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A New Model for Ethical Leadership

  • Max H. Bazerman

leadership ethics 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).

leadership ethics essay

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leadership ethics essay

What is Leadership Ethics?

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Formal leadership responsibilities include creating an ethical organizational culture, a broader view of stakeholder interests, changing ownership structures, and addressing the paradox of millennial values. Ann Skeet, senior director of Leadership Ethics at the Markkula Center for Applied Ethics, defines the field.

An introduction to the Markkula Center for Applied Ethics' approach.

Ethical leadership means both acting ethically and setting the standard for others to do so as well. Leaders have an opportunity to inspire others not only to do the right thing but also to consider the kind of people they want to be.

Leadership is both a formal role individuals have in organizations and an activity individuals undertake in various aspects of their life as professionals, citizens, parents, and volunteers, for example.

We explore issues of institutional and personal leadership at the Ethics Center, with a leadership focus in business ethics , nonprofit ethics, and government ethics . Business ethics involves the study of moral right and wrong, concentrating on issues in for-profit companies and the newer B corporations some U.S. states have adopted. Nonprofit ethics considers these issues in nonprofit institutions that have responsibilities to the stewardship of mission and public benefit goals, and the complexities introduced by relying on volunteers and donated funds, introducing additional ethical considerations. Government ethics looks at the responsibilities of elected and appointed officials for conducting the public's business with transparency and fairness.

We consider the activities of individuals serving organizations formally as operational or governing leaders and also of people demonstrating leadership in everyday life, regardless of formal positions they hold. Some activities leaders engage in to set standards that encourage ethical behavior include

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4 Examples of Ethical Leadership in Business

Business leader communicating ethical decision to team

  • 14 Sep 2023

Have you ever faced an ethical dilemma? Maybe you found someone’s wallet on the ground or witnessed someone cheating during a test or competition. In these scenarios, the right answer isn’t always clear.

In business, you’re bound to encounter ethical dilemmas, especially as a leader. Behaving unethically can be illegal—for instance, stealing money or harming employees. In these situations, making the right choice is clearer. Sometimes, it’s not a question of legality but of weighing potential outcomes.

“Many of the decisions you face will not have a single right answer,” says Harvard Business School Professor Nien-hê Hsieh in the online course Leadership, Ethics, and Corporate Accountability . “Sometimes, the most viable answer may come with negative effects. In such cases, the decision is not black and white. As a result, many call them ‘gray-area decisions.’”

When facing ambiguity, how do you make the most ethical decision? Here’s a primer on ethical leadership and four examples of leaders who faced the same question.

Access your free e-book today.

What Is Ethical Leadership?

Ethical leadership is the practice of making decisions that balance stakeholders’ best interests with your company’s financial health, and empowering others to do the same.

As a leader, you have ethical responsibilities to four stakeholder groups—customers, employees, investors, and society—which Leadership, Ethics, and Corporate Accountability breaks down.

Responsibilities to Customers and Employees

  • Well-being: What’s ultimately good for the person
  • Rights: Entitlement to receive certain treatment
  • Duties: A moral obligation to behave in a specific way
  • Best practices: Aspirational standards not required by law or cultural norms

Employees have a fifth category—fairness—which comprises three types to consider:

  • Legitimate expectations: Employees reasonably expect certain practices or behaviors to continue based on experiences with the organization and explicit promises.
  • Procedural fairness: Managers must resolve issues impartially and consistently.
  • Distributive fairness: Your company equitably allocates opportunities, benefits, and burdens.

Responsibilities to Investors

Your responsibilities to investors are known as fiduciary duties . The four types are:

  • Duty of obedience: Adhere to corporate bylaws, superiors’ instructions, and the law.
  • Duty of information: Disclose necessary information and remain truthful about performance and operations. Refuse to divulge certain information to nonessential parties.
  • Duty of loyalty: Act in the most favorable way for shareholders and avoid conflicts of interest.
  • Duty of care: Evaluate decisions’ potential outcomes before acting.

Responsibilities to Society

In addition to creating value for your business, you’re responsible for making a positive, or at least neutral, impact on society and the environment.

One framework to conceptualize this is the triple bottom line, also called the “three P’s”:

  • Profit: Your business’s responsibility to make a profit.
  • People: Your business’s responsibility to positively impact society by creating jobs, supporting charities, or promoting well-being initiatives.
  • The planet: Your business’s responsibility to positively impact the natural environment, or at least not damage it.

The 3 P's of the Triple Bottom Line: Profit, People, and the Planet

Even business leaders with the best intentions can make unethical decisions. In a Harvard Business Review article , HBS Professor Max Bazerman describes the concept of motivated blindness , in which you become unaware of unethical decisions when they benefit you or your company.

