A social versus an ethics audit refers to a comparison of two different examinations that are conducted in the same organization. The most common practice is for an organization’s leaders to undergo an integrity review followed by an ethical review. Show However, in some cases, the two examinations are conducted simultaneously. A social audit is usually conducted by an organization’s human resources department. An ethical review is usually performed by an external organization or firm hired by the business. Below are some key differences between the two examinations. Social Audits and their SpecificsA social audit is “examining existing or proposed practices or procedures concerning their effects on social concerns such as workers’ welfare, health care quality, fair pricing practices, etc.” In general, social-impact audits investigate the social impact a business activity has on a specific group of people or society as a whole. What else is covered in a social audit? As part of the review, this type of audit will look into internal controls over the business, including the management’s implementation of policies and procedures, the identification of risks, and the creation and maintenance of effective systems to manage them. It will also look into:
In addition, it will review the activities of key personnel to determine if any of them may have behaved in an unethical manner. Who is involved in a social audit? Normally the scope of the review is limited to current and former employees. Ex-employee interviews are sometimes conducted as part of a review to gain insight into what employees know about the business, how they behave, and whether their experiences and thoughts meet the business’ standards. However, it is not uncommon for other staff members to be interviewed as well. Why is an audit conducted? Sometimes an outside firm will conduct an audit of your company. This may be due to a recent court case, a tip from a customer, or just because they feel like doing a review. The results of these reviews can be helpful to you. They can also provide information that can help your leaders improve their performance, develop better policies, increase productivity, reduce costs, or make the company more profitable. Ethics Audits: What do they bring to the table?Ethics audits are conducted to see if an organization’s ethics and values align with the company’s expectations and requirements (and whether they further other social factors, like environmental concerns). They generally involve other parties as well, to ensure that the ethics audit is carried out properly. This other party can include a professional ethics auditor or board members of the company. An ethics audit is much broader than a social audit because ethics audits are not confined to social norms. They bring an entirely new perspective on the organization’s business ethics. Social audits, on the other hand, are more opinion-based and often involve relatively few people in decision-making processes. In a nutshell, an ethics audit just goes much further than simply assessing facts about business practices. In an ethics audit, experts would evaluate whether the ethics code aligns with reality and if ethics and values are practiced in the real world. It often requires an organization to explain why ethics matter and what they mean for business. An ethics audit may also require the company to explain how the ethics code works so that it can be assessed whether or not it is working well towards meeting organizational goals. Ethics audits should cover all aspects of ethics within organizations because even a few incidences of unethical behavior could cause public relations problems or former employees to take legal action against by claiming unfair dismissal due to poor ethics. This may lead to lawsuits and ethics violations, which can be costly for the company. Therefore ethics audits should look into areas like political lobbying ethics, protection of privacy ethics, business ethics, environmental ethics, and responsibility towards stakeholders—not just social aspects. Why These Audits Are Essential to Businesses?At times, ethics audits can emphasize ethics to the point where it becomes difficult for an auditee to address social issues. This balancing act between ethics and social standards is necessary for any ethics audit because both ethics and social standards affect an organization’s image and reputation. “An ethics audit should be viewed as a process to identify risks to take corrective actions needed to prevent future failings” (Ethics Resource Center). All too often, companies will pay little or no attention to their ethical standing with society until there is a scandal that makes it into the news. Once this happens, the company has little choice but to go about an ethics audit to restore its reputation. However, at this point, conducting a social audit might be a great idea too. Procedures during Social and Ethics AuditsBoth types of business audits are complex and require special plans. Here are some steps that might be taken during any ethics or social audit:
ConclusionsThe ethics audit is a much broader area of study. In addition to ethics, many other factors must be considered when doing both ethics and social audits. Ethics checks both issues related to ethics and good governance, but also others such as the environment, terrorism, discrimination, crime, etc. Social audits are about issues that have or can have an impact on society. They are indicators of what needs to be checked by the organization responsible for the inspection. Organizations that use ethics audits usually conduct social audits too to get an idea of the environment, culture, infrastructure, or work styles in which ethics audits are carried out. However, plans for social audits should be separate from ethics audits, so as not to divert attention from the ethics issues.
Randall Lester |