Question

Which of the following is a condition that does not necessarily give rise to unethical business strategies and behavior?

a) Intense competitive pressures
b) Weak corporate governance
c) Strong ethical leadership
d) Lack of regulatory oversight

Answer 1

Strong ethical leadership does not encourage unethical business strategies and behavior; it promotes an ethical climate and reduces the likelihood of unethical practices like discrimination or underpaying workers.

Step-by-step explanation:

The condition that does not necessarily give rise to unethical business strategies and behavior is c) Strong ethical leadership. Strong ethical leadership typically promotes an ethical climate within the organization that can influence employees and processes positively, discouraging unethical behavior. On the contrary, conditions such as intense competitive pressures, weak corporate governance, and lack of regulatory oversight are often linked to increased risks of unethical behavior in businesses. Strong ethical leaders set an example and establish policies that encourage fair treatment and pay for employees, thereby reducing the likelihood of unethical practices such as discrimination or underpaying workers.