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Corporate governance sets the tone at the top, influencing the ethical climate and culture of the organization. When leaders demonstrate a commitment to ethical behavior and transparency, employees are more likely to follow suit. Strong corporate governance practices also promote fairness and equity, creating a more positive and inclusive work environment. For example, a company with a robust whistleblower policy is more likely to uncover and address ethical lapses, sending a clear message that unethical behavior will not be tolerated.
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