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A New Model for Ethical Leadership

  • Max H. Bazerman

ethical leadership essay

Rather than try to follow a set of simple rules (“Don’t lie.” “Don’t cheat.”), leaders and managers seeking to be more ethical should focus on creating the most value for society. This utilitarian view, Bazerman argues, blends philosophical thought with business school pragmatism and can inform a wide variety of managerial decisions in areas including hiring, negotiations, and even time management. Creating value requires that managers confront and overcome the cognitive barriers that prevent them from being as ethical as they would like to be. Just as we rely on System 1 (intuitive) and System 2 (deliberative) thinking, he says, we have parallel systems for ethical decision-making. He proposes strategies for engaging the deliberative one in order to make more-ethical choices. Managers who care about the value they create can influence others throughout the organization by means of the norms and decision-making environment they create.

Create more value for society.

Idea in Brief

The challenge.

Systematic cognitive barriers can blind us to our own unethical behaviors and decisions, hampering our ability to maximize the value we create in the world.

The Solution

We have both an intuitive system for ethical decision-making and a more deliberative one; relying on the former leads to less-ethical choices. We need to consciously engage the latter.

In Practice

To make more-ethical decisions, compare options rather than evaluate them singly; disregard how decisions would affect you personally; make trade-offs that create more value for all parties in negotiations; and allocate time wisely.

Autonomous vehicles will soon take over the road. This new technology will save lives by reducing driver error, yet accidents will still happen. The cars’ computers will have to make difficult decisions: When a crash is unavoidable, should the car save its single occupant or five pedestrians? Should the car prioritize saving older people or younger people? What about a pregnant woman—should she count as two people? Automobile manufacturers need to reckon with such difficult questions in advance and program their cars to respond accordingly.

  • MB Max H. Bazerman is the Jesse Isidor Straus Professor of Business Administration at Harvard Business School and the author (with Don A. Moore) of Decision Leadership: Empowering Others to Make Better Choices (Yale University Press, 2022) and Better, Not Perfect: A Realist’s Guide to Maximum Sustainable Goodness (Harper Business, 2020).

ethical leadership essay

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The importance of being an ethical leader and how to become one

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What is ethical leadership?

Why is it essential to be an ethical leader, 6 elements that define ethical leadership, which are the traits of an ethical leader, 7 ways ethical leadership can affect an organization, how to improve your ethical leadership skills, examples of good ethical leadership.

Ethical leadership means that individuals behave according to a set of principles and values that are recognized by the majority as a sound basis for the common good. These include integrity, respect, trust, fairness, transparency, and honesty.

Ethical leadership must be a conscious decision. As Fred Kofman writes in his book Conscious Business, “To be conscious means to be awake, mindful. To live consciously means to be open to perceiving the world around and within us, to understand our circumstances, and to decide how to respond to them in ways that honor our needs, values, and goals.”

He continues, “To be unconscious is to be asleep, mindless… Consciousness enables us to face our circumstances and pursue our goals in alignment with our values. When we lose consciousness, we are swept away by instincts and habits that may not serve us. We pursue goals that are not conducive to our health and happiness, we act in ways that we later regret, and we produce results that hurt us and those we care about.”

There are many good reasons to be an ethical leader.

From a collective perspective, leaders can inspire those around them to behave ethically. By setting an example and giving the direction for ethical behavior, others will observe and act similarly. In this way, ethical leaders can positively influence many others, presenting them with a set of actions that they can adopt for the greater good.

On a personal level, being an ethical leader is essential for credibility and reputation. If one aims to be a leader, it is a long game. Behaving unethically can automatically take a leader out of the A-league and may heavily damage their personal or company brand. Moreover, unethical behaviors often deteriorate one's self-esteem, leading to a suboptimal outcome and a missed opportunity to express one’s full potential.

Ethical leadership encompasses many things but ultimately boils down to these six main elements.

  • Honesty. Honesty makes ethical leaders worthy of the trust others place in them. It means leaders commit to presenting facts as they are, playing fair with competitors, and communicating honestly with others.
  • Justice. To be fair means to treat everyone equally, offer opportunities with no favoritism, and condemn improper behaviors and manipulations, as well as any other actions that could harm someone.
  • Respect. Ethical leaders respect others around them, regardless of their position or identifying characteristics. This means they listen to each stakeholder, foster inclusion, and value diversity.
  • Integrity. Integrity is shown when values, words, and actions are aligned and consistent. It is not enough to talk the talk, one has to walk the walk to demonstrate integrity.
  • Responsibility. Responsibility means accepting to be in charge, embracing the power and duties that come with it, and always responding and being present in challenging situations.
  • Transparency. Transparency concerns mainly the communication with all stakeholders. It means keeping an open dialogue, accepting feedback, and disclosing the information others need to deliver their work.  

“The best way to do is to be.” – Lao Tzu

Leaders play a crucial role in corporations, as they have been chosen to guide others. What do great ethical leaders do, and what ethical traits do they have in common?

  • They know their internal compass and values . Knowing oneself is the first trait an ethical leader has to possess. By knowing their own values and principles, they can make them visible to others, take positions, and solidly enter negotiations.
  • They have consistent ethical behavior. Reputation is built on repetition, and ethical leaders know that. Leaders are vulnerable, as the trust that people place in them can quickly fade if they misbehave—no matter how well they have behaved in the past. Leaders have to send continuous signals to show that people can continue trusting them. 
  • They do not tolerate deviations from the ethical code. If someone acts against the Code of Conduct and the leader does not take action, this may signal that the Code of Conduct is not important. Ethical leaders do not make exceptions in this area, and they immediately signal which behaviors are not tolerated. In doing so, they build consistency and credibility, and avoid confusion and doubts about accepted behaviors.
  • They raise their concerns, even if unpopular.  Ethical leaders know that overlooking important details may cause significant damages. They carefully observe situations to identify potential issues. When facing a doubt or a dilemma, ethical leaders raise their concerns—even if this means slowing things down or generating more work. 
  • They admit mistakes and share a recovery plan if needed. If things go wrong, ethical leaders do not hide or minimize what happened. Instead, they own their mistake, apologize, find ways to solve the issue, and share all possible recovery plans with stakeholders. This shows they care, and they are doing what is in their power to improve an unfortunate situation. 
  • They are willing to assume full responsibility. As Napoleon Hill states, “The successful leader must be willing to assume responsibility for the mistakes and the shortcomings of his followers. If he tries to shift this responsibility, he will not remain the leader. If one of his followers makes a mistake and shows himself incompetent, the leader must consider that it is he who failed.“ Lack of responsibility in organizations leads to ineffectiveness, confusion, inaction, and a waste of time and resources. Ethical leaders hold themselves accountable, take charge, and shape the present and future through their words and deeds.
  • They always show up and speak for their teams. Ethical leaders are present in good and bad times, develop their teams, and defend others when needed. They are at the front when the storm hits, giving direction and helping get their teams through their challenges. They know they are there to serve the interests of their teams and organizations above their own interests.
  • They act with fairness. Leaders have to face many decisions and negotiations. Their behavior clearly favors long-term wins over short-term gains. It also supports meritocracy and fair treatment of every individual, regardless of status, ethnicity, age, or any other potential factor of discrimination.
  • They walk the talk. Last but not least, ethical leaders act with integrity. They practice what they preach, and their values, words, and deeds are aligned and visible to everyone. If they would not hold themselves to the same standards they present to others, their credibility and reputation would suffer. Leading by example is a choice of consciousness and requires daily focus, but pays off like nothing else.

Ethical leadership provides enormous benefits to organizations, in many ways.

  • Increased sense of belonging. When company values and individual values are aligned and ethical principles are adopted, everyone’s general well-being will increase. This leads to a positive atmosphere, which reinforces and fosters ethical behaviors, creating a virtuous loop where everyone will feel at home and in the right condition to give their best.
  • Improved relationships with customers. Customers will feel they’ve made a good decision to work with your company when they perceive and witness ethical leadership and cultural values. This will encourage them to continue doing business with you, while also boosting your reputation as one of the fair players in the market.
  • Respect from society and communities. Organizations that are led by ethical leaders set a good example for others, and are respected and valued as a result. These are the types of companies people want to work for, do business with, and emulate in their own companies.
  • Support in times of crises. The world changes rapidly and companies may face many challenges. But people want to see ethical leaders, and the companies they work for, thrive. Having leaders who behave ethically and act with kindness and respect can be the ticket to getting through tough times.
  • Loyal employees. When leaders are fair and just, team members have one less incentive to move elsewhere. Ethical leaders provide the optimal setting for employees by inspiring, developing, and establishing a culture of trust and respect. This leads to significant benefits like lower turnover, higher productivity, and loyalty.
  • Better morale. A strong emphasis on values and ethics creates a positive work environment that fosters an overall better mood and a higher understanding among individuals. When the roots are solid, the stress and tensions of daily business are like the wind on a stable tree. People usually feel the roots and know if they can rely on them and feel confident, or if they will have to keep their guard up.
  • Higher stability on the market. Organizations with ethical leaders are at lower risk of sudden crises due to internal factors. This usually is acknowledged and appreciated by investors.
  • Higher motivation. When each team member knows that the company is operating ethically and for the benefit of the greater, they will want to do their part to further the company’s mission.

Great leaders know there is always room for improvement. Here are some ways you can become a better ethical leader.

