Modern Financial Theory – Reputation Matters

Modern Financial Theory – Reputation Matters

An ethical leader is one who demonstrates traits that are acceptable in society. Ethical leadership is not just about increasing profits and production levels for a company. The application of ethics to management styles and leadership includes the consideration of ethics in the decision-making processes and setting boundaries in a corporation as well as in the development of ideas. The ability to make decisions based on an individual’s core values or the code of ethics set by the corporation usually motivates the employees also to act similarly; thus, creating a positive and a productive environment (Eldakak, 2014).The choice to demonstrate ethics by a leader builds a worthwhile experience for all the people involved in a company as well as boosting the business functionality.

An ethical leader understands that their interaction and the way they act around their employees will pose a critical effect on their capability to attract newer talents and eventually the organization’s bottom line. They better understand that having positive relations is the best practice for any corporate effort (Mendonca, 2006). Quality relationships that are created on trust and respect are the most significant organizational determinants of success. An ethical leader knows that these relationships will grow richly to the fundamental principles of integrity, fairness, trust, equity, respect, and honesty.

As such, an ethical leader can balance financial concerns with ethical leadership.  Many firms will tend to face hardships in the maintenance of ethical culture while also ensuring that the organizations’ businesses run smoothly and effectively (Eldakak, 2014).Adhering to ethical practices could be stressful and time-consuming than just allowing the practices slide. Ethical leaders ensure there is transparency in the place of work, and when things are not right, they will be free to share the same with the customers, shareholders, and the employees. The benefit of doing this is to create an environment for open communication; hence, opening up the likelihood of gaining insights into solutions.

An ethical leader also focuses on teambuilding. They promote team spirit and a sense of community in a corporate. Whenever a moral leader endeavors to attain goals, they are not only concerned about their targets. They genuinely make an effort to achieve goals that are beneficial to the entire corporation (Eldakak, 2014). They do so by making the employees understand the ultimate goal of the organization to make sure that all involved teams are walking in the same direction. They also give essential guidelines that would help the participants perform their roles effectively for the good of the corporate. Employees blossom and flourish under an ethical leader.

An example of an ethical leader is Jeff Weiner, the Chief Executive Officer of LinkedIn. He considers highly and takes pride in the company’s culture. Today, the company has been able to grow to over four hundred million users, and Microsoft has now acquired it in a deal worth twenty-six billion dollars deal(Mendonca, 2006).Weiner’s leadership strategy is based on his values and the code of ethics of the company, and his ethical leadership has greatly contributed to the success of the company.

In conclusion, each corporate leader should strive to be reputable, as ethical leadership promotes respect and trust in the workplace. The ability of a leader to foster positive relations has a great benefit to the three levels of an organization. The same way it is essential for an organization to explain and encourage ethical behavior consistently, it is also critical for leaders to demonstrate a firm dedication to their moral values. An ethical leader should be able to consider their engagements in the framework of the whole structure of the corporates good and act accordingly.

References

Eldakak, S. (2014). Educational and Ethical Leadership – Best Practice (9th ed.). Bloomington, IN: AuthorHouse.

Mendonca, M. (2006). Ethical Leadership (11th ed.). Milton Keynes, United Kingdom: McGraw-Hill Education (UK).

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