Which of the following statements best explains the "carrot-and-stick" approach of the U.S Sentencing Commission Guidelines?
A)Nonprofits are exempted from fines.
B)Quickresponding reactive organizations are rewarded.
C)Lower fines are imposed on companies that take proactive steps to prevent unethical behavior.
D)Companies are asked to emphasize just one area of ethical behavior.
E)Organizations accused of unethical behavior are excused if the management was unaware.

Question

Which of the following statements best explains the "carrot-and-stick" approach of the U.S Sentencing Commission Guidelines?
A)Nonprofits are exempted from fines.
B)Quick­responding reactive organizations are rewarded.
C)Lower fines are imposed on companies that take proactive steps to prevent unethical behavior.
D)Companies are asked to emphasize just one area of ethical behavior.
E)Organizations accused of unethical behavior are excused if the management was unaware.​

Quizplus · Accepted Answer

The "carrot-and-stick" approach of the U.S Sentencing Commission Guidelines involves imposing lower fines on companies that take proactive steps to prevent unethical behavior, while imposing higher fines on organizations that fail to take such preventive measures. This approach incentivizes companies to prioritize ethical behavior and take responsibility for the actions of their employees.

Which of the Following Statements Best Explains the "Carrot-And-Stick" Approach