3 - Ethical-Leadership

ETHICAL
UNETHICAL
Ethical
Leadership
Venue – Dubai
Date: 7th – 18th
AUGUST 2023
Course Objectives
• Explain What is meant by Ethical Leadership
• Describe the Importance of Ethical Leadership
• Explain What are Ethics
• Explain the Various Ethical Theories
• Explain the Ethical Leadership Perspectives of Leadership Scholars
• Explain the Principles of Ethical Leadership
• Describe the Various Elements of Character
• Explain How to Make Ethical Decisions
• List the Challenges of Ethical Leadership
• Explain How to Develop Ethical Leadership in Leaders
• Explain What is meant by Ethical Dilemmas
• Explain the Four Paradigms of Dilemmas
• Explain the Core Responsibilities of an Ethical Leader
• List the Key Traits of an Ethical Leader
• List the Tips to Improve Ethical Leadership in an Organization
Introduction
w o r k e d a s a Senior
David McCain y & S culler Co.,
Le w in sk
Assistant at g in corporate
e c ia liz in
a law firm sp
cases.
o r k in g a t Le w insky
w
David has been t fiv e ye a rs an d
ep a s
& Sculler for th b le e m p loyee.
c a p a
is a trusted and
Introduction
e r h a s a n a ti o n al as
ll
Lewinsky & Scu c lie nt base
r n ati o n a l
well as inte y F o rt u n e 5 0 0
d e s m a n
which inclu
companies.
b e co m e t h e largest
It had grown to n d h a d s tarted
a d a a
law firm in Can ip fir m b e tween
n e rs h
as a small part Le w in sk y an d
n d r ew
two partners A
Keith Sculler.
Introduction
v e d t h a t t h is rapid
eli e
Many people b w t h o f L e w insky &
sg ro
and humongou ib u te d t o t h e core
ea tt r
Sculler could b c ip le s t h at e ac h
al p r in
values of ethic p a n y b e lieved in.
e c o m
employee of th
S c u lle r st r e s sed on the
Lewinsky & c ip le s to be
h ic a l p r in
need for et s b usiness
e a c h o f it
followed in n e n c o u r aged its
d e v e
transactions an ic a l and just in
t o b e e t h
employees
lives.
their personal
Introduction
h e t h ic a l s ta n dards
Owing to its hig y & Sculler
g , L ew in sk
of workin r r e p u tation
a s t e lla
had achieved w a rd s for its
a n y a
and received m t h e a r e a s of
o r k in
outstanding w p roperty.
in te lle c t u a l
law and
Introduction
o n e d ay M r. Andrew
Howeve r,
fir m ’s C o -fo u nder
Lewinsky, the n e w s t hat
c e iv e d
and Partner re d a fraud in
d co m m itt e
David ha
his company.
d a lo o p h o le in the
David had fou n
r n e y f ro m o n e of
power of atto c lient,
y & S c u lle r ’s
Lewinsk
Howard Inc.
Introduction
e lo o p h o le , D avid had
Using t h lie nt in a
are s o f t h e c
illegally sold sh D a v id h a d m ad e
pa n y .
Canadian com in this
$ 1 1 0 m illio n
almost
.
embezzlement
w w a s s h o c k e d by this
Andre h a t h a d taken
c ti v it y t
fraudulent a ti o n . It w a s also
an iz a
place in his org a t L e w insky &
u n a t e t h
very unfort a n y in su ra nce to
ha v e
Sculler did not
t h is k in d o f a ctivity.
cover
Introduction
s in t h e face o f this
u e sti o n
fa c ed many daunting q
c u lle r n o w
Lewinsky & S t h is time
u c h a s : law fi r m in
fraud, s b e ta k e n to save the
f a ction shou ld
• W h a t p la n o
of crisis? e 6 0 0 + la w ye rs and
b e z z le m e nt h ave on th
p a c t w o u ld this em
• What im m p any?
e s o f t h e c o
other employe b e im p a c te d by this
n o f L e w in sk y & Sculler
w w o u ld t h e reputatio
• Ho
fraud? d u le nt a c ti vit y have on
ld t h e n e w s o f this frau 1 4 ,0 0 0 + clients?
t w o u business o f it s
• What impac la ti on s h ip a n d
w in s k y & S c u ller ’s re
Le
Introduction
s in t h e face o f this
u e sti o n
fa c ed many daunting q
c u lle r n o w
Lewinsky & S d integrity
u c h a s: e r ’s et h ic s a n
fraud, s t in L e w in sk y & Scull
li ents lose tr u s
• W o u ld t h e c t h e c o mpany?
siness ti e s w it h
d b re a k a ll b u a n ad a an d
an u ta ti o n in C
u s t ru in t h e fi rm’s rep
is breach of t r
• W o u ld t h
abroad? re m a in fi n a n cially
s u r viv e t h is c risis and
u ld L e w in s k y & Sculler
• Wo
stable? s h a r es h a d b een
e c lie nt whos e
d o fo r t h
c a n L e w in s k y & Sculler y David?
• What a n d t h e ft b
o p e r p e t u at e the fraud
used t
Introduction
e rs ta n d f ro m the above
You can und ‘e t h ic a l’ is not
t b e in g
situation tha ls o c r ucial in
n t b u t a
only importa
any business.
t e g ra te d in to th e
e in
Ethics should b k in g o f e a c h an d
yw o r
basic day-toda n o r g a n iz a tion .
eo f a
every employe
Introduction
o n e g o e s u p th e
However, a s
iz ati o n a l h ie r a rchy, it
organ
m e s c ru c ia l t h at an
beco h a ve ‘ethical
n s h o u ld
organizatio a n d preach
h o fo llo w
leaders’ w
hip’.
‘ethical leaders
a u se it is t h e se leaders
This is bec y e es and
t h e e m p lo
who lead
guide them.
Introduction
re t h e m s e lve s no t
rs a
So if the leade ti o n cannot
o rg a n iza
ethical, the n t h e lines of
n c ti o n o
expect to fu
a n d m o ra l v a lues.
ethics
ou t
Let us learn ab
ica l L eaders hip’
‘Eth
in detail.
Objectives
What is meant by Ethical Leadership?
Ethical Leadership means using

