Ethical Leadership Essay

Ethical Theories Of Ethical Leadership
Disadvantages of ethical leadership
Despite the positive elements ethical leadership can provide to an organisation, it arguable can cause
issues as well. Ethical leadership requires the leader's ethical framework to fall in line with the vision
of the organisation. But it's not just the leader and the organisation that need to be aligned, the
subordinates can find it difficult working in an environment with certain ethical standards. You
should be aware by now that ethical behaviour depends on the person's worldview and therefore,
ethical behaviour of an organisation might not be considered ethical by another person. The different
ethical frameworks can cause tension within an organisation and therefore, certain people might not
find the environment pleasant or welcoming.
Furthermore, ethical leadership can be rather dependent on the leader's ability to influence. In a way,
ethical leadership has charismatic leadership tendencies, which means people might be following the
leader without a critical approach. This can mean that employees trust the leader so much, they
forget about the leader's humanity – meaning they are blind to any mistakes or problems. For an
organisation, a blue–eyed approach to following the leader can be devastating in terms of making the
right decisions.
Ethics are difficult and upholding high ethical standards at all times can be extremely complicated.
The so–called grey areas are more than likely to arise and cause issues. The problem for
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Ethical Leadership Paper
Ethical Leadership Craig and Gustafson (1998) maintain that ethics is a matter that requires
significant consideration to those in leading positions. Trevino, Hartman, and Brown (2000)
affirmed that individuals with power must be strong morally and prove their strength in management
to be considered as ethical leaders to those in their work environment (as cited Brown & Mitchell,
2010).
In this article, the reader will be enlightened on (a) two definitions (explanations) for ethical
leadership described by researchers, (b) how leadership is measured, (c) assess how ethical
leadership relates to several leadership styles, and (d) concluding thoughts on how moral strength
through ethical leadership is hoped to be seen in the future.
Ethical...show more content...
For example, Riggio et al. (2010) created the Leadership Virtues Questionnaire (LVQ), which used
the virtues approach in leadership to assess a leader's virtues and ethical standards. Chikeleze and
Baehrend (2017) developed the Ethical Leadership Style Questionnaire (ELSQ), an instrument used
to measure a leader's self–perception of his /her own ethical leadership approach.
Leadership Styles in Relation to Ethics
Bass (1985) acknowledged that ethics, specifically, integrity and dependability, have been theorized
as significant characteristics of both charismatic and transformational leadership styles (as cited in
Craig & Gustafson, 1998). Similarly, the Leadership Virtues Questionnaire (LVQ) proved to have
favorable association with transformational leadership, as well as, authentic leadership (Riggio et al.,
2010). Contrastly, Yukl et al. (2013) argued that ethical leadership is relative to leader
–member
exchange theory.
The Future of Ethical

Reflection Paper On Ethical Leadership
The purpose of this paper is to reflect on my thoughts on how I can utilize certain methods that
will help shape the vision of the organization. I will explain how ethics play a role in leadership
and decision making. This week I encountered multiple dilemmas which affected my actions at
work, home, and school; in this paper I will exploit those dilemmas and how they are considered
weakness that I incorporated in my IDP. Using last week 's assignment to start an IDP, I came up
with certain actions (part 3) to take to further advance myself as a leader. The reasoning behind these
actions will show how proper ethical actions define a leader, and the influence it holds with the
organization's culture.
Keywords: ethical leadership
Being an...show more content...
It is rare that a person can easily find their own faults, because they think that everything they do is
right or justified. For the longest time this was me. As expressed by Urbany, Joel, Reynolds, and
Phillips (2008), "Chief among these traps, especially regarding decisions that people later come to
regret, is their failure to evaluate decisions in a comprehensive way that focuses on values
trade–offs." I thought I was a great leader, and there was nothing else that I could learn as a person.
It was through the assessments and this week's work reflection, I realized through regret there is so
much work needs to be done. I have to acknowledge my downfalls willingly in order to correct
them. I realized that my ambitions strive me to continually take on tasks. I felt overwhelmed this
week because of these ambitions. I understand that my attitude at times can alter a situation because I
have people looking at everything that I do. Even though I tried to hide my true feelings for the best
of the organization, my thoughts reflected in my actions. Two other weaknesses are time–
management and organization. These two goes hand in hand and I realized that I suffer
tremendously from lack thereof and have found multiple solutions to help enhance these
weaknesses as I expressed in the IDP. I feel these two will be challenging as well because I realize
that organization at work is limited. It is much more of filling in the gaps and

