An ethical audit measures the cultures and behaviours of an organisation, and determines the extent to which its values are embedded across its people and across its processes.
No business is carried out in isolation , it involves interactions internal as well as external. Every business touches the life of every person involved in whatsoever capacity with the Organisation.
Unlike financial audits which are designed to dig deep into Organisation records to ensure reliability and accuracy in areas like accounting systems, financial reporting and legal compliance. Audits generally deal with quantitative, measurable data. Ethical issues, on the other hand, are more often qualitative or subjective in nature. A number of qualitative research techniques make an ethical audit possible, but an ethical audit still necessarily functions differently from any kind of financial audit. Considering multiple perspectives to gain a big-picture understanding of a company's commitment to ethics is the key to an ethical audit.
Ethical audits can prove to be beneficial in the growth and sustainability of any Organisation. Some of the benefit of the Ethical audit has been listed below:
- Identify potential risks and liabilities and improve legal compliances.
- Can be key in improving organizational performance.
- Improved relationships with stakeholders.
- Plans to respond to and recover from disasters that can disrupt operations, destroy organizational reputation and erode shareholder confidence.
- Provide a benchmark of overall effectiveness of ethics initiatives .
- Can demonstrate the positive impact of ethical conduct and social responsibility initiatives on the firm’s bottom line
An ethical audit if effectively done can help in building a positive environment across Organisation . It will with all other benefits will promote that the Organisations concerns for the overall development and conduct of the business not just achieving some financial targets.
At Dishtayate, we provide you with a qualified team who understands finance and non finance requirements of the business and who can partner with you for the ethical development of your Organisation.