Hsieh echoes this sentiment in Leadership, Ethics, and Corporate Accountability .

“Even when the right thing to do seems clear from an outsider’s perspective, factors like time, social pressures, and the need for self-preservation can complicate things,” Hsieh says in the course.

Learning about ethical leadership can enable you to be aware of unintended negligence and make more conscious, ethical decisions.

Here are four examples of business leaders who faced ethical dilemmas, how they handled them, and what you can learn from their experiences.

1. Johnson & Johnson’s Tylenol Poisonings

A classic case of ethical leadership in business is “the Chicago Tylenol poisonings.” On September 9, 1982, a Chicago-area 12-year-old girl woke up with a cold. Her parents gave her a tablet of extra-strength Tylenol to ease her symptoms and, within hours, she died.

Six more deaths followed—the connecting factor between them was having taken extra-strength Tylenol shortly before passing away. It was later discovered that the tablets were laced with cyanide, a chemical that interferes with the body’s ability to use oxygen.

Johnson & Johnson, Tylenol’s parent company, had an ethical dilemma and a public relations disaster to contend with.

Baffled as to how the cyanide got in the tablets, Johnson & Johnson’s leaders acted quickly and pulled all Tylenol products off the shelves—31 million bottles worth over $100 million—and stopped all production and advertising.

The swiftness of their decision, although incredibly costly, put customers’ well-being at the forefront and saved lives.

Johnson & Johnson partnered with the Chicago Police, the Federal Bureau of Investigation (FBI), and the Food and Drug Administration (FDA) to track down the perpetrator who added cyanide to the medication. The company offered a $100,000 reward and provided detailed updates on its investigation and product developments following the crisis.

When it became clear that the killer had bought the product, laced it with cyanide, and returned it to store shelves undetected, Johnson & Johnson developed the first-ever tamper-resistant packaging. The “safety seal” that now covers the opening of most food and drug products was born.

“Our highest responsibility has always been the health and safety of our consumers,” a Johnson & Johnson representative wrote in a statement to the Chicago Tribune . “While this tragic incident remains unsolved, this event resulted in important industry improvements to patient safety measures, including the creation of tamper-resistant packaging.”

The Tylenol brand recovered from the incident, largely because of Johnson & Johnson’s leadership team’s swift action and transparent care for customers.

2. JetBlue’s Shutdown

On Valentine’s Day, 2007 , at the John F. Kennedy International Airport, JetBlue Airlines sent nine planes from the gate to the runway during a snowstorm, hoping conditions would rapidly improve—but it had no such luck.

The misstep caused the planes to sit on the tarmac for more than five hours with disgruntled passengers inside. The issue snowballed from there.

Since JetBlue employees had to work overtime to deal with the delays, few had enough allowable flight time to handle upcoming departures. JetBlue was left with no choice but to cancel 1,096 flights over the following five days.

CEO David Neeleman responded by writing an apology letter to customers and crafting a “ customer bill of rights ” that the airline still abides by. The document outlined customers’ rights to information about flights, as well as how they’d be compensated in the event of delays or cancellations.

Neeleman also went on a public apology tour, taking full responsibility for the incident rather than blaming it on the weather.

This response stands in contrast to the 2022 Southwest Airlines incident that played out similarly but with less accountability from leaders. Initially caused by bad weather and then exacerbated by Southwest’s outdated booking systems, the 16,700 canceled flights left thousands stranded between December 21 and 31.

In contrast to Neeleman’s apologies and emphasis on customer rights, Southwest CEO Bob Jordan took a defensive stance, explaining in a video the impact that “record bitter cold” had on all airlines and that Southwest was doing everything it could to remedy the issue. While those points may have been true, the response didn’t go over well with customers who wanted to feel respected and understood.

Each leader's choices highlight the importance of being transparent and championing customer rights when facing similar issues.

Related: The Importance of Reflective Leadership in Business

3. Starbucks’s Racial Bias Incident

If one of your employees made a critical decision based on racial bias, how would you respond? That was the question Kevin Johnson, then-CEO of coffee shop chain Starbucks, had to answer in April 2014 .

One day, two Black men entered a Starbucks in Philadelphia and asked to use the bathroom. The manager on duty told them the restroom was for paying customers only, so they sat down to wait for their friend to arrive before ordering.

The manager called the police, who arrested the men for trespassing. Although no charges were filed, the arrest went viral and sparked protests throughout the United States.

Starbucks, which prides itself on being an ethical brand , has one of the most diverse leadership groups in corporate America—five of the board’s 14 members are women, and five are from racial minority groups. This racially motivated incident clashed with its values.

