Deck 9: Implementing and Auditing Ethics Programs

Question 1

Ethics auditing is similar to ____ auditing in that it employs the same procedures and processes to create a system of integrity that includes objective reporting.

A) social
B) regular
C) financial
D) citizenship
E) legal

Answer 1

financial

Question 2

Which of the following statements about ethics audits is false?

A) They provide an opportunity to measure conformity to the firm's desired ethical standards.
B) They are systematic evaluations of an organization's ethics program and performance to determine whether it is effective.
C) They provide an objective method for demonstrating a company's commitment to improving strategic planning, including its compliance with legal and ethical standards and social responsibility.
D) They can be a component of a social audit.
E) They are the same thing as a social audit.

Answer 2

They are the same thing as a social audit.

Question 3

A ____ is the process of assessing and reporting a business' performance in fulfilling the economic, legal, and philanthropic responsibilities expected by its stakeholders.

A) performance audit
B) ethics audit
C) management audit
D) legal audit
E) social audit

Answer 3

performance audit

Question 4

During which of the following steps of the ethics auditing process should stakeholders be defined and then interviewed, in order to integrate stakeholder feedback into the process?

A) Secure commitment of top managers and directors
B) Establish a committee to oversee the audit
C) Define the scope of the audit
D) Collect and analyze relevant information
E) Verify the results

Question 5

Which of the following is not an example of a problem that may arise from an ethics audit?

A) They can be expensive.
B) They can be time-consuming.
C) Employees may fear comprehensive evaluations.
D) They may reduce ethical compliance.
E) Selecting qualified auditors may be difficult.

Question 6

Ideally, the ethics audit should be overseen by the

A) board of directors' financial audit committee.
B) board of directors.
C) chief executive officer.
D) ethics officer.
E) outside consultant.

Question 7

The ethics audit can pinpoint areas where improving operating practices can improve both bottom-line profits and

A) investor loyalty.
B) employee satisfaction.
C) customer satisfaction.
D) stakeholder relationships.
E) attitudes.

Question 8

When the Chris Hani Baragwanath Hospital in Johannesburg, South Africa, conducted focus groups with the hospital's management, doctors, nurses, related health professionals, support staff, and patients, it was in which of the following stages of the ethics auditing process?

A) Collect and analyze relevant information.
B) Review organizational mission, goals, values, and policies.
C) Interview stakeholders.
D) Report the results.
E) Verify the results.

Question 9

To measure the effectiveness of its recently established ethics program, Spacely Sprockets, Inc., is conducting a systematic evaluation of its ethics program and performance. This is called a(n)

A) environmental-impact audit.
B) social audit.
C) ethics audit.
D) legal-compliance audit.
E) customer-satisfaction audit.

Question 10

Research suggests that publicity about unethical behavior can lower stock prices for at least ____ months.

A) six
B) three
C) twelve
D) nine
E) two

Question 11

Describe some of the problems associated with conducting an ethics audit. Suggest some strategies for dealing with these issues.