(1): A key component of a successful auditing process missing from this situation is the absence of regular and documented measurements with regards to compliance with the published policies of the company to address specific issues of ethical nature. In this case we can see that Douglas assigned tasks to Charles and the proposed resolution was not agreeable. Thus a single person cannot determine and evaluate a proposal for its cost-effectiveness as well as accuracy. (2): The corporate culture of Butterfly is a difficult culture and an exacting culture in which employees are exploited in a way. There is a little amount of concern and empathy towards the employees and the primary focus of the culture is the end result and performance of the company. As per this culture the performance levels should be maintained at all costs even at the expense of the employees and even by exploiting the employees. This leads to setting of tough and complex goals which employees find hard to achieve most of the time. (3): The step that I will recommend Charles to take is to make a new plan for ethical audit. Charles should not follow Doug's advice to just review a few