ethics and making an ethical decision
in situations that are faced by
leaders.
It means keeping in mind several
ethical perspectives while providing
the overall leadership guidance to
subordinates and the also the job
responsibilities performed by
leaders.
Ethical leadership helps leaders to
make ethical decisions and be an
ethical leader.
What is meant by Ethical Leadership?
Hence, ethical leadership is all about the
intersection of ethics with leadership.
There may be many times when leaders
are faced with very simple and
straightforward decisions which on the
other hand are very risky with respect to
ethics and ethical situations.
Hence, it becomes crucial that leaders
consider various ethical dimensions
before making decisions.
Ethical leadership is important to a
person to develop as a leader and be
successful in leading successfully.
Objectives
Importance of Ethical Leadership
Ethical leadership is a must for all the leaders as well

as employees of any organization. In fact, ethics are
important not only the professional front but also on
the personal front. Right from the start of industry
and business, people have been concerned about
leaders and their ethics. Research has found that
ethical leadership in an organization including the
leadership of a country can lead to a more just and
caring society. Ethical leadership is about the ethics
and moral principles of the leaders who use these
ethics and moral principles to rightly balance the
different interests of individual and group
stakeholders.
They also aim to gain returns that

benefit the firm, its stakeholders, and
the CEO, at the same time obtaining
everything within the purview of
ethics and moral principles.
You can understand from the above
situation that being ‘ethical’ is not
only important but also crucial in any
business.
Ethics should be integrated into the
basic day-today working of each and
every employee of an organization.
However, as one goes up the
organizational hierarchy, it becomes
crucial that an organization should
have ‘ethical leaders’ who follow and
preach ‘ethical leadership’. This is
because it is these leaders who lead
the employees and guide them. So if
the leaders are themselves not ethical,
the organization cannot expect to
function on the lines of ethics and
moral values.
Ethical leadership is important
because it conveys how the leaders
are viewed by their followers, peers,
and superiors based on their
perception of the leader’s character
and behavior.
Objectives
What are Ethics?
Ethics has been defined and

a part of the human society
right from the time of Plato
and Aristotle. The word
‘Ethics’ has been derived
from the Greek word ‘ethos’
which means ‘character,
conduct, and/or customs’.
Hence, ‘Ethics’ are those
morals and values that are
considered appropriate by
members of society and
individuals themselves.
What are Ethics?
It is these ‘Ethics’ in an
individual that helps him
decide what is right and
good or wrong and bad in
any given situation.
Ethical leadership is about

how subordinates view their
leader, their perception
about their leader’s
character, his actions, and
behaviors.
Importance of Ethics to Leadership
‘Ethics’ is one of the most crucial qualities that

a leader should possess.
This is due to the fact that leaders always have
followers.
Also, the nature of the relationship between
leaders and followers is such that leaders
influence their followers.
Hence, leaders can have both positive as well
as negative influence on their followers and can
affect the lives of their followers.
So, whether a leader will positively or
negatively influence his followers greatly
depends on the leaders’ character and
behavior, that is, the nature and outcome of his
behaviors.
Importance of Ethics to Leadership
Leaders should understand the importance of

ethics and being ethical because they have a
great responsibility towards their followers.
Leaders are highly influential as they possess
more power, both interpersonal and/or formal
hierarchical power.
Hence, it is important that a leader should learn
to respect his followers and treat them with
dignity.
Moreover, the personal values of the leader will
affect and decide the kind of ethical climate that
will develop in his organization.
So, a leader should always be ethical while
Roll your mouse developing and establishing organizational
over the icon, values.
to learn more.
Did You Know?
The greatest scandals in history have

taken place due to a lack of importance
of ethics in leaders and the lack on part
of managers and executives to not
understand the importance of ‘putting
shareholders first.’
Objectives
Ethical Theories
The major ‘Ethical Theories’