What Is Ethical Leadership?
What is ethical leadership?
Before answering the question, let 's look at the definition of "ethics" and "leadership." According
to the Oxford dictionary 'ethics ' is defined as " moral principles that govern a persons or groups
behavior."
Moreover, the Oxford Dictionary defines the word leadership as follow "the action of leading a
group of individuals or an organization."
Ethical and moral leadership are related to concepts such as trust, honesty, consideration and more.
Daniel Palmer notes that "good leadership" indicates an influential, effective leadership. Therefore it
implies an ethically responsible leader (Palmer, 2009). However, Lakshmi, explains that "the stress
on ethics in leadership is due to 'effective ' leadership may not be the equivalent as management
established on ethical beliefs (Lakshmi, 2014). Ethical leaderships shows the efficiency for doing
what is right.
Palmer states that leadership is more of a function than a specific role; an essential part of the
leadership role involves in setting an influential relationship, so persons are strongly moved to act
(Palmer, 2009). So, ethical leadership is a function of leadership which a person is directed by
respect for ethical belief and values and the dignity and rights of others and who can effectively
affect peoples or an organization 's behavior by empowerment, motivation, and trustworthiness to
work together for the greater good of the company.
How is the concept of ethical leadership

Interview With An Ethical Leader Essay
Interview with an Ethical Leader
Student's Name
University Affiliation
Interview with an Ethical Leader
It is only during moral lapses and corporate scandals that interest groups and the broader public ask
themselves the fundamental ethical questions, who are the managers of the organization and were
they acting with the ethical guidelines. For a long time, the issue of ethics was largely ignored, with
organizations focusing on profit maximization. However, this has changed, and much attention is
now focused on ethics management by researchers and leaders. The issue of ethics has arisen at a
time when public trust on corporate governance is low, and the legitimacy of leadership is being
questioned. Leaders are expected to be the source of moral development and ethical guidance to their
employees.
The paper focuses on interviewing a business leader who is seen to apply ethical business practices
in the organization they lead with an aim of finding the important elements in ethical leadership. The
interview is scheduled for 30 minutes where the interviewer will ask the ethical leader various
questions pertaining to ethical leadership. Some of the questions that will be asked include, What is
your leadership background? What are the traits of an ethical leader? what are the values of an
ethical leader? What is the importance of ethical leadership in a competitive environment? Does
ethical leadership affect customer relations? Do you observe ethics while interacting

Ethical Leadership in Organizations Essay
Ethical Leadership in Organizations
Lisa Hunsucker
MGT 380
April 19,2010
Leadership is by all means a special talent that not all people possess. A leader must also have
ethics to be effective for the long term in the corporate world. These leaders generally implement
ethical programs in order to influence an organizations climate (Yukl, 2010). I will evaluate the
importance of ethical leadership and the role it plays into today's organizations. In addition, I will
discuss the repercussions a company may have when its leadership allows and even rewards
unethical business practices. Lastly, I will apply my personal leadership perspective. My perspective
will include the path–goal theory and ethical practices that I find important to...show more content...
A leader isn't always a manager, but can be a manager in an organization. When you combine the
two into ethical leadership you have a strong dynamic. According to Yukl (2010) in cross–cultural
research on the essential traits for effective leadership, integrity is near the top of the list in all
cultures that have been studied. Most scholars consider integrity to be an important aspect of ethical
leadership" (p. 409).
In order to be a successful ethical leader there are many activities that can be promoted to
encourage ethical behavior in one's organization. An ethical leader will create programs that
endorse integrity in business. Programs can include setting guidelines for dealing with ethical
issues, open discussion on ethical issues, and establish a protocol for people to get advice (Yukl,
2010). By establishing programs an ethical leader is really changing and encouraging moral behavior
which can affect an organizations work environment and improve moral. By empowering your
employees to know how to handle ethical dilemmas you create a new found trust.
Being a servant leader can by definition empower your followers. Attending to the needs of your
employees and creating a nurturing environment can create trust. Yukl (2010) states, "The servant
leader must stand for what is good and right, even when it is not in the financial interest of the
organization. Social injustice and inequality should be

