Which of the following behaviors could represent a significant ethical risk if exhibited by an organization's board?
1. Intervening during an audit involving ethical wrongdoing.
2. Discussing periodic reports of ethical breaches.
3. Authorizing an investigation of an unsafe product.
4. Negotiating a settlement of an employee claim for personal damages.
Intervening during an audit involving ethical wrongdoing could compromise the independence and objectivity of the audit, which is crucial for maintaining organizational integrity. Negotiating a settlement of an employee claim for personal damages could represent an ethical risk as it may indicate an attempt to avoid accountability or transparency regarding the issue raised by the employee, potentially hiding a more systemic problem.
It is not the responsibility of the board to negotiate settlement/pay off of an employee claiming personal damages. Settlement has a negative connotation in this circumstance
Why is #4 an ethical risk ??
Could be the fact they are negotiating a settlement instead of probing further into the claim of personal damages suffered by the employee