How can a company's values influence its ethical decision-making?

A company's values play a crucial role in shaping its ethical decision-making by providing a framework for guiding employee behavior and informing decisions. When a company establishes clear values, such as integrity, respect, and accountability, these principles serve as a foundation upon which employees can base their actions and choices in various situations.

Values help create a consistent approach to handling ethical dilemmas, as employees can refer to the company's stated principles when faced with challenging decisions. This alignment between actions and values fosters a culture of ethical behavior, where employees are more likely to act in ways that are consistent with the company's expectations and commitments.

Moreover, a strong set of values can enhance organizational trust and cohesion, as employees understand the ethical standards they are expected to uphold. This improvement in awareness and consistency contributes to a healthier workplace environment and can positively affect stakeholder relationships.

The other options do not capture the comprehensive role of values in ethical decision-making. For instance, merely focusing on profits can lead to unethical practices that subvert values. Limiting business activities or causing confusion increases the complexity of ethics instead of promoting clarity. Therefore, a company's values fundamentally guide and influence ethical behavior, making the first choice the correct answer.