ICAEW SE · Chapter 6 · Question 8 of 10
Which of the following is most important in establishing an ethical culture within an organisation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Senior management consistently demonstrating ethical behaviour ('tone at the top')
Explanation
An ethical culture depends heavily on leaders setting an example through their own behaviour. This is supported by a published code of conduct, training, reward systems that do not encourage unethical behaviour, and safe channels for raising concerns. Narrow sales-based rewards and discouraging concerns tend to undermine ethical culture.
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