Ethical Leadership and Business Management

Running head: ETHICAL LEADERSHIP AND BUSINESS MANAGEMENT
Ethical Leadership and Business Management
Name of the Student:
Name of the University:
Author’s Note:

1ETHICAL LEADERSHIP AND BUSINESS MANAGEMENT
The notion of ethical leadership has emerged as one of the most important ones within
the spectrum of the contemporary business world and it is seen that the effective utilization of
it provides diverse benefits to the organizations (Wu et al., 2015). Hoch et al. (2018) are of
the viewpoint that the effective utilization of this style of leadership helps the organizations to
overcome the drawbacks of the traditional styles of leadership besides helping them to
improve the prospects of their organization. As per Bedi, Alpaslan and Green (2016), the
primary focus of this style of leadership is on the creation of ethical relationships with the
various followers or the subordinates. Ng and Feldman (2015) have stated because of the
damage that the contemporary organizations are doing to the society as well as the
environment it has become important for them to take into effective consideration the entities
of ethics and morals for the process of their business operations. It is precisely here that the
concept of ethical leadership becomes important in the framework of the modern business
world. This essay will shed light on the manner in which the notion of ethical leadership is
being followed in the framework of the organization I work for and will also propose some
recommendations regarding the manner in which the organization can follow this style of
leadership in an effective manner to achieve its goals.
The organization that I work for is called by the name of ABC Advertisement
Services and mainly provides B2B services to the other organizations for the development of
their marketing campaigns and other kinds of creative contents. The organization in the
earlier times used to follow the transactional style of leadership. The organization, thus,
taking the help of this particular style of leadership used to follow the notion of “reward and
punishment” for the process of their business operations and also the management of the
diverse affairs of the organization (Bouckenooghe, Zafar & Raja, 2015). However, the pursuit
of this style of leadership used to put the entire focus of the organization on the entity of
performance and the end result of this was the fact that a fiercely competitive culture

2ETHICAL LEADERSHIP AND BUSINESS MANAGEMENT
emerged within the framework (Chen & Hou, 2016). This culture not only affected the
individual relationships that the leaders used to share with the subordinates but at the same
time affected the long-term growth of the concerned organization as well (Eisenbeiss,
Knippenberg & Fahrbach, 2015). Thus, to mitigate the adverse effects of these problems the
organization under discussion here took the help of the process of ethical leadership.
Chughtai, Byrne and Flood (2015) are of the viewpoint that the effective utilization of
the process of ethical leadership requires the leaders as well as the organizations to take into
consideration the diverse aspects of business ethics. As opined by Kuenzi et al. (2018), the
machinery of ethical leadership also requires the leaders to build ethical relationships with the
various followers as well. The organization that I work for thus takes the help of the concept
of Utilitarianism for the process of their business operations. For example, taking the help of
this concept the organization tries to perform the kind of business actions or for that matter
make the kind of business decisions which are focused to cause maximum amount of good to
the majority of the people. In addition to this, the organization at the same time ardently
follows the various concepts of the entity of corporate social responsibility (CSR) for the
process of their business operations. The organization tries to not only mitigate the adverse
effects of the various issues that the environment as well as the society are facing currently
but at the same time tries to make a positive contribution towards the same. Walumbwa,
Hartnell and Misati (2015) are of the viewpoint that the effective utilization of the entity of
CSR not only helps the organizations to solve the various issues that the world is facing
currently but also helps them to attain sustainability as well. Thus, in a manner it can be said
that the organization through the effective utilization of the machineries of ethical leadership
and CSR has been able to attain a substantial amount of sustainability in the recent times.
One of the major problems faced by the organization under discussion here was the
fact that the relationships that the leaders shared with the subordinates was completely based