The Role of Ethical Leadership in Modern Business Organizations

This discussion board post delves into the critical role of leadership in business, emphasizing the importance of ethical considerations for organizational success. It addresses issues such as corruption, lack of trust, and the gap between effective and under-performing leaders. Participants agree that ethical behavior is foundational, with leaders needing to lead by example, set achievable goals, and actively engage in strategic planning. The discussion highlights how unethical actions at the top can negatively impact employee behavior and organizational performance, while effective leadership requires appropriate skills, knowledge, and a commitment to ethical decision-making that aligns with organizational goals. The exchange underscores the need for leaders to foster trust, promote ethical conduct, and prioritize the overall success and sustainability of the business.

Leadership in Business 1
Leadership in Business
Institutional affiliation
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Leadership in Business 2
Leadership in Business
Participation 1
Leadership is a central part in business that inaugurates the beginning of the success. It
involves the process of setting and achieving goal by taking decisive action, outperforming the
competition and inspiring people to perform well in their duties. The success of any business
industry is reflected by the leadership approach that is considerably implemented by the
management (Caldwell & Ndalamba, 2017).
Ethics is the primary element of leadership in an organization, ethical leaders tend to
perform better than those that act within significant unethical issues. Corruption, greed for power
and embezzlement of organization resource is known to be the key issues affecting leaders in
current business environment, these aspects compel involve persons to reach unto making the
decision that is not comprehensive to the target challenge (Miller, 2017). The management is
advocated to keep-off from linking themselves with unethical issues but rather ensure that they
promote ethical behavior to the organization.
According to the current business environment, the concept of “leadership” has changed
because of the existence of the gap between performing and under-performing leaders. It is to my
opinion that every leader should identify areas in an organization that needs immediate
implementation, the success of every leader in business is to incorporate all aspect and responds
promptly to issues affecting the business organization (Bowie, 2017). In conclusion, it my
opinion that leaders should get engaged and attached to all concepts will enhance ethical
conduct, and they will ensure that they will achieve the organizational goals and objectives.
Participation 2
Argument

Leadership in Business 3
I agree with the opinion of the first student, business organization is suffering from lack
of trust from all stakeholder especially from shareholders and customers. Leaders in the business
organization tend to engage themselves with unethical issues that are irrelevant to the
organizational goals and objectives (Ferrell, 2015).
Lack of trust and unethical issues in leadership is encouraged by the present business
environment in which leaders work. Poverty is one of the primary factors that has encouraged
leaders to involve themselves in corruption, embezzlement of resources is also another factor in
the current business environment (Wu, et al., 2015). Leaders in business tend to force their
inferior employees to perform well and yet they cannot make for themselves, this has sabotage
the operation of the business organization. Leaders ethical concern is based on the working
environment, workplace being the primary position which contributes in comprehending the
definition of ethical leadership in business (Lawton & Páez, 2015).
In order to gain trust leaders are advocated to lead by example and the subordinate will
follow them, in order to be a leader it is important for a person to lead by example. Leaders have
to set goals for themselves that are achievable, it is their responsibility to take part in all process
of setting up strategic goals and objectives and they have to take part in accomplishing those
mission and visions (Rezaee, 2017).
Participation 3
Argument
I agree with that many leaders in business are infective or unethical, many of them are
ineffective because they lack appropriate skills and knowledge of managing a business. Some of
them are also acting unethical because they are compelled by aspect such as greed for power,
where some of them are fearing to lose their leadership and look-down by employees (Ferrell,

Leadership in Business 4
2015). Leadership behavior of a person in any business reflect the mode of success that is gained
by the organization. Aleader with “bad” behaviors are affects the process of attaining the
strategic goals and objectives of a business organization.
Unethical action that are observed in business organization are just the emulation from
the top leadership, employee tend to directly or indirectly copy what their leaders are performing.
Leader that act ethically will allow employee to act the same, while those acting in “bad”
behavior will absolutely affect employees’ behavior (Carroll & Buchholtz, 2014). The
ineffectiveness of leaders and performance in an organization is reflected with the skill and
experience processed by an individual, the top management may decide to unethically decide to
allow someone without experience to management the business activities, because of lack of
skills and experience business activities may not meet the required standard, and thus affecting
the achievement of strategic goals and objective (Girma, 2016).
The moral foundation of ethical leaders in business is primary having good and desirable
behavior. Employees in business organization follow the behavior of their leaders, organizational
effectiveness and efficiency circulate on top leadership. Ethical decision made by the
organizational leadership reflects the theoretical concepts of behavior, leaders are encouraged to
induct leadership behavior that is considerably relevant to organization management (Gatewood,
2015).

Leadership in Business 5
References
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Caldwell, C. & Ndalamba, K. K., 2017. Human Resource Professionals as Strategic Leaders—A
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Leadership, 10(1), p.4..
Carroll, A. & Buchholtz, 2014. . Business and society: Ethics, sustainability, and stakeholder
management.. s.l.:Nelson Education..
Ferrell, O., 2015. Business ethics: Ethical decision making & cases.. s.l.:Nelson Education..
Gatewood, R., 2015. Human resource selection.. s.l.: Nelson Education..
Girma, S., 2016. The relationship between leadership style, job satisfaction and culture of the
organization. IJAR, 2(4), 35-45.. s.l.:s.n.
Lawton, A. & Páez, I., 2015. Developing a framework for ethical leadership.. Journal of
Business Ethics, 130(3), pp.639-649..
Miller, M., 2017. Human Resource Management. s.l.:s.n.
Rezaee, Z., 2017. Business sustainability: Performance, compliance, accountability and
integrated reporting.. s.l.:Routledge.
Wu, L. Z., Kwan, H. & Yim, F. K., 2015. CEO ethical leadership and corporate social
responsibility: A moderated mediation model.. Journal of Business Ethics, 130(4), pp.819-831..