Final answer:
The action taken by Taylor Shoe Company and the newspaper is an example of ethical behavior, showing a commitment to honesty and correcting mistakes to prevent potential harm.
Step-by-step explanation:
When the Taylor Shoe Company realized the local newspaper advertisement was incorrect and the newspaper printed a correction with an apology, this is an example of ethical behavior. Ethical behavior refers to actions that are morally right or acceptable within society. It is important to adhere to ethical standards to maintain trust and credibility. Correcting the mistake and offering an apology shows a commitment to honesty and responsibility, which are key elements of ethical conduct.
Given the background information, we understand that false or misleading information can have serious repercussions, sometimes leading to lawsuits as in the cases of New York Times v. Sullivan and Curtis Publishing Co. v. Butts. The decision to correct the advertisement was likely not only a legal obligation but also a moral one to prevent potential harm or misunderstanding that incorrect advertisements might cause.