Johnson fired the manager who called for the arrest, apologized to the two men, and announced racial bias training for all Starbucks employees.

To emphasize the training’s importance, Johnson closed 8,000 locations on May 29, 2018, to educate 175,000 employees. This cost Starbucks an estimated $12 million in lost profit but spread the message that it cares about its customers, employees, and society.

Related: How to Create a Culture of Ethics and Accountability in the Workplace

4. The Muse Sticking Up for Employees

Ethical dilemmas often aren’t public scandals—even quiet, internal decisions can have enormous impacts. Kathryn Minshew, CEO and co-founder of The Muse , faced one such scenario in the early days of growing the online career platform.

She’d just signed a company to use The Muse’s recruiting platform. It was a major deal, and the young startup desperately needed revenue. But during the onboarding process, Minshew noticed the client’s representatives were talking down to her junior staff members. While they respected her, how they treated her team didn’t sit well.

She spoke with the client about it, effectively providing a warning and a chance to start the relationship on a better note. Still, the poor treatment of her team continued.

Minshew had a decision to make: Take the revenue despite the mistreatment or part ways with the client to support her team. She went with the latter.

“I told them nicely that it didn’t make sense to work together anymore and refunded the unused balance of their money,” Minshew says in an interview with Fast Company . “They tried to argue, but at that point, my mind was made up. I didn’t realize how relieved my team was—and how much they appreciated it—until after it was all done.”

By cutting ties with the client, Minshew fulfilled her ethical responsibility to create an environment that supported her employees’ well-being and right to be treated respectfully. In doing so, she built a strong foundation of trust and demonstrated that she’d have their best interest in mind—even at the business’s expense.

“I think backing your team in situations like that is really important,” Minshew says in the same interview, “but it’s not always easy, especially when you’re early-stage.”

How to Become a More Effective Leader | Access Your Free E-Book | Download Now

How to Develop Ethical Leadership Skills

While these scenarios likely differ from those you face at your organization, ethical leadership’s guiding principles ring true.

To build your ethical leadership skills , consider taking an online business ethics course. In Leadership, Ethics, and Corporate Accountability , Hsieh presents several real-world examples of ethical dilemmas, prompts you to consider how you’d respond to them, and then lets business leaders share how they handled each.

In the course, you also learn how to use frameworks and tools to conceptualize your responsibilities to stakeholders, make judgment calls in gray-area situations, and act decisively to reach optimal outcomes.

By learning from the challenges and triumphs of those who came before you, you can equip yourself to handle any ethical dilemmas that come your way.

Are you interested in learning how to navigate difficult decisions as a leader? Explore Leadership, Ethics, and Corporate Accountability —one of our online leadership and management courses —and download our free guide to becoming a more effective leader.

leadership ethics essay

About the Author

  • Organizational Behaviour

Leadership Ethics - Traits of an Ethical Leader

Ethics refer to the desirable and appropriate values and morals according to an individual or the society at large. Ethics deal with the purity of individuals and their intentions.

Ethics serve as guidelines for analyzing “ what is good or bad ” in a specific scenario. Correlating ethics with leadership, we find that ethics is all about the leader’s identity and the leader’s role.

Ethical theories on leadership talk about two main things: (a) The actions and behaviour of leaders; and (b) the personality and character of leaders. It is essential to note that “ Ethics are an essential to leadership ”.

A leader drives and influences the subordinates/followers to achieve a common goal, be it in case of team work, organizational quest, or any project. It is an ethical job of the leader to treat his subordinates with respect as each of them has unique personality.

The ethical environment in an organization is built and developed by a leader as they have an influential role in the organization and due to the fact that leaders have an influence in developing the organizational values.

An effective and ethical leader has the following traits/characteristics:

Respecting the followers implies listening effectively to them, being compassionate to them, as well as being liberal in hearing opposing viewpoints. In short, it implies treating the followers in a manner that authenticate their values and beliefs.

It is essential to note that leadership is all about values, and it is impossible to be a leader if you lack the awareness and concern for your own personal values. Leadership has a moral and ethical aspect. These ethics define leadership. Leaders can use the above mentioned traits as yardsticks for influencing their own behaviour.

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Authorship/Referencing - About the Author(s)

The article is Written and Reviewed by Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider . To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.
  • Leadership - Introduction
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  • Leadership Development - Introduction
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Leadership Essay

27 August, 2020

12 minutes read

Author:  Richard Pircher

As a college student, you must write essays on a regular basis since the latter is one of the most common types of home assignments. All this means is that in order to get good grades and be successful with writing the papers, you need to have a sound understanding of the structure. Additionally, what you should never neglect is the variety of essay types. Indeed, your essay will significantly differ from one type to another: description essay will most likely have a structure that is slightly different from an argumentative one.