Ethical Leadership Debate
Reflective Statement Seminar Four: Ethical Leadership Debate Guiding Reflective Question|
Student Reflection| What was the definition of 'ethical leadership' adopted by the participants in the
debate?What is the role of the directors as envisaged by Codes of Corporate Governance and wider
society?Are these expectations consistent with the ideas of ethical leadership?| The four characters,
Mike, Jan, Mei–Hua and Deshi were portrayed as individuals with starkly differing views on ethical
leadership. Mike believes that strong influence of ethical leaders in organizations will shape people
within. Meanwhile, Jan's idea of ethical leadership involves her employees taking up of social
responsibility which she believes will be able to...show more content...
| In a shareholder company, the main conflict lies in the needs of the stakeholders, both internal and
external, and the survival of the business itself (Jones et al. 2007). This could be commonly seen in
1) monetary terms, where employees expectations of wages are in conflict with profit maximization
2) environmental terms, when the needs of increased producing might directly increase pollution or
indirectly stress the environment by depleting resources unsustainably and 3) supplier–consumer
terms, where consumer demands for lower prices while suppliers strive to obtain better prices for
services and goods they provide (Goodpaster 1991). Ethical leadership ensures that decisions are
made only after considering the interests of all involved parties. It will discourage the influence of
external pressures and self–interest from manifesting top managers and, in turn, satisfy the
stakeholders by addressing their concerns (Goodpaster 1991). Hence, it could be argued that ethical
leadership encourages empathy, which aids shareholder companies to reach a common
understanding. Although this will not effectively remove the tensions permanently, it will however
reduce it to manageable levels, ultimately ensuring the survival of the business. | What are the
challenges in really delivering ethical leadership and how much of this is caused by the profit
maximisation that underlies shareholder focus?| In my opinion, the identification and

The Importance of Ethical Leaders Essay
Statement of the Problem
Leadership is an organizational role that has an effect on every organizational matter. From the
employees' morale, customers' satisfaction, and the organizational effectiveness, organizational
leaders and their behaviors directly or indirectly affect everything. In addition to the leadership's
impact on the organization and its elements, leaders are often perceived as role models for the
organizational members. Consequently, it is important that leaders are not only competent but also
ethical in their everyday conduct, (Toor & Ofori, 2009). But, how can leader's ethical behavior be
distinguished? What are these ethical behaviors that affect the followers? And, how do we know
when a leader is an ethical leader?...show more content...
In the past, the term "authentic leadership" is used to define ethical leadership. Researches examine
authentic leadership as an attempt to discover more about ethical leadership. Researchers argue that
authentic leadership is concerned with self–awareness, relational transparency, internalized moral
perspective, and balanced processing (Gardner et al., 2005; Walumbwa et al., 2008). Although
Authenticity is an important aspect of ethical leadership and the above definition creates a good
list of behaviors, it doesn't solely define all aspects of ethical leadership. It has also been argued
that Influence processes used by leaders are driven by the underlying ethical values (Groves et al.,
2011). Therefore, another approach to inspect ethical intent would be to examine the influence
process used by leaders. Since leader's influence processes are very much linked to her leadership
styles, it's appropriate to look at some leadership styles and the compatible influence processes.
Some of the different leadership styles and approaches that have been discussed, as far as ethical
content, are servant leadership, spiritual leadership, and transformational leadership. Servant
leadership in known for drawing on the leader's self– awareness, authentic behavior, positive
modeling, conceptual skills, empowering, behaving

