Leadership: Trustworthiness and Ethical Stewardship
Problem Statement
The problem to be investigated is the leadership challenge to ensure organizations are efficient, effective and financially solvent, but more importantly, leaders earn the trust and respect of their employees and other stakeholders.
Introduction
Leaders must possess and demonstrate trustworthy and ethical behaviors in order to perform effectively in a more socially responsible and global business environment (Jennings, 2012). The ability for leaders to earn trust is in part based upon if they are perceived as having a primary motivation is their commitment to the organization (Collins, 2001). The dynamics between leadership, perceptions of trustworthiness, and ethical stewardship are key in building successful present-day organizations (Donaldson & Dunfree, 1999).
Corporate social responsibility is a valid source of intangible competitive advantage indicators (Melo & Galan, 2011). It is not used to its full potential because it has a less impact on financial indicators (Melo & Galan, 2011, p. 423). This statement is presently true according to this writer’s opinion, but it is changing. The change is occurring because old economic models do not contain all the variables needed to truly measure the economic impact of corporate social responsibility know as CSR (Paine, 2002) and because successful models of leadership are also changing (Kanter, 2009). However, this is not a universally agreed upon concept.
Analysis
There are noted economists, business leaders and those in academia who do not agree.
Discussion among some economists that posits the only responsibility business has is to make a profit. Milton Friedman who lived through the 20th century...
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06). For any leader to be successful, that leader would need to have the trust of their employees. Without that trust, the employees would not be able to believe in the leader and/or their style of leading or whether they are fair, ethically and predictable. Employees need to know that the priorities of the both the company and the leader will have the best interest of the employees. Communication is an important part of trust. Employees like to know what is happening with the company and how they may be affected. This also tells a lot about the leader, are they willing to let the staff know what is happening or are they secretive. Organizational trust is also important to the employees and leaders play a role in that as they show what they pay attention to, how they use resources, dealing with issues of a critical nature, and how they hire, promote, and employee dismissal (Joseph & Winston, 2005, p. 08). The culture of organizational trust
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Ethical leadership simply means the act of leading by knowing and doing what is right (Wise Geek, 2014). A leader that exhibit ethical leadership understands his or her core values, principles, and beliefs and live true to those values. An ethical leader serves as a mirror through which people view and perceive the organization they represent. Moral and ethical leaders serve as role models for others, who sets realistic, yet a high moral and ethical standards for others to follow and abide. This handbook will help managers to understand the importance and the principle of the moral and ethical leadership, the path to a better ethical decision making, and ways to create a moral and ethical organizational culture.
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