Question 1

Describe the process of conducting an ethics audit in detail.

Accepted Answer

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Question 2

Compare and contrast ethics auditing and financial auditing.How can the tools of financial auditing be applied to ethics audits?

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Question 3

Ideally,which of the following should oversee the ethics audit? 
A)The board's financial audit committee
B)the CFO
C)the CEO
D)outside consultants
E)secondary stakeholders

Accepted Answer

The board's financial audit committee is the best choice because they already have oversight responsibility for financial reporting and can provide independent oversight for the ethics audit process. They are also likely to have experience and expertise in reviewing policies and procedures related to governance, risk management, and compliance. Additionally, this choice ensures that ethics is given sufficient importance by being placed alongside financial reporting in the audit process.

Question 4

At which stage of the ethics auditing process would a hospital conduct focus groups with management,doctors,nurses,related health professionals,support staff,and patients?
A)Collect and analyze relevant information
B)Review organizational mission, goals, values, and policies
C)Identify stakeholders
D)Report the results
E)Verify the results

Accepted Answer

Conducting focus groups with various stakeholders is part of collecting and analyzing relevant information in the ethics auditing process. This helps to identify the different perspectives and values of those involved in the organization, and may reveal potential ethical issues that need to be addressed.

Question 5

What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework?
A)Economic, social, personal indicators
B)Political, social, and environmental indicators
C)Economic, social, and environmental indicators
D)Political, individual, and environmental indicators
E)Political, individual, and personal indicators

Accepted Answer

The three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework are economic, social, and environmental indicators. These factors are also known as the three pillars of sustainable development, and they are used to assess an organization's impact on society and the environment in addition to its economic performance. Option A is incorrect because personal indicators are not a part of the Triple Bottom Line. Option B is incorrect because political indicators are not typically included in sustainability reporting frameworks like the Global Reporting Initiative. Option D is incorrect because individual indicators are not a part of the Triple Bottom Line framework. Option E is incorrect because personal indicators are not a part of the Triple Bottom Line.

Question 6

How can companies secure stakeholder input during an ethics audit? Why is it important to do so?

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Question 7

Ethics audits can help companies identify potential _____ so they can implement plans to eliminate or reduce them before they reach crisis dimensions.
A)competitive advantages
B)risks and liabilities
C)productivity issues
D)technological glitches
E)market opportunities

Accepted Answer

Ethics audits are designed to evaluate a company's adherence to ethical standards and identify any potential risks and liabilities that could impact the company's reputation and legality. By identifying these risks, companies can implement plans to eliminate or reduce them before they escalate into full-blown crises. Therefore, option B - risks and liabilities - is the best answer to complete the given sentence.

Question 8

Explain the benefits and risks of ethics auditing.

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Question 9

When The Gap posts the results of its ethics audit on its website,it is engaged in which of the following steps of the ethics auditing process?
A)Submit the results to the U.S. Sentencing Commission
B)Define the scope of the audit
C)Collect and analyze relevant information
D)Verify the results
E)Report the results

Accepted Answer

The act of posting the results of the ethics audit on the company's website is reporting the results, which is the final step of the ethics auditing process.

Question 10

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility,as well as to specific social responsibility and ethical issues,ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms of
A)ethical and legal conduct.
B)environmental performance.
C)financial performance.
D)customer satisfaction.
E)ethical misconduct.

Accepted Answer

Ethics audits specifically focus on assessing and reporting on a firm's performance in terms of ethical and legal conduct, whereas social reports may also include considerations of environmental performance, financial performance, customer satisfaction, and other specific social responsibility issues.

Question 11

Independent verification of the ethics audit is important because it lends the report
A)credibility and formality.
B)credibility and civility.
C)credibility and objectivity.
D)objectivity and civility.
E)objectivity and formality.

Accepted Answer

Independent verification ensures that the report is unbiased and not influenced by any internal or external factors. This adds objectivity and credibility to the audit. While formality and civility may also be important, they are not the main benefits of independent verification.

Question 12

Which of the following is not a phase of escalation during an ethical disaster?
A)The firm's discovery of the misconduct
B)Ethical issue recognition
C)The firm's response to the misconduct
D)The decision to act unethically
E)The firm's decision to conduct an ethics audit

Accepted Answer

The firm's decision to conduct an ethics audit is not a phase of escalation during an ethical disaster. It is a proactive measure to identify potential ethical issues before they escalate, rather than a phase of escalation itself.

Question 13

_____ is an independent assessment of the quality,accuracy,and completeness of a company's social or ethics report.
A)Publication
B)Verification
C)Auditing
D)Analysis
E)Validation

Accepted Answer

Verification is the process of independent assessment of the quality, accuracy, and completeness of a company's social or ethics report. Auditing is a similar process, but it is typically used to assess financial information, while verification specifically pertains to non-financial information such as social and ethical performance. Therefore, option B is the correct answer.

