It's always a challenge to separate these things. Clearly, the employees are the people at risk, so yes, you want to know what's going on at the front line because that is a reflection of your culture. Not to sound paternalistic, but a way to think about this in an everyday sense is to think about your children and your parenting style. We all get embarrassed when our children freak out and behave inappropriately in a public place. The reason we're embarrassed is that everybody knows it's a reflection of how we parent, whether we like it or not.
While it's not quite the same in an organization, that gives you the sense that it's important to look at the activities and behaviour of front-line staff, to judge it in terms of a reflection of your behaviour. What you're showing is important and you need to change what you do. That's the lesson. It would be to reflect it back at you.