Ethics originates from the Greek word ethos mean custom, habit or character of a person regards as fitting with values and morals. Theory of ethical is a guideline or belief that lead to choose on “what is right or wrong” and “good or bad” in a certain condition (Northouse 2009). The elements of ethical principles are uprightness, neutrality, truthfulness, care, open, discretion, and competency and respect for originality of ideas (Resnik 2011). Ethics forms criteria that a leader can use as a measurement of influences by action (Hickman 1998).
Leadership is the ability to make use of talent and skill, adapt to the best practice and surroundings, empower, connect to people’s feeling to inspires confidence and self-esteem, create room for contribution to sharing ideas, solve problems (closing the gap between desired and perceived) and foster creativity (Smith 2013). Leadership is impacting society by empowering others in achieving goals (Kruse 2013). Leadership is affecting others to recognize and accept about things to do and how to get it done, and technique to motivate others and mutual attempt to accomplish common goals (Yukl 2006).
Principles of ethical leadership by Northouse (2009) describes: Respects Others – honour others’ goals instead of personal ends; Serves Others – follower-centered or to put followers at foremost interest in the leader’s plans; Shows Justice – treat with equality and integrity; put issues of impartiality at the core of choice; Manifests Honesty – trustworthy and also be thoughtful to others’ the feelings; Build Community – treat with mutual noble manner and not enforce own motive on others and establish objectives that are well-suited to all (Northouse 2009).
The Centre of Ethical Leadership defined the ethical leadership as understand your fundamental principles and to act by them for the rest of your life toward mutual interest. The founder, Dr Bill Grace in 4-V Model of Ethical Leadership framework relates inner principles with outward conducts of leaders in building mutual interest for the company. The 4-V Model describes: (1) Values – any actions taken by leaders should be based on value. Leaders belief in their unique values and associate them together with a commitment to adjust their daily lives. Dr Grace explains it as mixing both inner and outward principles to create result. (2) Vision – requires the ability to extend views and predict their actions that potentially affect others in specific ways. Dr Grace emphasized that it would be difficult to have a goal for a better result without knowing identities through self-reflection.
(3) Voice – is the ability to articulate visions of the leaders to others in credibility way which motivate others into action and according to Dr Grace, it is searching for single opinion to effectively demonstrate and provide concepts and dreams. (4) Virtue – it is the core of the theory because it is basically a different term for leadership’s ethics. It is about making right and good and also this component attaches all the other three V’s together. This virtuous character recommended that leaders should examine themselves to find in what way their ideas, ethics and opinion to fit with the collective moral? (Seo and Lee 2012).
One example of an ethical leader is James Alan Skinner or popularly known as Jim Allen. He became CEO of McDonald’s Corp when the company was doing terribly with sliding in profit. After four years since he took over, McDonald’s earnings climbed up to 45% despite going through tough times (and losing his two predecessors to cancer). Before retired on June 30, 2012, he continued leading the company toward healthier food options and launched programs like “National Hiring Day” which provided jobs to 60,000 Americans. McDonald had annual revenues of $27.5 billion in that year. He was named “CEO of the Year” in 2009 by Chief Executive magazine.
In conclusion, I strongly agree that ethical leadership benefits the organization and the stakeholders including the employees. The organization atmosphere created by ethical leaders will have the positive influence on employee job performance, motivation, task significance and willingness to put extra effort on task performance (Bello 2012). An organization should also involve the employee in ethics training programs to develop ethical values in the employee. Below is an interview with Tim Cook, CEO of Apply on ethical leadership.
However, the ethical leadership is not just about having the right “values” of integrity while serving others and upholding justice, but the ethical leadership is indeed more complicated. It requires principled reasoning to adjust those values to real actions in a complex situation (Centre for Ethical Leadership 2015).