  • Choose ethical business partners. The people you choose as employees, partners, consultants, attorneys, suppliers, and customers will signal to everybody else what you stand for. Choose wisely. 
  • Make your values visible. Once you identify the values you stand for, state them clearly. By doing so, you will avoid misunderstandings, and it will be easy for people to decide to partner with you—or not.  
  • Set desired behaviors and put a control mechanism in place. Your values should be reflected in your behaviors, which are visible manifestations that can be periodically assessed. Take the time to consider whether you are exhibiting your desired behaviors. If any deviation is found, it should be examined and resolved before it becomes problematic.
  • Never ask an employee to act against the agreed rules. Rules are in place for a reason, and an ethical leader should never ask a team member for a derogation—or allow one from themselves. For example, if the rule is that team members are given a long break after an 8-hour shift, a leader should never ask them to stay late. This will support consistency and will set an ethical example for everyone who is watching.
  • Don’t lie about the future. If you know that something isn’t going to happen, don’t say it will. This may concern a promotion, exceptional financial results, or anything else that is not supported by data. Imperfect is better than fake, and it will pay off in the long-term.
  • Don’t hinder the development of your team members. Help your team members be the best version of themselves, even if it means you might lose them to another opportunity. You can’t keep every employee forever, but you can develop them into stronger professionals while they’re under your guidance.
  • Identify potential “worst case scenarios.” A leader should always be prepared for potential risks and worst-case scenarios. Identify them early so you can consider all ethical impacts and potential solutions well before you go into crisis mode.
  • Acknowledge others. Don’t take credit for someone else’s work, even if it’s someone that works under you. Instead, acknowledge your team members’ successes. This will foster loyalty, increase motivation, and boost performance.

Want to see what ethical leadership looks like in action? These ethical leadership examples will demonstrate some real-world scenarios.

  • Walking the talk on safety-related topics. Safety is a critical focus at every manufacturing company. Every meeting in a plant will begin with a safety briefing and attendees will be notified of the emergency exit. But it’s not enough to simply discuss safety protocols, leaders must demonstrate them as well. For instance, holding onto the handrail when using the stairs, wearing safety glasses and helmets, and not using their mobile phones in the plants. This shows that safety is truly a priority.
  • Deliver what has been promised. When creating marketing materials or speaking to customers on sales calls, be honest and transparent about what is being offered.  For example, if you advertise that a given product has certain characteristics, customers should be able to confirm those characteristics are accurate representations of the product. Delivering on promises clearly demonstrates consistency and builds trust with customers.
  • Preparing sound contracts. Ethical leaders pay attention to details. When working with external consultants, for example, ensure contracts have all necessary terms and conditions, such as the time frame, payment terms, and scope of the service provided.
  • Only recommend something if it’s worth it. Ethical leaders only recommend a product or service if they think it will provide value. For example, a law firm might recommend that a client conduct an equal pay audit to assess and mitigate potential risk. These suggestions are for the good of the company, not the law firm, and help generate satisfaction, improve relationships, and retain customers.

An ethical leadership example in action

Imagine you’re on a call with your biggest customer, alongside your boss, and the customer is extremely dissatisfied. Your product had an outage that severely impacted their business and they want to make sure it doesn’t happen again.  

Your boss assures them this is a one-time occurrence, and that it won’t be a problem in the future. When you hang up, you remind your boss that this issue has been occurring among customers with increasing frequency and that a fix is still in the works. Your boss nods and says, “Yes, but they don’t need to know that just before their contract renewal.”

Fast forward a couple of months, and your customer calls to cancel their contract following another outage. Your boss again gets on the line to say how sorry they are and that this is a rare occurrence, but that they can’t cancel their contract without ample notice.

Is that the kind of person you want to work for? Or do business with? They knowingly put their customer in a bad position, so they could get credit for a contract renewal. 

This not only creates a strained relationship with your customer, but it also demonstrates to everyone on your team that this sort of behavior is expected. As others emulate this behavior, your company begins to get a bad reputation, lose customers, and struggle to find new customers.

Now imagine if your boss had owned up to the outages, promised to keep the customer in the loop about fixes, and sincerely asked the customer to stay onboard. The customer may or may not renew, but they wouldn’t be leaving with bad blood. They may even come back at a later date or refer other potential customers.

That’s the difference ethical leadership can make. It may literally be the difference between survival and failure.

Final thoughts on ethical leadership

Ethics and leadership go hand-in-hand. While some tend to think there is a choice to make between being profitable and successful, or behaving ethically, That’s simply not the case. Ethical people and leaders are necessary drivers for success.

What if we give ethical leadership a chance?

Giulia Villirilli

Giulia Villirilli is a BetterUp Fellow Coach. She is an ICF Professional Certified Coach who specializes in leadership, negotiation, and courageous conversations. Her motivation to coach stems from her desire to help as many individuals as possible flourish and live up to their potential. She helps clients navigate uncertainty, leverage on their strengths, develop resilience, and be a living inspiration! Guilia's globally grounded perspective comes from a background in international business and nine years of living and working abroad. When she is not coaching, she loves to travel the world, train her body, read, and dance.

Leading people as people, a conversation with Cynt Marshall, CEO of the Dallas Mavericks

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Essay on Ethical Leadership

Students are often asked to write an essay on Ethical Leadership in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Ethical Leadership

What is ethical leadership.

Ethical leadership means guiding others with good values. It’s about being honest and fair. Leaders who follow this path think about what’s right when making decisions. They care about people’s feelings and don’t just look for their own gain.

Why Ethical Leadership Matters

Good leaders set an example. If a leader is ethical, people who follow them learn to act right too. This creates a positive environment. When everyone is treated well, they work better and are happier.

Challenges of Being Ethical

Sometimes being ethical is hard. Leaders may face tough choices where the right path isn’t clear. Sticking to good values can mean making less money or taking longer to succeed. But in the end, it builds trust.

Learning Ethical Leadership

Anyone can learn to be an ethical leader. It starts with small steps, like being truthful and kind. Over time, these actions become habits. Learning from good role models can also help someone become a better leader.

250 Words Essay on Ethical Leadership

Ethical leadership is about being a good role model. Leaders who follow this path show their team right from wrong. They care about people and are honest. These leaders make choices that are good for everyone, not just for themselves.

When a leader is ethical, it helps the whole group. People trust a leader who is fair and kind. This trust makes the team work better together. Teams with ethical leaders often do better because everyone feels safe and respected.

The Qualities of an Ethical Leader

An ethical leader is honest and always tells the truth. They treat everyone the same and are fair. They also admit when they make mistakes. This shows they are brave and ready to fix things. Ethical leaders care about others and help them grow.

How Ethical Leaders Make Decisions

Ethical leaders think about what is right when they make decisions. They ask themselves if their choice will hurt anyone. They also think about the future and how their choice will affect people later on.

The Impact of Ethical Leadership

Leaders who are ethical make a big difference. They create a place where everyone feels important. This makes people happy to come to work or school. It also helps the group succeed. When a leader is good and fair, it encourages others to act the same way.

In conclusion, ethical leadership is very important. It makes teams stronger and places nicer to be in. Ethical leaders show us the right way to act, and they help us all do better.

500 Words Essay on Ethical Leadership

Ethical leadership is about doing the right thing. It’s about being a good example for others to follow. Leaders who are ethical are honest, fair, and care about people and what is right and wrong. They are like captains of ships who make sure to steer their crew in the right direction, avoiding harm and looking out for everyone’s well-being.

Why is Ethical Leadership Important?

Ethical leadership is important because it creates trust. When people trust their leader, they feel safe and happy to work hard. A leader who is fair and kind makes sure that everyone is treated well. This makes the team strong and successful. Without trust, people might not work well together, and things can go wrong.

Qualities of Ethical Leaders

An ethical leader has many good qualities. They tell the truth and keep their promises. They treat everyone the same, no matter who they are. They listen to what others have to say and think about how their choices will affect people. Ethical leaders also admit when they make mistakes and try to fix them. They are brave and stand up for what is right, even when it is hard.

How Ethical Leaders Behave

Ethical leaders act in ways that show their good qualities. They talk to their team and share information so that everyone knows what is going on. They make rules that are fair and make sure everyone follows them. They also help their team learn and grow by teaching them new things and encouraging them to do their best.

Challenges for Ethical Leaders

Being an ethical leader isn’t always easy. Sometimes it can be hard to know what the right thing to do is. There can be pressure to make choices that are not fair or kind. Other times, doing the right thing might make people upset or cause problems. But ethical leaders try their best to do what is right, even when it’s tough.

Ethical leadership has a big impact. It can make a better place for people to work and live. When leaders are ethical, it can help their teams succeed and make the world a fairer place. People look up to ethical leaders and learn from them how to be good people themselves.

In conclusion, ethical leadership is like a guiding light that shows the way to being good and doing good. It is about being a leader who is honest, fair, and caring. Ethical leaders work hard to build trust and make sure their teams are strong and happy. They face challenges but keep trying to do what is right. The world needs ethical leaders to make it a better place for all of us.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

  • Essay on Ethical Issues
  • Essay on Environmental Sustainability And Social Justice
  • Essay on I Want To Be A Teacher

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  • Corporations

Ethical Leadership

Updated 25 October 2023

Subject Corporations ,  Management

Downloads 43

Category Business

Topic Company ,  Leadership

According to Gunderman, 2016 (p. 8), a leader is anyone in a position to influence a group of people to achieve the set goals. On the other hand, ethical leadership is in respect to ethical values and beliefs and observing of others’ rights and dignity. Leaders should embrace ethical standards when performing in their leadership roles. Since they leaders have influence over their followers, they should ensure that they meet the threshold of certain ethical standards such as honesty, integrity, fairness, trust, and professionalism, among others. Moral development also influences one’s ethical leadership (Gunderman, 2016, p. 11). Thus, a great leader is self-aware, comprehends the significance of communicating with the society members and has the vision of helping the community or the group members to grow. Ethically, leaders are expected to lead by example and also are supposed to set new standards and enforce the power of learning and teaching (Clop, 2015, p. 12). It is the role of a leader to be the first one then followed by others as they feel motivated. One has to have a deep-rooted concern that he needs to achieve without being observed.      

One of the major requirements for an ethical leader is to have a personal vision, honesty, trustworthy and treat his group members with dignity. The importance of leadership is that one must have vision and purpose (Clop, 2015, p. 19). It is important to note that it's not easy to achieve set goals without the help of other members of the group or the community. It is essential to integrate the organization’s goals with those of the group or the community. According to Halaychik, 2016, (p. 23), leaders have to be practical and realistic and talk the same language of the idealist. As a leader, one has to set goals that are achievable, inspiring, measurable, and shared.

