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Essay text:
People look to see what those in authority are doing and use that as a benchmark for acceptable practices and expectations.
If top managers, for example, take company resources for their personal use, inflate their expenses accounts, or give favored treatment to friends, they imply that such behavior is acceptable for all employees.
Therefore, managers should lead a good example and show a strong cultural tone of the organization. If a manager is not reprimand or punished by his actions this will send a strong signal that this kind of practice is acceptable in the organization.
Nevertheless, why did the board approve such compensation? Researchers suggest that success may serve to excuse unethical behavior...
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