Question

1. What is the key component of a successful auditing process missing from this situation? Why? Are there other important components that are missing?

2. How would you describe the corporate culture of Butterfly? Give details to support your assertion.

3.What steps, and in what order, would you recommend Charles take? What do you expect each step to accomplish?

Answer 1

Ans 1: “A key component of a successful auditing process that is missing from this situation is regular, complete, and documented measurements of compliance with the company's published policies to address specific ethical issues”. (Ferrell & Fraedrich, p.252-267). Douglas assigned a task to Charles, and he proposed a resolution in which Douglas did not agree with. It takes more than just one person to brainstorm this process and determine a proposal that is cost-effective and accurate on its findings.

Ans 2: I would consider the corporate culture for Butterfly to be exacting culture. “In contrast, an exacting culture shows little concern for people but a high concern for performance” (Ferrell, 2015, pg. 188). Doug does not show much care for his employees because he is letting them go because of funds but when other employees make complaints about the new goals that are too good to be done, he has Charles do whatever he can to make the company look good to the board.

Ans 3: I would recommend Charles to make a cheaper plan for an ethical audit but that is it. He has to make a new plan. I would not follow what Doug said about just reviewing a few employees and try to make the business look good. The employees are the ones complaining and making the board be on his back. If Charles cannot figure a way to make a cheaper ethical audit then he needs to go to the board himself and explain the audit to them and see what can be done through that.