Ethical Leadership: Analysis and Implementation

This case study analysis explores the unethical practices in the fashion retail industry and discusses the implementation of ethical theories and leadership styles to promote ethical behavior. Learn about the role of organizations in society, key stakeholders, and examples of ethical choices. Recommendations for improving transparency and ethical standards are provided.

Running head: ETHICAL LEADERSHIP STYLE
ETHICAL LEADERSHIP STYLE
Name of the Student
Name of the University
Author Note

1ETHICAL LEADERSHIP STYLE
Table of Contents
Part 1..............................................................................................................................2
a) Analysis of the case study..........................................................................................2
About the case............................................................................................................2
Ethical dimensions related to issues in the case.........................................................2
Ethical question related to the case............................................................................3
Role played by the company in the society................................................................3
Key stakeholders of the company..............................................................................4
Examples based on usage of ethical choices..............................................................4
Recommendations provided to the organization........................................................5
b) Implementation of ethical theories in the case study.................................................5
Demonstration of ethical theories..............................................................................5
Application of the ethical theories within the case study...........................................6
Conclusion......................................................................................................................7
Part 2..............................................................................................................................7
Discussion based on personal ethical leadership.......................................................7
Management of business as an ethical manager........................................................8
Bibliography.................................................................................................................10

2ETHICAL LEADERSHIP STYLE
Part 1
a) Analysis of the case study
About the case
The case is related to the unethical practices that have been undertaken by ASOS
which is an online fashion retailer. The case study is also related to the ways by which a
British retailer named Marks & Spencer has used the human resources in an unethical or
ineffective manner. The issues that have taken place within the organizations based on lack of
effective levels of ethics related to different operations is a major part of the case study
(Albrecht et al. 2015). The issues had mainly taken place in the supply chain of the
organizations and the development of operations as well. The most significant issue is
thereby based on the unethical usage of child labour for the purpose of gaining profits. The
analysis in the report will be based on the ways by which the organizations are able to reduce
the usage of unethical means and resources in order to gain profits and increase the levels of
revenues as well (Aladwan, Bhanugopan and D'Netto 2015).
Ethical dimensions related to issues in the case
The ethical dimension which is considered to be a major part of the issues faced by
the organizations is related to the high levels of usage of child labour. The use of child labour
for revenues and profitability based purposes is considered to be unethical in nature. This
process deprives the children from different factors that are related to their childhood. The
harm is mainly caused on a mental, physical and social basis. This has further led to the
effective prohibition of child labour by organizations belonging to different industries (Al-
Emadi, Schwabenland and Wei 2015). The investigators in this case have found children of
belonging to the age limit of seven to eight years were working in the factory and sewing
shorts. The working hours of the employees in the organizations were also quite high as

3ETHICAL LEADERSHIP STYLE
compared to the standards. Children who were working in the organization had been
exhausted to a level up to which they were unable to attend school. The organizations were
thereby not following regulations that were developed for the purpose of maintaining the
ethical standards in an effective manner (Bamberger, Meshoulam and Biron 2014). The
ethical aspects of business operations were not provided with much importance by the
organizations which had further led to the lack of reputation in different fields. The
transparency levels of the business operations of ASOS were not maintained effectively in
fashion retail based industry (Banfield, Kay and Royles 2018).
Ethical question related to the case
The ethical question which has been raised in the case study is based on the fairness
of the usage of child labour for the purpose of gaining revenues and profitability. The
organizations had also denied the truth behind the reports which had been provided by
investigators based on this case. This is considered to be a major issue which has also
affected the reputation of a high street based organization like Marks & Spencer or a famous
online retailer like, ASOS (Brewster, Chung and Sparrow 2016). The effect which has been
caused in the reputation of the organizations was quite high due to the questions that have
been raised based on the proper implementation of ethical theories within the organizational
processes. The organizations had developed an effective position in the industry with the help
of different types of products and services. The ethical questions that have been raised against
the organization have tampered the effectiveness of the operations and reputation as well
(Collings 2014).
Role played by the company in the society
The two fashion retail based organizations namely ASOS and Marks & Spencer have
provided latest trends and fashion to the customers who are a part of the society. The
organizations operate in the industry based on the proper fulfilment of fashion based needs of

