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Teens are supersensitive to what people think of them, and that even includes the opinions of their parents.
If you convey to your teenager the message that you believe in him or her, that you see them as an honorable and honest person, and that you trust them when they're out of your sight, they are much likelier to actually behave well.
Since this is a time in life when a person's normal activities take them all over town, you can't actually supervise them all the time anyway. So, you might as well lay the foundations of mutual respect by choosing the path of trust rather than that of suspicion.
Everyone we're close to (not just teens) will live up or down to the opinion we have of them. Teenagers who feel that they are approved of by their parents are much likelier to try to live up to that approval.