Components of Ethical Leadership and Their Importance in Sustaining Organizations Over the Long Term

Abstract

This article identifies components of ethical leadership and then aligns them with the style of leadership that includes them. The importance of such an article comes at a time when ethical practices or lack thereof seems to be increasingly prevalent in many organizations’ execution of their business practices. These organizations quite often have an ethics statement outlining required behavior of employees and tout their commitment to employees, society, and the customer, yet we continue to see major infractions of these codes of ethics. All this comes at a high financial cost to organizations. In order to avoid such fines, and damage to brand equity, we propose ethical components which must permeate the organization to ensure appropriate behavior which neither breaks legal requirements, disengages the employee, or alienates the customer.