The document discusses implementing and auditing ethics programs. It defines an ethics audit as a systematic evaluation of an organization's ethics program and performance to determine effectiveness. Social auditing assesses a business's economic, legal, ethical and philanthropic responsibilities to stakeholders. An effective ethics audit requires top management commitment, an oversight committee, defining the scope and process, reviewing policies and objectives, collecting and analyzing information, verifying results, and reporting findings. Benefits include ethical crisis management, addressing non-financial performance challenges, and identifying risks. The document stresses the importance of regularly conducting ethics audits like financial audits to assess priorities and conduct.
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1. O.C. Ferrell University of New Mexico John Fraedrich University of Wyoming Linda Ferrell University of New Mexico Business Ethics Ethical Decision Making and Cases, Seventh Edition For in-class note taking, choose Handouts or Notes Pages from the print options, with three slides per page.
3. The Ethics Audit An ethics audit is a systematic evaluation of an organizations ethics program and performance to determine whether it is effective. Social auditing is the process of assessing and reporting a businesss performance in fulfilling the economic, legal, ethical, and philanthropic responsibilities expected of it by its stakeholders.
4. Requirements of the Ethics Audit Secure top management commitment A committee to oversee the audit Define the scope, process, and subject matter of the audit Review the firms mission, policies, goals, and objectives and define its ethical priorities Collect and analyze relevant information Verify the results Report the findings
5. Benefits of Ethics Auditing Ethical crisis management and recovery Challenges of measuring non-financial performance Risks and requirements in ethics auditing
6. The Strategic Importance of Ethics Auditing The ethics audit, like the financial audit, should be conducted regularly rather than in response to problems involving or questions about a firms priorities and conduct.
