Peter, the president of a small company, wants his employees to be aware that they should act ethically. Which of the following has proven most effective in improving ethical behaviour in a business firm?

Question

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Demonstrating top management commitment to high ethical standards has proven to be the most effective in improving ethical behaviour in a business firm. This sends a clear message to employees about the importance of ethical behaviour and sets a positive example for them to follow. Rewarding unethical behaviour (A) can send mixed signals and create a culture of accepting unethical behaviour, while firing all unethical employees (D) may not address the root cause of unethical behaviour and create a culture of fear or distrust. Ignoring unethical behaviour (E) can also create a culture of acceptance, and dealing with it privately (C) may not demonstrate a commitment to high ethical standards.

Peter, the President of a Small Company, Wants His Employees