Leadership Essays

What you may have already encountered in your academic life is the work on a leadership essay. Although it sounds pretty complicated and vague, it is mostly possible to master an essay on leadership. Below is a guide for you to get an insight into this particular essay type.

What is a good leadership essay?

A good leadership essay is the one in which the essay writer has fully covered the topic of leadership and understood its core ideas. More specifically, to end up with a flawless leadership essay, you will need to indicate what makes a person a good leader. For achieving the latter, you will most likely need to conduct research and trace how a particular person reaches his or her goals. In other words, the task is to discover which actions the person undertakes, what their followers say about him or her, and how the person organizes the work. So, a leadership essay implies providing real-life success examples and further revealing them.

Above all, a good leadership essay is the one that follows a precise, clear, comprehensive structure. Structuring your essay about leadership in the most coherent way leads to a win-win situation: you have fewer troubles and barriers to writing a brilliant essay, and your teacher is able to comprehend the essay easily. This guide is what you will need to refer to to get an insight into how the flawless structure for a leadership essay looks like and how it will let you take a benefit.

How to write a Leadership essay?

To write a leadership essay that stands out, you first need to brainstorm all the ideas that you have and come up with a topic for your essay. If you are struggling with this step, you may think of some of the most influential people, read about them, and find out what makes them unique. Or, you can pick any topic which is mentioned at the end of this article. After you have chosen an issue, it is time to structure your essay appropriately.

how to write a leadership essay example

As you already know, an essay constitutes three essential sections: introduction, main body, and conclusion. Below is the more detailed description of each of the parts.

Introduction

Of course, your leadership essay introduction will always vary depending on the topic of the essay. However, you can always begin by stating your vision of leadership regardless of the topic. Additionally, to motivate the reader and instantly catch his or her attention, you may use a quote of a famous leader, or simply a quote which you find relevant to the topic. Be aware that you should avoid outlining the essence and the role of the leadership in your introduction; leave it for the body paragraphs.

What you may also do in your leadership essay is ask a question, which will most likely intrigue the leader. Or it will at least give your reader an overview of what you will dwell on  in your essay.

Body Paragraphs

You will need to divide the main body into 3-5 paragraphs to make the structure more comprehensive. What you have to do at this point  is  give your reader a sound understanding of your ideas. Therefore, try to fit each idea in a single body paragraph so that you do not confuse your reader. Do not hesitate to indicate your examples to strengthen your arguments. For instance, you may explain a fact that makes a particular person you are writing about a real leader.

Also, always stick to your thesis statement and don’t forget that the body paragraphs should reveal the parts of your thesis statement.

As you may already know, you need to restate your opinion and briefly summarize all the points from the main body in conclusion. For instance, if you wrote your essay on qualities of an effective leader, state the most fundamental qualities and indicate why they matter the most. Besides, try not to copy what you have already written in the body – it is better to restate your opinion using different words. And, of course, beware adding any new and extra information; indicate only those points that you have already outlined in the text. Finally, keep in mind that it is always favorable to keep your concluding remarks short.

leadership essay

Leadership Essay Examples

Writing a leadership essay requires some research and time. In case you feel the necessity to go through an essay example, below is a leadership essay sample you can refer to.

Is leadership an inborn or an acquired feature?

Is everyone capable of becoming a leader, or is this ability innate? A lot of researchers have been struggling to answer this question. One assumption about leadership implies that the leader is the person who possesses particular characteristics. Another assumption claims that leaders are capable of acquiring specific features over their life span. As the evidence shows, leaders own many features that distinguish them among others and make more and more people become their followers. These might be cognitive abilities, psychological traits, professional qualities, and a lot more, and all of them will be either acquired or innate. Based on the importance of leadership qualities, such as commitment, stress resistance, and the ability to make quality decisions, it is reasonable to claim that leaders are made, not born. 

One can deem commitment as one of the top fundamental qualities of the leader. In essence, such a feature indicates that a person is passionate about the common goal, strives to be a team player, and makes every effort to reach a shared goal. As the history shows, none of the successful companies was uncoordinated by an influential, committed leader: Apple, Amazon, Microsoft – all of these companies are examples of dominant teams led by a dedicated leader. A committed leader also inspires his or her team to achieve common goals and put more effort into the shared activity. Besides, commitment is unlikely to be an innate feature; it instead comes with experience. This is so, since commitment implies dedicating oneself to the shared task, and one can reach it only via learning and continuous self-improvement.