have been broadly classified
into two main categories:
theories related to leaders’
behavior and those related
to leaders’ character.
The theories that are related
to character are described
as ‘Virtue-based
Approaches’.
Ethical Theories
Further, the theories related to behaviour are classified into two types:
t ha t r e l a te to
Theories u c t a nd
o n d
leaders’ c e nces
co n s e qu
their
Theories
that rela
t he r ul e te to
s or duty
de c i de l that
eaders’
conduct
Ethical Theories
The theories that are related to
consequences are known as ‘Teleological
Theories’.
The word ‘Teleological’ has been

derived from the Greek word
‘telos’ which means purposes or
ends.
‘Teleological Theories’ are more

concerned about whether a leader’s
actions, conduct or behavior, will have
positive outcomes.
Hence, as per ‘Teleological Theories’, the outcomes

related to a person’s behavior establish whether
the behavior was ethical or unethical.
Ethical Theories
Those theories that are related to duty or

rules are called ‘Deontological Theories’.
The word ‘Deontological’ has been

derived from the Greek word ‘deos’
which means duty.
‘Deontological Theories’ are more

concerned with the actions that lead
to consequences.
It is also concerned with whether

the actions are good or bad.
Ethical Theories
Virtue-based
Approaches
(Theories related to Teleological
Ethical Leaders’ Character) Theories
Theories (Theories related
Theories related to to Consequences)
Leaders’ Behaviour Deontological
Theories
(Theories related
Let us look at each in detail. to Duty or Rules )
Virtue-Based Approach
Virtue-based Approaches(Theories related to Leaders’ Character)
• ‘Virtue-based Theories’ or the

‘Virtue-based Approach’ is related
to who the leader is and is based
on the leader’s character.
• However, you should keep in
mind that an individual can learn
these virtues and retain them
through experience and practice.
© ICCD Canada. All rights reserved.

• ‘Virtue-based Theories’ vior

rtuthe
es is
so u rc e o f le a rn in g th e se
The main ‘Virtue-based Approach’nis d related
so ciety
in d iv id u al ’s fa m il y a
provided by anto who the leader is and isrobased ughout
a n in d iv id u a l in tera ct s th
with which on the leader’s character. ach’ has
m e
• . T h e ‘V
However, ir tu e -b
you a se d
shouldA p pro in
keep
his lifeti d
anlearn
n in p la ce mind
si n ce th
that e ti
an m e of Plato
individual can
bee dividuals
. A s pthese
e r A ri o tl
virtues
st e ’s
andb eli e f,
retain inthem
Aristotle
ed to beco e more
mpractice.
can be taughtthroughand help experience and
, A ri sto tl e b e li e ve d tha t you should
virtuous. So uals what
n ti on in te ll ing in div id
pay a lot of atte at to do.
ose d to tell in g th em w h
to be as opp

The following are the virtues that
Aristotle suggests are the examples of
an ethical person:
• Generosity
• Honesty
• Courage
• Self-control
• Fairness
• Temperance
• Sociability
• Modesty
• Justice
On the other hand, people such as

Velasquez (Velasquez, 1992) suggested
that organizational managers should
learn and retain the following virtues
• Perseverance
• Benevolence
• Truthfulness
• Public-spiritedness
• Humility
• Fidelity
• Integrity
Teleological Theories
Teleological Theories (Theories related to Consequences)
• ‘Teleological Theories’ are

related to consequences.
Hence, these theories are
more concerned about
whether a leader’s
actions, behavior, and/or
conduct have positive
outcomes.
• ‘Teleological , thTheories’
e o u tcomare
es
gi ca l T h e o rie s’
So, as per ‘Teleolo related to consequences.
d to a p e rs o n ’s b e h av io r establish
relate Hence, these theories
u ne thare
ical.
e be h a vi o r w as e th ica l or
whether th more concerned about
whether a leader’s
p pro aches -
e fo ll o w in g th re e a
Moreover, th actions, behavior, and/or
ois m , U tili ta ri an is m a n d Altruism are
Ethical Eg conduct have positive they
e ther
ri n g o u tc o m e s a n d w h
used to measu outcomes.
are viewed as ethical
• Ethical Egoism: ‘Ethical Egoism’ stands for

those actions of leaders that are meant to
obtain the greatest good for the leader.
• Utilitarianism: ‘Utilitarianism’ means that the
actions of leaders are meant to obtain the
greatest good for the largest number of
people.
• Altruism: ‘Altruism’ means that the actions of
leaders are meant to show concern for
others’ interests, even if these interests are
contrary to the leader’s self-interests.
Deontological Theories
Deontological Theories (Theories related to Duty or Rules )
• ‘Deontological Theories’ are

related to duty or rules.
• Hence, ‘Deontological
Theories’ are more
concerned with the actions
that lead to consequences
and whether the actions are
good or bad.
•
d e
‘Deontological
pe n d s u p o n Theories’
th e fact thareat
So, this ap pro a ch related to th duty or rules.
t a n a cti o n is e ic a l d e p e nds not
whether or no • Hence, ‘Deontological
o utc o m e b u t a ls o o n w h ether the
only on its Theories’ are more erently
b eh av io r, or co n d u ct is it self inh
action, concerned with the actions
good. that lead to consequences
and whether
la ys st re ss o nthe
th actions
e a ction s of
are
Hence, this theory good or bad. y to do
e ir eth ica l re sp o n si b ilit
leaders and th
what is right.
The following are some of the examples

of actions and behaviors that are
intrinsically good, irrespective of the
outcomes:
• Being fair
• Telling the truth
• Respecting others
• Keeping promises
• Being honest
• Sticking to commitments
• Being modest
MCQ
Q. Theories that are related to

