Final answer:
A company's strategy must be ethical to avoid damaging its reputation, violating moral standards, incurring legal consequences, and undermining corporate culture. Whistleblowing and public exposure of unethical practices can lead to significant repercussions for the company and its management.
Step-by-step explanation:
A company's strategy needs to be ethical because engaging in unethical practices can have several adverse consequences.
Corporate Responsibility and reputation are at stake, and unethical behavior can cause significant embarrassment to top management if exposed publicly, damaging the company's image and potentially leading to a loss of consumer trust.
Unethical strategies are morally reprehensible, reflecting poorly on the character of involved personnel, and can erode a company's culture, undermining employee morale and loyalty.
The possibility of whistleblowing is ever-present, as any employee or onlooker could reveal unethical practices, leading to legal repercussions, fines, and in some cases, criminal charges against the company and its leaders.
Furthermore, adhering to ethical standards is crucial for maintaining a positive corporate culture, which is essential for long-term success and sustainability. Violation of ethical codes can result in direct consequences such as legal action but can also have broader societal implications, eroding trust and potentially attracting negative attention from both consumers and regulatory bodies.