Stress resistance is another incredibly important feature that every good leader should possess. This is because only a stress-resistant leader has sufficient capabilities to overcome any complexity and not let the anxiety and stress prevent him or her from making proper decisions. Besides, such a leader will most likely have a positive influence on the team, as long as leading by example will motivate the team members to attain the same emotional stability. What is so far familiar about stress resistance as an effective leader’s feature is that it can be either innate or attained. However, although some researchers admit that emotional stability is something one is born with, it is not entirely true; many people still put a great effort into self-improvement, changing the attitude to unfortunate situations, and so on. Therefore, being resistant to stress can be mostly attributed to a personality.

An ability to make high-quality decisions most likely determines the chances for an enterprise’s success. In particular, such quality is incredibly fundamental for a company of any size and professional orientation. Additionally, it is one of the top tasks of a good leader to make final decisions. What he or she should do implies brainstorming, discussing various opinions in the group, making forecasts, analyzing all the pros and cons. However, the leader is the one to make a final decision. Thereby, he is in charge of researching the market, discovering all the hidden truths, and analyzing the organization’s potential and capabilities to result in the most effective decision. As it flows logically from the latter, an ability to make sound quality decisions is purely a professional quality. This leads to the conclusion that one has to work hard to become a genuine leader and master the skill of making effective decisions. 

Overall, the leader may possess a multitude of different skills and master them perfectly. However, what has so far become transparent is that any leader, regardless of which team he leads, must possess three essential qualities. These qualities are commitment to the common goal, ability to handle and resist stress, and, finally, an ability to make effective decisions. All of the three qualities are most likely to be acquired over a lifetime. The statement below leads to the conclusion that even though some qualities can be innate, most are not the ones that leaders are born with. Hence, this answers an essential question: leadership feature is acquired, and not necessarily inborn.  

20 leadership essay topics

When coming up with your next leadership essay topic, it is imperative to brainstorm ideas and think of what leadership might be related to. If you are struggling with a topic of the importance of leadership essay or any relevant type of essay, you may quickly take a look at some of the possible topics we prepared for you:

  • What are the main qualities of the leader?
  • Successful Time Management as a feature of an effective leader
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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:

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Organizational Ethics: The Role of Leadership Essay

Theorists have formulated several leadership theories in the past. Leadership styles and theories which were used several years ago are not the same as the ones used today. Hernsey and Blenchard’s theory of situational leadership allows leaders to adopt various leadership styles that match with development levels of their followers.

Leaders adopt leadership styles which are dependent on readiness and willingness of their followers to perform required tasks. When followers are not mature, their competence and motivation of is low, but it increases as they mature (Hernsey and Blenchard, 1976).

According to McGregory (1960), theory X and theory Y assumptions encompasses style, behavior, situation, and adaptation to the situation. These theories resulted in development of other situational theories. Fried Fielder’s (1967) contingency theory argues that there is no one best way of leading. It identifies situations when task-oriented approach is more effective, and when a relationship style would be more productive.

Fielder concluded that task-oriented leaders are effective when conditions are either “very favorable for the leader or which are very unfavorable for the leader” (Fiedler, 1967, p.13). When situation is favorable, members are ready and willing to work because their leaders support job performance.

When conditions are unfavorable, group members will need to remain goal-oriented for them to achieve any success. In stressful situations, a leader’s structure and control can remove undesirable ambiguity and the anxiety that goes with it (Fielder, 1967).

In Hersey/Blanchard theory of situational leadership model, there is no best way to lead. Leaders must be able to adapt to situations and modify their leadership style to be more effective. The level of maturity of a group will determine the most effective leadership style (Hersey and Blanchard, 1976).

A leader assesses maturity of a group to come up with the amount of guidance needed. Immature group requires direction and goal-oriented behavior from their leader. At this stage, task-oriented leadership is required since followers are eager to accept guidance when they feel uncertain about a task. As a group matures, it builds a relationship with its leader.

Task-related behavior decrease as relationship behavior takes charge. A two-way communication develops and members are involved by their leader in decision making. As maturity increases, the leader delegates responsibility to the next step in the process (Hersey and Blanchard, 1976).

In contingency theory, leadership style is determined by situations and can only be changed based on the relationship between members and their leaders. A leader can adopt a leadership style and use it as situation may demand. On the other hand, Hersey/Blanchard theory of situational leadership model depends on maturity of group members for a leadership style.

Immature group requires close guidance and one-way communication where the members are told what to do, when and how they do it. Leadership style changes to a relationship when a group is mature enough. The style later changes to a two-way communication where members are involved in decision making and responsibilities delegated.

