National Occupational Competency Testing Institute (NOCTI) Business Practice Exam 2026 - Free NOCTI Business Practice Questions and Study Guide

The CEO's behavior is indicative of unethical behavior because it involves a conflict of interest and a breach of trust. When a leader encourages employees to invest in company stock while simultaneously selling their own shares before a price drop, it suggests an intention to manipulate the market for personal gain. This action exploits the employees' trust in the CEO's judgment and positions them at a disadvantage, as the employees may not have all the information that the CEO possesses. Ethical behavior in business requires transparency and fairness, where leaders should not benefit personally at the expense of their employees or the company's integrity. Overall, such actions undermine the ethical standards expected in corporate governance.