However, there are many different styles of leadership, and everyone has a unique style of leadership. This analysis is based on my style of leadership (Gunderman, 2016, p. 17). I had taken a personal assessment to enable me to determine my leadership style. Factors that I took into consideration as I did my assessment include; own magnetism deficit inventory, express emotional scale, task-oriented attitudinal and behavior evaluation. After considering the above evaluations, I learned that my leadership style is a participative one. Participative leadership is a style whereby the person in charge shares the decision making with other members (Clop, 2015, p. 21). During the evaluation period, I had to incorporate ethics by ensuring everything is done transparently.

Being a participative leader, my style advocates teamwork. Teamwork is considered to be the backbone of my leadership style and considering the ethical part is that respect should prevail to everyone. The importance of this style of leadership is that it gives an opportunity to the group members to participate in decision making; this also makes the team to have a sense of belonging as well as ownership (Clop, 2015, p. 32).

The strength of supportive leadership style is that it strives for consensus. It is a strength as it empowers the group members and as a result, it leads to a sense of belonging to the group members (Gunderman, 2016, p. 24). However, this leadership style has got its weaknesses. One of the shortcomings in my leadership style is that once a member does not agree to something or disagrees on an issue, no decision can be made or reached until all members agree (Clop, 2015, p. 41). This results in time wasting since all members have to reach a consensus on which way forward. Despite being a weakness, it is also a hindrance as it loses time and productivity stops until agreement.

Other leadership styles that I can incorporate into my leadership style are the entrepreneurial leadership and the autocratic leadership. This type of leadership is characterized by acts of a leader retaining most authority for him (Halaychik, 2016, p. 37). It is clear that authoritative leadership style operates in a way that is opposite of the participative style whereas, in participative style, the decision is made by all members while in autocratic leadership, the leader decides on behalf of the team, thereby the leader retains most of the power. Additionally, authoritarian leaders are less concerned with team members (Clop, 2015, p. 44). Those practicing participative leadership styles, enable the team members to enjoy the privileges accompanied by this style. Members can give their opinions and concerns as well as decision making.

Another form of leadership style is the entrepreneurial style meant for individuals who are innovative enough to open and operate their own business (Gunderman, 2016, p. 33). This form of leadership style is different from other leadership styles in various ways. The entrepreneurial leadership style has got more achievements compared to other leadership styles whereas participative approach strives for consensus. Entrepreneurial leadership style brings creativity and enthusiastic (Clop, 2015, p. 51). Participative leadership puts into account employee’s demands while entrepreneurial method solves immediate solution to arising problems.

For one to be an active leader, one has to understand different types of leadership styles incorporating ethical conduct as well. In my case, leadership styles helped me know my areas of weakness and improve on them. After identifying my areas of weaknesses and work on them, and gain more and new skills (Halaychik, 2016, p. 42). By learning other leadership styles, being able to put the skills, knowledge, and abilities. By putting these skills together, I will be ready for more creative leading to gaining and implementing new leadership styles (Clop, 2015, p. 55). The newly acquired skills will help me improve in all aspects of my leadership styles thus making me more effective. 

Additionally, for one to be an active leader, one needs to understand different types of leadership styles as this will help improve communication skills as well as other skills and abilities related to leadership. Leaders need to be emotionally intelligent and be able to handle and minimize problems arising in workplaces (Halaychik, 2016, p. 52). Understanding differences emerging in groups helps reduce or eliminate miscommunications. It is vital for groups to handle and solve miscommunication in the group. One of the best ways of managing miscommunications is by holding regular group meetings to encourage member’s input (Gunderman, 2016, p. 41).

This is a clear indication to the members that the leader is accessible to by all members. Another advantage of regular meetings is that it's an open door policy for members. An open door demonstrates to members that the leader is always available and is reachable (Halaychik, 2016, p. 54). Open door policy is an opportunity for leaders to know their members personally and it also increases members or employee morale. Another method of growing member’s moral is by organizing team building activities (Clop, 2015, p. 58). The potential advantages of that may be linked to leadership styles are the ability to work together with other group members, ability to make decisions confidently, and to obtain a higher level of enthusiasm.

Participative style enables members to gain knowledge and establish skills presented by other group members. Working together allows the group members to let both leaders and members develop and acquire new ideas.  Entrepreneurial leadership style provides a platform for leaders and members the chance to be enthusiastic while doing their work. Enthusiasm motivates both leaders and team members to be driven while handling their duties. Autocratic leadership provides an opportunity for leaders to decide on business-related issues confidently (Gunderman, 2016, p. 51). When leaders are given the power to make a decision independently, they develop self-confidence and feel empowered.

Team productivity and implementation of skills presented by other team members are likely to increase as members are to share ideas that are likely to empower others. Members who perform their duties while enthusiastic motivate and stimulate all group members including the leaders (Halaychik, 2016, p. 58). Ethical practices also ensure members are treated equally and with dignity, when collaborated with leadership, positive changes can be felt among the members. When managers develop the ability to makes sound judgments about business with confidence, this shows that the leaders are empowered thus the team members become subordinates to the leaders thus leading to increased production as leaders become more responsible for monitoring group members’ performance.           

Clop, M. (2015). Personality, Management/Leadership Styles and Views on Great Leadership. Successful Professional Women of the Americas, 4(4), 4-65.

Gunderman, R. B. (2016). Styles of Leadership. Leadership in Healthcare, 1(4), 5-85. doi:10.1007/978-1-84800-943-1_4

Halaychik, C. S. (2016). Leadership Styles. Lessons in Library Leadership, 4(1), 3-96.

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Ethical Leadership, Essay Example

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Identify and articulate a specific ethical issue in a practice area (when patients asks for assistance with death) provide practical leadership strategies to address the issue

Timothy Jenkins was a patient in the Cornwall County Hospital Oncology Department for over five years, during which time he was finally diagnosed with terminal cancer of the lungs, possible due to forty years of smoking. Our physicians had done all they can for him using all the latest medical information and technology, but this had cause his family thousands of dollars in medical expenses, after their insurance coverage was terminated

The family came to the writer secretly one night, after visiting their suffering relative, and asked if the suffering could be done by rendering assisted suicide with or without the doctors knowing about it, but the issue became even more challenging the next day when the patient himself, with as much effort as he could summon made the same request. In response, both parties were told that the matter would be looked into and a report conveyed to them later.

Face with a morally challenging issue of this nature for the first time from a nursing perspective, and realizing that professionalism and strong ethical leadership were critical elements in the making the right decision, the matter was taken to the Chief Medical Officer for the institution, who then promptly assembled his team of experts to iron out an ethically and sustainable way acceptable way forward.

The decision to take the matter to a higher authority was borne out of the fact that many physicians as well as nurses think it was unethical, morally wrong and against the Hippocratic Oath to take a person’s life intentionally, even if the patient request it (Ardelt, 2003). Additionally, according to the American Medical Association’s Code of Medical Ethics, physicians-assisted death contradicted physicians’ role as healers (Kass, & Ladd, 1996).

Historically also, the matter had no precedent for the hospital, and could not stand up under scrutiny, should a court case develops, especially due to the fact that the practice was only legal in Belgium, the Netherlands and in the State of Oregon in the United States, according to Ardelt (2003).

While the medial team contemplated the issue, this writer considerations turned to contemplate whether the right ethical leadership was provided, in that the family was grieving as time passed, with heavy financial and emotional burdens adding more to their situation, the patients also was also feeling guilty and selfish for having used up so much of the family savings as well as the vital hospital resources, that could have been allocated to save perhaps hundreds of other patients’ lives, who would then be able to make significant contributions to societal developments in the future (Brogden, 2002, & Osgood, 2000).

The choice could have been made to secretly, in concert with a willing physician, to assist the family and allow the patient to die in dignity, but the medical records of the patient showed that they were all of the Catholic Faith, and by this religion, physicians-assisted suicide and euthanasia were unacceptable, due to the belief that life was regarded as a gift from God, and should be treated as sacred (Ardelt, 2003).

Critically speaking, it was a possibility that after this family had put their bereavements behind them that they could, with the ethical leadership of their priest, bring lawsuits against the hospital as well as myself and other members of staff that could have been implicated in the process, and thereby perpetuate the destruction of reputations and careers of valuable and well meaning individuals in the institution..

The medical team considered the issue and ruled in the midst of the family and this writer that they could not accede to the family request, due to the legal implications and the possible effects of the negative publicity that may develop as a consequence of the actions of churches and other stakeholders.

Disappointment and tears were obvious on their faces, but there was nothing this nurse could do after taking appropriate ethical leadership on the position. This was indeed an ethical dilemma and it remained the same even after Jenkins died six weeks later. The family was spared further financial expenses, but may have lost trust in the hospital; especially the nurse whom they may have perceived failed then in their time of need.

Finally, the hospital may have been spared the bad publicity of an ugly lawsuit, but its reputation as far as that family and future families with similar problems were and will concern, will not escaped untarnished going forward, despite the fact that ethical leadership was exercised.

Ardelt, M. (2003). Physicians –Assisted Death Retrieved from: www.clas.ufl.edu/users/ardelt/physicians_assisted_Death.pdf on 01/30/2012

Brogden, M. (2001). Geronticide: Killing the Elderly Jessica Kingsley Philadelphia Attitudes and the Older Adults: Theories, Concepts and Applications edited by Adrian Tomas Brunner- Routledge , Philadelphia

Kass, L.R. & Lund, N. (1996). Courting Death: Assisted Suicide, Doctors and the Law Commentary 201 17-29

Osgood, N.J. (2000).Ageism and Elderly Suicide in Death The Intimate Connection pp.157-173

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Ethical Leadership Essay

ethical leadership essay

For a leader to be successful in his or her endeavors, they must consider ethics in guiding other employees. By definition, ethical leadership is a form of leadership in which the leader identifies his or her core values and has the courage and will to apply them for the good of the organization and other people around. Ethical leadership begins by defining ones core competencies and applying them with the hope of improving others. There are numerous theories of ethical leadership that this paper will analyze as well as other theories. Even though ethical leadership is a topic that has not been fully explored by researchers, this paper will examine various principles of ethical leadership and review the advantages and challenges of ethical leadership to organizations.

