The Concept of Ethical Leadership in Business Essay

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The organization’s effectiveness directly depends on the coherence of the actions of all employees and their commitment to the goals set. The principal figure who can provide such coordination both on the scale of departments and the entire company’s level is the leader. With the help of their personal qualities and particular strategies, these individuals increase the motivation of employees, correct their behavior, and unite the team to solve common problems. However, from my point of view, a critical factor is the observance of ethical norms by the leader and the transmission of them to his subordinates.

The concept of ethical leadership is one of the most popular and widespread at the moment. Together with corporate social responsibility, it plays a vital role in the functioning of a wide variety of modern firms (Saha et al. 402). The reason for this spread is the positive impact of such approaches on the company’s organizational structure, including its efficiency. One of the fundamental elements of ethical leadership is respect for subordinates and their personal qualities and values. Studies show that employees who feel supported by peers and superiors perform much more efficiently (Martins). Therefore, the leader’s observance of ethical standards and attention to employees can create a healthy atmosphere of support and mutual understanding. Moreover, in the absence of such behavior from superiors, colleagues are unlikely to establish such norms in communicating with each other. Thus, the leader must set an example through their behavior, inspiring others to do the same.

Finally, such actions have a practical component in terms of organizational performance. According to research, the establishment of ethical leadership has a positive effect on corporate responsibility, and both of these principles contribute to increasing the firm’s productivity (Saha et al. 402). In addition, such techniques allow the implementation of more effective sustainable strategies, ensuring the stable operation of the company. When a leader actively follows ethical standards by respecting other colleagues, they help to strengthen the motivation of employees, which in turn has a positive effect on morale. People with high morals tend to act more smoothly and efficiently, which naturally affects both the performance and the quality and, in some cases, the number of products.

Works Cited

Martins, Andrew. “Employees Who Feel Values Are More Engaged.” Business News Daily, Web.

Saha, Raiswa, et al. “Effect of Ethical Leadership and Corporate Social Responsibility on Firm Performance: A Systematic Review.” Corporate Social Responsibility and Environmental Management, vol. 27, no. 2, 2020, pp. 409-429.

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IvyPanda. 2023. "The Concept of Ethical Leadership in Business." February 17, 2023. https://ivypanda.com/essays/the-concept-of-ethical-leadership-in-business/.

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IvyPanda. "The Concept of Ethical Leadership in Business." February 17, 2023. https://ivypanda.com/essays/the-concept-of-ethical-leadership-in-business/.

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