Role of Leaders in Organizational Ethics

Leaders play an important role in developing ethical business organizations. If a manager does not portray a positive behavior, other employees are likely to follow suit and business organization become unethical. Leaders should use idealistic visions and persuasive communication styles to motivate their followers.

Ethical behaviors have a role in credibility, and the ability of leaders to have a positive influence on their followers (Piccolo et al. 2010). Ethical leadership captures employees’ perceptions of ethical behavior inferred from leader’s conduct.

When leaders demonstrate a normative appropriate conduct through personal actions and interpersonal relationships, and promote such conduct to their followers through communication, reinforcement and decision making, the result is ethical organization.

Trustworthy leaders are proactive and are expected to increase cooperation among employees to promote organizational identification. This will have a positive improvement in performance and ethics in a business organization. Ethical leadership increases organizational identification.

Organizations which have leaders with poor ethics rank poorly in public and this may have a negative effect on business (Walumbwa et al. 2010). Exchange of positive behaviors between ethical leaders and members through trust, open communication, information sharing and liking of followers, contribute to ethical behavior in an organization.

According to Bandura (1977), leaders influence their followers by way of modeling process. This is one of the most powerful ways of transmitting values, attitudes and behaviors. Employees learn how to do something by observing their leaders.

Leaders can be good models by virtue of their assigned roles, their status, success in the organization and the power to affect the behavior and outcomes of their followers in an organization (Bandura, 1977). Leaders act as role models to their junior employees. Even when other employees do not envy their leader, portraying ethical behavior will ensure that all employees emulate deeds of their leaders.

Leaders who are not honest or trustworthy are likely to encourage dishonesty and lack of trust among their followers. Leaders gain trust of their followers when they act in a generally acceptable and consistent manner regarding how leaders should behave in a workplace.

Bandura, A. (1977). Social Learning Theory. Englewood Cliffs, NJ: Prentice Hall.

Fiedler, F.E. (1967). A Theory of Leadership Effectiveness . New York: Mcgraw-Hill.

Hersey, P., & Blanchard, K. (1972). Management of Organizational Behavior: Utilizing Human Resources (2nd ed.) New Jersey: Prentice Hall.

Mcgregor, D. (1960). The Human Side of Enterprise . New York: Mcgraw-Hill.

Piccolo, R. F., Greenbaum, R., Hartog, D.N., & Folger, R. (2010). The Relationship between Ethical Leadership and Core Job Characteristics. Journal of Organizational Behavior, 31 , 259–278.

Walumbwa, F.O., Mayer, D.M., Wang, P., Wang, H., Workman, K., & Christensen, A.L. (2010). Linking Ethical Leadership to Employee Performance: The Roles of Leader–Member Exchange, Self-Efficacy, and Organizational Identification. Organizational Behavior and Human Decision Processes, 115, 204–213.

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The Concept of Leadership Ethics

Introduction, managers vs. leaders, the interactional framework, developing and adding value to leadership, becoming a leader, leaders’ power and influence, leadership ethics.

Leadership is a complex concept that does not have one approach that can solve all issues at the same time. It involves a careful analysis of leaders, their followers, and the entire situation at hand in order to identify the most appropriate approach to being a leader. Researchers have defined leadership as both science and art because managers can be effective leaders of their organizations without taking a course. Also, scholars who investigate leadership as a phenomenon may be ineffective leaders themselves when it comes to organizational settings. In this paper, important aspects and characteristics of leadership will be explored for broadening the knowledge on the subject.

In the beginning, it is imperative to understand the difference between managers and leaders because the two concepts are used interchangeably but incorrectly. Managers usually play administrative roles and have a short-term look at organizational objectives; they accept and follow the status quo. Leaders act as innovators, and developers, having a long-term view on organizational objectives; they challenge the status quo. This differentiation is meaningful to me as a future leader because it will allow me to understand which processes relate to leadership and which relate to management.

Mentioning the interactional framework for analyzing leadership is also important to understand the idea behind leadership and what it takes to lead successfully. It implies the functioning of three elements: a leader, followers, and a situation. A specific situation implies different interactions in the areas where management and leadership overlap. The leader in such situations should motivate and provide unique skills and values and be credible at times of uncertainty.

A leader’s followers are people that share the same values and goals and are motivated to reach them. The value of this point to me is associated with the revelation that the processes and players involved in leadership are never the same but have a distinct characteristic to explain their roles. For instance, I now understand that women in leadership roles may have different patterns of networking and employ interactive strategies; however, this does not mean that they are either more or less effective in their positions.

In terms of adding value to leadership, the action-observation-reflection (AOR) model can be used. It shows that the development of leadership as a process enhances when action, observation, and reflection interact within a spiral of experience. Within this spiral, the experience is not a combination of events that happened to a person but also something people perceive from those events. As leadership implies a form of social interaction, expectations also play a role. This point is meaningful because leadership implies communication between people, and the AOR framework helped me to understand the importance of experience when it comes to leading.

