Which of the following benefits is associated with organizations that encourage ethical behavior?

Organizations that encourage ethical behavior often experience increased customer retention as a significant benefit. Trust and integrity play crucial roles in fostering long-term relationships between customers and businesses. When a company demonstrates a commitment to ethical standards, customers are more likely to feel valued and respected, leading to a stronger brand loyalty. This positive perception enhances the likelihood that customers will continue to choose the organization over competitors, resulting in a sustained customer base.

In contrast, the other choices reflect negative outcomes that typically arise in organizations lacking ethical practices. Reduced morale, higher employee turnover, and decreased productivity tend to occur when employees feel that their organization does not uphold ethical standards, which can lead to dissatisfaction and disengagement from their work. Hence, promoting ethical behavior not only benefits customer relationships but also plays a vital role in enhancing the overall organizational environment.