The document discusses the importance of ethical leadership for organizational success. It defines ethics, morals, and values, and explains how they relate. Ethical leadership is described as creating opportunities through honorable means. An ethical leader must have certain qualities and their leadership can be measured using an ethical scorecard that evaluates factors like finances, customers, learning and growth, internal processes, and social responsibility. In the long run, organizational success depends on both financial and non-financial (ethical) factors. Having strong ethics establishes a solid foundation and pillars that ensure stability over short and long terms. In today's dynamic economy, companies must maintain high ethics to sustain customer trust and loyalty. Overall, the document argues that only ethical leadership can lead to

1. Only ethical leadership
can ensure success
www.thedestinymaker.com

2. ORGANISATIONAL TREE
marketing
Finance
Operations
Human resource
Systems
Product
Ethics

3. WHAT ARE ETHICS?
• Ethics, morals and values are generally used
interchangeably.
Values are the core beliefs or desires that motivate
and guide ones attitude and action.
Morals refers to the individuals beliefs about what
is right or wrong .they are an individuals
evaluations of values and behavior.
Ethics refers to a standard of conduct that indicate
how people ought to behave based on specific
values and principles. Ethics deal with the ability
to distinguish right from wrong & commitment to
do right

4. RELATIONSHIP BETWEEN
VALUES,MORALS AND ETHICS.
Source- HBR July edition.(1989)

5. LEADERSHIP
“Leadership is getting someone to do what they need to do, to
achieve what they want to achieve”.
LEADERSHIP IS CREATION OF MEANS TO ACHIEVE THE
DESIRED ENDS.
Leader is the face of the organization and his actions reflect the
values and ethics that his organization stands for.
A leader with an image of being ethically strong lends the
same to the company and the team he leads…
ETHICS IN AN ORGANISATION FLOWS DOWNWARDS.

6. ETHICAL LEADERSHIP
"Ethical Leadership is the creation and fulfillment of worthwhile
opportunities by honorable means.”
AN ETHICAL LEADER MUST HAVE THE FOLLOWING
QUALITIES:

7. MEASUREMENT OF ETHICAL
LEADERSHIP.
A MAJOR LOOPHOLE LIES IN THE LACK OF A
UNIVERSALLY APPLICABLE ETHICAL
MEASUREMENT INSTRUMENT IN THE BUSINESS
LITERATURE.
A few measurement models have been introduced in the
area of sales and marketing {Newstrom and Ruch
(1975)based on the BARS concept} and a few
operational activities but are inadequate to measure
the role of ethics for the leaders in the organization.

8. MEASUREMENT OF ETHICAL
LEADERSHIP
AN ETHICAL SCORECARD AS A MEASURE
• Finance
• Customers
• Learning and growth
• Internal business processes
• Social Responsibility

9. ETHICAL SCORE CARD
Parameters Rank on
scale of
1-5
1-least,
5-max
1 2 3 4 5
Finance Tax compliance
Profits computation
Market capitalization
Debt servicing
Internal
business
process
Transparency across
organization
Communication flow
Work balance
Safety and security

10. Customers
Value
1 2 3 4 5
Quality
Differentiation
Channels
Learning and growth Innovation driven
Participative mgmt
style
Develop career
path
Skill based training
Social Responsibility Environmental
protection
Social infrastructure
Employment
generation

11. 1 2 3 4 5
Support physical
Infrastructure
TOTAL-______________
THE TOTAL CAN BE ANYTHING BETWEEN 0 TO 100.
LETS TERM THIS FIGURE MEASURE OF ETHICS FOR NOW.

12. LONG TERM SUCCESS
• Success is function of :
• ETHICS
• STRATEGY
• BOTTOM & TOPLINE
• ROI/ROA
Non financial
Financial
EXPONENTIAL SMOOTHING TECHNIQUE by:
Success = α * Financial + (1- α) * non financial

13. LONG TERM SUCCESS
TIME
Short Term Long Term
S
U
C
C
E
S
S

14. IMPACT OF ETHICAL
LEADERSHIP
IMPACT OF ETHICAL FOUNDATION ON
THE COMPANIES POLICY FRAMEWORK
CAN BE UNDERSTOOD IN THE SHORT
TERM AND THE LONG TERM CONTEXT.

15. Organization-1
Platform
Platform
Organization-2
DISTURBANCE
Pillars
Pillars
SHORT TERM IMPACT

16. ETHICS IN THE NEW ECONOMY
• Indian economy is experiencing phenomenal changes in the
current times and the way business is conducted is changing at
a meteoric speed.
• In the last 15 years we have moved from being a Sellers
Market to a buyers market and continue to empower the
buyers.
• Competition has intensified and brand premiums are shrinking.
• Companies are fighting tooth and nail to gain customers
mindshare and are constantly improving on their offerings.

17. ETHICS IN THE NEW ECONOMY
We are still moving further and the future is of
organizations with a global supply chain.
Not too far is the day when any product produced
anywhere in the world will be sold all over the world.
When such a market will come into existence only
those companies will sustain and grow those who
enjoy an image of a ‘good’ company in the minds of
the buyers.

18. CONCLUSION
INDEED ONLY ETHICAL LEADERSHIP
CAN ENSURE SUCCESS FOR AN
ORGANIZATION IN THE FUTURE.

20. www.thedestinymaker.com
Arvind Rai
Astrology & Vastu Expert
+91 7709240111