Chapter 9 of Ethics
Benefits of Ethics Audits
-Detect ethical misconduct before it becomes a major problem -Better account for their actions -Learn about the ethical culture for the organization -Improved relationship with stakeholders -Prepare for ethical disasters
Social Audit
Assessing and reporting a business's performance in fulfilling the four dimensions - economical, legal, ethical, and philanthropic responsibilities of stakeholders
Stage 3 of Ethics Auditing Process
Define the scope of the audit process
Stage 2 of Ethics Auditing Process
Establish a committee to oversee the ethics audit
Stage 7 of Ethics Auditing Process
Report your findings
Risks of Ethics Audits
-The process of conducting an ethics audit may foster stakeholder dissatisfaction -Auditing a firm's ethics programs is no guarantee that it will avoid challenges related to its efforts -It may find that one or more of its stakeholders criticisms cannot be dismissed or easily addressed -May uncover a serious ethical problem that it would prefer not to disclose until it can remedy the situation -Imposes burdens and costs form firms to undertake it -Few commons standards to judge disclosure and effectiveness or to make comparisons
Ethics Audit
A systematic evaluation of an organization's ethics program and performance as compared to the firms desired ethical standards to determine what's effective. Can be a precursor to setting up an ethics program
Triple Bottom Line
Captures values and criteria for measuring organizational success - economic, societal, and environmental
Stage 5 of Ethics Auditing Process
Collect and analyze relevant information
Balanced Scorecard
Focuses on all the elements that contribute to organizational performance and success - financial, customer, market, and internal processes
Output Controls
Involves setting standards against actual behavior, such as an ethics audit
Stage 1 of Ethics Auditing Process
Make sure upper management is on board - top managers and board of directors
Six Sigma
Manage process variations that cause defects and systematically works toward managing variation to eliminate those defects
Process Controls
Management commitment to the program and evaluation methods
Stage 4 of Ethics Auditing Process
Review organizational mission, values, goals, and policies that define ethical commitment
Stage 6 of Ethics Auditing Process
Verify the results
Formal Controls
any of the inputs you put into the company. Tools and resources - employees, ethics training, and communication systems