Ethical and Moral Leadership Environments Essay
Introduction
Defining moral leadership is quite simple and varied dependent upon the situation or context
requiring leadership. Carrying out moral and ethical leadership is much more complex when carried
out in the day to day operations in life. This is particularly poignant when righting a wrong, or
redeeming a situation to help in a process of improvement.
Dineen, Lewicki and Tomlinson (2006 p. 430 in Yukl) state a case that it is up to theleadership to
lead by example regarding both ethical and moral behaviour. It is also imperative for the leader to
set clear goals, standards and objectives and ensure the maintenance throughout the performance of
their work (Yukl p. 430– 431).
One of the issues not addressed due to lack of...show more content...
165). This appears to cover all the ideas of a leadership position because it speaks to both the ethical
and moral environment of a situation or corporation etc. That is, if one holds forth with the values
determined by the research and experienced over time.
Environmental Influences from morals and ethics
Ciulla's (p. 493 in Wren) expose on moral environments as "a system of customs and habits found
in daily life that take on a logic of their own, influencing peoples traditions , beliefs, leadership,
policies and practices of an organization." An example he used of unhealthy moral environments,
was the case of Rosa Parks. When people see and understand what it takes to change the status quo
through courage, the world view shifts. Other people such as Ghandi, Craig Keilburger and Mother
Teresa are examples of extraordinary sacrifices they undertook to make the world a better place by
taking action and setting the example. The experience of being institutionalized taught me at a very
early age to have compassion and empathy of those looked down or those deemed "lesser than" in
society.
Anomalies of Cultural Leadership
In a culture that has been undermined by colonization I have observed the struggles of Indigenous
peoples striving to negotiate with honour in the dominant society whose agencies are in
contradiction with the Indigenous "ways of knowing" (my thesis). Yukl (p. 430) discusses the

Part A: Introduction
1.1 Introduction To The Selected Topic
The topic that we choose is "The relationship between Leadership and Ethics". The term ethics has
been defined as inquiry into the nature and grounds of morality or a branch of philosophy of
human conduct and determine right and wrong (Ferrell, Fraedrich & Ferrell, 2010). In the other
words, it includes study of general nature of moral, specific moral choices, moral philosophy, and
rules or standards of governing the conduct of the member of a profession (Ferrell et al., 2010).
Leadership is the ability or authority to guide and direct others towards achievement of goal without
force that leaves them feeling empowered and accomplished. Besides, leader has a significant impact
on ethical decision making. This is because leaders have the power to motivate others and enforce
the organization norms and policies as well as their own viewpoint. Leadership involves establishing
a clear vision, sharing that vision with others, providing the information, knowledge and methods to
realize that vision, coordinating...show more content...
They also influence organization's transmittal and monitoring of values, norms and codes of ethics.
For example, strong communication skills, self–confidence, the ability to manage others and a
willingness to embrace change also characterize good leaders.
In generally, ethical leadership means that the leaders organized their company to a better
performance ethically. Ethical leader need both knowledge and strong knowledge. Strong ethical
leader must have the right kind of integrity and can make decision and lead ethically. Ethical leader
is able to make the consideration and discussion of ethics or ethical questions and issues part of the
culture of the group, organizations and initiative. Besides, ethical leader are ethical all the time,
they're ethical over time, proving again and again that ethics are an integral part of the

Ethical Leadership
I believe that as a part of the role and authority as an ethical leader in the community of faith, a
pastor is called to be a guide, namely to provide information on current ethical issues of note in
society, offer her view of how the gospel's teaching and model of Christ intersect with these issues,
and advocate that time and safe space be created in the congregation to discuss and debate these
issues.
I believe that the role of the pastor as an ethical leader in the community of faith is to emphasize to
the congregation that we have collective responsibility to address the structural sin and brokenness
of the world and bring healing. Moreover, the pastor must underscore that God enters into solidarity
with a broken humanity through love, and we are called to do the same. Thus, as a community of
faith, we must take accountability for finding ways to ensure the full dignity, flourishing,...show more
content...
This sometimes entails preaching a "hard word" and exploring how our Christian faith and
understanding of the gospel intersects with commitments to human rights, economic justice, issues
of war and violence, and other difficult topics. It is important in a faith community to recognize that
even the earliest Christians did not shy away from difficult topics, nor did they agree on all issues,
and as a result argued, debated, and negotiated in community.
As an ethical leader in the community of faith, I believe that my role is to help develop ethical
frameworks and guide conversations about the congregation's ethical stances. By grappling in
community with its normative ethical position on issues, the congregation may transform its sense
of what is good, fair, and right, and possibly introduce new avenues of thinking and action that could
not otherwise be

