlled and monitored, and,
second, that no incentive system based only on extrinsic rewards can motivate dividuals properly.
Then, we investigate the philosophical foundations of the basic assumptions that, implicitly or explicitly, are made about the nature of the acting person.
Based on personalist phenomenology, we show how the development of technical and moral values is crucial to the long-run survival of organizations.
We end by offering guidelines as to what control system should be like in order to be compatible with the nature of human persons.
Introduction
Background of Study
Banks are the major mobilizers of savings in any economic systems, by offering savings facilities to the public.
Statutorily, these banks are obliged to accepting deposits from the depositing public and channel such deposits to the deficit sectors of the economy who are in dire need of investible funds.
These two related and dependent function, bring the banks face to face with the investing public who call to obtain banking services.
This implies that banks attend to a large number of customers who they may not, most of the time personally know or whose identity the banks may not immediately know;
This shows that banks will be unable to have an immediate identity of these customers all of who either have honest or fraudulent intentions.
The word fraud is described literarily as a social menace, perpetuated by a person or group of persons with a view to altering the truth or fact, for selfish personal gains. It could also involve the application of deceit and trick.
Reference
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