ETHICAL LEADERSHIP

ASSIGNMENT/REPORT

C#PA405 MANAGEMENT ETHICS

SUBMITTED BY:

TAHREEM FATIMA, SYEDA AFIFA HASAN

FABIHA RIZWAN, DILAWAR GILLANI

SECOND YEAR (2023)

SUBMITTED TO:

TEHSEEN REHMAN

DEPARTMENT OF PUBLIC ADMINISTRATION

UNIVERSITY OF KARACHI
TABLE OF CONTENTS

Introduction……………………………………………………………………………………………1
Principle of Ethical Leadership……………………………………………………………………...2
Characteristic of Ethical Leadership………………………………………………………………..4
Importance of Ethcal Leadership…………………………………………………………………...7
Impact of Ethical Leadership………………………………………………………………………..9
Improvement/Development of Ethical Leadership………………………………………………..10
Examples of Ethical Leadership…………………………………………………………………….11
Conclusion…………………………………………………………………………………………….11
TAHREEM FATIMA

Ethical leadership
Introduction:

In order to understand ethical leadership, we need to clarify ethics and leadership.

Ethics:

Derived from the Greek word “ethos”, which means “way of living”, ethics is a branch of philosophy that
is concerned with human conduct, more specifically the behavior of individuals or group in society.
Ethics examines the rational justification for our moral judgments; it studies what is morally right or
wrong, just or unjust. It helps us to act in a just and fair way and for the common good. It helps us to
know what is right or wrong.

“Ethics is about human excellence” (Professor Mele)

Example;

You want to buy a nice shirt. You go to a store. You pick a shirt, have a trial in the trial room. You do
not like the shirt. You leave the shirt on the floor, crumpled. You walk out, looking for other shirts.
(Unethical).

You want to buy a nice shirt. You go to a store. You pick a shirt, have a trial in the trial room. You do
not like the shirt. You carry the shirt with you gently, return it either in the place allotted or hand it over
to the staff there. You walk out, looking for other shirts. (Ethical)

Treat that shirt you do not want to buy the same way you would treat the one you would buy!

Leadership:

“Leadership is not about titles, positions or flowcharts. It’s about one life influencing
another.”

(John C. Maxwell)

“Leadership is a process of social influence, which maximizes the efforts of others,

towards the achievement of a goal.”

(Kruse,2013)

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Example;

Real life example of leadership is:

 Mahatma Gandhi – The World’s Most Influential Anti-War Leader.

 Bill Gates – The Philanthropist etc.

Ethical Leadership:

Ethical leadership means that individuals behave according to a set of principles and values that are
recognized by the majority as a sound basis for the common good.

Ethical leadership must be a conscious decision. As Fred Kofman writes in his book Conscious
Business, “To be conscious means to be awake, mindful. To live consciously means to be open to
perceiving the world around and within us, to understand our circumstances, and to decide how to
respond to them in ways that honor our needs, values, and goals. He continues, “To be unconscious is
to be asleep, mindless… Consciousness enables us to face our circumstances and pursue our goals in
alignment with our values. When we lose consciousness, we are swept away by instincts and habits
that may not serve us. We pursue goals that are not conducive to our health and happiness, we act in
ways that we later regret, and we produce results that hurt us and those we care about.”

An example of ethical leadership would be in the case of managers who manage several employees in
an organization and respect all the members, listen to their views and opinions, support their interests
and beliefs, and encourage the subordinates to always act in fairness, practice honesty, and be
considerate of each other, all of which they show by example.

Principle of Ethical Leadership:

According to scholars, ethical leaders have five principles: respect, service, honesty, justice and
community. Let’s have a look at these in more detail.

Respect:

Ethical leaders really listen to their colleagues. They will be empathetic and tolerant of others opinions
even if their views do not align. Employees will be encouraged to realize their own purpose and values
which in turn promotes ethical qualities to spread throughout the business.

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Service:

This is the primary building block of a moral leader as they will always priorities the interest of others.
Within businesses this is shown through mentorship, performance plans and team building.

Honesty:

Being completely open and honest is something an ethical leader will always do; they are people of
complete integrity. For example, they will not promise something if it cannot be delivered and will take
accountability if things go wrong.

