Ethical Essay

257 WordsApr 20, 20152 Pages
Explain the benefits and risks of ethics auditing. Also, describe some of the problems associated with conducting an ethics audit. Suggest some strategies for dealing with these issues. The benefits of the ethics auditing in Companies are to improve ethical performance and some of the companies used to hide their corruption culture and project their good image they use ethics audit. Ethics auditing process will improve financial performance. By conducting audits for the business of the company, with the best practices with legal ramifications mainly for employee safety, financial reporting and environmental impact. Main cause of these business practices are for the company ethics and social responsibility. Moreover, Stakeholders need transparency and actively participating towards the external organizations which is making companies to improve ethical conduct and to make decisions based on the principles rather than only on laws. This will benefit the company for the following audit process, this increase the relationship with stakeholders who require greater transparency Because of the auditing process, there is increase in organizational learning, focusing on trends, and working relationships and facilitate communication. However, there are some benefits by following ethics auditing there are also some risks in it. By uncovering ethical problems in the company may create serious damage to the company. Moreover, by conducting an ethics audit may create dissatisfaction to the stakeholders. It may also burdens and costs the company that undertake it. Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2011). Business Ethics: Ethical Decision Making and Cases. (8th ed.). Mason, OH: South-Western Cengage

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