Which description best defines organizational ethics?

• A. Descriptions of how ethics occurs at a company
• B. Principles and standards of behavior that guide business decisions
• C. Rules of conduct that establish legal requirements for businesses
• D. Standards of reporting ethical violations

Answer: (B)

Organizational ethics is the set of principles and standards of behavior that guide how business decisions are made and how people in the organization act. This description best captures the concept because it emphasizes normative guidance—what the organization believes is right or wrong and how those beliefs shape decisions and actions—rather than merely describing how ethics appears in practice, enforcing legal requirements, or focusing only on reporting violations. While laws and reporting mechanisms relate to ethics, organizational ethics provides the overarching framework that informs everyday choices and the company culture.