Communication is important in keeping a firm on its ethical course because
A) centralization may reduce the opportunity for unethical conduct.
B) top executives must enforce overall ethical standards within the organization.
C) the moral philosophies of employees are always consistent with the moral philosophies of top management.
D) employees must learn when unethical behavior is appropriate to maximize profits.
E) issues such as price collusion and bribery must be decided on a decentralized basis.

Question

Quizplus · Accepted Answer

Top executives play a crucial role in setting and enforcing ethical standards within an organization. Communication with employees about these standards is essential to ensure they understand and follow them, reducing the likelihood of unethical conduct. Centralization or decentralization may impact an organization's ethical culture, but ultimately it is the responsibility of top management to establish and maintain ethical behavior throughout the firm. The idea that unethical behavior can increase profits is not ethical and should not be endorsed.

Communication Is Important in Keeping a Firm on Its Ethical