An ethical audit is important to establish the company’s current weaknesses and strengths concerning how it conducts itself in an ethical manner. An ethics audit will involve evaluating the company’s standard of ethic, it ethic climate, and how well the company’s employees follow ethical standards. One of the first things to evaluate in an ethics audit is if a company has a written code of ethics and how comprehensive it is. Moreover, the written code of ethics should apply to everyone in the company from the top down with a clear zero tolerance policy in place for ethics violations. Included in a comprehensive ethics code should be a method for…show more content… But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation" (as cited in the Balance Scorecard Basics, n.d.) It is important to use both types of factors in a balanced scorecard because an business’s goals are often more than just a pre-defined set of financial numbers, financial numbers are useful indicators in and of themselves and can be related factors that are qualitative in nature, and used together can be the best way to determine an employee’s strengths as well as weaknesses concerning performance.
Audit of Toy R US Code of Ethics The code of ethics of Toys R Us does virtual nothing to address corporate social responsibility. It covers only the basics of what any narrow and simple code of ethics would address. Toys R Us code of ethics does not even seek to outline the values of the company. This simple omission outlines a lack of thoroughness to their code of ethics and makes it appear as nothing more than a legal document that was created out of a basic need without more serious
