Ethical Leadership: Theories, Practices, and Application in Management

This report provides a comprehensive analysis of ethical leadership theories, including Teleological, Deontological, and Virtue-based theories, and their practical applications in organizational management. It addresses the importance of ethical conduct for leaders, emphasizing qualities such as honesty, impartiality, and responsibility. The report compares the different theories, highlighting their unique approaches to decision-making and ethical considerations. It also includes recommendations for leaders to enhance employee efficiency and retention by adopting ethical practices. Ultimately, the study aims to provide insights into fostering a positive work environment through ethical leadership, helping organizations retain employees and achieve their goals.

PRINCIPLES AND PRACTICES OF LEADERSHIP&
MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Critical Comparison.........................................................................................................................3
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
Reference List:.................................................................................................................................9
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Introduction
The term leadership refers to the particular ability of a person to guide and direct a group of
individuals towards a set direction, in order to achieve a set particular target. Every company or
organisation follows a particular hierarchical setup for proper functioning. Every employee
working in the company has his or her mentor or a leader who is responsible for guiding and
mentoring the employees in order to meet up with a particular objective.
A good leader is the one who properly listens to the issues faced by the employees, critically
analyses their problems, provide a solution for the problems and finally makes sure that the
employees are going by the solution. Recently conducted studies have stated that a good leader
not only helps to enhance the efficiency of employees, but is also a crucial factor that contributes
to the achievement of organisational goals. Hence the need of proper leadership has become a
must for a company or an organisation.
Critical Comparison
The term Ethics is derived from the Greek term ethos, which refers to an individual’s particular
conduct or character. Precisely, ethics are a set of behavioural ways and approaches one shall
follow and refer to while interacting with any individual or organisation, may it be for personal
or professional purpose. However, ethics are not only associated to the personal aspect of an
individual, but in order to be an efficient leader, one has to follow some basic ethics and
principles.
The Ethical Theory has to be followed by every organisation and its heads, while dealing with
and guiding a set of employees. This theory is responsible for stating what is wrong and what is
right, in reference to the decision making processes. As observed by the Sales Manager of the
large Manufacturing Company, employees during their exit interviews, the employees have
stated that the management has been too stringent and not flexible when it comes to handling the
customers. He has also understood the fact that since the leadership and guidance has been too
directive and least coordinating; the employees have failed to satisfy the wants of the consumers.
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The need to have a leader who follows and goes by certain principles and ethics always helps the
companies and organisation to properly manage the workforce without as such scope of
grievance. According to Roter (2017), an ethical leader is an individual who never carries an
attitude of arrogance or rudeness. Neither does he or she take steps to demean or diminish the
dignities of his subordinates. They are the ones who carry a humble attitude, take the
responsibilities of their employees and also make sure that they are well aware of the issues
faced by the employees (. In order to become an efficient and preferred leader, one has to imply
certain theories to his or her behaviour and work according to it. In the following paragraphs,
these theories have been dealt with in detail.
The Contingency theory implies that there is no such best way to manage an organisation, or a
set of employees. According to the theory, the best managers and leaders are the ones who
critically analyse the situations and take decisions based on those decisions itself (Ingram et al.,
2015). The Contingency Theory states the working situations always vary and are seldom
dependent on the heads of the organisation (Boies et al., 2015). Rather it is the various internal
and external factors that play the most significant role when it comes to working atmosphere and
situations. Under this theory, the organisations are open systems that require careful and robust
management (Jaques, 2017). If the management and leaders manage to meet just that, they shall
not only be successful in raising the business of the organisation, but shall even manage to retain
the best of employees who shall give their best output for the company. There are certain
theories which may be employed by the decision makers and leaders of the company.
