NIKE 2023

Do one or a few individuals dominate management and operating decisions?

Does management demonstrate the appropriate tone at the top, including explicit moral guidance about what is right or wrong?

More specifically, has a code of conduct been established that includes appropriate entity policies regarding acceptable business practices and conflicts of interest?

Are these policies adequately communicated to employees?

Does management adequately monitor business risks?

Does management encourage those everyday dealings with customers, suppliers, employees, and other parties be based on honesty and fairness?

Has management established and maintained effective internal control over financial reporting?

Is there a motivation for management to engage in fraudulent financial reporting? (Refer to Tables 4-2 to 4-4 in the textbook for a list of specific indicators that might indicate fraudulent reporting.)