Final answer:
The ethical culture approach includes the use of both a code of ethics and compliance procedures, which are necessary for guiding employee conduct and ensuring alignment with organizational values.
Step-by-step explanation:
The ethical culture approach in managing ethical conduct in organizations is notably comprehensive and integrates several components. Contrary to option B, it does make use of a code of ethics and compliance procedures. These components are essential as they reinforce the organizational values and establish clear standards for employee conduct. Top managers often favor the ethical culture approach when they desire strong employee alignment with the company's ethical values and standards, as stated in option A. Co-worker influence, mentioned in option C, is crucial in fostering a work environment where ethical behaviors are supported and encouraged by peers.
The need for compliance procedures, stated in option D, highlights the importance of clear guidelines and consequences for actions that veer outside of ethical norms. Finally, the character of leadership, as mentioned in option E, is fundamentally important for maintaining an organization's ethical culture. The integrity and actions of executives are often mirrored by employees throughout the company.