23 Aug 2022

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Ethical Leadership in Business: What You Need to Know

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Abstract 

Each time business leaders need to step up to face social, economic, and environmental problems, they encounter a devastating erosion in public trust, owing in part to regular news headlines about corporate scandals. A comprehension of ethics starts with the evaluation of values, both separate and administrative. Successful executives and leaders should be mindful of their values, morals and ethical decision making. Employees pick their work environments from their ethical predilections and connection of their values and those of the workforce. There should be a relationship among rational value system and the capacity of the leaders to employ these values in their decision making. The purpose of this study is to look at the topic of ethical leadership in the business environment and apply both secular and Scriptural viewpoints. 

Ethical Leadership in Business 

Ethics is the heart of leadership. Across time, corporate America has been tarnished by unethical decision making and immoral conduct. Because of the heightened public awareness of each scandal of business leaders and costs related to these wrongdoings, ethical leadership is considered to be one of the most top qualities pursued by organizations during their hiring and promotion of leaders (Marquardt, Brown, & Casper, 2016). This quest for ethical leaders intersects with a workforce that has become multicultural that never before. An understanding of ethics that with the examination of values, both individual and administrative. Successful executives and leaders should be aware of their values, morals, and processes of ethics and ethical decisions making. In their research, Marquardt, Brown, & Casper (2016) comment that the significance of leadership cannot be underestimated and the management shows an excellent example for all decisions made in a company. Thus, ethical leaders are seen as role models and are capable of holding their employees responsible. 

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Among the scholarly communities displaying varied views on the organization, whereas organization theory analyzes how supportive activities are systematized, business ethics mirrors how they must be organized. According to Viet (2016), the leadership of utilitarian organization pays particular attention to structure and the systematic enhancement of performance, reaching the set bottom line and the environment, promotion, and observing and execution of guidelines. These guidelines contain both external and internal principles by way of compensation. Viet (2016) opines that ethical leadership consists of two separate elements: the moral person feature and the moral management element. The honest individual is associated with the leader’s personality, to their moral qualities. The ethical leader aspects are associated with the moral person because it mirrors itself in his professional life. Consistent with the social learning model, for the management to be viewed as ethical leaders by their subordinates, they ought to be influential and credible mentors. 

Ethical leaders such as the guidance as their attractiveness and credibility as role models underscore their displayed behavior. Two qualities of models that improve their image are authority and position. Many leaders possess power, as they occupy positions of reputation relative to their followers. Treating others reasonably is attractive to mentees as well. Fairness and credibility improve role model effectualness (Rowe & Makris, 2015). Ethical leaders are credible because they are honest and practice what they preach. By definition, ethical leaders try to draw the attention of their followers’ ethical behavior by clearly establishing a moral standard and holding followers responsible for those principles by using rewards and discipline. They also own the view that reinforcement contributes to modeling effectiveness, as observers focus on those who regulate essential resources and to rewards and penalization (Aryati et al., 2018). Followers could glean some relevant information concerning what is tolerable or intolerable by concentrating on how another administrative staff is rewarded or discipline and control their behavior consequently. 

Aryati et al. (2018) posit that the aspects that ethical leadership from the symbolic perception has in common with authentic leadership are self-reflection, honesty, uniformity, and integrity. Much like representative ethical leaders, authentic leaders can judge ambiguous ethical concerns, seeing the different perspectives, and connecting decisions to respective values decided upon goals and aims. In circumstances that need organizations to adjust, the concept of transformative leadership overlaps with symbolic management in the aspect influencing organizational values. Transformation leaders pay close attention to the action itself instead of the outcomes, as they tend to affect other individuals’ behaviors to be in tune with the organization's mission and goals without any deliberation to personal benefits. 

