Ethical Leadership and having a code of conduct (which is a subset of ethical leadership)plays an important role in establishing an Ethical Organisation. In this essay, we shall cover on both aspects with examples to determine which is more important in creating an ethical organisation.
Ethical Leadership
Organisational leadership process plays an important role in creating a good workplace. There is an increasing support from people that a good business for an organisation to be ethical and that ethical cultures emerges from a strong leadership. Leadership provides the process of influencing individuals and groups in an organisation to achieve an objective. For instance, an ethical workplace. Ethical leadership usually comes from the top
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(2009) concludes that top executives performing managerial ethical skills influences the various organisational levels in the firm. This is based on the Social Learning Theory (SLT) by Albert Bandura (1977). He states that behavior is learned from the environment through the process of observational learning. As such, a behavioral mindset practiced by the managers is created as the employees are drawn in by rewards and warned via punishment in the workplace. With rewards and punishment in place will ensure that the followers (employees) down in the organisation chart will adhere to actions of the supervisor. Placement of ethical leaders in the top management creates a chain effect of ethical practices in the work environment.
Here are some of the examples of company that poses Ethical Leadership. General Electric (GE) is well known as a firm with excellent leadership because of CEO, Jack Welch. The company spends over $1 billion a year on leadership and training development. (Stewart, Harrington & Griifin Sol, 1998). However, the company also faces ethical scandals that that involves relentless drive for profits (Boyle, 1999). Another example is Microsoft Founder and CEO, Bill Gates. He has gained much attention from the US government for alleged anti-trust activities but sustains admiration in the