According to my analysis through this blog I have concluded that Ethical leadership is to focus on achieving goals through performing well by remain in the limits of rules. In this blog going to discuss about the ethical leadership of leader within the organization and see how effective his leadership can perform to achieve organizational goals by operating ethically.
As organizations are not really ethical, it is their managers who bring the ethical culture within the organization to follow the set of rules and take care of moral values in respect to their business. However managers look at the various aspects like social and fair style, trading fairly and also try to maintain relation with their customers, suppliers and general public relationships respectively (Mullin 2013).
(Fraedrich 2014:311) ethical leadership not only allow employee to follow own moral but helps them to reinforced and implement shared values to promote ethical culture. In organization it is more concerned with the values accepted by individual or a large group of people. It acts like a guide line for any organization whether the leaders follow the principles of Ethical leadership throughout. There is a video by Apple CEO Tim Cook talking about Ethical leadership which is very important factor for an organization.
Commitment of employee and job satisfaction are influencing factors for organizational effectiveness (Ghorban2012). It not only reduces costs for recruitment and selection but increase the productivity. The leaders are the backbone for any organization as good leader follows the code of ethics. It not only gives organization a charm of doing practice ethically but also give employee assurance of treated equally regardless of age, religion, gender etc. such organization not only get repute but also bring the attention of good ethical leadership to people like employees, customers, suppliers or else whoever is connected with the concerned organization.
Contrary, as we are aware that businesses are more concerned in making profits with respect to ethics. But sometime functioning ethically, it reduce organizations profit with the fact that they have to pay more to contribute in outside activities like corporate social responsibilities, fare trade etc. this has reduce the organizations profit margin and that is the contrary aspect of following the ethics. Through this we are clear that business would not be able to maximize profits but in accordance to business ethics it is still useful for the society and their social cause (Mullins 2013).
Being an ethical leader in my chosen retail industry I will follow the code of ethics in organization. By balancing both organizations ethics and leadership I will try to emphasize on the role to play within the organization by knowing the organizations objectives. This will not only increase the awareness to the others it also give respect to the organization. People will come to your business with the fact that the organization is following the principles of Ethics and Ethical leadership and this will enhance the business profit. By putting more efforts in corporate social responsibility you are not only contributing towards society but you are playing a role of ethical leader with the purpose that you are taking care of business as well as its society.
The best example is Marks and Spencer where the best practice of Ethical leadership leads them to better change. They go beyond the expectations of customers, employee, Stakeholders through collaboration with their suppliers to create fair workplace. On organizations Fair Trade front they are pursuing with ethical framework, where excellence in ethical initiatives and training programme to train 500000 supply chain workers in their rights. The evidence of positive change example has been seen in Kenya where producers of tea captured value by packing at source. Another example has seen through cotton initiative in Warangal, India where it helps to improve lives of 20,000 farmers. Living wage work sharpened industry first approach and in 2010, M&S remains the world largest producer for fair trade of cotton. These were the few examples from M&S which illustrates that their ethical leadership has raised the standards of not only organization but also of people connected with it. (The guardian 2013)
It concludes that, the ethical leadership has both the advantages and disadvantages. Ethical leaders try to maximize profit in organization but sometime ethics becomes barrier and it stops them to work unethically and the organization loose at various occasions to increase its profit. Ethical leader not only lead the organization but to its followers by setting examples around through behaviour and morale code of ethics which describe his leadership ethically. By following ethical leadership we are not only saving organizations image but contributes towards the society and social lives .with due respect and our ethical values we must emphasise towards the organizations ethical functioning.
1. Beavis, L. (2013). M&S: doing the right things leads to change. The guardian. Available at [ http://www.theguardian.com/sustainable-business/best-practice-exchange/marks-and-spencer-change-better%5D accessed on [21/03/2014]
2. Mullins, L. (2013). Management and organizational Behnaviour.London.10th Ed. Pearson.
3. Ghazali, M., Ghorban, Z. and Ghahroodi, H. (2013) ‘Examining Ethical Leadership and Its Impacts on the Followers’ Behavioral Outcomes’ Asain Social Science. (vol 3)(No3)(Pp 91-96).
4. Fraedrich, J. (2014). Business Ethics: Ethical decision making & cases. 10th Ed.(p 323).