5 Principles Of Ethical Leadership Paper
The five principles of ethical leadership are to respect subordinates, have a since of community
within the organization, have a sense of service to help others, justice which is done by being fair to
others and making sure employees act according to policy, and be honest with employees about tasks
and current situations (Northouse, 2013). Ethics serves as a guideline to follow in accordance to what
is good and bad as it appears in society. Respect is about being compassionate, having a concern for
other people's feelings, and living by a moral code of conduct. If I had to identify my role as a leader
I would say I believe in being respectful to my co–workers and making sure I am honest and fair
with the people I work with. A leader has to

Ethical Leadership Essay example
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Case Study Analysis 9
Ethical Leadership
A Struggling Company with Not Enough Cash
Joe Woodman bought a small, struggling computer company. After difficult years, revenues started
to grow, and according to the financial statements it seemed that profits were growing as well. But in
reality, the business did not have enough cash to operate.
The company's key stakeholders, such as the bank, vendors, and investors, were applying pressure on
Joe to improve earnings and cash flow. They threatened to take over the business if major changes
were not made and successful. About the same time, making matters worse, Joe was notified that
several contracts, constituting about 25% of his top–line revenues, would be lost to...show more
content...
If it succeeds, this option would allow Joe to keep control and save his reputation.
3) Joe could remain in control and hire turn–around management without fully explaining the serious
situation. He might say that the company is one of the fastest–growing companies in the industry
that it just completed an operational turn–around, had regained profitability, and was upgrading staff
to take the company to the next level. He could support his positive picture by representing pro
forma financial information as though it were actual. This approach probably would be successful
initially in gaining new qualified staff, but the new managers might join only to leave soon
afterward. They would probably not develop into loyal, long–term employees because of Joe's
breach of trust. This option would give Joe the opportunity to maintain control to keep all his
workers employed.
Questions
1) Of the three options available to Joe, which is the most ethical? 2) Which option would provide
the greatest good for the greatest number? From an ethical perspective, what is Joe's duty in this
situation? 3) What pressures does Joe face regarding honesty and telling the truth about his situation?
4) If you were Joe, what you would do to save the operation and protect your reputation?
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Ethical Leadership in Organisations
Ethical leadership is leadership that is involved in leading in a manner that respects the rights and
dignity of others. As leaders are by nature in a position of social power, ethical leadership focuses
on how leaders use their social power in the decisions they make, actions they engage in and ways
they influence others. Leaders who are ethical demonstrate a level of integrity that is important for
stimulating a sense of leader trustworthiness, which is important for followers to accept the vision of
the leader.
Leaders who are ethical are people–oriented, and also aware of how their decisions impact others,
and use their social power to serve the greater good instead of self–serving interests....show more
content...
This broader concept of ethical leadership empowers leaders to incorporate and be explicit about
their own values and ethics. The following list provides a framework for developing ethical
leadership. It is based on the observations of and conversations with a host of executives and
students over the past 25 years, and on readings of both popular and scholarly business literature.
Written from the perspective of the leader, these ten facets of ethical leaders offer a way to
understand ethical leadership that is more complex and more useful than just a matter of "good
character and values."
"It is important for leaders to tell a compelling and morally rich story, but ethical leaders must also
embody and live the story. This is a difficult task in today's business environment where everyone
lives in a fishbowl–on public display. So many political leaders fail to embody the high–minded
stories they tell at election time, and more recently, business leaders have become the focus of
similar criticism through the revelations of numerous scandals and bad behaviours. CEOs in today's
corporations are really ethical role models for all of society."
1. Articulate and embody the purpose and values of the organization.
Following a series of unethical activities by Citigroup employees in Japan in 2004, new CEO
Chuck Prince fired several executives, publicly

