Why is (or should) the policy set by the organizational leaders of an organization conform to ethical behavior?
The policy set by the leaders of an organization is a framework that decides how the organization functions. It is essential for an organization to behave in an ethical manner. Being ethical for an organization is not only about conducting its operations in a manner that is not illegal; an ethically correct course of actions takes into account the well-being of all the stakeholders of the organization. Organizations that have an ethically appropriate policy are not concerned only with increasing their profits; they consider the welfare of their employees, their suppliers, their buyers and everyone whose life is being affected by the actions of the organization. This could include trying to adopt the most environmentally friendly policies, trying to benefit people where the organization is located, etc.
Organizations that adopt an ethically correct policy are respected by customers that goes a long way in increasing revenues. They are the ones that are found to be successful in the long run rather than those with a policy that is only focused on the bottom line.