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What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework?

(A) Economic, social, personal indicators

(B) Political, social, and environmental indicators

(C) Economic, social, and environmental indicators

(D) Political, individual, and environmental indicators

(E) Political, individual, and personal indicators

24. What are the three Triple Bottom Line factors incorporated into the Global Reporting Initiative framework?

a.
Economic, social, personal indicators

b.
Political, social, and environmental indicators

c.
Economic, social, and environmental indicators

d.
Political, individual, and environmental indicators

e.
Political, individual, and personal indicators

​ Ethics auditing employs procedures and processes similar to those found in financial auditing to create an objective report of a company's performance. As in an accounting audit, someone with expertise from outside the organization (an external audit firm) may be chosen to conduct the ethics audit. Although the standards used in such auditing can be adapted to provide an objective foundation for ethics reporting, there are significant differences. Ethics auditing deals with the internal and broad external impact of an organization's ethical performance. Another difference is that ethics auditing is not usually directly associated with regulatory requirements. Because ethics and social audits are voluntary, there are fewer standards a company can apply with regard to reporting frequency, disclosure requirements, and remedial actions that it should take in response to results. However, there are also similarities between financial audits and ethics audits. For instance, the tests commonly used in financial audits—confirmation, observation, tracing, vouching, analytical procedures, inquiry, and re-computing—can be used in ethics and social audits as well. Additionally, financial information uncovered in a financial audit can be helpful measurements to use in conducting the ethics audit

​The first step in conducting any audit is securing the commitment of the firm's top management and, if it is a public corporation, its board of directors. Without this support, an audit will not improve the ethics program or the corporate culture. The next step in the framework is to establish a committee or team to oversee the audit process. Ideally, the board of directors' financial audit committee oversees the audit, but this does not happen in most companies. In any case, this team should include employees knowledgeable about the nature and role of ethics audits, and those people should come from various departments within the firm. The third step involves the ethics audit committee establishing the scope of the audit and monitoring its progress to ensure it stays on track. The scope of an audit depends on the type of business, the risks it faces, and the opportunities it has to manage ethics. Because ethics audits generally involve comparing an organization's ethical performance to its goals, values, and policies, the audit process should include a review of the mission statement and strategic objectives. It is important to examine all of the firm's policies and practices with respect to the specific areas covered by the audit. The next step in the ethical audit framework is to identify the tools or methods for measuring a firm's progress to improve employees' ethical decisions and conduct. The firm should collect relevant information for each subject matter area. Stakeholder involvement is another component in the successful implementation of an ethics audit since they yield significant insights. Once this information is collected, the firm should compare the internal perceptions to those identified in the stakeholder assessment and summarize its findings. The next step is to have an independent party—such as a social/ethics audit consultant, a financial accounting firm offering social auditing services (such as KPMG), or a nonprofit special interest group with auditing experience (for example, the New Economics Foundation)—verify the results of the data analysis. The final step in the framework is issuing the ethics audit report. This involves reporting audit findings through a formal report to the board of directors and top executives and, if approved, to external stakeholders.