Teleological Theory of Leadership
Today, businesses and organisations have become much more concerned when it comes to
morals and principles followed by the organisation in order to meet their goals. The Teleological
theory is a theory which is concerned with the outcomes of the actions taken by an individual or
an organisation (Burke, 2017). They strictly believe that their way of behaviour and conduct
shall have consequences. And thinking about those consequences and predicting the outcomes it,
the followers of this theory shape their behaviour and ways of functioning. The followers of this
theory shall seldom be deviated from their principles and morals. Even if breaching the
principles and morals enhance the performance levels, the leaders shall not compromise.
According to Chaterjee, (2016), Teleological Theory is one of the most frequently applied
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theories today by organisations as it helps in various aspects such as employee retention,
building the reputation of the organisation and building up the cultural and social values of the
companies.
Deontological Theory of Leadership
Unlike the Teleological theory which deals with the rightness or wrongness of the consequences
of a particular action, the Deontological Theory deals with the consequence of the particular
action itself (Kagan, 2018). The followers of this theory ensure that the steps taken by the
company and its influencers or decision makers take actions which are morally correct and not
harmful for the employees or the business environment. The leaders, who are staunch followers
of this theory of leadership, shall make sure that the employed actions have a proper conduct,
and are not morally incorrect (Waldman et al., 2017). For example, the followers of the
Deontological Theory of Leadership shall ensure that they follow certain principles such always
speaking the truth, treating everyone fairly and not preferring any sort of a partial behaviour.
Precisely, the followers of this policy are duty driven and shall never compromise with their
values and principles (Daniel, 2017). They would think about the outcomes less and instead
would put more emphasis on their own behaviour and principles.
Virtue-based Theory of Leadership
As the name suggests, Virtue-based Theory of Leadership applies when an individual rather than
the focussing on the actions or the consequences of the action, focuses on one’s own qualities
and values. The followers of this theory of leadership ensure that they are themselves morally
correct. They also make it a point to be ethically sound and carry a proper conduct. According to
Eisenbeiss (2015), the followers of Virtue-based theory of leadership do not focus much on the
actions and its consequences. Rather they believe in the fact to carry a proper behaviour and a
strong set of morals. Doing this would never promote any sort of a morally and ethically wrong
action, leave alone any consequences (Mill, 2016). The leaders who follow this theory make it a
point to build up and enhance certain qualities among themselves that would not only help them
to build up proficiency, but shall also induce a stronger sense of value and character. For
example, the followers of this theory of leadership shall focus on qualities such as honesty,
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building up courage, justice, humility and others. One can say that instead of telling what to do,
the Virtue-based Theory of Leadership suggests people, who to be.
Teleological Theory of Leadership, Deontological Theory of Leadership and Virtue-based
Theory of Leadership: Comparison
All the above stated three theories of leadership are unique and different from one another. It
remains up to the organisation’s policies and the mindset of the individuals as to which one
theory they would prefer. While the Teleological theory states that the followers of it should be
focussed completely on the consequences of the actions taken by the company, the Deontological
theory states that the followers shall remain completely focussed on the actions being taken by
them and the organisation they are representing (Zeni and Griffith, 2016). The theory claims that
as and when the actions are given good attention and shaped, their seldom remains any scope of
a negative consequence. On the other hand, the Virtue-based Theory of leadership does not focus
on the scope of actions and its consequences. Rather it suggests and states that the followers shall
be solely concerned about their own quality and ethics and look into it that their qualities such as
honesty, dignity, humility and impartiality are practiced by the leaders and the influencers of an
organisation.
However, if a company or an organisation manages to have a proper hybrid of the above stated
three theories; it would be the ideal one (Burrell and Morgan, 2017). Like in this case where the
employees are leaving the organisation stating reasons such as harsh management and too much
of directive approaches employed by the manufacturing company, the company must ensure that
the key responsibility holders and the decision makers think about their own qualities (virtue-
based), think about the actions they take (Deontological) and also about the consequences which
may arrive as a result of the actions (Teleological).
