Business Ethics Current Event - Article Example

Business Ethics Current Event Tone at the top is an important component for effective corporate compliance programs, and internal control. The tone is crucial in determining early-warning signs of probable wrongdoing risk in one or more units of the company’s operations. With this in mind, the compliance executives can consider new methods of evaluating the organization’s tone at the top. There are ten ways that compliance professionals can support each other or work together in assisting to evaluate the present state of the company’s tone at the top.

These ways include assessing the extent and nature of wrongdoing, anonymous incident reporting, assessment of social media reputation, employee surveys, group discussion, tone of management communication, exit interviews, facility interviews, customer complaints, and interviews and focus groups. Tone at the top creates the basis for a culture that motivates confidence and trust among all the key stakeholders of the company (Epps, 2012).The information from the event is related to what was discussed in the class.

Strategic management of individuals at the top is crucial for the success of the company. When measuring performance, the top management should be able to distinguish between the different divisions of a company. It is important to note that managers usually perform well despite the poor performance of a business unit due to factors that beyond the control of the manager (Maher, Stickney, and Weil, 2012). Legal and ethical compliance is crucial in developing the social responsibility image of the company.

Legal compliance entails the extent to which the company conforms to a number of laws such as the state, federal, local, and international laws. On the other hand, ethical compliance relates to the level to which the members of the company follow the general legal and ethical standards of behavior (Griffin, 2011). In conclusion, the tone of the top management is important in determining company’s success. It also determines how the company complies with various programs. Thus, it is important to develop ways through the tone at the top can be assessed.

As stated before, the compliance professionals can assist each other in evaluating the tone at the top through various methods. For instance, methods such as anonymous incident reporting, assessment of social media reputation, employee surveys, group discussion, tone of management communication, and exit interviews. Thus, the information from the event is related to some of the topics discussed in the class such as strategic top management, and corporate compliance programs. ReferencesEpps, D. (2012). 10 ways to measure the tone at the top.

Retrieved from http://www.corporatecomplianceinsights.com/10-ways-to-measure-the-tone-at-the-top/Griffin, R. W. (2011). Fundamentals of management. Mason, OH: Cengage Learning. Maher, M. W., Stickney, C. P., & Weil, R. L. (2011). Managerial accounting: An introduction to concepts, methods, and uses. Mason, OH: Cengage Learning.