If you treat employees with respect, you have little to fear.

If an employee makes a claim that puts you in a bad light, you can then honestly relate what happened. If there's nothing to be ashamed about, you'll come out of the experience fine.

Buffet has a fine definition of ethics:

   The priority is that all of us continue to zealously guard Berkshire's 
   reputation. We can’t be perfect but we can try to be. As I’ve said in these 
   memos for more than 25 years: We can afford to lose money – even a lot of 
   money. But we can’t afford to lose reputation – even a shred of reputation." 
   We must continue to measure every act against not only what is legal but 
   also what we would be happy to have written about on the front page of a 
   national newspaper in an article written by an unfriendly but intelligent 
   reporter.