Final answer:
Employees are more likely to report issues of high moral intensity, and reporting behavior is influenced by factors such as corporate culture and the availability of effective reporting systems.
Step-by-step explanation:
The question asks which of the following is TRUE regarding how employees respond to ethical issues and moral dilemmas. Among the options given, the most accurate is that employees are more likely to report issues of high moral intensity. This is supported by the understanding that when the moral stakes are higher, individuals are typically more compelled to take action, particularly if they perceive the issue's impact as significant. However, whether employees report unethical conduct can also depend on various factors including corporate culture, the presence of effective reporting systems, and moral courage.
It is a misconception to assert that those higher in the hierarchy are more morally compromised or less likely to report misconduct solely based on their position. Although the hierarchy of authority within an organization may influence behavior, individual moral principles and the specific ethical climate of the organization play a larger role in whether misconduct is reported.