PRC-3 · Chapter 6 · Question 55 of 68
A company issues a strict Code of Ethics, but the CEO openly ignores it by verbally abusing staff and demanding they falsify sales data. Consequently, the staff act unethically too. This scenario highlights the crucial importance of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Tone at the top
Explanation
For an ethical code to work, senior management must actively demonstrate and enforce ethical behavior, a concept known as the 'tone at the top'.
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