Introduction

Ethics have been defined as a set of rules, most of which are written today, that govern the conduct of an individual within a given society. Each profession can be considered a society, thus is expected to have an established code of ethics that determine what is right and what is wrong. The main purpose of a code of ethics is to ensure that there is justice and fairness in the interactions between the members of the society. In business industry, the management is expected to act according to the industrial ethical guidelines within which it acts as a whole with business. This is done in order to ensure that the company has a good image with not only their shareholders and consumers but suppliers, distributors, other important stakeholders, and often competitors. When considering the definition of leadership, it is important to note that depending on the style of leadership used, the definition may vary. To a transformational leader, the leadership would be all about inspiring people being led and significant changing for a better tomorrow. In a participative leadership style, on the other hand, leadership would be defined as engaging those being led in order to form strong bonds that bring about collaboration and supporting system, both vital in task accomplishment within the organization. Regardless of the leadership style, it should be appreciated that a leader must be able to lead the way towards the goals and objectives set, whether by inspiration, example or coercion, which is simply determined by the conduct and character of the leader in question. Nowadays, an ethical leadership is a concept that sometimes has been at the forefront of concerns as far as management is concerned. Most businesses have not only discerned the differences between a manager and a leader, but also appreciated the merits of leadership over management. This means that today leadership is a pivotal part of the commercial organization. These organizations have gone further to establish their preference with respect to ethical leadership especially in the wake of corporate scandals that exposed unethical conduct of the management on very influential companies like WorldCom, Enron, and some others. This paper focuses on ethical leadership within organizations. In this respect, the paper analyses various theories and principles of ethical leadership. In addition to this, the paper examines the challenges and advantages of ethical leadership in organizations.

Ethical Leadership Theories

Ethical leadership theories have been divided into two main domains, namely conduct and character. Under the conduct domain, there are theories based on the concept of consequences with respect to the leader actions. These theories are known as teleological theories. Another category under this domain would be those that are based on the leader’s duty as dictated by their contract or unwritten agreement, and these will be discussed in deleontological theories. The character domain is, on the other hand, represented effectively by the virtue based on ethical leadership theories.

Teleological Theory

The teleological theories in ethical leadership are formulated around the idea that the leader is motivated by the consequences of their actions. Herein, the leader carefully makes decisions that benefit them, their organization or employees, or even an interested third party depending on the prevailing circumstances. These theories highlight the autonomy of a leader as far as decision making is concerned, thus being highly applicable for organizations that have a corporate structure devoid of checks and balances for the top tier leadership. The theories include ethical egoism, utilitarianism and altruism. In all these cases, it should be mentioned that whether good or bad, the consequences are considered before the action is taken.

Ethical egoism is a theory, according to which the leader makes decisions based on their best interests. Being a leader in any commercial organization, their best interests may be high compensation packages, exorbitant rewards and bonuses, high share prices and volumes in the financial markets, high credit ratings among financial institutions, good business deals, and even good internal marketing. Regardless of the motivation, the leader is herein believed to make their decisions based on the possibility that they will achieve something their hearts are set to. In most cases, this is very dangerous considering that it is all about the self, and such strong motivation becomes hazardous if unchecked. For example, if the aim is to increase the share prices and volumes in the financial markets so as to make the leader’s resuming colorful, they may engage in doctoring financial statements in order to encourage shareholders to buy stocks even when the company is not performing well as it was in the case with Enron. The need for establishing reputation of successful management often leads to the need for covering up when things do not go as expected, and this is often the root of corporate fraud.

On the other hand, utilitarianism is a theory that leaders seek for maximizing the potential of the organizations by minimizing indulgence and limiting the access to resources in a way that implies scientific management. This theory suggests that the leader is likely to act in a way that is strict and very limiting towards the employees, but only so that they can minimize expenditure and maximize productivity. This theory is largely applicable in task-oriented organizations where the leadership is often focused on the tasks at hand rather than the people and the processes. Thus, they try to limit the interaction between people in order to save time and money while focusing on productivity. This theory is highly inefficient in today’s world although at some point it may have been popular in China, Germany, and India. The consequence here is anoperational efficiency with reduced costs and increased productivity within the organization, implying a disregard of motivation or retention among other things that are especially significant nowadays.

Furthermore, altruism is a theory in which the leader’s motivation is the best interests of the people they lead. This theory is in line with the transformational theories where the leader’s actions are determined by how they will affect people led by them. Altruistic leadership is all about dedicating oneself to the betterment of others, and a pure example of this is the case of Mother Teresa who was a true altruistic leader. Such leaders are rather scarce but when they exist, they tend to achieve much more as they not only inspire growth but also form strong bonds of trust and loyalty with their subjects.

Deontological Theory

According to this theory, the leader is obliged to act in a way that is morally considerate given that they have individuals who look up to them. Thus, all their actions are based on the question of whether it is right or wrong, and how they will be perceived by people they lead. Among other things, the leader here is expected to act in a way that is truthful and fair, but only with respect to their subjects. This theory does not cover the actions of the leader in cases where the subjects can be considered as excluded, such as in closed door meetings and deals. The leader is bound to avoid pretending to forget their moral obligations. Yet there are cases when their subjects would never really know about their actions. In such circumstances that present an opportunity for unethical conduct, for example, a leader of an organization could bribe another organization in order to secure lucrative business dealings with them. In such a case, the employees are only likely to hear that their leader has managed to clinch a good deal for the company. The specifics are often left out of the briefing until a whistleblower emerges. Consequently, this means that under the deontological theory of ethical leadership, the leader is able to hide their wrong actions and conduct themselves ethically when being in the public eye. It should be mentioned that the leader feels safe as long as they do all the bad things in private under this theory. Furthermore, it means that there is a room for misconduct especially when the leader feels safe and away from the judgment of their subjects. The problem with acting in a certain way out of duty is that there is not enough motivation, and the leader can just easily lie about their actions provided they are not caught. Nevertheless, acting out of the need for being inspirational and setting an example to others is a noble path. When taken truthfully, it could have some lucrative rewards including being a role model, earning respect and unconditional loyalty of the subjects, and being considered a trustworthy member of the society. A leader who is motivated by their duty to subjects is likely to know always the right thing to do. However, whether they actually do the right thing or not depends on the stronger pressure be it duty, personal gain, etc.

Teleological and deontological theories are based on the leader’s conduct, implying that they seek for understanding the motivation behind the leadership decisions. Generally, conducts are considered to be expressions of one’s character. It should however be mentioned that character determines his or her conduct in the absence of strong external influences, though, for some reason, business leadership is all about external influences.

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Virtue-based theory.

The virtue-based theory of ethical leadership is constructed around the notion that leaders are actually born or rather made over time but not simply becoming through a leadership training seminar. With this in mind, it should also be considered that virtue-based leadership centers on helping people, thus having a good character with respect to honesty, fairness, humility, justice, patience, etc. All these characters enable the leader to interact with their subjects in a constructive and influential manner in order to guide them to be whatever they are supposed to be within the given organization. Unlike the conduct-based theories, which are aimed at giving directions, this theory implies that leadership is simply about telling the people where they are supposed to go and letting them find their own way that will benefit them as individuals, their careers, and the organization as a whole.

When defining leadership, this theory does not consider the skills and academic competencies but rather the leadership qualities that come naturally and are only enhanced through leadership training. For example, when interviewing a potential employee for a leading position, a company that believes in virtue-based leadership would consider realizing whether the desired candidate is humble, can stay calm in a tight situation, offer helping out when people get stuck with a task, inspire people, lead through actions, or, among other things, even treat their team members with fairness. Ethical leadership in such a circumstance is more about how the leader perceives themselves and others with a major emphasis on equality, fairness, and justice. In such a case, honesty is approached with caution seeing as there are cases when it will only break an individual’s spirit, thus the need for practicing positive reinforcement or ‘sugar coating’ is barely fair.

A good example of virtue-based ethical leadership would be the case of Arthur Andersen, the accounting and management consultancy firm that not only oversaw the audits at Enron but also offered management advice. The leadership here was entitled to be honest in as far as the performance and practices at Enron were concerned. However, they chose to let the auditors look the other way when there were inconsistencies in their client’s financial reports rather than risking their business relationship. The leader here was comfortable with the situation because they were not naturally-oriented towards fairness and justice. The requirements for navigating through these circumstances successfully were not a part of their character, thus limiting the ability to come out unscathed by fraud. Moreover, a virtuous leader is able to discern whether a given risk is worth taking based on their individual characters. Similarly, a leader who feels uncomfortable about deceiving millions of shareholders and creditors would not allow their subordinates to collude with clients as it happened in the Arthur Andersen case in terms of Enron company Virtues are, in this case, considered to be drivers of ethical conduct; where honesty, equality, and fairness drive away misconduct like bribery, collusion, and fraud. In this theory, it should be mentioned that virtues are often universally acknowledged unlike moral obligations, which vary by different cultures.

Other Theories on Ethical Leadership

Apart from three main domains of ethical leadership theories, there are a number of diverse perspectives on ethical leadership that will be discussed below. These include Burn’s perspective and Greenleaf’s perspective, both of which are quite relevant to the discussion of ethical leadership. These two perspectives present a simplistic view on leadership without necessarily being reductive about it.

Burn’s Perspective

According to James Burns, leadership is all about getting people to do what they are supposed to do without having to force them. This implies invoking their free will so that they can enjoy their designated tasks and responsibilities within the organization. In this situation, a leader is expected to be not only charismatic in terms of how they attract and inspire people, but also very patient and generous as they need to inspire full transformation in their subjects. The idea here is not just to accomplish tasks and move on, but rather to use processes that are in line with the organizational objectives. However, it should be also with some benefits to the people with respect to the individual and career development goals. Thus, the implication is that the transformational style of leadership takes precedence by virtue of its effectiveness in relation to ethical conduct. The leader is expected to provide guidance to the followers, especially in cases where there are conflicts that need personal involvement. This means that for ethical leadership to exist, emotional intelligence is a pivotal concept given the need for the leader to understand themselves and their followers in order to have better interactions and guidance.