List of References
Bello, S. (2012) ‘Impact of Ethical Leadership on Employee Job Performance’ [online] 3 (11), 232. available from < http://ijbssnet.com/journals/Vol_3_No_11_June_2012/25.pdf >[9 May 2015]
Centre for Ethical Leadership (2015) What is Ethical Leadership? [online] available from < https://cel.edu.au/news-and-events/news/what-is-ethical-leadership > [18 May 2015]
David B. Resnik (2011) What is Ethics in Research & Why is it Important? [online] available from < http://www.niehs.nih.gov/research/resources/bioethics/whatis/ > [13 May 2015]
Duke University (2013) Apple CEO Tim Cook on Ethical Leadership [online] available from < https://www.youtube.com/watch?v=3ygNKNaMv4c > [25 May 2015]
Hickman, G. R. (1998) Transactional and transforming leadership leading organizations perspectives for a new era. 1st edn. Thousand Oaks: Sage
Kruse, K. (2013) What is Leadership? [online] available from < http://www.forbes.com/sites/kevinkruse/2013/04/09/what-is-leadership/ > [12 May 2015]
Lee, K., Seo, J (2012) The Center for Ethical Leadership [online] available from < http://participedia.net/en/organizations/center-ethical-leadership > [8 May 2015]
Northouse, P. (2009) Leadership: Theory and Practice. 5th edn. USA: Saga Publication Inc.
Smith, M. S. (2013) What is Leadership? [online] available from < http://stevenmsmith.com/what-is-leadership/ > [18 May 2015]
Yukl, G. (2006) Leadership in organizations. 6th edn. Upper Saddle River, NJ: Pearson-Prentice Hall
Take Charge of Change 
This is an interesting read. Never thought McDonald’s could be an example of a good leadership quality. Ethics is an important quality that should exist in everybody. Being a leader itself does not mean one can be good leader. One can be a leader but only guides their men in straight/plan manner, not knowing how their journey will affect their future. Implementing ethics in leadership will surely change how leaders are perceived by their men which would improve the workplace environment and also their productivity. At least, that is what I think.
Though, not everyone immediately can be ethical. It requires practice, experience and tons of understanding. It would be interesting to know how Jim Allen used ethical leadership to bring McDonald’s back into its game.
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Hi Elijah, I really appreciate your kind comment. I totally agree with you. Being a good or great leader ethic is the core value a leader must have.
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Hi Puyang,
I do not think that Tim Cook is walking the talk (1.58 onwards in his video interview where he talked about the environment and how to deal with the supplier etc). Just look at the Foxconn and Pegatron labour conditions that have led to suicides among workers (Foxconn)
Please see this documentary BBC Panorama Apple Broken Promises: –
You will think differently about Apple after watching the documentary.
The issue about ethics is that you may have a nice and glossy pledges about being ethical but who is really watching and monitoring?
MNC like Apple should be regulated by both host countries as well as home country.
I do not own any Apple product, by the way :p
p/s did not manage to embed the video here. Do I need a Macbook for that?
My 2 sen.
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Hi Umi, thanks for adding to the discussion. None of these come easily. In CNet article, Foxconn acknowledged the problems and is working to improve the labour conditions. And, I agree with you that MNC should be managed by both host and home country. But maybe for some reason, in some host countries like China, the government has its own policy on MNC operating in their country which restricted MNC control.
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Hi Puyang,
Me again…. closer to home, see below:-
http://www.themalaysianinsider.com/sideviews/article/mas-im-beginning-to-like-this-mueller-fella-anas-zubedy
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That case is one example of organisational failure resulted from poor leadership. The best course of action may be to overhaul the organisation (Malaysian national carrier) and then rebuild it from the ground up. In my own opinion, this will be a very sustainable measure over the long run.
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I second the statement on what Tim Cook says about ethical leadership where he says it all starts at home. We learn everything at home. How we do things, how we manage our belongings, our time, our money. If we are able to manage ourself, for sure we can manage and lead others towards a better instituition. How? By being a good example to others. Even the way we treat people decides wether we’re an ethical leader or not. Ask yourself, do you want to work with some bossy psychopath, who won’t condiser others opinion besides his own or the people he likes? Or treat you like slaves for instance working in a company that lets you work overtime but pays you less than what you should get? Do you think people will like you? And how will it affects your company when you keep firing people because they dont do things the way you want them to or maybe because of some small mistake thet did that you can’t even consider? Exactly! What kind of leader is that? Discipline and being firm are also factors that makes an etichal leader. How we go to work on time, how well me make desicion, how well we solve problems and what kind of risk are we taking, also how we can bring a team to work together as a unit. So yes. Having a good ethical leadership quality definately affects the environment, from how we treat the people whom we work or who we work for, to what kind of decision we make that could bring our company to a higher level where everyone can see.
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Hi Eliskaleah, thanks for sharing your opinion on leadership. Ethical leaders are serving as role models for others. They solve problem. They influence and motivate others. They promote ethical conduct and responsibility. You are so true. Good leaders produce a positive ethical environment or culture in an organisation and personal life.
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