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radio button
to select the
correct
answer!
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ighknown
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ical Theorie
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Objectives
Ethical Leadership Perspectives of Leadership Scholars
12
You will now understand the perspectives of two prominent leadership scholars,
Heifetz (1994) and Burns (1978), with respect to ethical leadership.
Heifetz and Ethical

Leadership
Burns and Ethical

Let’s look at each in detail. Leadership
Heifetz and Ethical Leadership
1
Heifetz and Ethical Leadership:
• Heifetz (1994) mainly laid stress on the leader’s
Heifetz and Ethical
skills to deal with conflict management. He

Leadership
stressed upon the responsibility of a leader to help

his followers in dealing with conflict and effecting
changes that come from conflict.
• His main focus was on the values of followers, the
organizations in which they work and the
communities in which they live.
Heifetz and Ethical Leadership
1
As er Heifetz, the
Heifetzpand predominant respo
Ethical Leadership: nsibility of a
leader is to create
a work atmospher
• fo Heifetz
llowers which nurt laid stress on the
(1994) mainly e foleader’s
r his
Heifetz and Ethical
ures and encourag

eskills
nviroto
nmdeal
ent owith conflict management. esHe
an
f:
Leadership
stressed upon the responsibility of a leader to help

• Empathy
his followers in dealing with conflict and effecting
• changes
Trust that come from conflict.
• • HisNmain
urturafocus
nce was on the values of followers, the
• organizations
Evolution
in which they work and the
communities in which they live.
• Growth
• Survival in fa
ce of adversities
Burns and Ethical Leadership
2
Burns and Ethical Leadership:
• Burns (1978) laid stress upon
‘Transformational and Ethical Leadership’.
• Burns argued that a leader should help his
followers in achieving higher ethical and
moral standards, especially when differing
values conflict.
Burns and Ethical • This becomes even more challenging in cases

Leadership when the conflict is confronted during
difficult situations.
Burns and Ethical Leadership
2
Burns and Ethical Leadership:
• Burns (1978) laid stress upon
Burns was of the v
iew thand
‘Transformational at thEthical
e interaLeadership’.
between a leader a ctions
nd his followers sh
nur•tureBurns
and eargued ould help
levate tthat a leader should
he ethical behavio
help histo
characte followers
r of bothin r and
. achieving higher ethical and
A leademoral standards, especially when differing
r should lay stress
followers to deconflict.
values upon and help his
velop values such a
s equality, in cases
Burns and Ethical justi•ce, This
and libecomes
berty. even more challenging
Leadership when the conflict is confronted during
difficult situations.
Ethical Leadership Perspectives of Leadership Scholars
12
You will now understand the perspectives of two prominent leadership scholars,
Heifetz (1994) and Burns
You (1978),
have with respect to ethical leadership.
seen that both Heif
that the relationsh etz and Burns belie
ip between a leade ve
followers lies at th r and his
e core of ethical le
adership.
Such similar ideas
Heifetz and Ethical
were also put forw
scholar Gilligan in 1 ard by another
982 through his ide
Caring ’.Leadership a of ‘Ethic of
Gilligan’s ‘Ethic of C
aring ’ is of prime im
has become a cent portance and
ral principle in ethic
research. al leadership
It is considered cru
cial to organization
developing collabo Burns and
ration and trust am
Ethical
s as it helps in
and followers. Leadership ong leaders
MCQ
Q. Who put forward the idea of ‘Ethic

of Caring’?
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radio button
to select the
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MCQ
GooWho
Q. d! Thput
at'forward
s Right!the idea of ‘Ethic
of Caring’?
Correct Ans
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Gilligan in 1
982 put for
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MCQ
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Gilligan in 1
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ea o f ‘Ethic
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C
!
continue
Objectives
Principles of Ethical Leadership
There are five main principles that drive the development of ethical leadership.
(DuBrin, 2010; Northouse, 2013)
These five driving principles of ethical leadership are:
Respect for Others
Service to Others
Justice for Others
Honesty toward Others
Building Community with Others
Let’s look at each in detail.

