Ethical Leadership

What is ethical leadership?

Ethical behavior means knowing the difference between right and wrong and therefore doing only the right thing. The terms “right” and “wrong” are relative. Various cultures, religions, societies, communities and individuals have defined the concepts of right and wrong. Now, ethics is based on a set of moral principles. Leadership style, which emphasizes on the ethical code of the organization, is known as ethical leadership. Ethical leaders have two responsibilities. The first one is to act and behave ethically and the second is to motivate and influence the associates and followers to act ethically. It should be reflected in their behavior, activity and interaction (Leigh, 2013).

The study about different aspects of ethical leadership will help to understand the importance of ethical leaders in an organization. The significance of ethical leadership is discussed below (Bellingham, 2003):

• Develops ethical behavior and sets example: Ethical leaderships help to build an ethical environment within an organization or a community by promoting ethical behavior. Leaders are the role models and they have larger than life image. They can easily motivate their followers by setting up examples of ethical behavior. An organization which promotes ethical practice will be a model for other organizations as well as individuals.
• Helps in building trust: Leadership is based on trust. The followers have faith in the leader and get motivated to follow him. Ethical behavior helps to generate positive attitude and trust among the employees as well as stakeholders.
• Brings respect: If an organization follows ethical practices and establish it as an ethical organization, it will start to receive appreciation and respect from others. Individuals, communities, groups and other organizations respect ethical leadership.
• Leads to collaboration: Ethical leadership will be praised and other organizations will look forward to work with that organization. They would like to collaborate with an ethical organization.
• Creates ethical environment within an organization: Ethical leadership helps to create an ethical atmosphere within an organization. The employees have trust in the organization and they know that everybody will receive whatever he or she deserves. They will feel secured within the organization and work peacefully to enhance productivity. Ethical leadership ensures that all the activity will be ethical and all the employees will be satisfied.
• Affords Self-respect: Ethical leadership helps to afford self-esteem and self-respect. No one can question about the integrity and it gives immense pleasure (Thornton, 2014).

One of the challenges of ethical compliance in an organization is that it needs the absolute support of the management staff for it to work effectively. Maintaining ethics in an organization is often costly and consumes much time.

Ethical leadership is the best policy and should be encouraged. Sometimes this style of leadership faces some major problems. When a leader has to make choice between good and bad and the right choice leads to unpleasant situation, it becomes difficult for the leader. As an ethical leader never compromises with morality and values it has to bear some unpleasant consequences (Kilderry, 2013).

In 2001, a gas pipeline company, “Enron Corporation” had to shut down its operation. The reason was unethical practices in the organization. The company became bankrupt due to an absence of ethical leader in the organization. The executive had demonstrated a different set of principles and values that the employees need to follow and the miscommunication in the organization lead to scandals. This is an example of bad leadership.

Conclusion:

Both formal and informal leadership demand ethical and best practice. Leaders are the role models and whatever they do will be followed by others. A leader shows the path to its followers and it is the responsibility of the leader to motivate them towards ethical practices. Not only for the organization, but also its sets an example for other organizations and communities. The activities of a leader both in professional and personal life should be ethical.

Ethical leadership helps to develop ethical behavior in an organization which helps in the sustainable growth of the organization. This leadership style requires reasonable ethical framework to guide all the activity and decision making procedure in all situations. The essential qualities of an ethical leader are honesty and flexibility. A leader should consider him as a part of the organization and regularly participate in the discussion related to ethical issues. He should accept feedback from individuals and consider them seriously. A leader should put aside all the personal issues, interest and ego. Ethical leaderships help to build trust among the employees and stakeholders. Practice of ethical leadership style earns respect. Maintain ethical leadership is very important as it contributes toward the stability and growth of the organization.

References:

Leigh, A. (2013). Ethical leadership: creating and sustaining an ethical culture. Kogan Page.

Bellingham, R. (2003). Ethical Leadership. HRD Press.

Thornton, L. F. (2014). Ethical Leadership. Leadership Excellence , 31 (1).

Kilderry, A. (2013). Ethical leadership. TLN Journal , 20 (2), 14-15.