It should be mentioned that among other things, Burn’s perspective on ethical leadership emphasizes on qualities like fairness, equality, liberty, and justice. In this case, fairness implies that the leader should not be biased when, for example, seeking for hiring a supplier, the considerations should be free and fair, preferably with suggestions from other members within the organization and with a thorough debate over the merits and demerits of every option. Lack of these checks and balances open the leader up to personal biases and, in some cases, even to bribing the suppliers. On the other hand, equality exists with respect to the shared opinions. The main point behind asking for the subjects’ opinions is to find out what they think, and when these opinions are consistently shot down without a good justification of their becoming a waste of time. Considering the followers as equals is important as it enables the leader to respect them and listen to their opinions for the betterment of the organization. In the procurement case, for example, these followers could have the best breakdown in terms of the merits and demerits of each supplier based on their knowledge of the materials being supplied. Liberty is all about giving people the space that they require to flourish. A team has often a leader in order to centralize responsibility in such a way that there is someone to take responsibility when things do not go as planned. A leader who practices liberty as a core value enables their followers to take responsibility for their decisions and actions within the team, thus allowing them for innovation and growth. This also improves accountability provided that the followers control their actions and are thus inspired to have good results at all times. Justice, on the other hand, comes with conflict resolution, where an ethical leader is expected to refrain from taking someone’s sides and rather giving each individual the kind of response that they deserve for their actions within the organization. This not only ensures a peaceful working environment but also encourages the formation of cordial working relationships since the leader is a just peacemaker.

Greenleaf’s Perspective

Robert Greenleaf differs from James Burn because his perspective on ethical leadership emphasizes more on servant leadership theories than on transformational leadership. This opinion inclines more to altruism, where the leader is motivated by the needs of their subjects. This theory is also rather virtue-based due to the fact that the leader must have a natural inclination to serving people. It can thus be stated that Greenleaf’s perspective on ethical leadership is a combination of conduct- and character-based theories where the leader must be a natural servant in order to lead, and their main motivation must be in their subobdinates’ needs. In any organization, the followers include, among other salient stakeholders, the employees and the investors as well as the consumers, suppliers, and distributors.

This means that an ethical business leader should be concerned about the needs of their employees, investors, consumers, suppliers, and distributors. For example, an ethical leader under this perspective should be able to ensure that the products being sold to the consumers are of good quality and at a fair price. To the investors, they should ensure that the company is performing at its best in order to minimize risks and maximize profits. To the suppliers, fair procurement practices and prices should be a priority, while relevant partnership terms and provisions are crucial to the distributors. When it comes to the employees, it is considerably fundamental that an ethical leader is ready to understand the needs and expectations of the employees in order to provide the best solutions available within their powers. This may include fair compensation practices, adequate motivation, retention strategies, and generally good working relations for career growth and development within the company and industry as a whole. Considering the needs of the stakeholders as the primary motivation, it is probably the most effective way to be an ethical leader while seeing as these needs overpower personal motives that could easily culminate into temptations for unethical conduct.

All these theories and perspectives about ethical leadership bring us to the conclusion that in order to be an ethical leader, one should be able to pick out theories that work best for the specific situation and ensure that they are guided by moral constructs of right and wrong, goals and objectives set in the organization they represent, the needs and expectations of the society and their salient stakeholders.

Principles of Ethical Leadership

From the theories and perspectives discussed in the previous sections, seven principles have been identified as crucial to ethical leadership. Two of them are recent in terms of their relevance to management. These principles help not only to ensure that the leader is on the right path, but also that they are able to resist fraud regardless of the circumstances into which they are tempted. Numerous studies on occupational fraud indicate that the ability to justify one’s fraudulent activities is a determining the eventuality of fraud itself. People who are able to justify fraud and unethical conduct are thus more likely to fall prey, and these principles provide a shield from these justifications. They include respect, service, justice, honesty, growth or change, cultural and emotional intelligence.

An ethical leader not only respects people they work for but also those they work with. It should be considered that the greatest temptation for a leader is autonomy, where no one within the organization can question his or her actions. Leaders should be able to make final decisions within an organization. However, they should also have to account for their decisions, and this can only happen if they are respectful towards those around them. Respect is thus an enabler for accountability, which can be considered a critical factor in ensuring that ethics is adhered to by the top tier management of the organization.

When looking for motivation to lead, the need for serving is a step in the right direction. When a leader is inspired to act in order to meet their own needs, they only serve their personal whims, thus making it easy for them to fall prey to unethical conduct. A self-serving leader will work towards a larger bonus regardless of the company’s status and the stakeholders’ returns. Moerover, they will doctor the accounts in order to cover this up. Nevertheless, when they consider satisfying their own needs as the main motivator, they are likely to work towards a good performance so that they can register the highest possible returns for the investors, rewards and benefits for the employees, more business for the suppliers, and eventually a bigger bonus for themselves. Their personal gains, in this case, should come as an afterthought once all the stakeholders’ needs have been catered to. This is actually supposed to be easy since a well performing organization translates a well-paid leadership, and when the company is not performing well, the leader should take it as an initiative to work towards better performance rather than doctoring the books to ‘steal’ an undeserved bonus from the company.

In the relationship between the organization’s leadership and their stakeholders, justice is a fundamental concept. It is often easy to take sides when dealing with suppliers, distributors, or even competitive employees. However, this opens up the doors to unethical behavior as taking sides implies that the leader has a nonprofessional relationship that could be indicative of bribery among other unethical behaviors. Embedding justice into one’s leadership practices ensures that they are always trusted to make the right decision even in a tough situation. They can always defend their position in a rational and logical manner, other than resorting to ambiguity and oblivion that could also be indicative of unethical conduct.

Honesty and transparency are great defenses against unethical leadership given that no one is willing to be openly wrong. Organizations that emphasize on openness often have their leadership acting according to the rules and regulations unlike those who have ways of leaving things hidden from the public. One other necessary factor in occupational fraud is the expertise to cover up a discrepancy, and honesty is likely to force this cover up. When a leader is honest, they are unable to lie to their subordinates. In the event that they are about to do something wrong, they consider the response of their subjects and decide against the action.

Growth/Change/Development

Growth is a principle that dissuades the leader from activities that could destroy the organization or their individual career. This implies looking at the long-term effects of their actions and weighing them against the short-term benefits. The Enron case may, for example, have allowed the leadership to take home such hefty pay packages but in the long term they lost their jobs, their careers, and even destroyed their reputations for good. Others were even prosecuted, thus tainting their records for life. This means that focusing on the long-term objectives is likely to protect the leader from unethical behavior. An individual who is focused on change is able to appreciate the entire process of innovation and implementation without rushing through and anticipating quick results. Most companies actually fall into fraudulent operations because their leaders lack the patience for establishing their reputation to the point that they become deserving of certain business deals. They do not consider the importance of the growth trajectory, and are thus willing to do anything to get to the top. This fact results, among other things, in unethical conduct like bribery, doctoring financial reports, and even insider trading.

Emotional Intelligence

This is not entirely a principle but rather a quality, which is both natural and learned. It embraces understanding one’s own emotions in order to understand others for better relations within the organization. An emotionally intelligent leader is the one who is able to form effective working relationships that are not only beneficial to the employees but also inspiring to the leader. Being close to the subordinates requires a certain level of trust and openness and also implies being scrutinized on a regular basis. As such, emotionally intelligent leaders are unlikely to be unethical seeing as they are open to their subjects and interact with them regularly. Moreover, they are a source of inspiration, and their actions must be guided by the concept of morality. An emotionally intelligent leader must consider the consequences of their actions as well they are expected to be always right or face a lot of judgment from their subordinates. Furthermore, in order to avoid this situation, the leaders are prompted to always act in a manner that is ethically justified regardless of the circumstances.

Cultural Intelligence

Cultural intelligence refers to understanding one’s culture as well as those of others in order to ensure that there are not many cases of misunderstanding. This principle helps in multinational organizations to consider various definitions of ethics across different cultures. For example, an Indian manager would be comfortable receiving gifts as tokens of appreciation for doing business with an American company, whereas the American culture may not condone such an expectation, considering it an act of corruption. In the event that the American organization’s leader is culturally competent, they would set out to explain the situation to the Indian manager in order to avoid complications in the American context of business ethics. Cultural intelligence also prevents leaders from putting their employees in positions that would appear unethical for the leader including body contact with an individual from a culture that emphasizes personal space.

Challenges of Ethical Leadership

As a concept of management, ethical leadership faces a lot of challenges including corporate culture, corporate governance, and social constructs. An organization’s corporate culture is the way in which people inside the organization interact especially as far as decision making is concerned. Companies having a bureaucratic nature tend to rely on the top tier management to make all the crucial decisions and pass the orders down the corporate ladder to the implementation points. This means that among other things, the managers in these organizations have the autonomy to make any decisions without involving their employees. This kind of power is a factor for unethical behavior, thus presenting a challenge to ethical leadership within the organization. If presented with a tough situation, the leader here is likely to resort to unethical solutions provided it would get them out of the predicament and no one would have the right or grounds to question them.

Corporate governance refers to the system of checks and balances within an organization where the shareholders, leaders, and employees are all organized to ensure effective management of the company’s activities. A company with good corporate governance is likely to have a comprehensive network of checks and balances at every level of operation. This is done in order to ensure that all the decisions being made are agreed upon by more than two individuals. Companies whose corporate governance is somewhat flawed, are unable, however, to keep their leadership in check as they tend to consolidate the decision making powers at the top. In such organizations, it is much easier for the leader to act unethically as they are able to make autonomous decisions and follow-up decisions in order to cover up their misconduct. This opportunity is yet another challenge to otherwise ethical leader if presented with the right conditions.

Social constructs also impede ethical leadership by invoking the biases of the leader. For example, in the society where gift giving is acceptable, the business leader is likely to be affiliated with the entity that has the ability to offer the best or most expensive gift. The fact that this gift is given after the tender or partnership has been awarded further allows for justification, which is yet another primary factor in fraud and unethical behavior. This generally means that in order to eliminate unethical leadership, all these gift-giving expectations must be shunned so that business interactions are conducted based on merit and not on the partner’s gift-giving capacity.

Benefits of Ethical Leadership to an Organization

Among other things, ethical leadership is pivotal to the growth of the business organization especially in the present times where competition is rife and a good reputation can go a long way to market the organization not only to the customers but also to investors, creditors, suppliers and distributors. Companies that are able to create an image of ethical excellence attract the right stakeholders’ support for better organizational performance and sustainable business. This means that the main benefit of ethical leadership to the organization is competitive advantage through the projection of a positive corporate image. There also are other benefits that can be broken down as follows.