When it comes to leadership development, such setting as colleges and organizational contexts can help individuals develop their skills in this area. In colleges, students are encouraged to develop leadership skills through service learning and individualized feedback. These are achieved with the help of role-playing, simulations, games, and case studies, all of which provide opportunities for practice and self-discovery. In organizational settings, leaders are prepared with the help of programs that expect a return on investment. This means that when organizations invest in the training of leaders, they expect that these investments return to them in increased profitability. The importance of training should be valued because it disproves the idea that leaders are born; rather, leaders are developed.

When a person gets a position of a leader, a roadmap can illustrate through what he or she is going. Before starting, one implements pre-hire gathering and post-hire activities. In the first two months of operating as a leader, a person is expected to obtain external perspectives, develop a strategy, communicate decisions, and get feedback from their followers (Hughes et al. 137). In the third month, leaders usually establish a culture, communicate their values, work on improvement areas, and perform the sub-team analysis. For me, this roadmap to leadership was valuable because it offered a clear guideline on steps I could follow in case if I lead an organization in the future.

In the discussion about leadership, examining the concepts of power and influence is imperative. Power is defined as the capacity of an individual to influence the feelings and the decision-making of other people. When a person is powerful, the characteristics of those being influenced diminish to enhance the potential of a leader. Influence is defined as the change in beliefs, attitudes, values, and behaviors as a result of specific tactics. I understood that the difference between power and influence lay in the fact that the latter can be measured by the number of influential tactics exhibited by a leader.

The leader-follower-situation framework illustrates the sources of leader power. Expert power refers to the overall power of knowledge, which is the function of the amount of knowledge one possesses in relation to other members of the group. Referent power is associated with the political influence a leader has because of the extent of the relationship between followers and the leader. Legitimate power refers to the official authority of a leader and his or her organizational role.

Reward power is associated with the ability to influence other people by means of controlling desired resources. Coercive power is defined as the potential of a leader to influence the decision-making of followers by imposing inherent limitations on them. The mentioned framework was discussed because it offered me a cohesive platform for differentiating between the types of power and how it can be applied in different settings.

In the discussion of leadership, it is necessary to understand the role of a character, ethics, and values. These concepts are associated with solving ethical dilemmas that arise in organizational settings. Ethics is especially important because of the need to exercise their moral values in complex situations that require a choice between priorities and value sets. When it comes to leadership values, they refer to constructs that represent generalized behaviors that leaders consider to be important.

Moral reasoning is the process used by leaders to make decisions about either ethical or unethical behaviors. It is essential to understand moral reasoning for me because it can also be used to justify negative behaviors. On the one hand, authentic leadership is an approach for self-conscious and self-aware actions that align with values. On the other hand, servant leadership is associated with serving others when assuming the role of a leader. The differentiation between these leadership types is meaningful because it will allow one to choose which style will suit a particular setting.

In the leadership context, ethics and morality are essential for creating and sustaining a beneficial climate in which all participants of the process will be valued and included. For doing so, leaders should serve as examples and exhibit both positive and negative behaviors from which followers can learn. Ethical role models are based on four categories of behaviors and attitudes, which include interpersonal behaviors, ethical actions, basic fairness, and the articulation of ethical standards.

Upward ethical leadership is an example of how individuals exercise the mentioned categories: by taking actions for sustaining ethical standards, leaders can learn about their mistakes. In an ethical climate, the expectations and standards are communicated clearly and consistently (Hughes et al. 269). In an unethical climate, little corrective action exists, which means that misbehaviors are not condoned on a regular basis. In my own opinion, effective leadership should be ethical, and valuing it will bring a leader to overall success.

To conclude the assessment, it is imperative to mention that there is no simple ‘recipe’ for effective leadership that can be used in all settings. If one leadership style fits a particular organization, it does not mean that it will be suitable for another set. The idea that leaders are born is a misconception because training and the gaining of new experiences are necessary to develop effective skills for leading an organization. Moral values and ethics have also shown to be very important for being a successful leader. In instances of doubt, a leader is expected to show ethical behavior and resolve an arising problem with the least negative impact on the organization. The discussed points were valuable for the understanding of leadership because they provided a framework for becoming a successful leader.

Hughes, Richard, et al. Leadership: Enhancing the Lessons of Experience . 8th ed., McGraw-Hill Education, 2015.