Secular Worldview 

In the contemporary framework, ethical leadership theories often stress that moral leadership needs a leader to act and lead ethically. This, in general, implies ethical leadership is both distinguishable and indistinguishable. Leader’s actions must demonstrate in public and provide reassurance to followers concerning ethical behavior (Aryati et al., 2018). Additionally, the leader ought also to think ethically. The leadership theory expects the leader to have ethics as an integral part of their daily context. Moral leadership must even be comprehended via the telescope of its influence over other leadership theories. Being ethical is a relevant component of different leadership styles, and solid ethical groundwork is needed for styles, including transformational and charismatic leadership. Although a robust moral perspective on practicing moral value to all aspects of leadership. 

Ethical frameworks assist a leader and the organization in making decisions and approach actions with a clear strategy rather than having a to continually re-think and evaluate the circumstance (Goel & Ramanathan, 2014). A concept will not offer ethical leaders with a sound choice all the time; however, it simplifies the process of analyzing the situation. The best way to carry out moral framework requires the management to follow a couple of processes. First, the management’s moral agenda must always be in tune with that of the organization he is leading. Accordingly, this points out to another significant implication of moral leadership (Goel & Ramanathan, 2014). The leadership theory motivates the leader to place the vision and objective of the company at the heart of decision-making. In that context, the foundation for the framework and decision must always be achieved by respecting the organizations objective and existing agenda. 

The other vital phase is to make sure the ethical background guiding the leadership is distinguishable and property of the broader dialogue in the company. Moral leadership must often be defined and also re-evaluated. Junior employees have to know what decisions are made and the manner in which they are and have their personal views about things. Moreover, ethical leadership must stay a mutual process. This suggests that moral leadership promotes and empowers others to take the lead. It has a robust mentoring part associated with it, which requires people to experience the drawbacks of leadership (Aryati et al., 2018). The concept of this is to ensure the organization is never in the state in which guidance is not available. 

Spiritual Worldview 

According to Zavareh & Tabatabei (2014) as spiritual values and tradition prepare leaders for ethical leadership, promoting the spiritual development of both people and the organizations assumes an added relevance. Identifying one’s calling plays a vital role in developing a sense of vision and meaning that is at the core of spirituality (Mishra, 2016). Leaders who have a distinct sense of individual purpose are twice likely to join establishments that align with their goals and values. They are twice satisfied and devoted as members, pay close attention to essential duties that are in tune with their skills, and are better prepared to serve others. For any leader to discover vocation, it takes three-phase process. First, a leader determines his or her unique abilities by looking at past experiences and trying out a host of jobs and volunteer experiences. Second, the leader identifies his concern for his subordinates in addition to their interests. A leader’s concern for others could the form of achieving environment issues, giving technology to the business, then inspiring assistants to develop abilities and insight that could in the future be employed in service to others (Mishra, 2016). Third, leader’s identity the suitable job fit and put to maximum use their skills, concerns, and interests. 

Self-reflective practices align a leader with his or her inner lives. These traditions comprise self-evaluation and communication with God or a greater divine being. Such rituals have practical and spiritual benefits for leaders, supporting mental and physical wellbeing, alleviating stress and burnout, and assisting them in dealing with a crisis (Zavareh & Tabatabei, 2014). Since other selfless is relevant to spirituality, it does not come as a surprise that spiritual growth and development of leaders rely in part on their readiness to serve. Connection with a divine being causes gratitude and love that inspires contribution to the good of the group. In serving a higher purpose, leaders put aside their personal goals. 

Scriptural Worldview 

Moses is considered to be the most prominent leader in Jewish History. Moses’ leadership traits display a chance to consider how creative disparities between various leadership qualities can be resolves and an ethical framework might be exerted (Ben-Hur & Jonsen, 2012). His visionary leadership plays an important role in encouraging his followers not to give up their faith that they could reach the Canaan irrespective being trailed by Pharaoh’s army. Much like contemporary corporate leaders who desire to bring about positive change within an organization Moses had to guide his followers from resignation zones in which organizations now find themselves (Ben-Hur & Jonsen, 2012). Moses understood that headship involves servitude and that the just power worthy of another person’s loyalty is that which is easily and expressively provided by those who are led in reaction to the explicitly manifest servant status of the leaders. Moses stayed the servant leader and applied his ethical influence, he never reached the Promised Land. 

