How do you instill an ethical culture within an organisation?

And the answer was:

The interviewer who asks this question says: "The best response is around ensuring that the tone is correct at the top of the organisation and cascading it right through the company. The worst was 'treat everyone like they are your best friend; give them hugs'. You can guess which answer secures to job! "

Additional information

This is the favourite question of a head of investigations at an insurance company. It is asked to candidates interviewing for financial crime roles.