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Ethical Leadership in Organizations

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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 leadership in an organization.
Ethical Leadership
In the midst of making money in a business, when do ethics come into play? In any organization an effective leader must have people that will follow him or her. Generally speaking people will follow someone that is ethical and moral over a leader that is dishonest and immoral. This is just my observation through years of working. I know for me and many others the leaders I have followed, they were highly ethical in their business practices. The most effective leaders were those who empowered their employees to follow the same model of integrity. Velasquez (2006) states “when employees believe an organization is just, they are more willing to follow the organization’s managers, do what managers say, and see managers’ leadership as legitimate. In short, ethics is a key component of effective management” (p. 41).
With this in mind, who decides what ethics really is? Society mainly directs the moral standards which make up the discipline of ethics (Velasquez, 2006). It’s all of us that decide what is ethical and what is not. There is power in knowing this, but more importantly...

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