The CEO of a struggling telecommunications company instructs the corporation's accountants to use fraudulent accounting methods to mask its losses. The CEO wants to drive up the stock price, which has been falling steadily for several months, especially since his salary is tied to stock performance. When an accountant approaches the Board of Directors with concerns about this directive, the Board listens politely and then does nothing.

Consider what  the factors that impact corporate culture. What is the ethical strength of the corporation in the example?

Strong, because the corporation has a way for employees to report ethical or legal breaches anonymously.

Strong, because the Board's inactions results in increased value to shareholders.

Weak, because the company is "killing the messenger."

Weak, because the company's leadership is not holding wrongdoers accountable.

Answer rating: 100% (QA)

Weak because the companys leadership is not holding wrongdoers a... View the full answer