Justice:

An ethical leader will apply the same set of rules to everyone, ensuring all are treated equally and given
equal opportunities. Fairness is at the core of this and plays a big part in their decision-making
processes. If someone requires different treatment for special circumstances then the reasons for this
will be clear, reasonable and morally right.

Community:

All leaders have goals that they will work towards, ethical leaders work towards these goals while also
taking into account their own and their employees purposes, ensuring the goals are suitable for all.
Ethical leaders will also take into account the wider community and society, reaching out to
organizations to achieve a mutual goal with a positive impact.

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Characteristics of ethical leadership:

Here are 12 leadership characteristics that are common among the best ethical leaders.

1. Justice:

An ethical leader is fair and just. They have no favorites, and everyone is treated equally. Ethical
leadership eliminates biased treatment based on gender, ethnicity, nationality or any other factor. When
you enter into a courtroom, you expect decisions to be made with justice and rational decisions. In your
workplace, you must be a just leader so that people can have a baseline to judge what is and isn’t
tolerated. If you fail to set boundaries and give out unjust punishment, it falls on your lack of an ethical
foundation that doomed the company from the very start. Establishing rules and sticking to them allows
everyone to feel within reasonable boundaries and not feel singled out.

2. Respect for Others:

An ethical leader demonstrates respect for all members of the team by listening compassionately,
valuing diverse contributions and considering opposing viewpoints. Holding respect for others and
equally around the team and company is another example of ethical leadership. Egalitarian treatment of
their peers is key, there is no favoritism being played out and no ill treatment of any member of staff
through any form of discrimination. Ethical leaders are equipped to listen attentively, being
compassionate, considering opposing viewpoints fairly and valuing their contributions equally.

3. Be the Example:

A noble quality of a leader is leading by example. As an ethical leader, it’s important to remember that
actions often speak louder than words. People are more likely to judge someone based on how they
act, rather than what they say. By practicing and demonstrating the use of ethical, honest and unselfish
behavior to subordinates, ethical leaders may begin to earn the respect of their peers. People may be
more likely to follow a leader who respects others and shows integrity

4. Communicate:

Successful ethical leaders tend to be good communicators. People communicate in different ways.
Some may feel comfortable speaking in public, regardless of personnel or situation, while others may
be hesitant to speak with a leader because of fear, anxiousness or simply not knowing how to articulate
what they are trying to say. They might be better talking via email, rather than in person. It’s an ethical
leader’s job to communicate with each member of the team, but also allow for open conversation, as
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some people may have questions and concerns that need addressed. It’s important for leaders to build
camaraderie with their team. Quality relationships tend to be built on trust, fairness, integrity, openness,
compassion and respect.

5. Focus on Team Building:

Ethical leaders foster a sense of community and team spirit within the organization. When an ethical
leader strives to achieve goals, it’s not just about a personal mission. They make genuine efforts to
achieve objectives that benefit the entire organization — not just themselves.

6. Encourages Initiative:

Under an ethical leader, employees thrive. Employees are rewarded for coming up with innovative
ideas and are encouraged to do what it takes to improve the way things are done. Employees are
praised for taking the first step rather than waiting for somebody else to do it for them.

7. Moral:

When it comes time to be a leader, knowing the difference between what is right and what is wrong is
essential to running your business. Having a character that uses moral reasoning to make decisions
ensures that you and those working for you are comfortable doing what needs to be done.

Ethics and morals can often seem like the same thing, but morals are the principles that drive and
guide you when you need to make tough choices. People who look up to you to make decisions will
look to see that you are making moral choices that most people would deem to be ethical.

8. Fair:

Having standards that you want a business to achieve is a great way to make sure you are hitting goals
and deadlines. However, you want to make sure that your goals are fair and reasonable for what can
realistically be done. Nobody wants to work for someone who treats them unfairly. To be fair to your
employees, you want to put yourself in their shoes and think about how you would feel being asked to
do something unreasonable or excessively difficult. Treating people with fairness will keep you working
ethically and your employees working productively.