Respect for Others
Respect for Others
• Respect for Others:

o As per this principle of ethical
leadership, leaders can be ethical
when they treat others with dignity
and respect.
o Hence, ethical leaders do not treat
people as means to their own ends.
o Ethical leaders believe that followers
have goals and ambitions.
Respect for Others
Respect for Others
• Respect for Others: •They also b

elieve that
o As per this principle of ethical a re human be followers
ings who ha
leadership, leaders can be ethical w orth and va ve
lue to the
when they treat others with dignity organizatio
n.
and respect. • Hence
, whenever
c o n there are
o Hence, ethical leaders do not treat fl i c ting viewpo
l e ad ints betwee
people as means to their own ends. e r and his foll na
to use trait o w ers, he tend
o s of empathy s
Ethical leaders believe that followers listen , active
ing, and tol
have goals and ambitions. the conflict erance to re
s. solve
Service to Others
Service to Others
• Service to Others:
when they serve others.
o Such leaders show unselfish concern
for the welfare of others and
behave.
o Hence, such leaders always tend to
put their followers before
themselves.
o The prime reason of being a leader
for such individuals is lending
support and nurturing his
subordinates.
Service to Others
Service to Others
• Service to Others:
• S o m e o f th
leadership, leaders can be ethical e examples
when they serve others. which such through
leaders ser
are: ve others
o Such leaders show unselfish concern
for the welfare of others and o Me n
toring
behave. Hence, such leaders always o B u il
ding Teams
tend to put their followers before
themselves. o Emp
owering
o The prime reason of being a leader o De l e
gating
for such individuals is lending o B e in
g Empatheti
support and nurturing his c
subordinates.
Justice for Others
Justice for Others
• Justice for Others:

when they make sure that all their
decisions are based on a sense of
justice and fairness.
o Hence, such a leader tends to treat
all of his followers equally and at par
with each other and also himself.
o However, he is also very clear on any
kind of differential treatment
needed for a particular subordinate.
Justice for Others
Justice for Others
• Justice for Others:

• Su c h
a leader un
leadership, leaders can be ethical such a diffe derstands t
r e he need for
when they make sure that all their n ti a l t reatment a
transparen n d is
decisions are based on a sense of t a b o u t h i s d e c is i o n .
• He als
justice and fairness. o communi
such differe cates the re
n ti ason for
o Hence, such a leader tends to treat a l t r e atment clea
rest of his s rly to the
all of his followers equally and at par u b o rd i n a tes.
• He als
with each other and also himself. o makes sure
differential that his dec
t re a t ision for
o However, he is also very clearsonounany m e n t is based o
d and reaso n morally
kind of differential treatment n a b le logic.
needed for a particular subordinate.
• Honesty toward Others:

only if they are honest.
o This is due to the fact that traits of
dishonesty in a leader would destroy
the trust of his subordinates in him
as a leader.
o Trust is a crucial component of any
leader–follower relationship.
o An honest leader would be able to
raise the trust level and better build
the leader–follower relationship.
• Honesty toward Others:

o As per this
• principle
Hence, aofn ethical
leadership, leaders can ebe
thethical
ical leader s
honest. hould strive
only if they are honest. to be
• Leade
rs can portr
o This is due toopen withthat
the fact ay of
traits th eir h o n es
o thers,destroy ty by being
dishonesty oinpae leader would by expressi
n ly an d p o r n g t h ei r t h o
the trust ofthhis subordinates trainyihim
n g t h em s e lv ughts
eir real nat es as true t
as a leader. ure and cha o
• Howe racter as th
ver, you sho ey can.
o Trust is a crucial
leadercomponent u
ofldany
keep in min
should also d that a
leader–follower relationship.
between be fi n d the right
ing honest balance
o An honestwleader
hat is awould and disclos
ppropbe able to
riate in a gi i n g o n ly
raise the trust level and better build ven situation.
• Research sc
holars have
• i
Honestyn letoward
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• Building Community with Others:

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building community with others.
o Building a community with others is
crucial for becoming an ethical
leader as leadership is about
influencing others to achieve a
communal goal.
• •
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ader has to
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o As per this principle of ethical nal or team hieve
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acceptable goals are
by his team
.
Objectives
What is meant by ‘Character’ in Ethical Leadership?
You must have heard the word ‘character’ in several

walks of life. However, what does the word ‘character’
mean with respect to ethical leadership?
The word ‘Character’ in ethical leadership means the
inherent complex of attributes that determines a
person's moral and ethical actions and reactions.
The following are some of the key attributes of a ‘good character’:
Inspiring
Honesty Obedience
Integrity Loyal
Responsibility Courageous
Tactful Respect
Trustworthiness
The following are some of the key attributes of a ‘good character’:
Ethical
Modesty Competent
Fairness Sincerity
Helpfulness Generosity
Dutiful Unselfish
Caring
Elements of Character
There are six main elements that make up the character of a person. These six
elements form the six pillars upon which the ‘character’ of a person stands.
The six main elements that make up the character of a person are:
Esteem
Trustworthiness Dutifulness
Candor Caring
Demeanour
Let us look at each in detail.