According to Ben-Hur & Jonsen (2012), people can learn a few lessons from the traditions of Moses that are significant for contemporary and hopeful managers and the manner in which they may be established. Jonsen & Ben-Hur (2012) posit that there is a growing call for the capacity to succeed beyond boundaries and beliefs, yet somewhat few managers are prepared with such ability above systematic pursuits. A global outlook, for instance, is vital for supervision in global territories, and Moses is a powerful illustration of this that could be adequately nurtured via several life experiences. Significantly, this might determine the manner individuals choose prospective leaders, escalating the burden on the sophisticated and rich experience the individuals have in their lives. Besides, people can be better served by reflecting on the initial seminal practices than by only concentrating on job experiences or college preparation when hiring and promoting leaders. This and the account of Moses articulates in an indefinite manner of thinking concerning vocations, multiple backgrounds and the developments of potential managers. At present, it is more likely to witness some of these characteristics in numerous leaders and leadership styles but is rarely seen coexisting in one body. 

Another example can be found in the Kings of Judah who were prominent for being ethical. According to Rower (2014), ethical leadership, in this case, is defined by whether the Kings did good or evil in the eyes of God. By linking the economic performance and effectiveness at war of each king considered ethical with others considered unethical, the author explores whether accepted management conduct of the eight noble kings who plays a vital role in Judah distinguished record of surviving as a lone state for many years. For the aim of the study, to have done the right things in the sight of God is elaborated as acting appropriately. The findings imply that ethical leadership in Judah resulted in improved organizational performance gauged by economic and military success. The research also mentions that the eight moral kings of Judah ruled for roughly three decades each, whereas the average tenure of eleven rulers was about 11 years. Therefore, acceptable behavior also seems to favorably influence tenure, providing ethical rulers an increased chance to impact the region and escalate its possibility of survival. 

After analyzing the effect of ethical leadership during the nature of all the kings of Judah, the Rowe (2014) posits that ethical leadership could result in positive performance and personal benefits within the organization. No contemporary organization provides a parallel opportunity to evaluate the impact of the leadership of organization over essential timeframe using a uniform standard. In reality, not many of current CEOs are responsible for national markets, and, while economies experience stiff competition, few executives today run companies engaged in a rivalry. However, there are contemporary instances of ethical leadership leading to best performance. 

Comparison of Biblical and Secular thoughts on Ethical Leadership 

In the modern world, a leader’s relationship to shareholders and the organization, and their response to a host of frameworks is observed in theories of leadership that are more people focused (Goel & Ramanathan, 2014). They offer a distinction between the process of leadership and the socially formulated role of leader. Both secular and biblical thoughts concentrate their attention on transformational leadership which depends on trust, giving up control and permitting others to function independently and effectively in a familiar context of expectations and accountability. Besides, secular and religious thought deem God to be a source of leadership in both practical and spiritual sense when considering traits of leadership that are more distributive, shared, and empowering. While the leadership values and qualities articulated via the sacred and secular debate are similar, with no perceived distinctions, the value and traits could vary in articulation and meaning. 

Ethical leadership involves respecting the moral beliefs and values of others and for the dignity and rights of others. Therefore, it is associated with concepts including credibility, fairness, and honesty. By contrast, the Bible considers leadership as one that intrinsically motivates and inspires employees through hope in the vision of service to shareholders and a corporate culture rooted within the values of altruistic love to increase morale and commitment among the employees. 

The ultimate contrast of between secular and Christian leadership is drawn by Jesus himself in (Matt. 20:25-28, King James Version), when He responds to his disciples who note no distinction between the two. In one sense, Christian leadership is not a practice of authority, but a renunciation of it. In doing so, it stands opposed to “gentile” styles of leadership and influence. Moreover, religions styles are also challenged by the Christian paradigm of leadership. According to (1 John:27, King James version), the Christian message suggests that with the emergence of the Holy Spirit came a subjective authority previously unknown to human beings, leading to freedom from practice of conventional forms of power, both secular and religious. 