4ETHICAL LEADERSHIP STYLE
consumers. The changes that take place in the trends have affected the choice of consumers
and the organizations have catered to the changing needs in an effective manner. ASOS has
implemented an initiative which was named as “fashion with integrity” that was mainly based
on the transparency of the operations of the organization in the fashion based industry (Deery
and Jago 2015). Marks & Spencer was thereby successful in developing an effective position
in the industry based on its products and services and the ways by which it was able to keep
up with the trends.
Key stakeholders of the company
The key stakeholders of the organizations include, the customers and the employees
who form a major part of the operations. ASOS and Marks & Spencer are responsible to
provide effective types of products which are based on the latest trends. The shareholders of
the organization are also considered to be a major part of the stakeholder groups of both the
organizations (Donate and de Pablo 2015). The customers are mainly responsible for
increasing the levels of profitability and the revenues of the organization in the fashion retail
based industry as well. The customers who are a part of the fashion retail industry are
considered to be the most important stakeholders of the organization. The organizations
thereby need to develop the operations in such a manner which can be helpful in improving
the reputation and demand of the products among the customers as well (Ghosh and
Gurunathan 2015).
Examples based on usage of ethical choices
The choice of ethical sourcing techniques is considered to be a major factor that is
useful for the organizations in different industries. The organizations have been able to
increase their revenues and have improved their reputation with the help of implementation
of ethical sourcing based activities. The major examples of multinational organizations that
can be provided in order to illustrate the effectiveness are Starbucks, H&M. Starbucks has

5ETHICAL LEADERSHIP STYLE
gained huge levels of fame in the industry due to the usage of coffee that is sourced in a
sustainable manner and has implemented an initiative name C.A.F.E. of Coffee and Farmer
Equity Practices (Jackson, Schuler and Jiang 2014). This system is based on the ways by
which the organization aims at implementing sustainable sourcing based methods. The four
major ideas that are a part of the methods based on sustainable sourcing mainly include,
economic transparency, quality, environmental leadership and social responsibility. The
organization aims at purchasing coffee at fair levels of prices and also ensuring that different
processes like, harvesting, coffee planting, purchasing and processing based activities are
done in an ethical manner (Kianto et al. 2014). H&M operates in the clothing retail based
industry and has always maintained transparency levels in the supply chain. The organization
maintains a record based on the names and the addresses of suppliers on the websites. This
has proved to be helpful for H&M to hold them accountable for different activities that are
performed by them and the raw materials that are offered to them as well (Kianto, Sáenz and
Aramburu 2017).
Recommendations provided to the organization
The major recommendations that can be provided to the two organizations like, ASOS
and Marks & Spencer are based on the improvement of transparency levels of the supply
chain. The organizations need to assign the responsibilities based on development of supply
chain to a specific group of people. The usage of child labour in the operations needs to be
stopped and the organization needs to develop effective policies and strategies in order to
maintain the working hours of employees in the factories (Kramar 2014).

6ETHICAL LEADERSHIP STYLE
b) Implementation of ethical theories in the case study
Demonstration of ethical theories
The two major ethical theories that can be considered to be useful for application in
the modern organizations mainly include, deontology and rights based theories. The
deontological class related to ethical theories are based on the ways by which people need to
adhere to the duties and obligations when they are responsible for effective decision making.
The deontology theory compels the person to take the decisions with respect to different
theories. The obligations that are required to be fulfilled by people are considered to be a
major part of the deontology based theory (Lazaroiu 2015).
A deontologist can be considered to be a person who always aims at following the
laws and keep the promises that are provided to a friend. On the other hand, rights based
ethical theories are related to the rights that are mainly established by a society and are
protected by providing the highest levels of priority as well. The rights are gained by people
who are a part of the large population. The ethical theories that are considered to be important
for the operations and revenue levels of the organizations are related to the two ethical classes
(Mone and London 2018).
The rights can be bestowed on the individuals if they are able to use the resources.
The ethical theories that are related to the rights are thereby considered to be important for
the ways by which the modern organizations are able to fulfil their responsibilities towards
the community or the society. The theory based on rights is however not always useful on
larger scale. The theory is considered to be quite complex in nature as the rights of people
need to be determined by the society (Paillé et al. 2014).