Ethical Leadership : An Effective Leader
To be an effective leader one is apt in charting the path which leads to designated goal. An effective
leader is able to get followers to their common destination. But not every effective leader is an
ethical leader. Hartman et al. (2014) indicates that one key difference between an ethical is the
means used to motivate others and achieve goals. Another element of ethical leadership, as indicated
by Hartman et al. (2004) the end or objective toward which the leader leads. I believe these are key
because the leader's means to achieve the ends (objective) are far too often cause of their ultimate
fall from glory. Akker, Heres, & Lasthuizen (2009) state that ethical leadership is a relational concept
in the sense that it is constructed in and through social interactions with followers. I will discuss this
point in more detail
Hartman et al. (2014) define an ethical leader as one who succeeds in a manner that respects
subordinates and/or empowers them to become creative and successful in themselves. The text poses
the following two questions
(1) Is profitability and efficiency accomplished through ethical means alone enough to make a
business leader an ethical leader? (2) Imagine a business leader who empowers her or his
subordinates, respects their autonomy by consulting and listening, but who leads a business that
publishes child pornography or pollutes the environment or sells weapons to radical organizations.
Would the method of leading, alone, determine the ethical

Annotated Bibliography Of Ethical Leadership
Reference
Avolio, B., & Gardner, W. (2005). Authentic leadership development: Getting to the root of positive
forms of leadership. Leadership Quarterly, 16(3), 315–338.
Avolio, B. J., & Luthans, F. 2006. The high impact leader: Moments matter for accelerating authentic
leadership development. New York: McGraw–Hill.
Bandura, A. (1997). Self–efficacy: The exercise of control. New York: Freeman.
Brown, M. E., & Mitchell, M. S. 2010. Ethical and unethical leadership: Exploring new avenues for
future research. Business Ethics Quarterly, 20: 583–616.
Burns, J. M. (1978). Leadership. New York: Harper & Row
Covey, S. R. (1990). Principle–centered leadership. New York: Fireside.
Dalla Costa, J. (1998). The ethical imperative: Why moral leadership is...show more content...
(2005). Authentic leadership and eudaemonic well–being: Understanding leader–follower outcomes.
Leadership Quarterly, 16(3), 373–394.
J. E. Dutton, & R. E. Quinn (Eds.), Positive organizational scholarship (pp. 94–110). San Francisco:
Berrett–Koehler.
Kernis, M. (2003). Toward a conceptualization of optimal self–esteem. Psychological Inquiry, 14,
1–26.
Kidder, R. M. & Bracy, M. 2001. Moral courage: A white paper. Camden, MA: Institute for global
ethics.
Kihlstrom, J., Beer, J., & Klein, S. (2003), Self and identity as memory. In M. Leary & J. Tangney
(Eds.), Handbook of self and identity (pp. 68–90). New York: Guilford Press.
Kitchener, K. S. (1984). Intuition, critical evaluation, and ethical principles: The foundation for
ethical decisions in counseling psychology. Counseling Psychologist, 12(3), 43–55.
May, R., Chan, A., Hodges, T. & Avolio, B. (2003). Developing the moral component of authentic
leadership. Organizational Dynamics, 32, 247–260.
Silvia, P., & Duval, T. (2001). Objective self–awareness theory: Recent progress and enduring
problems. Personality and Social Psychology Review, 5, 230–241
Sutcliffe, K. M., & Vogus, T. J. (2003). Organizing for resilience. In K. S.

Paper On Ethical Leadership
Ethical Leadership This week I chose to focus on ethical leadership within a company. Most
people may already have their own ideas as to what ethical leadership already is, however not
everyone will be on the same page as to what it is. Ethical leadership has been defined as the
practice of behaviors that are deemed normal through personal actions and interpersonal
relationships (Neves and Story, 2013). Because of this what might seem ethical to someone from
China, may not be viewed in the same light here in the U.S. The article I read suggests that there are
several factors when it comes to ethical leadership within a company. Work environment being one
of the factors, as well as job characteristics and trust in leader (Neves and Story, 2013).

