This document discusses ethical issues in leadership. It defines ethics and ethical leadership, explaining that ethical leaders respect beliefs and dignity of others. Ethics matter because ethical leaders are credible and don't want to harm others. Common ethical challenges for leaders include lack of accountability, conflicts of interest, and fear/anger. Ethical leadership can lead to positive follower attitudes and prosocial behavior, while unethical leadership relates to counterproductive behavior. Factors that enhance ethical leadership are ethical role modeling, ethical context/culture, and individual characteristics like agreeableness and conscientiousness. Ethical leadership may vary depending on management level and distance between leaders and followers.