Which of the following best describes the term 'ethical culture' in an organization?

The term 'ethical culture' in an organization is best described as a culture where ethical behaviors are rewarded and encouraged. This highlights the importance of fostering an environment that actively promotes integrity, honesty, and responsible behavior among employees. In such a culture, individuals feel empowered to make ethical decisions and are recognized for their commitment to upholding the organization's core values. This type of culture not only enhances trust and collaboration among staff but also aligns organizational goals with ethical standards, ultimately contributing to long-term success.

An ethical culture helps cultivate a sense of shared values and accountability, encouraging employees to speak up about unethical practices without fear of retaliation. This supportive atmosphere bolsters overall morale and can lead to improved performance and lower turnover rates.

Options that prioritize financial gain and ignore employee well-being do not align with ethical cultures, as they undermine integrity and contribute to a toxic work environment. Similarly, a focus solely on legal compliance does not encompass the broader scope of ethical behavior, which transcends mere rule-following and involves a commitment to principled conduct in all aspects of business operations.