Trustworthiness
Trustworthiness
• ‘Trustworthiness’ is the quality of being honest, being

reliable; to build a good image and reputation of oneself
in the eye’s of others, to be loyal to others and to have
the courage to do the right thing.
Esteem
Esteem
• ‘Esteem’ means to treat others with respect, to

tolerate differences, to understand other’s
viewpoints and opinions, to be good mannered, to
be thoughtful of other people’s feelings, to not
create menace for others, to handle anger, insults
and disagreements in a peaceful manner.
Dutifulness
Dutifulness
• ‘Dutifulness’ means being responsible in whatever

you do, to always try to deliver your best, to have
self-control, to be self-restraining, to think before
you act and be answerable for your choices.
Candor
Candor
• ‘Candor’ is the quality of being fair, to follow the

rules, to share, be open-minded, to understand
and listen to others, to not take benefit of others
and to not blame others.
Demeanour
Demeanour
• ‘Demeanour’ is the good way in which a person

behaves toward other people, be a good citizen,
to work together with other people to make your
community better, to collaborate in community
affairs, to be a good neighbor, obey laws and
respect authority.
Caring
Caring
• ‘Caring’ means to be kind, have empathy for

others, care for others, show your appreciation,
pardon others and help people in need.
Real Life Example
Let us now look at a

real life example to
understand Abraham
Lincoln as an Ethical
Leader.
Real Life Example
You will now try to Abraham Lincoln was His tenure as the
understand how born on February 12, President of the United
Abraham Lincoln, the 1809. States lasted from
renowned American March 1861 until his
He became the 16th
President was not only assassination in April
President of the United
a great leader but also 1865.
States.
a great ethical leader.
Real Life Example
Abraham Lincoln hailed As the President of Civil War was the
from a poor family and United States, Lincoln greatest crisis that
was a self-educated successfully led United United States had seen
lawyer in Illinois. States through its Civil on the moral,
War. constitutional and
political fronts.
Real Life Example
In fact, the Civil War is There are many laurels As the President of
one of the bloodiest attributed to the United States, Lincoln
wars that the United Presidency of Abraham achieved many great
States has seen. Lincoln. feats
Real Life Example
Some of the great feats achieved by Lincoln are:
He abolished slavery
He stood up against the idea of war and opposed the

war with Mexico in 1846
He strengthened the federal government
He successfully led the United States through the Civil

War and hence preserved the Union
He modernized the economy of the United States through

establishing many banks, constructing many canals and
railroads, revising tariffs to encourage industrialization etc.
Real Life Example
Abraham Lincoln once His belief in this In fact, Abraham
said, “Character is like a statement made him a Lincoln has been
tree and reputation like stellar personality with popularly nicknamed
its shadow. The high moral standards, ‘Honest Abe’ owing to
shadow is what we honesty, ethics and his ethics and moral
think of it and the tree integrity which he stuck values, apart from
is the real thing.” to at all times. being a great leader.
Real Life Example
Take a look at the traits that made Abraham Lincoln a great ethical leader:
He had great will power and also a great power of expression.
Lincoln had the remarkable capability of sticking to his

principles with great clarity of thought.
Lincoln set a great example of national moral

conduct and of the relationship between politics and
morality.
He constantly tried to raise his conduct to match his

high rising moral standards.
People of the United States including members of Lincoln’s

cabinet knew that Lincoln was not only a great man but was
also a good man due to his ethics and moral values.
Real Life Example
Lincoln’s character was such that he put himself in the other
person’s shoes, understood what the other person is feeling and
understood the other person’s fears, motives and desires.
He respected all individuals as equals. Lincoln never
disrespected the people around him, even his arch
rivals.
He strived to get his arch rivals on his side and even
made them members of his cabinet.
Lincoln never lost sight of the harsh realities of politics
in spite of sticking to his high moral standards and
ethics. He worked with a great level of composure and
diplomacy with all the people around him.
He taught the world that a great politician and leader need
not be immoral or unethical. He helped people understand
that qualities of being a great politician can also co-exist with
other great qualities such as decency, kindness, compassion,
honesty, sensitivity, empathy, ethics, moral values etc.
Real Life Example
Lincoln was a self-educated lawyer and hailed from a poor
family, yet as a President and throughout his life he strived to
shape and improve himself as a writer, moral agent, politician,
speaker, and statesman.
Lincoln used the best capabilities of his rivals to lead
the United States to success in the time of crisis of the
Civil War
Lincoln used both his moral and intellectual
capabilities to overcome one of the greatest issues
of United States at that time, that of slavery.
He always tried to understand other people’s points of
view and tried to reach consensus without neglecting
the other party and without hostility.
He was open and expressive with everyone and worked
together with others to enhance interpersonal work
relationships to jointly make tough decisions, resolve
emotional conflicts, and negotiate sensitive issues.
Real Life Example
Hence, you can see that

Abraham Lincoln was a great
ethical leader and his ethics,
honesty, character and conduct
helped him to deal with the
strong egos of the men in his
cabinet and win the hearts of
the people of United States.
MCQ
Q. ___________ is the quality of

