ACCT 001 Chapter 7: ACCT 1 - Chapter 7 notes
21 Sep 2020
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Systems to monitor and enforce ethical standards. An effective ethics program employs a variety of resources to monitor ethical conduct and measure the program"s effectiveness. Observing employees, internal audits, surveys, reporting systems, and investigations can assess compliance with the company"s ethical code and standards. An external audit and review of company activities may sometimes be helpful in developing benchmarks of compliance. To determine whether a person is performing his or her job adequately and ethically, observers might focus on how the employee handles an ethically charged situation. For example, many businesses employ role-playing exercises in training salespeople and managers. Ethical issues can be introduced into the discussion, and the results can be videotaped so that both participants and their superiors can evaluate the outcome of the ethics dilemma. Then, if unethical conduct appears to be increasing, management will have a better understanding of what types of unethical practices may be occurring and why.
