The Importance Of Ethical Leadership

Why is ethical leadership more important than ethical codes of conduct?

Some people may think that ethics code of conduct is enough to create an ethical organization. Code of conduct does not enough to create ethical organzation because of the nature of the relationship between leaders and followers. First premise, leaders influence followers. They can affect followers’ lives either negatively or positively. Followers are watching more what a leader does rather than what a leader says. If there are inconsistency in leader’s speech and behaviour, then leader lost its integrity. An ethical leadership can be produced with practice. Instead of sharing example and stories of ethical leadership, followers will be understand ethical action better.

Ethical leaders should have some certain characteristics that suggested by Triveno and brown (2004), as five dimensional transformational leadership. This model shows the differentiation of ethical and unethical behaviours of transformational leaders. Transformational leaders are person with high morality and highly motivated to achieve organizational ethical values, really willing to implements collectivistic team work through better communication. Information flow between ethical leaders and followers are very effective. In addition leadership that oriented to people and task is also effective in the organization to develop ethical leadership. because the leaders are more legitimate and open to their subordinates. Transformational leadership tyles have clear job role and

Leaders have the power and authority because their position held is of a higher post as compared to the followers. Corporate culture shows the way they should perceive, feel and act in the organization. There is a relation between corporate culture and ethical behaviour. Although the culture may not be the sole determinant of the behaviors in organizations, it certainly influences them. In every individual decision making, culture also has influenced to shape the decision. Decision makers shape their decision based on their preferences, not only individual preferences. Sometimes decision makers ignored their preference and following other advice or tradition. In short, people look up and around before make a decision. Some research had demonstrated this. According to (Sinclair, 1993) the culture may even encourage members to act in ways which “are not necessarily consistent with individual or pre-existing norms, but apparently induced by organizational