9. Honest:

As many people say in the business world, honesty is the best policy. Being honest as a leader means
telling the truth to those you work with on what needs to be done and what isn’t going so well. A

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workplace that is built on honesty will keep secrets and unethical behavior at bay. Being honest with
yourself as to what you need to take care of and improve upon will also make you a better leader.

10. Adapts to change:

Key to ethical leadership is the ability to listen to others and find common solutions that work for the
benefit of team members rather than just one individual at a time. Change is sometimes thrust upon a
business, an environment, a team without any warnings - and sometimes with a warning. Ethical
leadership is about understanding the changes, listening to concerns but also making decisions that
need to be made and respected across the team. Working in new environments and scenarios can
happen at any time, an ethical leader can help make it a smooth transition.

11. Zero tolerance of ethical violations:

Ethical leaders hold themselves to account on a daily basis therefore it is about doing the right things at
the right times - not when it is convenient to or when someone is watching. This is why, holding
themselves accountable and not allowing others to break ethical codes of conduct is essential.

12. Driven:

A leader without a drive is like a boat with no captain. If you are not internally driven to make the best
out of what you have, then you are not moving your workers forward to better things and are essentially
a stranded ship. Having the drive to push your company will keep you miles ahead of slacking
competition.

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Importance of Ethical Leadership:

There are many good reasons to be an ethical leader. The importance of ethical leadership is:
1.Ethical Behavior:

Leaders can inspire those around them to behave ethically. By setting an example and giving the
direction for ethical behavior, others will observe and act similarly. In this way, ethical leaders can
positively influence many others, presenting them with a set of actions that they can adopt for the
greater good.

2. Credibility of Reputation:

Being an ethical leader is essential for credibility and reputation. If one aims to be a leader, it is a long
game. Behaving unethically can automatically take a leader out of the A-league and may heavily
damage their personal or company brand. Moreover, unethical behaviors often deteriorate one's self-
esteem, leading to a suboptimal outcome and a missed opportunity to express one’s full potential.

3. Loyalty:

Leadership that is ethical is important for a variety of reasons, for customers, employees, and the
company as a whole. Leadership skills are crucial to help create a positive ethical culture in a company.
Leaders can help investors feel that the organization is a good, trustworthy one. Customers are more
likely to feel loyal when they see leaders in place in an organization. Good press is likely to come when
there are ethical leaders in an organization. Partners and vendors will similarly feel they can trust and
work well with an organization when they see leadership that is ethical displayed.

4. Employee Moral \ Positive Image:

Ethical leaders can help boost employee morale and help them feel excited about their management
and their work. It can increase positivity and collaboration in your organization and make everyone feel
happier to be at work.

5. It Reduces Social Vices in Society:

Social vices are bad traits, unhealthy and negative behaviors that are against the morality of a society
and frowned at by members of the society. Such as corruption, prostitution, arm robbery will decrease.

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6. It Helps Individuals to Make Good Decisions:

Individual are able to take better decisions that can help society develop decisions need to be made to
ensure progress and growth. However, the way in which these decisions are made is crucial. Leaders
who priorities ethical considerations in their decision-making process can set a strong foundation for the
success and sustainability of their organization.

7. It Helps to Increase Productivity:

Ethical leadership will increase productivity and individual retention. It creates interests for employees
in organizational activities to accomplish tasks in efficient manner and it also help increase productivity.
Higher levels of productivity improve efficiency in society.

8. Ensures Sustainability:

Ethical leadership is critical for the long-term sustainability of an organization. By prioritizing ethical
considerations in decision-making, leaders can ensure that their organization operates in a way that is
sustainable and responsible.

9. Prevention:

Ethical leadership can prevent company scandals, ethical dilemmas, and ethical issues. It can also help
organizations gain more partnerships and customers, which can lead to more money at the end of the
day. Loyal employees are also a crucial element of long-term success for a business.

10. Benefits for Organization:

Ethical leadership provide the optimal setting for employees by inspiring, developing, and establishing a
culture of trust and respect. This leads to significant benefits like lower turnover, higher productivity,
and loyalty.

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Impacts of Ethical Leadership:

The impact of ethical leadership can be wide ranging having positive impacts on various aspects of
organizations, employees and stakeholders. Some of ethical leadership of Key impact of ethical
leadership include.

