ethical leadership

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Definition of Ethical Leadership 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. 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). If these corporations and its executives have operated morally and ethically, they would have been able to avoid bankruptcy and escaped going to prison (The Economist, 2002). Having ethical leadership in organizations will help to eliminate the negative impact executive’s gre... ... middle of paper ... ...EO down to the lowest position in the organization. Punishing a leader who violates the code of ethics, regardless of the years or greater contribution such leader have contributed to the organization will reinforce the importance of adhering to the organization’s code of ethics. Rewards: Everyone loves to be rewarded for doing something right, employees always feel happy and secured when their leaders praised them. The management should publicly praise the employees or departments that adhere to the code, and encourage the workers to continue the good behavior. When possible, leaders can share some of the money saved by avoiding fraud and litigations with the employees. In conclusion, when an organization has leaders who act morally and ethically, in actions, and decision making, the result will directly impact the leaders and the company’s reputation positively.

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