Question 14

What should be the final step in the ethics auditing process?
A)Define the scope of the audit
B)Secure the commitment of top managers and directors
C)Collect and analyze data
D)Report the findings
E)Verify the results

Accepted Answer

Reporting the findings should be the final step in the ethics auditing process. After collecting and analyzing data, it is important to report the findings to relevant stakeholders and make recommendations for improvement. Verification of results may happen after the implementation of changes based on the findings, but it is not necessarily the final step in the auditing process. Defining the scope, securing commitment, and data collection and analysis are important steps in the auditing process but they should be completed before reporting the findings.

Question 15

What should be the first step in the auditing process?
A)Secure the commitment of top executives and directors
B)Define the scope of the audit
C)Establish a committee to oversee the audit
D)Collect and analyze data
E)Review organizational mission, goals, values, and policies

Accepted Answer

Securing the commitment of top executives and directors is crucial as their support is essential for the audit's success, ensuring resources and access needed for a thorough review.

Question 16

Which of the following is not a technique for collecting evidence during the ethics audit?
A)Ratio analysis
B)Observing the data-collection process
C)Publishing the results of the audit
D)Examining internal and external documents
E)Confirming information in the firm's accounting records

Accepted Answer

Publishing the results of the audit is not a technique for collecting evidence during the ethics audit. The other options, such as ratio analysis, observing the data-collection process, examining internal and external documents, and confirming information in the firm's accounting records, are all techniques that can be used to collect evidence during an ethics audit.

Question 17

Retaliation against employees that report misconduct is a problem in _____ cultures.
A)weak ethical
B)strong ethical
C)high power distance
D)diverse
E)international

Accepted Answer

In weak ethical cultures, there may be a lack of accountability and a tolerance for unethical behavior, making it more likely for employees who report misconduct to face retaliation. Strong ethical cultures prioritize integrity and hold individuals accountable for their actions, creating a safer environment for whistleblowers. High power distance and diverse cultures may also present challenges for reporting misconduct, but are not necessarily indicative of a culture more prone to retaliation. International cultures vary greatly in their approach to whistleblowing and retaliation.

Question 18

During the data-collection phase of the audit,the primary objective is to generate a variety of opinions about how the company is perceived and whether it is
A)fulfilling employee benefits commitments.
B)bringing in new customers.
C)meeting profit projections.
D)meeting earnings projections.
E)fulfilling stakeholders' expectations.

Accepted Answer

The primary objective of the data-collection phase of the audit is to gather opinions and information about how the company is perceived by various stakeholders, including customers, employees, and investors. This includes opinions about whether the company is fulfilling expectations and commitments with respect to stakeholders, such as meeting earnings projections or fulfilling employee benefit commitments. However, the overall objective of the audit is to determine whether the company is meeting stakeholder expectations, which is why option E is the best choice.

Question 19

Because ethics and social audits are _____,there are few standards that a company can apply with regard to reporting frequency,disclosure requirements,and remedial actions that it should take in response to results.
A)not necessary
B)expensive
C)required by law
D)mandatory
E)voluntary

Accepted Answer

Ethics and social audits are voluntary, meaning that companies are not required by law to conduct them. Therefore, there are no set standards for reporting frequency, disclosure requirements, and remedial actions. Companies must establish their own guidelines and practices, which can vary depending on the industry, company culture, and other factors.

Question 20

What is the Global Reporting Initiative? What is its goal? Why has it grown in importance?

Accepted Answer

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Quiz 9: Managing and Controlling Ethics Programs

Describe the process of conducting an ethics audit in detail.

Compare and contrast ethics auditing and financial auditing.How can the tools of financial auditing be applied to ethics audits?

Ideally,which of the following should oversee the ethics audit?

At which stage of the ethics auditing process would a hospital conduct focus groups with management,doctors,nurses,related health professionals,support staff,and patients?

What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework?

How can companies secure stakeholder input during an ethics audit? Why is it important to do so?

Ethics audits can help companies identify potential _____ so they can implement plans to eliminate or reduce them before they reach crisis dimensions.

Explain the benefits and risks of ethics auditing.

When The Gap posts the results of its ethics audit on its website,it is engaged in which of the following steps of the ethics auditing process?

While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility,as well as to specific social responsibility and ethical issues,ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms of

Independent verification of the ethics audit is important because it lends the report

Which of the following is not a phase of escalation during an ethical disaster?

_____ is an independent assessment of the quality,accuracy,and completeness of a company's social or ethics report.

What should be the final step in the ethics auditing process?

What should be the first step in the auditing process?

Which of the following is not a technique for collecting evidence during the ethics audit?

Retaliation against employees that report misconduct is a problem in _____ cultures.

During the data-collection phase of the audit,the primary objective is to generate a variety of opinions about how the company is perceived and whether it is

Because ethics and social audits are _____,there are few standards that a company can apply with regard to reporting frequency,disclosure requirements,and remedial actions that it should take in response to results.

What is the Global Reporting Initiative? What is its goal? Why has it grown in importance?