What is an ethical audit?

An ethical audit is specifically designed to check a business's adherence to its code of ethics. This process involves evaluating whether the company is acting in alignment with its stated values, principles, and ethical guidelines. The audit typically reviews various practices within the organization, ensuring that operations are consistent with the ethical standards the business promotes.

This sort of assessment is crucial for maintaining credibility and trust with stakeholders, including employees, customers, and the broader community. By performing an ethical audit, businesses can identify areas that need improvement, reinforce positive practices, and demonstrate their commitment to ethical responsibility.

Other options do not pertain to the concept of an ethical audit; they focus on financial performance, customer satisfaction, and employee performance, which are related to different aspects of business management but do not directly address the ethical considerations that the audit is designed to evaluate.