Which of the Following Organizations Is Best Suited to Promote

question 78

Multiple Choice

Which of the following organizations is best suited to promote ethical behavior in its employees?

• A) An organization that has a reward and punishment system that depends on specific goal outcomes.
• B) An organization that has formal rules and regulations in place.
• C) An organization that wants its employees to achieve their goals at any cost.
• D) An organization that has a performance appraisal system that focuses exclusively on outcomes.
• E) An organization that advertises being green.

---

Definitions:

Externalities

Financial outcomes or repercussions that impact third parties who are not directly involved; these can be positive or negative.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace in adjusting supply and demand autonomously.

Marketplace

A physical or digital venue where buyers and sellers come together to exchange goods, services, or information.

Marginal Buyer

The consumer who might leave the market if the price was any higher, indicating their participation is sensitive to price changes.