Overview: What is ethical leadership? 1. Leadership Ethics Perspective 2. Principles of Ethical Leadership 3. Diverse Ethical Perspectives 4. How Does the Leadership Ethical Perspective Work?

Ethical leadership Has to do with what leaders do and who leaders are It deals with the nature of the leaders’ behavior and their virtuousness. In any decision-making situation, ethical issues are either implicitly or explicitly involved What choices leaders make and how they respond in a particular circumstance are informed and directed by their ethics.

Principles of Ethical Leadership Concern for common good means leaders cannot impose their will on others; they search for goals that are compatible with everyone  Leader behaviors – Takes into account purposes of everyone in the group – Is attentive to interests of the community and culture – Does not force others or ignore intentions of others  Ethical Leaders & Followers  take into account purposes of everyone in the group, and  reach out beyond their own mutually defined goals to wider community

 Strengths  Criticisms  Application How Does the Perspective Work?

Strengths  Provides a body of timely research on ethical issues  Suggests that leadership is not an amoral phenomenon and that ethics should be considered as integral to the broader domain of leadership  Provides direction on how to think about ethical leadership and how to practice it  Highlights principles and virtues that are important in ethical leadership development

Criticisms  Lacks a strong body of traditional research findings to substantiate the theoretical foundations  Relies heavily on writings of just a few individuals that are primarily descriptive and anecdotal in nature, and are strongly influenced by personal opinion and a particular worldview

Application  Can be applied to individuals at all levels of organization.  Because leadership has a moral dimension, being a leader demands awareness on our part of the way our ethics defines our leadership  Managers and leaders can use information on ethics to understand themselves and strengthen their own leadership  Leaders can use ethical principles as benchmarks for their own behavior  Leaders can learn that leader-follower relationship is central to ethical leadership

CSR & ethical relationship Similarity & differences: 1.Managing Risk: Ethical leaders look to the risk management aspects of corporate social responsibility as one of their main priorities. 2.Rely on processes: Corporate social responsibility and ethical leadership go beyond merely managing the mundane tasks of the company.

3. Stakeholder engagement : stakeholder groups value consistency and transparency, so organizations do well to put their best foot forward in communicating with those who matter most.

Conclusion According to the emergent literature, there is a growing awareness that business requires to manage its relationship with the large society. Corporate leaders are responsible for their corporations’ impact on society and the natural environment beyond legal compliance and the liability of individuals. CSR is becoming a leading principle of top management and of entrepreneurs. Organizations can re-test their pattern of behaviors in the TBL framework and start their journey toward a sustainable approach that is integrated into their business strategy.