7ETHICAL LEADERSHIP STYLE
Application of the ethical theories within the case study
The deontological theory can be applied in the case that has been provided based on
the two major fashion retail based organizations including, ASOS and Marks & Spencer. The
managers or supervisors of the organizations thereby need to follow the deontological class
of ethical theories in order to improve the ways by which they are able to fulfil their
responsibilities. This will be helpful for the organization in order to maintain the ethical
standards while operating in the industry in a profitable manner (Sattar, Ahmad and Hassan
2015). On the other hand, the rights based ethical theories can be implemented by the
organization with the aim of increasing the levels of priorities of employees within the
industry. This will help the organization to improve the services and reputation of the
organizations as well.
Conclusion
The analysis based on the case study has been able to depict that the organizations
which are considered have not been able to fulfil their ethical responsibilities in an effective
manner. The implementation of ethical theories is considered to be highly important for the
development of the reputation of the organizations in the fashion retail based organization as
well. The organizations will be able to operate in a profitable and ethical manner within the
industry by following the ethical theories in a sustainable manner. The sourcing process of
raw materials of the organization can be considered to be effective for the long term
operations of the organizations.
Part 2
Discussion based on personal ethical leadership
Ethical leadership is considered to be a style of leadership which is mainly directed by
the respect that is provided to the ethical beliefs and the values that is related to the rights and

8ETHICAL LEADERSHIP STYLE
dignity of other people. Ethics are also considered to be the morals and values that are related
to the morals of individuals or that of the society. Ethics are also related to the virtuousness of
the individuals and the motives. The choices that are made by leaders are also influenced in a
huge manner by effective moral development (Sheehan 2014).
The process based on ethical leadership is not only related to increase in levels of
production or the profits that are gained by the organization. The implementation of
management styles and ethics is based on considering the ethics when decisions are made by
the managers. The decisions are based on core values of the individuals or the code of ethics
which are set by the organizations. The ways by which management of an organization is
able to follow the ethical path is able to affect the environment that is developed within the
organization. The management is also able to create a positive environment for the employees
(Stone et al. 2015).
The ethical leaders are thereby considered to be a loyal dedication towards the ethical
considerations and the moral codes that are followed by the organizations. The leadership
strategies that are implemented within the organizations are considered to be important for
the decisions that are taken by the ethical leaders based on different operations. Ethical
leadership based activities are based on different values that mainly include, justice, care,
respect and integrity. The ethical leaders are thereby able to provide effective support the
employees (Sattar, Ahmad and Hassan 2015).
Ethical reasoning is considered to be another major factor that is related to the ethical
leadership related activities within different industries. The ethical leaders need to engage in
the work process and apply the skills in different work roles. An authentic leader is able to
work with the members of the organization in order to pursue the values and goals (Paillé et
al. 2014). Many different types of mechanisms are used by the ethical leaders in order to

