“We Are One Family, It Doesn’t Happen Here”: The Risks of Family Rhetoric in Companies

We are One Family, It Doesn’t Work for Us: The Risks of Family Rhetoric in Companies

While the “We are a family, not us” mentality in companies may at first glance seem like a well-intentioned expression of belonging, research shows that this is a blind spot that can increase the risk of fraud and abuse.

What Can “Family” Rhetoric Hide in Companies?

Employees in private sector companies view fraud as a serious threat, but they highlight weak internal controls and a lack of ethical values as the most fundamental risk factors (Siregar & Tenoyo, 2015). The “we are like family” statement is particularly risky in three respects:

• Unquestioned trust: Institutional internal relationships family metaphor with defined, “one of us someone”will not a13> mistake or abuse will not be made assumption controls can be relaxed. However financial pressure, opportunity and rationalisation can intervene when they come together, even the most reputable institutions can become scenes of fraud cases (Schuchter & Levi, 2016; Mandal & S., 2023).
• Complaint and reporting reluctance: Employees cite “family affairs issues” perception of irregularities may be avoided. Experts state that most times more than one person a23> by facilitated and silent remaining ones also nourish nourished it (Chapple et al., 2020; Schuchter & Levi, 2016; Serrano et al., 2025).
• Professional loss of distance: Excessively candid culture, role and responsibility boundaries by blurring them creates conflicts and “minor favouritism” can be normalised; which can over time become systematic abuse (Chapple et al., 2020; Serrano et al., 2025; Mandal & S., 2023).

Nitel görüşmelere dayalı çalışmalar, fırsatın tek başına yetmediğini; kurumsal kültürün baskı, rasyonalizasyon ve “iç ses” üzerinde belirleyici olduğunu gösteriyor (Schuchter & Levi, 2016; Mandal & S., 2023). Kısacası, ortam uygunsa iyi insanlar da kötü kararlar alabiliyor.

Culture, Ethics and Fraud in the Private Sector

Studies in private sector companies show that ethical culture and internal controls significantly reduce the risks of fraud and abuse:

• On the stock exchange listed private companies, core ethical values, ethical programmes and ethical leadership forming corporate ethical culture, corporate fraud reduced found (Zulkiffly et al., 2025).
• Although companies view fraud as a major threat, a significant proportion of cases are linked to weak internal controls and ethical deficiencies; ethical codes and codes of conduct are reported to be seen as the most critical risk management tool (Siregar & Tenoyo, 2015).
• Analyses conducted on a large sample indicate that companies with high levels of corporate social responsibility (CSR) have both a lower likelihood of fraud and a lower severity of actual cases (Harjoto, 2017). Firms that invest in ethical values and stakeholder sensitivity move away from fraud as managers’ moral standards rise (Harjoto, 2017).
• A recent study on professional misconduct (particularly the misuse of assets) emphasises that not only technical controls, but also ethical climate, organisational commitment and cultural consistency are necessary, and that the most effective approach is a “two-pronged” fraud prevention strategy that combines these two dimensions (Serrano et al., 2025).

These findings show that the private sector needs to adopt a “We are a transparent and ethical institution, no one is left un-audited!” mentality instead of “We are a family, we don’t have it”.

Corrective Recommendations

• Reframing the family discourse: “Belonging is good, but control should not be relaxed. A healthy organisational culture is built on both trust and accountability” (Siregar & Tenoyo, 2015; Chapple et al., 2020; Zulkiffly et al., 2025; Serrano et al., 2025).
• Making ethical culture visible:
  • Written code of ethics and conduct rules (Siregar & Tenoyo, 2015; Zulkiffly et al., 2025) – Regular ethics and fraud awareness training (Siregar & Tenoyo, 2015; Serrano et al., 2025) – Consistent role modelling by senior management (Chapple et al., 2020; Zulkiffly et al., 2025; Mandal & S., 2023) – Safe reporting mechanisms: Whistleblowing hotlines and independent investigation processes that reduce fear of retaliation and manage the process transparently are critical for detecting internal fraud, such as asset misappropriation, at an early stage (Chapple et al., 2020; Serrano et al., 2025).
• Ethics performance business results linking: CSR and ethics culture investment by companies that fraud-related reputation and financial losses are lower by; this also contributes to long-term profitability (Harjoto, 2017; Zulkiffly et al., 2025; Serrano et al., 2025).

Consequently as a result,

True professionalism in the private sector is only possible in organisations that can sincerely balance oversight with confidence and transparency. Merely saying “we are a family” is not enough; it only becomes sustainable and secure when combined with a robust ethical and control framework.

References

Harjoto, M. (2017). Corporate social responsibility and corporate fraud. Social Responsibility Journal, 13, 762-779. https://doi.org/10.1108/srj-09-2016-0166

Siregar, S., & Tenoyo, B. (2015). Fraud awareness survey of private sector in Indonesia. Journal of Financial Crime, 22, 329-346. https://doi.org/10.1108/jfc-03-2014-0016

Chapple, E., Walsh, K., & Shen, Y. (2020). Corporate Culture and Fraud. **. https://doi.org/10.1108/978-1-78973-417-120201006

Schuchter, A., & Levi, M. (2016). The Fraud Triangle revisited. Security Journal, 29, 107-121. https://doi.org/10.1057/sj.2013.1

Zulkiffly, N., Nazri, S., & Zolkaflil, S. (2025). The Quantitative Approach of Corporate Ethical Culture in Reducing Corporate Fraud. International Journal of Research and Scientific Innovation.
https://doi.org/10.51244/ijrsi.2025.120800232

Serrano, J., Rodríguez, M., Iglesias, I., & Pérez, R. (2025). Misappropriation of assets: a quantitative and qualitative analysis of occupational fraud management in organizations. Journal of Financial Crime. https://doi.org/10.1108/jfc-01-2025-0016

Mandal, A., & S., A. (2023). Fathoming fraud: unveiling theories, investigating pathways and combating fraud. Journal of Financial Crime. https://doi.org/10.1108/jfc-06-2023-0153