RBL 2

The Role of Ethical
Leadership in Shaping
Organizational Culture
Ethical leadership is a critical component in building a positive and

productive organizational culture. By embodying integrity, fairness, and
transparency, ethical leaders can inspire their teams to embrace shared
values and work towards common goals.
Presented by :- Khushi Raizada
Presented to :- Mrs . Monica Agarwal

Understanding the Concept of
Ethical Leadership
1 Integrity 2 Fairness
Ethical leaders demonstrate They make decisions and treat all

unwavering commitment to moral employees equitably, without bias or
principles and set a positive example favoritism.
for their employees.
3 Transparency
Ethical leaders foster open communication and accountability, ensuring their

actions and decisions are clear and justifiable.
Importance of Ethical Leadership in
Shaping Organizational Culture
Trust and Respect Accountability Ethical Conduct
Ethical leadership breeds a Ethical leaders hold By modeling ethical behavior,

culture of trust and mutual themselves and their team leaders inspire their
respect, where employees members accountable, employees to uphold the
feel empowered and valued. fostering a sense of organization's values and
responsibility and ownership. moral standards.
Need for Research on Ethical
Leadership
Emerging Challenges Theoretical Gaps
Rapidly changing business environments Existing theories on ethical leadership need

and evolving ethical dilemmas require a to be further developed and empirically
deeper understanding of ethical leadership. tested within organizational contexts.
Practical Applications Societal Impact
Research on ethical leadership can provide Ethical leadership has far-reaching

valuable insights to help organizations implications for the well-being of
implement effective leadership practices. employees, organizations, and the broader
community.
Literature Review on Ethical
Leadership
Generally speaking, leadership is the power of an individual to influence other people.

However, using the notion of ethics, leadership is defined as “the power to determine what
is good and bad or what is right and wrong to achieve common goals” . This implies that
“ethical leaders lay down rules, follow these rules and seek to enforce them”. The domain of
ethical leadership is broad in nature, encompassing altruism, trust & integrity, fairness in
rewards distribution, honesty in dealings, being supportive, engaging in open &
transparent communication, emphasizing ethical values, setting clear ethical standards
and holding those accountable for indulging in unethical practices.
Although a popular field, Ethical Leadership as a construct has suffered disintegration and confusion
regarding its exact philosophy. The Center for Ethical Leadership state that “Ethical leadership is
about knowing your core values and having the courage to live them in all parts of your life in service of
the common good” . The management perspective views ethical leadership as “the demonstration
of normatively appropriate conduct through personal actions and interpersonal relationships, and the
promotion of such conduct to followers through two-way communication, reinforcement, and
decision making”. Using this perspective, “a leader as a moral manager is one “who discuss ethical
norms or standards with subordinates and offer proper punishments and rewards with regards to
ethical/unethical behaviors), and a moral person (i.e., a caring, honest, and principled individual who
makes balanced decisions) . They also developed a 10- item scale to measure perceptions of ethical
leadership known as the Ethical Leadership Scale (ELS).
Objectives of Ethical Leadership
Research
Understand Antecedents
1 Identify the individual, organizational, and contextual factors that contribute

to the development of ethical leadership.
Examine Outcomes
2 Investigate the impact of ethical leadership on employee well-being,

organizational performance, and societal impact.
Inform Practice
3 Provide recommendations for organizations to cultivate and sustain ethical

leadership at all levels.
References
Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The
Leadership Quarterly, 17(6), 595-616.
Kalshoven, K., Den Hartog, D. N., & De Hoogh, A. H. (2011). Ethical leadership at work
questionnaire (ELW): Development and validation of a multidimensional measure. The Leadership
Quarterly, 22(1), 51-69.
Mayer, D. M., Kuenzi, M., Greenbaum, R., Bardes, M., & Salvador, R. (2009). How low does ethical
leadership flow? Test of a trickle-down model. Organizational Behavior and Human Decision
Processes, 108(1), 1-13.
Treviño, L. K., Hartman, L. P., & Brown, M. E. (2000). Moral person and moral manager: How
executives develop a reputation for ethical leadership. California management review, 42(4), 128-
142.

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The Role of Ethical

Ethical leadership is a critical component in building a positive and

Presented by :- Khushi Raizada

Presented to :- Mrs . Monica Agarwal

Ethical leaders demonstrate They make decisions and treat all

Ethical leaders foster open communication and accountability, ensuring their

Shaping Organizational Culture

Trust and Respect Accountability Ethical Conduct

Ethical leadership breeds a Ethical leaders hold By modeling ethical behavior,

Emerging Challenges Theoretical Gaps

Rapidly changing business environments Existing theories on ethical leadership need

Practical Applications Societal Impact

Research on ethical leadership can provide Ethical leadership has far-reaching

Generally speaking, leadership is the power of an individual to influence other people.

1 Identify the individual, organizational, and contextual factors that contribute

2 Investigate the impact of ethical leadership on employee well-being,

3 Provide recommendations for organizations to cultivate and sustain ethical

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