Final answer:
Cultural diversity can improve ethical behavior in the workplace when it is accompanied by diversity training and practices that promote equality, common goals, and cooperation, thus reducing prejudice and ethnocentrism and enhancing organizational success.
Step-by-step explanation:
Understanding the impact of cultural diversity on the ethical behavior of employees begins with recognizing that workplaces worldwide have become multicultural environments that combine diverse values, beliefs, and behaviors. When employees from various cultural backgrounds collaborate, it is crucial to have diversity training that emphasizes equal standing, common goals, cooperation between groups, and institutional support to effectively reduce or eliminate prejudice and ethnocentrism.
This is important for both individual and organizational success, as ethnocentric behavior can be damaging, causing workers to leave for better opportunities, thus affecting a company's reputation and ability to retain talent.
Market pressures from employees who choose not to tolerate discriminatory practices by moving to more equitable employers may compel a change in such businesses. Conversely, the embrace of cultural sensitivity and understanding of the organizational culture can lead to more harmonious and ethical workplaces, ultimately driving success for companies that value and respect their multicultural teams.