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Objectives
How to Make Ethical Decisions?
You should ask yourself the following
questions to ensure that any decisions
that you make are ethical and made
with morality and good character:
• Is your decision based on truth?
• Is your decision fair to all
concerned?
• Will your decision build your good
will amongst others?
• Will your decision be beneficial to
all concerned?
Answer the above questions as
truthfully as possible and if your answer
is ‘YES’ to each of the above questions,
then it is highly likely that your decision
as a leader is ethical.
Objectives
The Challenges of Ethical Leadership
The following are the major challenges that leaders face while trying to
practice ethical leadership:
The dilemma of differentiating between right and wrong values.
The challenge of filling the gap between an ethical

leader’s values and ethics and his principled approach
to decision-making.
The belief of ethical leaders that only they are right

and all others are wrong.
The stubbornness of an ethical leader to stick to his

principles and not updating his values to a better
system.
The firm belief in one’s core set of principles which may be

formed during the earlier formative years of childhood and
may not be necessarily right.
The Challenges of Ethical Leadership
The inability of ethical leaders to listen to others and
understand the situation from their view points before making
a decision.
The challenge that ethical leaders face to remain true

to their principles when under pressure from other
people.
The conflict of values between two individuals trying

to make an ethical decision together.
The inability of accessing and facing facts rationally

and in an unbiased manner due to some age old belief
system that is inculcated due to one’s culture and
religion.
The dilemma of making a decision or doing something that

is ethical and also right for everyone such as: employees,
shareholders, customers, taxpayers, clients etc.
Real Life Example

understand one of the
major challenges of
ethical leadership.
Real Life Example
In the October of 1995, the

United Nations celebrated its
50th anniversary.
To mark this event several
celebrations were held.
The New York City Host
Committee had also sponsored
several events by raising money
to celebrate this landmark.
Real Life Example
One such event was a concert

that was being held at Lincoln
Center’s Avery Fisher Hall.
Amongst the several guests
that turned up at the concert
was the Palestinian Leader
Yasser Arafat.
The then Mayor Rudolph W.
Giuliani expelled Yasser Arafat
from the concert.
Real Life Example
In fact, Giuliani had

specifically excluded the
Palestinian delegation, as
well as other delegations
from Iran, North Korea,
Cuba, Somalia, Libya, Iraq,
and Yugoslavia.
Real Life Example
Giuliani felt and later insisted

that he could never forgive and
play host to Mr. Arafat although
the Palestinian leader had been
embraced as a peacemaker by
the Israeli and United States
Governments.
Real Life Example
Giuliani had a special disdain for

Arafat which stemmed right
from the days when Giuliani
was a Federal Prosecutor. As a
Federal Prosecutor of United
States, Giuliani had looked into
and inquired about several
terrorist incidents. Many of
these terrorist incidents were
linked to the Palestine
Liberation Organization (P.L.O.).
Real Life Example
Investigating these incidents

had lead to a firm belief in
Giuliani’s mind that Arafat was
a murderer and terrorist.
In Giuliani’s own words, "I
would not invite Yasser Arafat
to anything, anywhere,
anytime, anyplace. I don't
forget."
Real Life Example
Giuliani’s act of expelling Arafat

from the concert led to an
international scandal.
Both the New York Times and
the Clinton administration
disapproved of Giuliani’s action
in strong words.
Real Life Example
The Clinton administration

condemned the act stating that
it was an unfortunate incident
especially due to the
constructive role that Chairman
Arafat had played in the
Mideast peace process. The
Clinton administration further
noted that the incident was a
great embarrassment to
everyone associated with
diplomacy.
Real Life Example
However, in spite of the hue

and cry made by the people
around him, Giuliani was
unperturbed and convinced
that he was on the right side.
Giuliani’s core set of principles
drove his belief and behaviour
towards Arafat.
Real Life Example
Some of the other major challenges that leaders like Giuliani face
while trying to practice ethical leadership are:
• The challenge of filling the gap between an ethical leader’s values
and ethics and his principled approach to decision-making.
• The stubbornness of an ethical leader to stick to his principles and
not updating his values to a better system.
• The belief of ethical leaders that only they are right and all others
are wrong.
• The dilemma of differentiating between the right and wrong
values.
• The inability of ethical leaders to listen to others and understand
the situation from their view points before making a decision.
Real Life Example
• The firm belief in one’s core set of principles which may be formed
during the earlier formative years of childhood and may not be
necessarily right.
• The conflict of values between two individuals trying to make an
ethical decision together.
• The challenge that ethical leaders face to remain true to their
principles when under pressure from other people.
• The dilemma of making a decision or doing something that is
ethical and also right for everyone such as: employees,
shareholders, customers, taxpayers, clients etc.
• The inability of accessing and facing facts rationally and in an
unbiased manner due to some age old belief system that is
inculcated due to one’s culture and religion.
Real Life Example
Hence, you can see that this is

one of the greatest challenges
that ethical leaders face is how
to remain true to their
principles.
It becomes specially
challenging for leaders to stick
to their principles when other
people put pressure on them.
Methods to Make Subordinates Open to Ethical Leadership
The following are the methods that you can use as an ethical leader to make
your subordinates more open and receptive to ethical leadership:

