Wednesday, November 03, 2010
BLOGSCAN: Corporate Characteristics that Lead to Fraud
Kurt Eichenwald on the corporate characteristics that lead to fraud: 1) huge positive incentives for achieving financial targets, huge negative incentives for not achieving them; 2) a cult of personality, or a rock-star CEO; 3) a weak compliance department. The example was for-profit hospital system Columbia/ HCA, whose former CEO just was elected governor of Florida. See the video on PharmaGossip.