What is one effect of unethical behavior on a company’s culture?

Unethical behavior within a company can significantly impact its culture, often resulting in decreased overall morale among employees. When employees observe unethical practices—such as dishonesty, lack of transparency, or unfair treatment—they may feel disillusioned and demotivated. This can lead to feelings of distrust and a toxic work environment, where employees feel that their values do not align with those of the organization. As morale declines, so does employee engagement, productivity, and retention, ultimately harming the company’s performance and reputation. A culture that lacks ethical standards can create a pervasive sense of dissatisfaction, leading employees to question their purpose and the integrity of the organization they work for. This is why the choice indicating decreased overall morale accurately captures the essence of how unethical behavior affects a company’s culture.