Brief Description

For the major project, each student will conduct an independent ethical audit of an organization using a checklist provided by the instructor. This checklist will guide the evaluation across key areas such as corporate governance, employee relations, environmental impact, consumer protection, ethical sourcing, community involvement, financial integrity, privacy and data protection, conflict of interest, and whistleblower protection. Students must assess these areas against established ethical standards, identify compliance and non$-$compliance issues, and suggest actionable improvements. The findings and recommendations must be documented in a detailed written report.

Itemized Instructions

For the ethical audit, you will select an organization to audit. Ensure you have enough access to information about their policies and practices. In the checklist below, you will use it as a guide to evaluate across the following key areas:

Corporate Governance:

Board structure and compositionTransparency and disclosure practicesPolicies on conflicts of interestMechanisms for accountability and oversight

Employee Relations:

Fair labor practicesDiversity and inclusion policiesEmployee training and development programsHealth and safety standardsEmployee grievance mechanisms

Environmental Impact:

Sustainability initiativesResource management practicesWaste reduction and recycling programsCompliance with environmental regulations

Consumer Protection $($this may not apply to all organizations$)$:

Product safety standardsTransparent marketing and advertising practicesCustomer feedback and complaint resolution processesData privacy and security measures

Ethical Sourcing $($this may not apply to all organizations$)$:

Supplier code of conductFair trade practicesMonitoring and auditing of supply chainsPolicies against child and forced labor

Community Involvement $($this may not apply to all organizations$)$:

Community engagement programsCorporate social responsibility $($CSR$)$ initiativesCharitable contributions and volunteerismImpact on local communities

Financial Integrity $($this may not apply to all organizations$)$:

Accuracy and transparency in financial reportingAnti$-$fraud and anti$-$corruption measuresEthical investment policiesInternal controls and audit processes

Privacy and Data Protection $($this may not apply to all organizations$)$:

Data protection policiesMeasures to safeguard personal and sensitive informationCompliance with data protection regulationsEmployee training on data privacy

Whistleblower Protection $($this may not apply to all organizations$)$:

Whistleblower policies and proceduresConfidential reporting mechanismsProtections against retaliationInvestigation and resolution processes

By thoroughly reviewing and understanding this checklist, you will be able to conduct a comprehensive and effective ethical audit of the chosen organization. This will ensure that all relevant areas are evaluated, and any ethical issues are identified and addressed appropriately.

After completing your audit from the list above, use the following scale to rank the organization on each of the $10$ key areas. For each area, provide a score based on your findings during the audit. The scale ranges from $1$ to $5,$ where $1$ indicates poor performance and $5$ indicates excellent performance. After evaluating each key area, sum the scores to get a total score that reflects the organization's overall ethical standards. Here's how you should interpret and apply the scale:

Poor $(1)$: The organization fails to meet ethical standards in this area and demonstrates significant shortcomings.

Fair $(2)$: The organization meets some ethical standards but has notable deficiencies that need improvement.

Good $(3)$: The organization generally meets ethical standards with some areas for improvement.

Very Good $(4)$: The organization exceeds ethical standards in most aspects with minor areas for improvement.

Excellent $(5)$: The organization fully meets or exceeds ethical standards with no significant areas for improvement.

Based on this scale, evaluate each key area and provide justifications and evidence for your rankings in your report. This structured approach will help you systematically assess the organization's ethical practices and identify specific areas for enhancement.