Answer: 2. a failure of leadership to establish ethical standards
Ethics are standards and values of moral behavior, that have been accepted by the society as right, as well as those that have been recognized by society as wrong. They guide human interactions and behaviors in every facet, including business.
The leadership is responsible for establishing order, as well as for determining what is acceptable and unacceptable at work, as per the company’s standards. Failure results in unethical employee conduct. The CEOs blame this shortcoming on the leadership, recognizing their failure in ensuring that right and wrong are clearly stated and strictly harped upon, for the followers and other members to see and emulate.