ipl-logo

The Importance Of Ethical Leadership In The 21st Century

1427 Words6 Pages

Managers need to transform into moral leaders: Ethics in business
In the 21st century the business organizations have faced many ethical scandals. The different type of ethical scandals are accounting manipulation, bribery, infringement of civil rights, child labour and sexual malpractices at workplace (Frenkel, 2013). Some of the top ethical scandals are Enron, Satyam, Lehman Brothers and Bhopal gas tragedy (Rodriguez, 2013). The business organizations can’t achieve global success without ethical business practices. Especially the developing countries like India and China facing serious ethical problems. The Indian government facing charges of corruption and inefficiency. Similarly Chinese business organizations also have a lack of sense of …show more content…

In this essay the author will discuss about the significance of ethical leadership and transition in manager’s role in 21st century.
Both the primary and secondary stakeholders are demanding sustainable business practices from the business leaders. The sustainability can be defined as meeting the needs of present without comprising with the future needs. The word “sustainability” is not limited to environmental problems. The managers need to think about economic performance, social responsibility and environmental problems. Previously the manager’s role was to think only about financial profit and loss of the company. In 21st century the organization’s performance has been analysed on triple bottom line tool. The triple bottom line tool checks the effect of business activities on financial performance, social and environmental performance (Stenzel, 2010). The managers need to change their role and transform themselves into moral leaders to fulfil social responsibility towards the society. Carroll (2000) also suggested that the corporations have four business responsibilities towards the society. These four business responsibilities are economic, legal, ethical and philanthropic (Carroll, 2000). The ethical business practices …show more content…

B., 2003. Ethical Leadership: From Moral Manager to Moral Leader. Rights, Relationships & Responsibilities: Business Ethics and Social Impact Management, Volume 1, pp. 7-17.
Freeman, R. E. & Stewart, L., 2006. Developing Ethical Leadership, s.l.: Business Roundtable Institute for Corporate Ethics.
Frenkel, D. J., 2013. The Greatest Business Ethics Scandals of the 21st Century. [Online]
Available at: https://prezi.com/z2kgdfif4gxn/the-greatest-business-ethics-scandals-of-the-21st-century/
[Accessed 2 August 2015].
Friedman, M., 1970. The Social Responsibility of Business Is to Increase its Profits, s.l.: New York Times Magazine.
Kar, D. S., 2014. Ethical Leadership: Best Practice for Success. IOSR Journal of Business and Management, Volume 1, pp. 112-116.
Pushpa, S., 2012. Ethical Leadership: Need for Business Ethics Education. International Journal of Advances in Management and Economics, 1(1), pp. 14-19.
Rodriguez, K. B., 2013. The 21st Century 's Top 10 Frauds. [Online]
Available at: https://www.icpas.org/hc-insight.aspx?id=22351
[Accessed 2 August 2015].
Stenzel, P. L., 2010. Sustainability, the Triple Bottom Line, and the Global Reporting Initiative. Global Edge Business Review,

Show More
Related
277 Words | 2 Pages

In this situation I would not want to shut down any of my community based organizations. Knowing that the closure would lead to loss of jobs and affect the community as a whole. For starters I would look over our budget to see if there where any areas that I could possibly cut cost or do without. Going by a budget can also help you minimize risk for future obstacles. By eliminating unnecessary cost hopefully will increase funding so that layoffs will not be my only option.

Read More
1082 Words | 5 Pages

Relationships between authentic leadership, moral courage, and ethical and pro-social behaviors. Business Ethics Quarterly, 21(4), 555-578. Patterson, T. E. (2005). Of maps and territories: Understanding public administration.

Read More
1630 Words | 7 Pages

In this highly competitive world, money is one of the most significant factors for people to survive because people use money to satisfy their desires such as clothes, food, and medicines. A company will gain profit from the amount of money that people used, but only profit cannot make company to be sustainable. Hence, every corporation should be concerned about the triple bottom lines which can lead company to be sustainable. The Triple Bottom line or TBL was created by the founder of British consultancy called sustainability, John Elkington since 1994 (economist, 2009). The triple bottom line is separately in three categories, including profit, planet, and people.

Read More
213 Words | 1 Pages

In this article, the author Milton Friedman advocated the only thing that the business should do is to gain great profit for the shareholders and the companies. Only the individual should have social responsibilities, not organization. Social responsibility is based on the idea that business operations must meet the requirements of sustainable development. It can establish good relations between enterprises, improve business efficiency, and also increase profits. Therefore, for many companies, they all involved in.