Cost Effective Operations

When an organization has ethical leadership, it is likely to follow the rules and regulations in its activities. This means that it will adhere to safety regulations, employment law, and quality management among other procedures that could be ignored in unethical settings. While all these procedures are rather costly and time-consuming, they save the company a lot of money and time as well as keeping the employees safe, protecting the organization from lawsuits by the employees, and ensuring that the products and services being released in the market are actually up to standard, thus preventing consumer lawsuits and dissatisfaction.

Job Satisfaction

Employees who work under an ethical leader are often more likely to keep their jobs because the ethical leader may be strict about the rules but he or she is also considerate about the needs of the employees. They work towards creating a working environment in which the employees can thrive on the benefit of the company and its shareholders, thus also benefiting the employees in the end. Additionally, as it is stated in Greenleaf’s perspective, an ethical leader is generally motivated by the need for serving the employees and stakeholders, thus making the needs of the employees a major concern. This implies that the employees are likely to be treated very well under an ethical leader.

High Productivity

Job satisfaction is a great motivation for high productivity within an organization. Employees who are treated well are more likely to focus on their work, thus ensuring that they generate as much output as expected of them by the organization. This ensures that under their ethical leader, the employees are able to devote themselves all to the company in return for the leader’s consideration and efforts. The leadership styles that are in line with ethical leadership also allow for mentorship and inspiration, thus encouraging individual and career growth. These further improve the employee’s as well as organization’s productivity.

Actualization of Company Goals and Objectives

Once a leader is unable to get distracted by the external factors that may lure them into unethical conduct, they have time to focus on the company’s goals and objectives. Equipped with all the right skills and competencies, such leader is able to provide adequate guidance to the rest of the employees in order to direct them to the objectives be it in long-term or short-term aspect. It should be mentioned that an ethical leader has a good influence on their subordinates, and thus they can give the right guidance to the entire organization leading to an actualization of the goals and objectives.

Ethical leadership is a concept that should be widely embraced in businesses across the globe. This is mainly because it has quite a number of benefits that include better organizational performance, employee retention due to the high levels of job satisfaction, efficient operational costs, and others. Companies that have ethical leaders are generally more attractive to other companies, suppliers, distributors, consumers, and even employers. Actually, it should be taken into consideration that among all the choices of leadership styles, leaders need to pick out the concepts that will make them ethical leaders especially bearing in mind the principles of ethical leadership that can also serve as deterrents of fraud and unethical conduct.

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Strategic and Ethical Leadership Styles Comparison Essay

Introduction, strategic leadership, ethical leadership, comparison of ethical and strategic leadership.

The success of any organization is largely dependent on the way it is managed. Since the leaders’ decision and behavior may be considered a decisive factor in the efficiency of the organizational business conduct and the employees’ productivity, the selection of right strategic approaches in leadership may have a significant favorable effect on the corporate performance and its outcomes. The strategic and ethical leadership are meant to address a set of issues of both internal and external character. Through the elaboration of leadership strategies, the executives may achieve success in managing and guiding their subordinates. While strategic leadership is rather focused on the increase of organizational efficiency through the evaluation of environments, ethical leadership is more concerned with the issues of moral and respectful business conduct. Despite the differences in approaches, both leadership styles provide the opportunities for organizational improvement, and their incorporation into the organizational regulation may allow the leaders to attain long-term sustainability in business.

In the article “Strategic Leadership of Corporate Sustainability,” Robert Strand investigates the managerial strategies, their interrelations with the leaders’ organizational responsibilities, and the overall effects on business outcomes. The author highlights the concept of corporate sustainability and makes it a landmark for the leadership to follow. As Strand (2014) claims, “corporate sustainability refers to the integration of economic, environmental, and social considerations on the part of corporations” (p. 688). Therefore, organizational leaders need to address these aspects of corporate performance while developing a strategy.

Traditionally, strategic leadership focuses on the group of top management and its executive capabilities. The strategies may usually be task-oriented or employee-oriented, and through them, the leaders attempt to guide, support, and motivate the subordinates, communicate with them, and give feedback. The motivational aspect is essential to the strategic efficiency as it gives the employees the purpose for the effective fulfillment of their duties and increase of productivity. According to Strand (2014), the consideration of the concept of corporate sustainability by leadership allows the realization of the external advantages and disadvantages “that may have otherwise gone unrealized without concerted attention and coordination afforded by a strategic level position” (p. 687). In this way, by increasing the corporate social responsibilities, and inclusion of the concepts of sustainability into the organizational bureaucratic machinery, leaders attain the opportunity to expand their focus. As a result, the organization accumulates the competitive advantages that help it to overcome the crises, forecast it, and prevent the undesired outcomes.

In the article “Ethical Leadership” written in 2010, Mihelic, Lipicnik, and Tekavcic review the main conceptual and practical constituents of ethical leadership. Ethical leadership is primarily concerned with decision-making and its consequences. According to the principles of ethics, the top managerial group needs to make the decision based on fairness, responsibility, and respect (Mihelic, Lipicnik, & Tekavcic, 2010, p. 31). The leaders are regarded as main contributors to the dissemination and incorporation of ethical values into the organizational culture. Thus, the efficiency of ethical leadership defines the extent to which the subordinates accept the principles of ethical behavior at the workplace and comply with them.

“Ethical leaders’ conduct serves as role-modeling behavior for followers as their behavior is accepted as appropriate” (Mihelic et al., 2010, p. 33). Therefore, communication may be regarded as the main instrument of ethical leadership. The establishment of a sound and positive leader-employee relationships is the only way for the development of ethical behavior in the subordinates.

Through the consideration of the universal ethical and moral principles, and by addressing the needs and interests of a vast number of stakeholder groups, the leaders represent the organization as a good corporate citizen and improve its reputation in the external environments. In this way, in comparison to the competitors who do not pay respect to ethical conduct, the organization gains the advantages of the customer attraction, brand awareness, and, as a result, the profitability increase. Moreover, ethical leadership is regarded as a vital element in the fulfillment of the corporate mission and vision; it serves as the motivation for the achievement of the long-term and short-term goals (Mihelic et al., 2010, p. 32). Overall, ethical leadership indicates the moral health of the organization which is regarded as the main construct of corporate sustainability and success.

Traditionally, the strategic leadership is primarily focused on the problems of the employees’ management and regulation of their performance in a way that would allow the improvement of multiple organizational indicators and would lead to positive financial results. However, the strategic management that involves the consideration of corporate sustainability has a wider scope and provides greater opportunities for the leaders (Strand, 2014). According to this “neo-institutional theoretical framework” introduced by Strand (2014) in his article, the corporate sustainability responsibilities imply the necessity to address the needs of the organizational stakeholders in the external environment (p. 687). In this way, the given version has some conformity points with ethical leadership the main focus of which is on the ethical and moral aspects of business conduct.

Ethical leadership is primarily concerned with the universal principles of morality. By addressing the external wide-scope values, the leaders target the internal organizational environment as well. Thus, strategic leadership and ethical leadership may be considered similar when talking about the patterns of their external and internal functioning and their effects. At the same time, the main and evident distinction of these leadership styles is the accent on ethics in ethical leadership. It is possible to assume that ethical leadership thus has a wider scope – it may include the strategic approach and consider corporate sustainability issues as well. But strategic leadership in itself doesn’t emphasize the importance of morality and fairness in business conduct, and it is rather concerned with the practical and utilitarian aspects of the organizational operation.

The literature review makes it clear that strategic and ethical leaderships have some similar and distinct features. It is possible to say that the main similarity of these approaches is in the overall goals of the organizational leaders. Both ethical and strategic leadership allow the managers to increase the employees’ productivity, improve communication and motivation, and integrate the corporate values into the organizational culture. But the main distinction of the strategies is the leadership focus and the fashion of the achievement of the goals. While strategic leadership is oriented towards the task performance and improvement of relationships with the employees directly, ethical leadership focuses on the improvement of organizational behavior by highlighting ethics and respectful conduct.

Strategic leadership is an essential part of organizational success. However, the consideration of ethical issues and the reference to a greater number of external stakeholders’ interests may provide additional benefits for organizations, such as to improve reputation, and the increase in customer attraction.

Strand, R. (2014). Strategic leadership of corporate sustainability. Journal of Business Ethics, 123 (4), 687-706. Web.

Mihelic, K. K., Lipicnik, B., & Tekavcic, M. (2010). Ethical leadership. International Journal of Management and Information Systems, 14 (5), 31-41. Web.

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Sample Essay on Ethical Leadership

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Ethical Leadership

Introduction

Organizational culture is an important aspect in many organizations. By developing a sound organization culture, firms can mold employees into what they feel best suits the mission, vision, and goals the organization is trying to achieve. At the center of a sound organization culture is sound leadership that not only believes in the mission and vision of the organization but also works, as an example to the employees, towards the achievement of organizational goals (Freeman & Stewart 2006). Such leaders are not quick to judge and dismiss employees, but provide necessary tools to the employees towards the achievement of the organizational goals. At the time of hiring, leaders in such organizations inform new recruits what the organization expects of them, and orientate and inculcate the culture into the recruits through training and a constant reminder of what the business stands for. Cardinal IG’s Fargo plant in Iowa is an example of an organization led by an ethical leader who has developed a sound organization culture. By helping in the construction of the plant, David Pinder had the opportunity to develop an organizational culture and philosophy aimed at establishing a successful plant. The success of the plant and its use as the flagship plant of the corporation attests to Pinder’s success as an ethical leader and in the creation of a sound organization culture, which has been an example to the rest of the corporation’s plants. This paper will look at Pinder’s work in Fargo, with particular interest in examining characteristics of ethical leadership in his decisions; the moral philosophies he used in the plant; the plants principles and values and their influence on employees’ behavior; and how the company has empowered its employees into practicing responsible and accountable leadership.