Conclusion 

The rise of unethical behavior of leaders in the modern world has drawn more attention. Leadership without ethical conduct can be devasting to any society or corporate. Ethical leaders are moral individuals. They do not just act ethically on their own but attempt to create the appropriate kind of setting to influence their followers’ behaviors by creating an ethical culture, expressing ethics and following that up with guidelines and traditions that encourage others in the organization to embrace what is right. The existing body of research demonstrates that there is a strong correlation between the leadership of the organization and the company’s performance. Once managers handle intricate and ambiguous issues, their decisions are determined by their values based on past experiences where, in turn, their decisions will be mirrored in structural principles and organizational performance. 

When using a typical ethical standard to review the Scripture organization with top ethical executives will witness improved long-term performance. Contemporary instances of how senior management influence their companies support this conclusion. As a result, establishments must search for leaders who exhibit normatively acceptable behavior. By today’s standards, that implies management which is concerned with how the bottom line is met as well as the organization’s impact on workers and the environment. It suggests managers who are trustworthy and possess what is called leadership appeal. Furthermore, it also implies leaders who will make sure that others follow their example. For companies that committed to this cause, ethical leadership will probably lead to scandal-free character, heightened employee motivation, job satisfaction and performance. 

References 

Aryati, A. S., Sudiro, A., Hadiwidjaja, D., & Noermijati, N. (2018). “The influence of ethical leadership to deviant workplace behavior mediated by ethical climate and organizational commitment.” International Journal of Law and Management , 60(2), 233–249. 

Ben ‐ Hur, S., & Jonsen, K. (2012). “Ethical leadership: lessons from Moses.” Journal of Management Development , 31(9), 962–973. 

Goel, M., & Ramanathan, M. P. E. (2014). “Business Ethics and Corporate Social Responsibility – Is there a Dividing Line?” Procedia Economics and Finance , 11, 49–59. 

Kim, D., McCalman, D., & Fisher, D. (2012). “The Sacred/Secular Divide and the Christian Worldview.” Journal of Business Ethics , 109(2), 203–208. 

King James Version. (n.d.). Bible Gateway . Retrieved from https://www.biblegateway.com/versions/King-James-Version-KJV-Bible/ 

Marquardt, D. J., Brown, L. W., & Casper, W. J. (2016). “Ethical Leadership Perceptions: Does It Matter If You’re Black or White?” Journal of Business Ethics , 151(3), 599–612 

Mishra, D. (2016). “Role of Ethics in Spiritual Leadership.” International Journal of Commerce, Business and Management ,5(3), 60-69. 

Rowe, G., W., Makris, N.D. (2015). “Ethical Leadership Then and Now.” Ivey Business Journal . Retrieved from https://iveybusinessjournal.com/ethical-leadership-then-and-now/ 

Rowe, W. G. (2014). “Some Antecedents and Consequences of Ethical Leadership: An Examination Using the Kings of Judah from 931bc to 586bc.” Journal of Business Ethics , 123(4), 557–572. 

Stouten, J., van Dijke, M., & De Cremer, D. (2012). “Ethical Leadership.” Journal of Personnel Psychology , 11(1), 1–6. 

Viet, S. (2016). Perspectives on ethical leadership: an overview. Retrieved from https://www.ru.nl/publish/pages/790551/20160327paperpupol.pdf 

Zavareh, B.F. & Tabatabei. N. S. (2014). “Effect of Spiritual Intelligence, The Moral Leadership of the Employee's Perspective: Case Study: Isfahan University Staff and Najaf Abad Azad University.” Arabian Journal of Business Management Review , 4(1), 379-389. 

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StudyBounty. (2023, September 15). Ethical Leadership in Business: What You Need to Know.
https://studybounty.com/ethical-leadership-in-business-what-you-need-to-know-essay

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