In the context of social psychology, what effect does the perception of ethical wrongdoing typically have on an organization?

• A. It has no significant impact on the organization's reputation or internal dynamics.
• B. It consistently results in higher productivity and improved teamwork.
• C. It usually increases employee motivation and loyalty to the organization.
• D. It can decrease trust among employees and stakeholders, leading to reduced morale and organizational commitment.

Answer: (D)

Verified step by step guidance

1. Understand the key concept: In social psychology, perception of ethical wrongdoing refers to how employees, stakeholders, and the public view an organization's moral behavior or lack thereof.
2. Recognize that ethical wrongdoing can damage trust, which is a fundamental component of healthy social and organizational relationships.
3. Identify the consequences of decreased trust, such as lower employee morale, reduced motivation, and weakened commitment to the organization.
4. Consider how these negative effects can ripple outward, affecting teamwork, productivity, and the organization's overall reputation.
5. Summarize that the perception of ethical wrongdoing typically leads to decreased trust and morale, which harms organizational commitment and internal dynamics.