Which of the following statements best explains the carrot-and-stick approach of the U.S. Sentencing Commission Guidelines for Organizations?
A) Nonprofit organizations are exempted from fines.
B) Unincorporated organizations and associations are exempted from penalties.
C) Organizations accused of unethical behavior are excused if the management was unaware of such behavior.
D) Smaller fines are imposed on companies that take proactive steps to encourage ethical behavior.

Question

Quizplus · Accepted Answer

The carrot-and-stick approach of the U.S. Sentencing Commission Guidelines for Organizations suggests that companies that take proactive measures to encourage ethical behavior are imposed with smaller fines. This approach inspires organizations to strive for ethical behavior by offering incentives or rewards for desired conduct and punishments or penalties for unethical or illegal behavior. However, the other options mentioned in the question are inaccurate and do not explain the carrot-and-stick approach.

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