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Essay on Leadership: Samples in 100, 200, 300 Words

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Essay on leadership

The concept of leadership has been known to us since ancient times, from Ashoka: The Great to modern-day democratic leaders. Whether it’s politics or business, sports or entertainment, leadership is an essential part of human society, Leadership is the art of inspiring and guiding people towards a common goal. 

leadership ethics essay

Critics might argue that being a leader is just about holding a prestigious position and living a fancy life. That might be 1 in 1000 cases, as leaders across the globe work for the welfare and development of their people and country. Below we have discussed some essays on leadership where the multifaceted roles of this position are highlighted. 

Table of Contents

  • 1 Essay on Leadership in 100 Words
  • 2 Essay on Leadership in 200 Words
  • 3 Essay on Leadership in 300 Words

Also Read – Essay on Summer Vacation

Essay on Leadership in 100 Words

Leadership involves a set of qualities, values and actions, which are focused on the benefit of people and their country. A person holding the position of a leader plays a pivotal role in every facet of life, influencing the direction and success of organizations, communities, and nations. To become a leader, one must have a clear vision to understand a future state that is better than the present and communicate that vision to their team or followers.

A leader’s actions should be aligned with their words, and they must demonstrate their honesty, transparency and ethical behaviour. Trust is the foundation for any successful leadership, and it is built through consistent ethical conduct. 

Essay on Leadership in 200 Words

Leadership is a complex and multifaceted concept and is an essential part of developing a society or organisation. Leadership can involve various positions and types, from democratic to autocratic, where the leaders inspire and empower their teams, fostering an environment where individuals can thrive and achieve their fullest potential.

Effective leadership involves skilled communicators to can convey ideas, expectations, and feedback clearly and persuasively. They also listen actively to their team’s input and concerns. A great leader empowers a team of professionals by entrusting them with responsibilities and decision-making authority. With the formation of delegates, the power of leadership is divided among different authorities who are responsible for fostering growth and development among team members, making the organization more robust.

Some of the fundamentals of leadership are authenticity, integrity, ethical behaviour, a clear vision and other vital traits. Trust is the bedrock of leadership, and it is built through honesty, transparency, and consistency in actions and decisions. A leader who understands and cares about the needs and concerns of their team fosters strong relationships, promoting collaboration and cohesion.

At last, leadership is more than a title; it’s the embodiment of vision, integrity, empathy, communication and resilience. Effective leaders work to bring positive changes, inspire people around them and create a sense of purpose and direction in their terms and organizations.

Also Read – Essay on Cricket

Essay on Leadership in 300 Words

Leadership is a vital concept for the welfare of a society, community or country, depending on what the leadership is about. A leader transcends boundaries and is fundamental to human endeavours in various domains. Their job involves the ability to influence and guide a group of individuals toward achieving a common objective. Effective leadership is characterized by a combination of qualities, skills, and behaviours that inspire, motivate, and empower a team.

The first and most important aspect of a successful leader is having a clear vision. A clear vision works as a guiding light, outlining the desired future and providing a sense of purpose and direction for the team. Leaders with a compelling vision can inspire and rally their followers, creating a shared sense of purpose. 

The other cornerstone of leadership is integrity. Leaders must demonstrate honesty, transparency, and ethical behaviour. Trust, which is essential in any team or organization, is built on the foundation of integrity. When people believe that their leader acts with integrity, they are more likely to follow willingly and commit to the cause. 

Another trait that is essential for effective leadership is empathy. Leaders with empathy understand and connect with the emotions, needs, and perspectives of their team members. By showing compassion and actively listening, they create a supportive and inclusive environment that fosters trust and collaboration.

Apart from these traits, other important qualities for effective leadership include effective communication and interpersonal skills. A leader must be able to articulate their vision, goals, and expectations clearly and persuasively. 

In conclusion, leadership is a multifaceted concept that plays a pivotal role towards the positive growth and development of organizations, communities, and societies. Effective leaders inspire their teams, create a sense of purpose, and drive positive change. Leadership is not merely a position; it is a journey of personal growth and a commitment to serving the greater good.

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Some of the synonyms for a leader are: Coach, Captain, Principal, Chairman, Kingpin, Boss, CEO, etc.

What makes a good leader is their ability to persuade people using their effective communication skills, having a clear vision working towards the welfare of society, and taking responsibility for their actions.

Writing an essay on leadership in 200 words must include the fundamental aspects of leadership and the qualities they must possess. Effective leaders around the world create a supportive and inclusive environment where people can thrive and contribute their best efforts. They inspire a shared sense of purpose, foster collaboration, and guide their teams toward achieving collective goals.

For more information about such informative articles, visit our essay writing page and make sure to follow Leverage Edu .

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Ethical Leadership Essay

leadership ethics 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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