Business Studies · Moral Agency and Social Learning Theory

Evaluate the following three statements and identify the most accurate conclusion: Statement 1: The concept of 'Moral Agency' implies that every employee in a financial institution possesses the capacity to act as an independent moral actor, capable of discerning right from wrong. An employee cannot simply abdicate responsibility by claiming they were "following orders". Statement 2: 'Social Learning Theory' suggests that an individual's ethical choices are heavily influenced by the observed behavior of peers and leaders within the organization, creating a powerful pressure to conform to prevailing norms. Statement 3: To bridge the gap, 'Ethical Self-Regulation' is required, where a professional actively manages their own moral behavior through constant reflection, self-correction, and the maintenance of a personal ethics audit.