Module 7 Business ethics quiz

Course	Business Ethics
Test	Module 7 Quiz


Status	Completed
Attempt Score	15 out of 20 points

Results Displayed	Submitted Answers, Feedback

Question 1

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

Selected Answer:

The Global Initiative is the framework that many companies have adopted as a means of tracking their social and sustainability progress. Its main objective is to report the triple bottom line of the economic, social and environmental factors. The Global Reporting Initiative is used to help companies report their nonfinancial reports to their public in a manner that they could comprehend. The Global Reporting Initiative (GRI) has become important because it relays the information that sparks the attentions of a company’s stakeholders and customers alike.

Version 2: Global Reporting Initiative (GRI) is an independent organization that has set some international standards for governmental and non-governmental organizations to follow. These standards let these organizations know about their importance when it comes to ethical responsibilities on national and international levels.

The main goal or GRI is to help organizations in different fields understand their influence on issues like global warming and climate change, corruptions in these organizations and human right issues.

GRI has grown in importance due to many reasons. First is the realization among organizations and societies that they need to take responsibilities of their actions which are advocated by GRI. Seconds is the growing pressure of civil societies whose goals and aims are in line with what GRI stands for.

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Question 2

1 out of 1 points

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

Selected Answer:

six

Question 3

1 out of 1 points

Two useful indicators for assessing employee issues are

Selected Answer:

staff turnover and employee satisfaction.

Question 4

1 out of 1 points

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

Selected Answer:

credibility and objectivity.

Question 5

1 out of 1 points

____ are a primary stakeholder group, and should be included in the ethics auditing process, because their patronage and loyalty determines an organization’s success.

Selected Answer:

Customers

Question 6

1 out of 1 points

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

Selected Answer:

fulfilling stakeholders’ expectations.

Question 7

1 out of 1 points

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.

Selected Answer:

financial

Question 8

1 out of 1 points

When the Body Shop posts the results of its ethics audit on its web site, it is engaged in which of the following steps of the ethics auditing process?

Selected Answer:

Report the results.

Question 9

1 out of 1 points

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

Selected Answer:

Verification

Question 10

1 out of 1 points

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

Selected Answer:

stakeholder relationships.

Question 11

3 out of 5 points

Explain the benefits and risks of ethics auditing.

Selected Answer:

Ethical auditing helps companies to detect the internal issues that may be occurring within their organizations. Pinpointing such issues while they are in its early stages gives the company the time that it needs to handle the issues that arise before they grow too big. The risk that is involved with ethics auditing occurs when companies do not know how to fix the problems that are discovered through the process. Bringing such issues to the forefront and not being able to handle them may end up dissapointing the stakeholders who have invested substantial amounts of their funds for the betterment of the company.

Version 2: Ethical auditing is an informal check on organizational activities to understand different aspects organizational performance. Usually a third party in involved in ethical auditing, therefore there is a less chance for any bias and any issues that exist will be identified effectively. This will help in rectifying these issues and making the organizational processes more efficient. The ethics audit can pinpoint areas where improving operating practices can improve both bottom-line profits and stakeholder relationships. The disadvantage of ethical auditing is the fact that the auditors from outside and they may not have a clear understanding of the internal organizational process. They might make mistakes that could compromise the whole importance of auditing.

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