1. Increased Trust and Respect:

Ethical leaders are known as trustworthy and respectable. They try to inspire their employees and
stakeholders through trust & respect. Trust plays pivotal role in building relations and nurturing healthy
environment which leads to increased employee loyalty, engagement and commitment.

2. Enhanced Employee Morale & Performance:

By modeling ethical behavior ethical leaders set example for company. This improve performance &
productivity by boosting employee morale, motivation and job satisfaction, and in result they get loyal
workers, who are willing to go extra for organization.

3. Improved Organizational Reputation:

Ethical leadership can benefit brand image and organizations reputation. Customers, employees and
stakeholders can improve company reputation, customer’s loyalty, investors’ confidence on
organization.

4. Better Decision Making & Problem Solving:

Ethical leaders are also known as better decision makers in crucial situations. They make decisions
within boundaries of organizational values. This results in better decision making and problem solving
leading to more effective and sustainable outcomes.

5. Ethical Organizational Culture:

Moral administration can - encourage a hierarchical culture which values moral leadership,
responsibility and straightforwardness. Employees are likely to follow the footsteps of leader who
consistently demonstrate moral behaviors This can create positive culture which encourages ethical
behavior and discourages unethical behaviors.

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6. Mitigation of Ethical Risks:

Ethical leader proactively identifies and address ethical risks within organizations. They promote open
communication & report of ethical concerns and take prompt actions to address ethical lapses. This can
help mitigate ethical breaches which could arise from unethical behaviors.

Improvement/Development of Ethical Leadership:

Ethical leadership involves organizational leaders demonstrating appropriate conduct both inside and
outside of the office. Ethical leaders demonstrate good values through their words and actions.

Here are 5 tips to help you develop ethical leadership skills.

1. Align Their Morals:

Remember as an ethical leader “never take what is not yours”? How about “treat others the way you
want to be treated”? We all grew up learning different morals and a few common ones. As the world
evolves and things change by the second, some of the things we used to know as right, good, truth,
and fair are now being questioned and tested. Once we assume or take up leadership positions, we
must define and align our morals to that of the organization.

2. Be The Custodian of Ethics:

To be leading an organization, ethical leader must be the epitome of ethics. Spend time mastering the
ethics projected by the organization and others that align with the growth path and goals of the
organization. As ethical leader lead, inevitably, people look up to them for varying things. One way to
spread ethical values across a team they lead to be an example.

3. Champion Open Communication:

They create a conducive environment where anyone can speak up about issues related to ethical
violations and other matters by championing open communication.

4. Keep improving:

They never settle for good. Always try to be the best They compete with themselves. In a fast-changing
world, our skills and knowledge can become obsolete even before we get the chance to put them to
use. In that light, it is critical to learn, unlearn, and re-learn. As leaders, we must be on top of
happenings in our industry and related industries. Take courses, enroll for fellowships. Network with
people who can provide mentorship.
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5. Avoid being Bias:

Leaders are human and every human has biases. There is that thing we are inclined towards. To truly
develop ethical skills and become an ethical leader, one must truly be consistent with what is
addressed as wrong or right and how wrong or right is addressed. Consistency, of course, draws
respect and trust, something every leader need from those they need.

EXAMPLES OF ETHICS LEADERSHIP:

We discuss 4 ethical leaders leadership the first one is Quaid e Azam he was able to achieve Pakistan
by a charismatic leadership secondly we have mahatma Gandhi his leadership is transformational and
transactional he was also deliberate and analytical thirdly we have Abdul Sattar Eddhi he follows
affective leadership by creating harmony and building emotional bonds lastly we have Abraham Lincoln
throughout his presidential career he practiced an open-door policy always being accessible even to his
lowest rank subordinates.

CONCLUSION:

Leaders come in all shapes and sizes, but what they all have in common is the need to make decisions
that are ethical and moral.

The examples of ethical leadership we have discussed show how powerful this type of leadership can
be. As we move into an increasingly complex world, it is more important than ever for leaders to stand
up for what is right and lead with ethics and compassio

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