Ethical leadership will help leaders to lead their employees as legitimate. Because when the employees have the trust in the leader, they will “follow the organization’s managers, do what managers say, and see managers’ leadership as legitimate” (Velasquez, 2006). Therefore, ethics has become the key component of effective management. Ethic leadership is mainly constructed by society. Society direct the moral standards which make up the discipline of ethics (Velasquez, 2006).
Volkswagen lied to millions of people about the mpg and emissions of their deasil vehicles were producing on the roads. Cheated emission tests to get the upper hand. This lead them to the top until they got caught. Why is this unethical? Simple because they cheated millions of people to make the most money they can.
When a person has a strong moral character, they are said to be a person of integrity and to live a honest life is said to be the most important virtue a person can have. Consistency is a concept of ethical integrity and people should act according to their moral principles. In other words, people should do what they say. For example, if a company owner speaks about the need to improve productivity in the workplace, he/she would show integrity for offering in-house training programs for the employees to improve their skills. Moreover, ethical integrity begins from headship, which can result in ethical behavior Integrity is an essential quality that everyone should have because it is an act of being honest and trustworthy in all aspects of life.
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. The Importance of Moral and Ethical Leadership Moral and ethical leaders are essential for any successful business because these leaders are the essential links between the organization’s objectives and its stakeholders. Leaders are the face of any organization, and their actions reflect the values and the ethics the organization they represent. Therefore, if a leader’s action and decision is ethical, the stakeholders and other organizations will respect the leader and the organization. Recent history has shown that ethical behaviors are important in sustaining businesses; large corporations such as Enron, Chevron, and Worldcom, destroyed people’s lives through unethical business behaviors (Josephson, M., 2013).
In the Enron scandal there have been many failures and the outcome to this is a practical standpoint which included a moral hazard in the company where managers where elaborating and not managing the companies risks. Take in to account the risks that had not been managed properly to certain extent in the company. Anglo-American system of corporate governance is centered as the ownership of an establishment and it is extensively circulated between the differences in shareholders than the ownership of being focused on the Sarbanes Oxley Act of 2002. Anglo-American corporate governance is a primary aim of maximizing the shareholders value, which improves the access of savers on firms to make investments opportunities. As a company Enron was seen
Introduction Our Company is founded on the principle of integrity. Integrity is one of our core values and it is expected throughout every level of this firm. We treat everyone with respect and we demand the highest degree of honesty and trust from all our employees. This Code of Conduct and Ethics Policies guides our business daily. It is the responsibility of each employee to follow this code to uphold our company standards which are based on integrity.
The foundation of this relationship is trust. The leaders themselves must be ethical in their decisions and actions in order to influence others to behave accordingly. Ethical leadership is to know one’s core values and having the courage to live them through one’s life. Ethics and leaders go hand in hand; ethics is the heart of leadership.
Northouse, (2013). Ciulla (2004) argued that to achieve “good leadership,” leaders must be morally sound and as such, “ethics lies at the heart of leadership studies” (p. 18). Similarly, followers expect their leaders to be honest and ethical (Northouse, 2013). Honesty
Ethical Effects Organizational culture is the basis for which ethical behaviors are established. The recognized levels to which ethical behaviors are or are not acceptable come directly from an organization’s culture. Organizations must lead by example in this area. Working conditions in respect of ethical standards, represent a guarantee for achieving the desired business success. Contemporary successful managers work on highly professional managerial level, respecting business ethics.
Ethical leadership is the key ... ... middle of paper ... ...loyees at all levels. Long-term organizational viability and sustainability is all but guaranteed if our organization remains reputationally sound through values and ideals. With the tools for success clearly outlined, we look forward to your input and commitment to ethical and moral leadership. References DuBrin, A. J. (2010).