Read More
1090 Words | 5 Pages

Having an understanding to ethical consideration and accountability will improve customer satisfaction, employee performance, and the continuum for accountability ("Ethical Leadership: Fostering An Ethical Environment And Culture",

Read More
1887 Words | 8 Pages

2. Part B: Portfolio of Evidence Contents 2.1 Appendix A: The Ethical Leadership Debate Motion: “The Business School believes that ethical leadership is impossible in a shareholder focused economy” Mike Gustavsson who is a retired lecturer and Greenpeace activist, stances stood against the motion. He strongly believes that ethical leadership is crucial when it comes to top management’s behaviour and decision making in an organisation and it relates back to foundation in school where ethical leadership is nurtured. This illustrates virtue ethics, right and justice which emphasise morally on his principles (Zaltan et al, 2003) and he demonstrates Maxim 3 of universality (Kant, 1997).

Read More
816 Words | 4 Pages

Ethics in the Workplace: Tools and Tactics for Organizational Transformation. New York, NY: Routledge. Retrieved from https://books.google.co.jp/books/about/Ethics_in_the_Workplace.html Smith, J. (2017). Ethical Decision Making in Business: Resolving Ethical Dilemmas. New York, NY: McGraw-Hill

Read More
783 Words | 4 Pages

Leadership and ethics Name Professor Course Date Some of the ethical issues that management may need to address include corporate social responsibility. This refers to the operation of a business or organization in a manner that takes into consideration the environmental and social aspects created by enterprise. It implies the commitment to create policies that include responsible practices in the undertakings of the entity. Corporate social responsibility policies serve as self-regulatory measures for the organization in monitoring and ensuring that it complies with ethical standards, regulations and societal norms.

Read More
738 Words | 3 Pages

Recent scandals in government, business, sport and even religious organisations have reaffiliated the importance of ethical leaders in our current day and age. Brown, Treviño and Harrison (2005) summarised ethical leaders as people who are considerate, truthful, principled individuals. They are balanced and fair decision makers who set clear ethical standards and communicate openly with their followers. Finally, they are proactive role models for ethical conduct as their deeds reflect their own ethical principles and values.

Read More
1451 Words | 6 Pages

Must employees will notice, criticized, or even emulated the moral failures of their leaders. If we look at our world history, it is filled with examples of how competent leaders have failed from ancient times to modern times. Periodically, we read about unethical behavior in some type of media outlet. Which often corrupts the public’s trust in the leader’s company or agency, then it brings the individual leader into question.

Read More
931 Words | 4 Pages

In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .

Read More
1001 Words | 5 Pages

Ethical leadership Brown et al. (2005, p. 120) defined ethical leadership “as the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making.” Trevino, Brown, and Hartman (2000-2003) conducted a study to determine the meaning of ethical leadership (cited in Brown and Trevino 2006). They interviewed twenty senior executives and twenty ethics/compliance officers in several industries to discover what they felt were the characteristics, behaviors, and motives of an ethical leader. According to Trevino et al.

Read More
726 Words | 3 Pages

Furthermore, there are some benefits that can help the company to increase the market value. First of all, with the triple bottom line reporting, the business can improve the risk management through enhancing the management systems and the company can have better business planning as the risks are understood. Triple bottom line reporting helps to ensure the company is embedding the corporate governance and acts ethically not only on the Board level, but also on the whole company. Although it cost time to train the staff and need more time for the preparation work about the triple bottom line reporting, the staff and the shareholder may have more confidence on the business that the organization are focused on the social contract and ensure they survive in the coming future ethically (Department of the Environment and Heritage 2003). Corporate social responsibility is embedded in the social contract and most of the company.

Read More
1207 Words | 5 Pages

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.

Read More
1039 Words | 5 Pages

Basically, ethics are at their essence which is it is the moral judgments about what is right and what is wrong. Business ethics is focusing on examine the policies and conduct within the context of commercial enterprise in an organizational as well as in an individual level. In business, the ethics in business is an applied ethics where professionals and researchers use principles and theories to solve any ethical problems that exist in business. At the quarter of the 20th century, as technologies like internet have made world business or international business all more viable, the business ethics domestically have grown in importance along with the power and significance of major businesses. So that, international business ethics take center stage as a major concern of the modern era.

Read More

More about The Importance Of Ethical Leadership In The 21st Century

Related Topics

Open Document