Final answer:
The "tone at the top" refers to leadership's role in setting the ethical standards and culture within an organization. It involves setting a proper example and modeling appropriate management behavior, which is key in fighting fraud and promoting a healthy organizational culture.
Step-by-step explanation:
The concept of "tone at the top" is crucial in the context of organizational behavior, particularly in the fight against fraud. It emphasizes the importance of leadership in setting the ethical climate and cultural norms within a company. Leaders serve as models for appropriate behavior and this is instrumental in fostering an environment where integrity is valued and fraudulent activities are discouraged.
The correct answer to the student's question regarding the elements that the "tone at the top" involves in fighting fraud is: c) setting a proper example or modeling appropriate management behavior. Although teaching and training about fraud is also important, as well as conducting integrity risk assessments, the question specifically refers to the impact of leadership's example, which aligns with answer c).
Furthermore, this concept supports the notion that when leaders demonstrate a commitment to ethical practices, it encourages employees to uphold similar values, fostering a positive organizational culture with less propensity towards misconduct.