Ethical Leadership Part II describes effective leaders as establishing what to promote ethical behavior?

• A. Code of ethics
• B. Ethical norms
• C. Punitive policies
• D. Financial incentives

Answer: (B)

Establishing ethical norms creates a shared standard that guides daily behavior and signals what counts as acceptable within the organization. When leaders consistently model these norms and weave them into everyday practices—through conversations, routines, performance discussions, and socialization—they shape how people think about right and wrong. This makes ethical behavior the expected way of acting, not just something codified in a document or enforced through punishment. A code of ethics matters as a formal reference, but it’s the lived norms—the unwritten rules that people observe and follow—that truly promote ethical behavior. Punitive policies focus on consequences after misconduct, and financial incentives can distort motives or undermine genuine ethical commitment, whereas strong ethical norms cultivate intrinsic alignment with shared values.