Ethical Leadership : Ethics And Leadership
Ethical leadership encompasses the manner in which one leaders that respects the rights and dignity
of other individuals. According to Preston (1996) "ethics is concerned about what is right, fair, just,
or good; about what we ought to do, not just what is the case or what is most acceptable or
expedient" (p.16). Ethical leadership calls for ethical leaders in the organization. However, although
an organization's beliefs, valves, customs and philosophies need to start from the chief executive,
the managers and employees must be dedicated to the organization's goals for a culture be shaped
(Butts Ed.). In order for a strong organizational culture to be successful, components of key valves
must be in place and followed. With the...show more content...
Leaders are responsible for influencing followers to perform actions, complete tasks, and behave in
certain manners. Effective leaders also influence processes, stimulate change in attitudes and values,
and amplify empowerment and self–efficacy of their followers, as they foster the internalization of
corporate vision. The nurturing aspect of leadership can also raise an organization's culture and
employee's values to higher levels of ethical behavior. By demonstrating ethical leadership we
promote a high level of integrity that stimulates a sense of trustworthiness, and encourages
subordinates to accept and follow our vision (Mickey, 2013).
At the end of the day, the best explanation for fostering an ethical behavior is not a difficult one, but
an encouraging approach by the leaders of the organization (Mullane 2009). Ethical behavior is
essential and must be reflected in the leaders and shaped by those they led. Ethics–based approaches
to leadership believes that the leader is not always the one with all the knowledge. Such an approach
believes that the followers are just as important as the leader and that the followers should be the
main focus and encouraged. Ethics–based approaches believe the leader should put aside his or her
personal interests. The following pages will review some perspectives regarding ethical leadership.
The Basic Integrity Model of the Virtuous

Ethical Leadership in Organisations
Ethical leadership is leadership that is involved in leading in a manner that respects the rights and
dignity of others. As leaders are by nature in a position of social power, ethical leadership focuses
on how leaders use their social power in the decisions they make, actions they engage in and ways
they influence others. Leaders who are ethical demonstrate a level of integrity that is important for
stimulating a sense of leader trustworthiness, which is important for followers to accept the vision of
the leader.
Leaders who are ethical are people–oriented, and also aware of how their decisions impact others,
and use their social power to serve the greater good instead of self–serving interests....show more
content...
Finding the best people involves taking ethics and character into account in the selection process.
"Ethical leaders pay special attention to finding and developing the best people"
Many CEOs have said to us that judging someone's integrity is far more important than evaluating
their experience and skills. Yet, in many organizations, employees are hired to fill a particular skill
need with little regard to issues of integrity.
4. Create a living conversation about ethics, values and the creation of value for stakeholders.
Too often business executives think that having a laminated "values card" in their wallet or having
a purely compliance approach to ethics has solved the "ethics problem." Suffice it to say that
Enron and other troubled companies had these systems in place. What they didn't have was a
conversation across all levels of the business where the basics of value creation, stakeholder
principles and societal expectations were routinely discussed and debated. There is a fallacy that
values and ethics are the "soft, squishy" part of management. Nothing could be further from the truth.
In organizations that have a live conversation about ethics and values, people hold each other
responsible and accountable about whether they are really living the values. And, they expect the
leaders of the organization to do the same. Bringing such a conversation to life means that people
must have knowledge of alternatives,

This paper explores the construct of transformational leadership and ethical leadership. Ethical
leaders focus on the long–term benefits, drawbacks of the decisions that they make within an
organization and how their decision would affect people all around and not just within the
organization. This paper examines Indra Nooyi's leadership in detail and its similarity with the
transformational and ethical leadership. Indra has set high ethical standards and act in accordance
with them. She has influenced people around her to follow ethical values through her behavior. She
is the role model for the employees that follow her and show them the behavioral boundaries that are
set within Pepsico.
This paper also includes various initiatives taken by Indra Nooyi to drive an ethical leadership
within Pepsico. It also explains how she drives her personal ethics within Pepsico and create
awareness about social responsibility and how important it is to give back to the society. Her
leadership reflects the importance of having personal ethics and to follow them. Personal ethics
affect leadership and it should be made an important aspect that will help produce ethical and
effective leaders.
Keywords: Transformational Leadership, Ethics, Business Ethics, Leadership, God, Sabbath,
Christian Ethics Transformational leadership
Transformational leadership is a leadership approach that helps individual and the social system to
change and be more effective. Transformational leaders are

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