We all know that the CEO and top senior executives shape the ethical climate for the company, but can you audit those activities?
An interview with Joel F. Kramer
December 13, 2016
Through their words and actions, the board and C-suite set the tone and shape the ethical culture that pervades the organization. If the rank and file perceive the CEO as someone who cuts corners or ignores ethical issues, it sends a message that skirting the rules is acceptable, even if the written policies forbid it. If senior management seems to always do the right thing, it creates a model that others are likely to follow and may do more to create an ethical culture than any amount of training and policy writing could ever do.
So how can internal audit assess something that seems so difficult to quantify? In the latest edition of our video series "MISTI on Audit," Joel F. Kramer, vice president of audit curriculum at MIS Training Institute, looks at some of the ways internal audit can get at assessing "tone at the top."