Ethics and Morals to be followed as a Leader
In order to be a successful leader and influencer, an individual must follow certain ethics and
principles during work (Rahim, 2017). They need to be correct and morally sound themselves in
order to influence and guide others. The following ethics and principles are needed to be
inculcated:
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 Honesty
 Accepting the responsibilities
 Impartiality
 Being Humble
 Trust worthy
 Attentiveness
Only if an individual manages to build up and maintain these qualities and ethics, can he or she
become a good leader (Lippmann, 2017). These leadership qualities are the base upon which an
individual shall handle and manage a set of subordinates. If they fail to inculcate any of them,
employees would not prefer to work under that person, resulting in lesser efficiency in the work
as a whole (Scott and Davis, 2015).
Recommendations
It is not always possible for the leaders and influencers of a particular company to always focus
and give particular attention to their attitudes and behaviours towards their subordinates. In
today’s world of extreme competition and rivalries among the companies and organisations,
leaders are always under pressure and scrutiny from the higher management. In order to enhance
the efficiency and performance of the employees, the leaders and the decision makers often
impose their thoughts and principles on to the employees and do not provide much consideration
to their thoughts and ideas. Also, the amount of work and the pressure to meet deadlines have
often forced the leaders to employ some or other techniques to work that violates the ethics of
oneself. As seen in the case of the big manufacturing companies, the employers blamed the stern
management of the company for their resignation. Companies like these can employ individuals
who specifically deal with the employees and guide them efficiently. They shall play the role of
mentors and coaches who train and govern the employees’ following certain ethics.
Conclusion
In this study, the main aim has been to chalk out and provide a detailed insight into the three
theories of leadership that might be employed by the organisation and its decision makers. Also
the ways through which the employees of a company can be retained by giving them priority
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along with extracting the best out of them has been provided in the report. Lastly, the basic ethics
and leadership qualities that must be inculcated among the influencers and the decision makers
have been provided in this study. Although all the statistics and data provided in the study are
100% authentic, all suggestions aimed at increasing the reliability and credibility of the study are
welcome.
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Reference List
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relationship between leadership and team performance and creativity. The Leadership
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Burke, W.W., 2017. Organization change: Theory and practice. Sage Publications.
Chatterjee, S., 2016. Teleological Dynamics of Organizational Performance: From Process to
Practice and Perfectionism. IUP Journal of Knowledge Management, 14(2), p.7.
Daniel, L., 2017. Model of safety leadership influence: Golden road to safety leadership.
In Practical Guide to Safety Leadership (pp. 58-95). Routledge.
Eisenbeiss, S.A., Van Knippenberg, D. and Fahrbach, C.M., 2015. Doing well by doing good?
Analyzing the relationship between CEO ethical leadership and firm performance. Journal of
Business Ethics, 128(3), pp.635-651..
Ingram, T.N., LaForge, R.W., Williams, M.R. and Schwepker Jr, C.H., 2015. Sales management:
Analysis and decision making. Routledge.
Jaques, E., 2017. Requisite organization: A total system for effective managerial organization
and managerial leadership for the 21st century. Routledge.
Kagan, S., 2018. Normative ethics. Routledge
Lippmann, W., 2017. Public opinion. Routledge.
Mill, J.S., 2016. Utilitarianism. In Seven Masterpieces of Philosophy (pp. 337-383). Routledge.
Rahim, M.A., 2017. Managing conflict in organizations. Routledge.
Roter, A.B., 2017. Understanding and Recognizing Dysfunctional Leadership: The Impact of
Dysfunctional Leadership on Organizations and Followers. Taylor & Francis.
Scott, W.R. and Davis, G.F., 2015. Organizations and organizing: Rational, natural and open
systems perspectives. Routledge.
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Waldman, D.A., Wang, D., Hannah, S.T. and Balthazard, P.A., 2017. A neurological and
ideological perspective of ethical leadership. Academy of Management Journal, 60(4), pp.1285-
1306.
Zeni, T.A. and Griffith, J.A., 2016. BUSINESS ETHICS AND THE BOTTOM LINE:
FINANCIAL IMPACTS OF ETHICAL DECISION MAKING. 2015-2016 OFFICERS
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