Suraj Simkhada-Ethical Leadership

8/10/2019 Suraj Simkhada-Ethical Leadership

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Suraj Prasad Simkhada

ETHICAL LEADERSHIP

The Importance of Ethical-Leadership

By:


MBA 6 th Trimester

IAU Login ID: 102662

To:

Prof. Dr. SRV. Raj Kumar Sharma

Kings College, Kathmandu, Nepal


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ETHICAL-LEADERSHIP

Leadership is all about influencing and inspiring people towards the achievement of

certain goals. An effective leader is the person who makes his follower to think and act

extraordinary for the organization beyond his personal needs. This will help to use organizational

resources in optimum level with consideration to the environmental factors towards the

attainment of organizational goal. Leadership is ultimately about creating a way for people to

contribute to making something extraordinary happen. The leadership is a learned ability, the

skills and knowledge processed by the leader can be influenced by his/her characters like belief,

value, ethics, and moral character. (Sharma R. K., 2014).

Beginning of humanity is the starting point of ethics. But the definition of ethics dates

back to Plato and Aristotle in the western world. The work ethics has been brought form Greek

word- ethos, which means culture, character, or attitude. It is the consideration for right and

wrong, or the consideration for moral principle in the society. Oxford Dictionary defines ethics

as the moral principle that governs or influence a conduct. The ethical behavior that is performed

by a person determines his right or wrong doings, and as to influence others, the positive

impression is very essential (Mihelic, 2010).

When the words ethics and leadership comes together, the concept of ethical leadership is

pointed out. It is the process of influencing people with social belief, morale and norms which

ultimately benefits the society. In consideration of the organizations, ethical leader considers

his/her morale and displays loyalty for the work so, with his act the use of proper disciplinary

works, procedures with right tools in right time helps the employees to generate positive impact.

Similarly, the leaders act as a role model to the employees. Also, they generate a positive feeling


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of honesty and integrity among the workers and followers. Those organizational tasks and works

are carried with synergy, as all of the employees put their efforts to reach towards the

organizational goal. So a visionary leader doesnt take his employee where they want to reach

but they take where they need to be (Carter, 2012).

The leadership traits are effective and efficient, when the components of ethical

leadership are well understood and adopted in organization properly. These four components are

purpose, knowledge, authority, and trust (Goleman, 2000).

The qualities of an ethical leader:

Team and organizational focus rather than personal goals.

Act as a role model to the employees.

Avoid discrimination among the employees, provide equal opportunity to all.

Take suggestions and views from each member of the team.

Work with the team and act as a part of the team.

If any wrong doings is seen taking feet down and act as needed.

Any adverse effect shouldnt be seen in action and decision on the work.

Accountable responsible for the teams task.

Make the team ready to face any challenge during hurdles and keep in right direction.

Ethical-Leadership: Principles

As described by many scholars, the main basic considerations for ethical-leadership are

Respect

Readiness to serve


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Providing Justice

Honesty & Integrity

Build community.

Based on these principles, a leader must practice fair work activities in the workplace. As

per the principle, the leader must act as a servant to the team, share everything among the team,

respect each member of the team, provide credit to the member of the teams as deserved, and

develop such a feeling among those members that each are working for all and all for each

(Principles of Ethical Leadership, 2012). For sustainability and for smooth operation of business

in the long run, the principles of ethical leadership are to be considered.

Ethical-Leadership: Importance

To increase the efficiency and effectiveness, ethical-leadership is the most essential for

an organization. Every aspect of the company, regarding employee commitment, trust loyalty, is

the result of the leaders performance. Itll also help to improve productivity, efficiency and

overall performance within the organization. The reason why a company cant work well is, they

dont have trust for the employees. Distrust, disloyalty and poor performance is brought up by

unethical behavior of the corporation (Ferrell, The Role of Ethical Leadership in Organizational

Performance, 1999). This is what an organization must focus on, and this situation is only

overcome when an organization has trustworthy ethical-leaders.

As we know, the term ethical-leadership is coined with two words: ethics and leadership,

the ethical act of leaders affects the performances of organization. Devoting own self for the

organization and going beyond the personal benefit helps to uplift the organization to the level of


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great successfulness and that is the act of effective successful leader. Here are some of the

reasons for why an organization needs an ethical-leadership role.

Wise & effective decision making : For the long term operation and sustainability of the firm, the

plans, policies and decisions should be made with farsighted vision. The decisions made for the

personal benefits may ruin the life of the organization.

Increased participation and motivation: When each of the employees is treated with equality,

they become more participative and more motivated. They will put full effort for their work.

Consulting with them helps to feel themselves as an important person to the organization.

Culture development: The leaders are the role model. Every works done by them will be

followed by his follower. Hence, the culture of loyalty, honesty & integrity develops.

Productivity and efficiency: Every employees following the leader remains duly responsible for

their tasks, they become accountable and responsible for their actions.

Economical and financial stability: With the better leader, sound decisions and healthy policies

are adopted, the investments remains safe, capital goes increasing, dividends are ensured.

Protection of property: As long as the leader remains accountable, the assets of the owners are

always safeguarded. Companys property remains safe and stakeholder feels secured.

Sustainable and change oriented: As employees are the assets of an organization and also the

internal customers, they know the inside out of the company. The leader must drive them to

thrive for success and necessary adjustment are needed to meet the changing need in the market.

Holistic development: Telling is selling, as employees are the internal customers, their word of

mouth helps the organization to grow. This act of these people is beneficial to the company.


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Societal recognition: The act done by a leader creates an image to the followers and to the public.

The company becomes renowned globally, and all other people and organization follow them.

Ethical-Leadership: Hindrance

Due to the moral dilemma among the choices the decisions couldnt be effective. Being a

leader, there should always be the right choice for any acts he performs. Sometimes for the

benefit of the organization, unwillingly or unintentionally the decisions have to be made and that

may effect in the positive feeling of the employees. It may bring positive result in the

organization but may destroy the positive name in the society. Also with emotional attachments,

stresses, unethical decisions and acts may happen. With pressures inside and outside the

organization, the unethical act may be seen as a result the society may not be ready to accept the

decision. Similarly, these doings may turn a leader into an incompetent one among the

employees, s/he couldnt get chance to perform well. As a result a good ethical leader may turn

into an inferior leader and this distrust, de-motivation may hinder the sustainability of the firm.

Conclusion

Ethical leadership is not only a need but also a social responsibility in the organization. It

determines the sustainability and competency of the firm. Ethics, morale, loyalty are the key

characteristics an ethical leader must have. This generates a positive impression among the

employees and makes a leader a role model. This behavior of the leader influences the behavior

of the employees and followers to devote themselves to their organization devoid of their

personal need. This brings a positive culture in the organizations. And the leaders always remain

an example in the society and in the organization for his ethical doings. Hence, ethical-leadership

is very crucial to the organization to remains sustainable in this dynamic world.


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Bibliography

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