Setting the Tone Synopsis Ethical leadership, sometimes addressed as the ‘tone at the top’, is an essential part of governance in every organization. ‘Tone in this context means the qualities and style that characterizes business behaviour.’ That tone needs to cascade down the organization to all levels and across all supply chains – to suppliers, customers, business partnerships and other stakeholders. This case study sets a ‘values’ theme internal auditing can contribute to through its own ethics and cutting edge resources and practices.

Published summary of report Setting the Tone – Ethical Business Leadership (2005), Philippa Foster Back, OBE, Director, The Institute of Business Ethics, London, England. www.ibe.org.uk After Reading the Case Study Consider:

1. How does internal auditing in your organization‘have an effect’ on its ethical leadership, in all its teams and at all levels?

2. Does your organization ‘clearly state’ the tone of how it does business, to all its employees and all those with whom it has operating relationships?

3. Does your organization recognize and respond appropriately to all the external influences discussed in the case?