Publications
Publications
- January 1991 (Revised March 2010)
- HBS Case Collection
Westchester Distributing, Inc. (A)
By: Robert L. Simons and Robert Boxwell
Abstract
Focuses on the three-way interaction among internal controls, employee behavior, and incentives. Salesmen are illegally providing kickbacks to customers of this beer-distribution firm. In turn, salesmen are reimbursing themselves by filing fraudulent expense reports. The owner/president of the business faces a difficult decision: if he fires the individuals involved, he risks a total business shut-down. Closes with the question of how to improve internal controls to avoid this type of occurrence in the future.
Keywords
Financial Reporting; Crime and Corruption; Corporate Governance; Governance Controls; Salesforce Management; Behavior; Motivation and Incentives; Distribution Industry; Food and Beverage Industry
Citation
Simons, Robert L., and Robert Boxwell. "Westchester Distributing, Inc. (A)." Harvard Business School Case 191-118, January 1991. (Revised March 2010.)
About The Author
