Rational Cheating

Senior Fellow David Callahan argues that bottom-line pressures in the workplace, along with weak regulation, often lead to unethical behavior.

The concept of the "fraud triangle" occupies a central place in our understanding of how and why fraud occurs. The triangle conjures up a slippery slope that is greased by a combination of opportunity, personal financial pressures, and rationalization. For forensic accountants and other watchdogs, it offers a simple guide to the basic logic of fraud in organizations.