4. DISCUSSION OBJECTIVES
• Define Ethical Leadership
• Identify values that inform Ethical Leadership
• Understand the role of leaders in shaping
employee behavior
• Attributes of ethical leaders
• Traits of unethical leaders
• Processes for managing ethics in an
organization
• Benefits of empowered ethics
5. DEFINITION
Ethical leadership is leadership that is
involved in leading in a manner that respects
the rights and dignity of others. Leaders who
are ethical demonstrate a level of integrity that
stimulates leader trustworthy which is
important for followers to accept the vision of
the leader. -Wikipedia
6. VALUES THAT INFORM ETHICAL
LEADERSHIP
• Honesty-truthful, trustworthy, forthright
• Fairness-decisions, personnel issues, stakeholder
interests
• Citizenship- compliance with laws, industry rules
& regulations, company policies & procedures
• Loyalty-avoid conflict of interest, insider trading,
divulging company secrets for personal gain
• Humility- relationships, engaging, involving,
Responsibility- sound decision making, disclosure
of material information/integrated reporting,
CSR, ethics and governance issues/board
composition/board training/leadership renewal.
7. Agenda Item : Directors Retirement
Age discussion and decision...
8. ROLE OF LEADERS IN SHAPING
EMPLOYEE BEHAVIOR
• Tone at the top sets the ethics agenda
• NBES report of 2009, by Ethics Resource
Center in the US
• Moral psychologists agree on
exemplifying behavior
• Professor LindaTrevino’s social learning
and social exchange perspectives
9. ATTRIBUTES OF ETHICAL LEADERS
• Take ethics seriously and model ethical
behavior
• people oriented: use their power to save
stakeholder interests not personal interests
• inspirational in nature
• Acknowledge/own up to mistakes, including
apologizing.
Example:
Marcus Agius, former Barclays Chairman
10.
11.
12. TRAITS OF UNETHICAL LEADERS
• Pride
• Arrogance
• Egoistic
• Deceptive
Example:
Bernie Ebbers and Ken Lay, former CEOs
of WorldCom and Enron
17. EXISTING BUSINESS
ENVIRONMENT IN THE COUNTRY
• A high levels of unethical business practices
• Predatory pricing of goods/services
• Poor regulatory frameworks,
• Focus on short-term gains at the expense of
long term growth,
• High consumptive tendencies at the expense
of productivity,
• Rent seeking and state capture
• Manifest corporate greed.
19. ISAIAH 59:14-15
“So justice is driven back, and righteousness
stands at a distance; truth has stumbled in
the streets, honesty cannot enter. Truth is
nowhere to be found, and whoever shuns evil
becomes a prey”.
Source: Revised InternationalVersion
20. ORGANIZATIONS NEED CHANGE
• It can no longer be business as usual
• Need for empowered ethics
• Going beyond the simplistic view/naïve belief
• Ethics anchored on measured leadership
commitment
• Ethics manned by Ethics Officers with
requisite training
• Ethics revolution
27. CONCLUSION
Ethical leadership anchors business performance. Like salt
in water, it infuses ethics in businesses and communities.
Ethical leadership must inform the conduct of every leader
in business and every other sector of the economy. If
organizations want to have employees who practice
ethical behavior, leaders must model ethical behavior and
embed strong ethics in their operations.
THANKYOU.
