Which practice best demonstrates ethical leadership by a senior manager?

Correct answer: B. Applying standards consistently to all staff

  • A. Rewarding results obtained through fraud
  • B. Applying standards consistently to all staff
  • C. Hiding errors from external reviewers
  • D. Allowing friends to avoid company rules

Explanation

Ethical leadership requires leaders to model fairness, honesty and accountability in their own decisions. Applying standards consistently shows that personal relationships and rank do not excuse misconduct.

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About Business Ethics and Corporate Governance

Business ethics applies principles such as honesty, fairness, responsibility and transparency to decisions involving employees, customers, investors, competitors and society. Corporate governance covers the board of directors, accountability, disclosure, internal controls, stakeholder interests, agency conflicts, corporate social responsibility, codes of conduct and whistleblowing.

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