How David Pinder embraced ethical leadership to create an ethical culture at Cardinal IG

Brown and Trevino (2014) informs on the thinning public confidence in the ethics and integrity of leaders in government, business, and other institutions. The overall perception of such information is that ethical leadership is little, if lacking in the workplace and in government (Brown & Trevino 2014). The importance of the perception of ethical leadership is vital to an organization, as it has a rippling effect on the work and motivation of employees. Ethical leadership refers to a leader with a good character and right values (Freeman & Stewart 2006). This is, however, a simplistic look at ethical leadership, as it goes beyond the character of the leader. Freeman and Stewart (2006) contend that ethical leadership goes beyond the leader and descends to followers, the situations they face, the processes and skills possessed, and the eventual outcome. Freeman and Stewart (2006) further argue that even in their position as leaders, they (leaders) are leading stakeholders of the organization and as such, the actions they take must be tuned towards the benefit of the whole organization. By embodying the purpose, mission, and values of the organization and the followers, ethical leaders provide a link between organization goals with those of employees and other stakeholders.

In looking at Cardinal IG, David Pinder paints the picture of a manager who embraced and espoused principles of ethical leaderships towards the creation of an ethical organization culture. First in the step towards creating an ethical culture is creating an ethical climate. Shin (2011) states that an ethical climate is one that has a reflection of the employees’ perception of sound policies, practices, and dealings within the organization. In his first dealings with the company after his recruitment, Pinder created a plant philosophy, with organizational culture as key to this philosophy. In part, Pinder’s philosophy read, “I wanted a world-class facility-the best of its kind on the planet. The culture must enable you to get to the vision. I wanted my employees to love to come to work every day because the work was challenging, meaningful and fun; the plant was clean and well lit; they felt like they had ownership and a say in the business; they were treated with dignity and respect” (Legler & Leff 2012, p. 564-565). To summarize the importance of creating an ethical climate, Shin (2011) intimates, “Because the behaviors of employees of a firm are dictated by the same company policies, procedures, and code of ethics, they tend to hold similar perceptions of its ethical climate” (p. 300).

Another characteristic of an ethical leader is not only articulating the values and purpose of the organization but also embodying the values in his or her actions (Freeman & Stewart 2006). Pinder’s ethical philosophy is one that espouses love for work and one another. He walks the talk by his outright expression of love to employees. By knowing employees’ names, caring for their families, and showing personal interest in all the employees, Pinder is a true expression of an ethical leader who lives by his philosophy. By so doing, therefore, Pinder spreads this characteristic to his followers, ensuring continuity and real meaning in the philosophy that he preaches.

From the case, Pinder does not tolerate racism, sexism, and other vices, such as stealing, fighting, and drinking on the job. Moreover, he ensures that any problem is dealt with immediately it occurs as a means of arresting the vice at the onset and ensuring the smooth running of the plant (Legler&Leff 2012). Freeman and Stewart (2006) indicate that ethical leaders have a concern for the success of the business rather than their personal egos. Consequently, by not tolerating sexism or racism even in the form of jokes, and other vices, Pinder has a focus on organizational success, knowing that the presence of such seemingly trivialities can have a dilapidating effect on organizational performance.

Lu and Lin (2014) suggest that among the components of ethical leadership are subordinate empowerment and motivation as well as character building. Cardinal has a leadership training program that caters to all the employee needs. Training has been an integral part of Cardinal Fargo, considering that the first 40 employees who were inexperienced in glass making were trained on what glass-making involved (Legler &Leff 2012). The employees and divisional leaders have autonomy on their actions with an open door policy to the manager who takes suggestions on ways of improving the company’s performance. The extensive, formal, and informal training undertaken by the company ensures employee empowerment, motivation, and character building, as they help in building their confidence and competence.

Moral Philosophies used by David Pinder

Ethics determines the morality of actions that society believes. There are many philosophies of morality including teleology, deontology, relativist perspective, virtue ethics, and justice perspectives. All these moral philosophies have different approaches and perspectives to ethics. This paper will look at deontology and virtue ethics, and their relation to David Pinder in his dealings at Cardinal IG.

Deontology, also known as the duty-based theory, examines people’s actions without necessarily looking at the consequences of the actions.  Closely related to deontology is consequentialism, which contends that the rightness of an action is determined by the eventual consequence of the action (Ronzoni 2009). Deontology, therefore, argues for personal morality, insisting on the need to keep individual personal morality. It is the obligation under deontology to keep within the confines of morality and guard against moral taint by following universal rules of morality. Further, deontology emphasizes on the relationship between duty and morality. Thus, individuals are duty bound to practice morality for it is the right thing to do. Deontological arguments on the morality of an action consider the characteristic of the action, and not the result of the action. Thus, regardless of the results of stealing, lying or withholding the truth for the sake of saving a friend, deontology considers the action as wrong. Fronted by Immanel Kant, deontology holds that actions qualify as good only in the event that they hold good will, with the good will as acting in accordance with the moral laws and respect for the law rather than normal inclinations.

Bertland (2008) intimates the grounding of virtue ethics on the foundation of character rather than rules. At the center of virtue ethics is the belief that the virtue expressed or manifested by an individual is not just a tendency, but also a real character trait which the possessor has a predisposition. Thus, contrary to a habit, which most people learn, a virtue is multi-tracked in that it espouses other actions, such as choices, interests, beliefs, expectations, and emotions among others. This is in line with Jiyuan’s (2010) contention that ethics has a one-on-one influence on our living. Thus, the possession of a virtue even in the complexity of a virtuous person’s mindset has a great influence on the actions of the individual.

According to Bright, Winn and Kanov (2014), virtue ethics has an appeal because of its encouragement of good works, which are intellectually and morally worthy of praise, unrestricted, and positively deviant.  However, it does not qualify truth by an honest person, as only the acceptance and awareness by the honest person that not telling the truth would be dishonest defines virtue. Bright, Winn and Kanov (2014) further expound on virtue ethics by giving five characteristics of virtue ethics. Accordingly, they indicate that virtue is an internal property of an individual that offers the definitive goodness of humanity within the individual virtue. In this case, virtue has its foundations in the human character as expressed in thought, motivation, and emotion, through consistently morally excellent actions (Bright, Winn &Kanov 2014).

The second characteristic is the contention that virtue is a developed character; that indeed, humans have the capacity to develop virtues, and as such, virtues are not innate characteristics. In essence, Bright, Winn, and Kanov (2014) state that through personality development, humans can develop virtues to become a second nature as well as the will to act in virtuous ways that finally produce virtuous actions.

The third characteristic is the expression that virtue is the sum of a system of sound considerations and skills that come together to form an integrated whole (McIntyre 2007). This is as express by compassion, which not only looks at the needs of others in giving, but also considers the self. The expression of virtue as a system further has exemplification in a team sport whose success is not an attribution of the individual team members’ skills, but a combination of other external factors. These include the coach as supporters who come together as complementary pieces of a whole (Bright, Winn & Kanov 2014).

The fourth and the fifth characteristics deal with virtues as attentive to circumstances and producing good outcomes. An individual has to make a choice on what virtue to express within a given circumstance with the best possible outcome (Bright, Winn &Kanov 2014).

From the case, Pinder’s philosophy goes beyond divisional leaders to employees. Employees are trained to be independent and accountable to not only themselves but also for the members of their team (Legler&Leff 2012). Moreover, at the time of recruitment, employees must satisfy the four criteria of the willingness to work hard, have a good attitude, be team players, and have the willingness to support the mission. These are some of the morally acceptable actions for employees. These expectations adhere to the deontological principles of doing right and guarding against moral taint by adhering to the rules indicated by the company philosophy. By first inculcating the philosophy on the new employees, it is the expectation of the company that these philosophies will act as the guide for the employees, influencing their actions while working in the plant. Cardinal’s actions of inculcating the philosophy justify the choice of deontology as the moral philosophy guiding the daily company undertakings.

After recruitment and undergoing the extensive continual formal and informal training, it is the expectation of the company that the new recruits into the company not only believe in the company philosophy but also live by the philosophy. One of the characteristics of virtue ethics philosophy is that virtues are not innate, but individuals can learn them, making them their second nature. The choice of virtue ethics, thus, stems from the idea that by ensuring that employees undergo training at the time they are employed, and continue with the successive training, they can inculcate the virtues of the company philosophies in their daily dealings. The freedom to make decisions and the relative autonomy given to team leaders attest to the higher levels of virtue required to keep within the confines of organizational goals. The philosophy of virtue ethics provides an explanation to the continued success of the plant even with such relative autonomy. It follows that the leadership and the employees act on the fourth and fifth characteristics of the philosophy of virtue ethics where they use their proper judgment to different circumstances according to company goals, and in so doing produce good outcomes.

How has Cardinal’s principles and values shaped the ethical behavior of employees?

One of the most encouraging features of Cardinal is the fact that employees are rarely terminated. While this does not necessarily mean that Cardinal is a perfect corporation, it points to the fact that most employees believe and, therefore, follow the values and principles as promulgated by the company. Sharma, Borna and Stearns (2009) argue that corporate ethical values and principle are an organization’s true value, especially as employees and other stakeholders perceive them. The values and principles are therefore an organization’s reflection as perceived by the outside world. Cardinal’s principle of the respect of the employees and among employees has shaped the company’s employee behavior, leading to the almost non-existent dismissal of employees.

Sharma, Borna, and Stearns (2009), further inform that corporate principles and values “can be an important element that allows an organization to influence employee perceptions of the organization’s social responsibility, in turn, augmenting employee motivation” (p. 252). By first investing in the employees through training at the time of recruitment, which is one of the company’s principles, Cardinal motivates its employees to work hard in their respective divisions. Therefore, despite the ethnic diversity in employee makeup, the Iowa plant has continued to outshine the other plants in performance. By training, providing a safe working environment, and caring for the employees as a matter of principle, the company has been able to influence the behavior of the employees, giving them a sense of belonging and ownership to the firm, and, therefore, their continued exemplary performance in the world.

Among Cardinal’s values and principles include training, communication, teamwork, respect for others, a sense of humor, and having fun the process of working (Legler & Leff 2012). According to Sousa and Porto (2015), organizational cultures that put emphasis on values, such as collaboration, trust, bonding, and support usually have the highest levels of job satisfaction. Sousa and Porto (2015) further state that such values have some of the features of culture that are influential on employee behavior. By making collaboration, trust, bonding, and support their core values, Cardinal easily influences its employees’ behavior, making them happy and satisfied with their work.

