Ethical Implications Of Ethical Leadership

830 Words Aug 26th, 2015 4 Pages
“Ethical Leadership is defined as "the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement and decision-making"… [and] the evidence suggests that ethical leader behaviour can have important positive effects on both individual and organizational effectiveness” (Rubin et al 2010: 216-17).

Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business. To practice ethics, it involves the understanding of right and wrong or making a right or wrong decision in business. The way business is run should be transparent and lawful (Mullins & Christy, 2013). For example, companies’ products should not violate copyright and patents. Also, they should not use child labour in any business operation.
However, to practice business ethics is not simple as companies need to stay competitive by reducing cost and committing illegal business-related actions. Therefore, ethical leadership comes into play as companies’ leaders are the key factor to reinforce ethics in their organisations.

The Four V model of Ethical Leadership developed by Dr. Bill Grace based on his leadership research and personal passion in ethical issues. It is the framework that integrates the beliefs and values with behaviours and actions in order to enhance the common…
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