Which of the following statements is true regarding the likelihood of criminal conduct in organizations?

The statement regarding the likelihood of criminal conduct in organizations that is true is that it may vary depending on the organization's prior history. This is significant because an organization’s past behaviors, including any instances of fraud or unethical conduct, can impact its current risk profile. If an organization has a history of engaging in criminal activities, or has previously faced legal issues, it may indicate heightened risk and potential for future misconduct. A strong history of ethical practices, conversely, can suggest a lower likelihood of criminal behavior.

Regarding the other options, the idea that criminal conduct can be ignored if the organization is small overlooks the fact that even small organizations can engage in fraudulent activities. The size of an organization does not necessarily correlate with its ethical practices or likelihood of criminal conduct. Stating that criminal conduct is irrelevant to the nature of the organization’s business fails to recognize that certain industries inherently have higher risks for fraud due to the nature of their operations (e.g., healthcare, finance). Viewing it as a low-risk area undermines the reality that organizations of all sizes and types can encounter significant ethical challenges, and therefore, complacency about potential risks can lead to serious consequences.