Additionally, autonomy in work is one of the principles and values at Cardinal. With all the employees considered as leaders with direct access to the management, as well as capable of being held responsible for their actions, Cardinal has influenced the behavior of the employees. Knowing that each should be ready to take up any leadership position, employees in the company remain continually responsible for their actions. Sousa and Porto (2015), intimate the benefits of autonomy as promoting happiness at the workplace as well as presenting a rounded relationship among employees. Furthermore, by providing a sense of autonomy, employees are capable of having independent thought and action, which promote change and action (Sousa & Porto 2015).

Communication stands as one of the key principles of the organization. The ease of communication with the organization is evident through the hybrid system of the organizational structure. Hence, while the accounting, sales, and marketing departments follow the traditional hierarchical structure, the rest of the organization is an integrated mesh of teamwork (Legler & Leff 2012). The purpose of such a structure is to ease communication, making it easy for the flow of information from the employees to the top leadership of the organization. Besides, the open door policy means that lower cadre employees have access to the top most management of the plant. Sousa and Porto (2015), inform that such an egalitarian organizational structure stresses acceptance of colleagues as equals, as well as concern for the welfare of others. Even more is the perception of equity that such a structure reflects. It further gives an implication of “justice in the relationship between employee and employer (distributive and procedural justice), and justice in the relationship between an organization and society in general (corporate social responsibility)” (Sousa & Porto 2015, p. 213).

Relatedly, the very principle and values that have an influence on job satisfaction have an influence on job commitment and performance. Given the motivational and non-motivational work characteristics that influence job commitment, Cardinal’s principles and values have had a special influence on the employee’s commitment to their work. According to Sharma, Borna and Sterns (2009), “an individual who identifies with the ethics of his/her organization will have increased intrinsic motivation, thus, reinforcing the tie to the organization” (p. 253). It follows that by establishing a correlation or consistency between organizational values and individual values, most employees will have a considerable commitment to the organization. The correlation and congruence between organizational values and individual ethics further relate to employee performance. Moreover, higher perception of top management’s belief in organizational principles and values has a positive influence on the employee performance (Sharma, Borna& Sterns 2009).

The above is true for Cardinal, which has used its values and principles to influence the behavior of its employees. Visible in commitment and performance are Pinder and Mike Arntson, who have been with the plant since it started in Fargo (Legler & Leff 2012). Pinder and Arntson did not only craft the plants organization philosophy but also lived by it because they believed in the principles and values they set for the plant. Pinder and Arntson’s commitment are attested by the performance of the firm, remaining the most profitable of the corporation’s plants, with even increased responsibility as the corporation’s training center. Moreover, Pinder’s commitment and performance helped him in securing the promotion as the president of the corporation, while Arntson comfortably filled Pinder’s shoes as the plant manager.

Integral to the values and principles in changing employee behavior are the training and the punishment systems in place within the organization (Fisher 2010). Through the training, employees find a window to the acceptable and unacceptable behavior in the corporation, and while they may not change the individual values, they help keep employees in check concerning the ethical behavior in the company. Dismissals and punishment systems over unethical behavior also help in changing employees’ behavior, making them in accordance with the set values and principles (Borg et al. 2011).

Responsible and Accountable Leadership at Cardinal

Cardinal’s hybrid organization structure makes it possible for leaders to learn from one another and communicate easily, making it possible to make fast decisions regarding the matter at hand. The first responsible entity for the creation of responsible and accountable leaders within the organization is the training program. The quarterly leadership training sessions, coupled with the company’s Leadership Handbook, play an important role in the manufacture of responsible and accountable leadership. By telling new employees what is required of them from the start, and their leadership position, Cardinal continually grooms accountable and responsible leaders within its ranks.

Away from the training is the leadership structure of the corporation. By having three teams, which have leaders, the leadership of the teams has free reign over the decisions within their teams. However, the decisions have to be within the confines of organizational principles and values. By giving team leaders and departmental supervisors the responsibility of hiring and firing, dealing with personnel problems and organizing training, due to the absence of a human resource department, the company in effect grooms responsible and accountable managers. Moreover, one of the company’s principles is on cost awareness explicitly indicating, “We will spend money wisely here-as if the money is our own” (Legler & Leff 2012, p. 565) Leaders, from the principle, evidently have the powers of appropriation. However, even with such powers, responsibility and accountability remain the top-most expectation of the company and the top management.

The absence of a human resource department further works to train responsible and accountable leaders. According to Goldsmith (2010), most employees understand their jobs; by giving them responsibilities, encouraging, and supporting their decision-making environment, they are empowered to become accountable and responsible.This is what Cardinal has done by both training and therefore empowering the leaders to solve problems that come to them. Being close to the situation and the hybrid structure of the organization makes it not only easy but also efficient in dealing with any eventualities. By eliminating the bureaucracy, leaders continually have to make decisions without necessarily consulting the top management, guided by the shared purpose and goal of the organization.

The elimination of the traditional hierarchical structure and its bureaucracy helps in molding accountable and responsible leaders. By easing interaction among different organization hierarchies, leaders from different divisions easily interact, share, and learn from one another. Besides, it is the organizational expectation that leaders train and mentor their subordinates to take over whichever position at whichever time (Legler &Leff 2012). By so doing, there is ease in transition and passing down of the baton in the case of an exit or promotion as was the case of Pinder and Arntson.

Leadership is much more than leading the followers towards the achievement of organizational goals, mission, and vision. It requires the leader to take a further step into making the followers believe in the purpose of the organization. Only then can a leader effectively claim success in leadership. By inculcating, inspiring, and motivating followers to work towards the organization’s purpose, the leader is sure that even in his/her absence, the workers will strive to work towards the set goal. Leadership alone is not enough to convince employees into believing in the values and principles of the organization. Ethics in the leadership go further than the leadership alone. By creating an ethically sound working environment and organizational culture, the leader is guaranteed success. This is especially when organizational values and principles resonate with individual employee values. David Pinder provides an example of a leader who has achieved success through ethical leadership. By training employees, meeting them after recruitment, and informing them what is required of them, Pinder ensured that from the onset, employees are aware of tasks and the goal that the organization aims to achieve. Both the deontological and virtue ethics moral philosophies provide an attestation to Pinder’s philosophy at Cardinal. By training and laying down organizational expectations, Cardinal empowers employees to make their decisions based on the knowledge of what is right and good according to the deontological philosophy. Additionally, by training, Cardinal believes in the ability of individuals to acquire virtues, and, therefore, using them in decision-making within the organization. Cardinal additionally uses its principles and values to influence employee behavior, and train accountable and responsible leaders within the organization.

Bertland, A. 2009, “Virtue Ethics in Business and the Capabilities Approach”, Journal of Business Ethics, vol. 84, pp. 25-32

Borg, I., Groenen, P. J. F., Jehn, K. A., Bilsky, W., & Schwartz, S. H. 2011, “Embedding the organizational culture profile into Schwartz’s theory of universals values”, Journal of Personnel Psychology, vol. 10, no. 1, pp. 1-12

Bright, D.S., Winn, B.A. &Kanov, J. 2014, “Reconsidering Virtue: Differences of Perspective in Virtue Ethics and the Positive Social Sciences”, Journal of Business Ethics, vol. 119, no. 4, pp. 445-460

Brown, M.E. &Treviño, L., K. 2014, “Do Role Models Matter? An Investigation of Role Modeling as an Antecedent of Perceived Ethical Leadership”, Journal of Business Ethics, vol. 122, no. 4, pp. 587-598

Fisher, C. D. 2010, “Happiness at work”, InternationalJournal of Management Reviews, vol. 12, no. 4 , pp.384-412

Freeman, R. E. & Stewart, L. 2006, Developing Ethical Leadership . Business Roundtable Institute of Corporate Ethics

Goldsmith, M. 2010, “Empowering Your Employees to Empower Themselves”, Harvard Business Review

Legler, J. &Leff, M. 2012, Ethical Leadership at Cardinal IG: The Foundation of a Culture of Diversity

Lu, C. & Lin, C. 2014, “The Effects of Ethical Leadership and Ethical Climate on Employee Ethical Behavior in the International Port Context”, Journal of Business Ethics, vol. 124, no. 2, pp. 209-223

MacIntyre, A. 2007, After virtue: A study in moral theory (3rd ed.). Notre Dame, IN: University of Notre Dame Press

Ronzoni, M. 2009, “Teleology, deontology and the priority of the right: on some unappreciated distinctions”, Ethic Theory Moral Practice , vol. 13, pp. 453-472

Sharma, D., Borna, S. & Stearns, J.M. 2009, “An Investigation of the Effects of Corporate Ethical Values on Employee Commitment and Performance: Examining the Moderating Role of Perceived Fairness”, Journal of Business Ethics, vol. 89, no. 2, pp. 251-260

Shin, Y. 2012, “CEO Ethical Leadership, Ethical Climate, Climate Strength, and Collective Organizational Citizenship Behavior”, Journal of Business Ethics, vol. 108, no. 3, pp. 299-312

Sousa, J.M.d. & Porto, J.B. 2015, “Happiness at Work: Organizational Values and Person-Organization Fit Impact”, Paideía, vol. 25, no. 61, pp. 211-220

Yu, J. 2010, “The Practicality of Ancient Virtue Ethics: Greece and China”, Dao : a Journal of Comparative Philosophy, vol. 9, no. 3, pp. 289-302

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    However, ethical leadership crises are not new, and the literature on ethical leadership has its roots in ancient as well as recent history and despite decades of research, most papers are normative (Brown & Trevino, Citation 2006; Shakeel, Kruyen, & Van Thiel. Citation 2018).

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    Ethical leadership is required to stop the 'Planned Obsolescence' principle in Consumer Product esign and evelopment. This paper attempts to identify and explain the issue of 'Planned Obsolescence' and whether the ethical leadership can help eradicate it from consumer perspective. Ethical decision making model developed by Winter (1992b) and ...

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