9ETHICAL LEADERSHIP STYLE
manage the subordinates or people who are a part of the organization. The ethical leaders are
thereby considered to be highly supportive and effective in nature. The leaders are able to
manage the culture within the organization and improve the levels of productivity of the
employees (Kianto, Sáenz and Aramburu 2017).
Management of business as an ethical manager
I have also tried to maintain ethical leadership based qualities within my organization.
The employees who work under or my subordinates are managed by me in an effective
manner with the help of proper ethical leadership based qualities that have been gained by
me. I have understood the needs and demands of the employees and further tried to develop
the policies according to their needs. I have aimed at maintaining ethical standards within the
organization in order to maintain the customer base and position in the industry as well. I
have tried to become a manager within the organization rather than just leading them (Ghosh
and Gurunathan 2015).
The ethical standards that I have maintained have helped me to improve the
operations of my organization within the organization. I have been working within the
organization with the help of values that are gained by me and the ways by which I have
implemented them in different processes. I have developed ethical behaviour in order to
operate effectively within the organization. The ethical behaviour has been helpful for me to
maintain positive relationships with the members of the organization and my subordinates as
well (Jackson, Schuler and Jiang 2014).
I aim at maintaining my ethical behaviour so that I can maintain the levels of
productivity within the organization and develop effective relationship with the customers as
well. I have tried to understand the cultural changes that have taken place within the
organization. The cultural background of employees has been given high levels of importance

10ETHICAL LEADERSHIP STYLE
by me and I have tried to maintain the effective relationships with them as well (Mone and
London 2018).

11ETHICAL LEADERSHIP STYLE
Bibliography
Aladwan, K., Bhanugopan, R. and D'Netto, B., 2015. The effects of human resource
management practices on employees’ organisational commitment. International journal of
organizational Analysis, 23(3), pp.472-492.
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1),
pp.7-35.
Al-Emadi, A.A.Q., Schwabenland, C. and Wei, Q., 2015. The vital role of employee retention
in human resource management: A literature review. IUP Journal of Organizational
Behavior, 14(3), p.7.
Bamberger, P.A., Meshoulam, I. and Biron, M., 2014. Human resource strategy:
Formulation, implementation, and impact. Routledge.
Banfield, P., Kay, R. and Royles, D., 2018. Introduction to human resource management.
Oxford University Press.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Collings, D.G., 2014. Integrating global mobility and global talent management: Exploring
the challenges and strategic opportunities. Journal of World Business, 49(2), pp.253-261.
Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
strategies. International Journal of Contemporary Hospitality Management, 27(3), pp.453-
472.

12ETHICAL LEADERSHIP STYLE
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in
knowledge management practices and innovation. Journal of Business Research, 68(2),
pp.360-370.
Ghosh, D. and Gurunathan, L., 2015. Do commitment based human resource practices
influence job embeddedness and intention to quit?. IIMB Management Review, 27(4), pp.240-
251.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic
human resource management. The Academy of Management Annals, 8(1), pp.1-56.
Kianto, A., Ritala, P., Spender, J.C. and Vanhala, M., 2014. The interaction of intellectual
capital assets and knowledge management practices in organizational value creation. Journal
of Intellectual capital, 15(3), pp.362-375.
Kianto, A., Sáenz, J. and Aramburu, N., 2017. Knowledge-based human resource
management practices, intellectual capital and innovation. Journal of Business Research, 81,
pp.11-20.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human
resource management the next approach?. The International Journal of Human Resource
Management, 25(8), pp.1069-1089.
Lazaroiu, G., 2015. Employee motivation and job performance. Linguistic and Philosophical
Investigations, 14, p.97.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance
management: A practical guide for managers. Routledge.

13ETHICAL LEADERSHIP STYLE
Paillé, P., Chen, Y., Boiral, O. and Jin, J., 2014. The impact of human resource management
on environmental performance: An employee-level study. Journal of Business Ethics, 121(3),
pp.451-466.
Sattar, T., Ahmad, K. and Hassan, S.M., 2015. Role of human resource practices in employee
performance and job satisfaction with mediating effect of employee engagement. Pakistan
Economic and Social Review, 53(1), p.81.
Sheehan, M., 2014. Human resource management and performance: Evidence from small and
medium-sized firms. International Small Business Journal, 32(5), pp.545-570.
Stone, D.L., Deadrick, D.L., Lukaszewski, K.M. and Johnson, R., 2015. The influence of
technology on the future of human resource management. Human Resource Management
Review, 25(2), pp.216-231.