Leaders should become Role Models
1
Leaders should become Role Models:

• An ethical leader should strive to
become a ‘role model’ for his
subordinates.
• He should inculcate in himself a
firm belief that he owes a duty to
his fellow team members.
Leaders should become Role Models 1
•He should t
ake an activ
Leaders should becomesuRole
bordModels:
inates’ job e interest in
res his
motivate th p o n s ibilities and
• An ethical leader should strive eto
m to achiev
e t h e ir
personal am
b
become a ‘role model’ for his itions and se
t goals.
subordinates.
• He should inculcate in himself a
firm belief that he owes a duty to
his fellow team members.
Leaders should become Role Models 1
• He should t
ake an activ
Leaders should becomesuRole bordModels:
i n e interest in
• He sh ate s ’ job respon his
ould active motivate them s ibilities and
• An ethical
of subordin leader l y
should
t strive
ake respon to t o achieve the
p
atesmodel’ e rs o n a l a m s i b i l i t y o f ir
become a ‘role ’ c a r for his
eer path an b i ti o n e ac
s and set go h
h e lp t h em d f u t ure and als.
subordinates. g row.
• When
an ethical l
• foHer his suboinculcate
should eadinerhimself
becomaes a
firm belief rdinahe
that t e owes
s , a duty to role model
towards th t h ey become mo
e l e ad er ’s ethics a
his fellow team members. re open
nd moral va
lu es .
Preach what You Know Best
2
Preach what You Know Best:

• An ethical leader should keep in
mind that he should always stick
to what he is good at.
• You should be clear about your
own strengths and capabilities
to be able to provide accurate
and clear direction to your
subordinates’ activities.
Preach what You Know Best 2
• You should
be very sur
skills, capab e of a core
ilities and f set of
possess and ocus that y
Preach what You Know Best: should no ou
any kind or t y ie l d u n d e
external pr r
• An ethical leader unshould
derminkeep in essures to
e yourself o
mind that he should lities. stick to n these core
capabialways
what he is• good at.
When an et
hical leader
• You should behclear
e knoabout
ws anyour own is sure of wh
d sticks to i at
void contrato be able t, he would
strengths andacapabilities
d ic
others.and clearting himself in front o
to provide accurate
f
direction to your subordinates’
activities.
Preach what You Know Best 2
• You should
be very sur
skills, capab e of a core
ilities and f set of
Preach
• Thiwhat You Know possesBest: s ocus that y
s would maa a n d s h o u ld n o t y ou
kneyhkisinsdub o ie l d u n d er
p e
• Anrethicalceive thleader or e
rdx itneartnin
e leuanddeeshould
r ram s i
keep easl pressure
s to
smind
ure othat
f himhe an e
p ey o
r suo rs
n e w
selfcshould
,akpnaobw i l i
s
always stick
ti
lfhoonisthese
core
dtooiwhat
ng andhe we sh.at he is
•misakgood
e themat.trus
abilities as
a leadheer.n an ethticinalhleisad
W
er is sure o
• • SYou should be
uch an ethi
hecleark n o w about
s your
and sticks t f what
caal vleoand o it, he would
toown strengths
provide a c
aiddecrocapabilities
n
w t r
oau dl i
d cbtiengabhliemself
to be able lo
toeatprovide
hr ea r
ns accurate
d. consisten in front of
leadership t
and cleartodirection
his suborto dinyour ates.
subordinates’ activities.
Encourage an Inclusive Work Culture
3
Encourage an Inclusive Work Culture:

• A great way to make your
subordinates more open to your
ethical leadership is by encouraging
an inclusive work culture.
• When a leader fosters such a work
culture, there will be no
favouritism, no layers of
bureaucracy and no undue
advantage for any employee.
Encourage an Inclusive Work Culture 3
• It is but nat
ural that an
culture will inclusive w
Encourage an Inclusive Work Culture: m ake your su ork
more recep b ordinates
tive to your
• A great way to make your leadership ethical
as they all f
subordinates more open eqtoualyour
ly and enjo eel treated
y equal ben
ethical leadership •is byTencouraging efits.
he team wo
an inclusive work culture. u l d als o b e
a work cult ne
ure where e fit from such
• When a leader fostershsuch as thae work
freedom of ach individ
ual
ex p ressing his
culture, there will be ino
deas and o
p in i o n s .
favouritism, no layers of
bureaucracy and no undue
advantage for any employee.
Encourage an Inclusive Work Culture 3
Encourage an Inclusive Work Culture:

• A great way to make• your It is but nat
ural that an
subordinates more opencutoltuyour re will mak inclusive w
e y o ork
more recep
ethical leadership is by encouraging u r s u b ordinates
tive to your
an inclusive work culture. leadership ethical
• T h is w a s they all fee
o u
• When a leaderldfosters e
lead tsuch q u al
a l y a
workn l treated
d
o the disco njoy equal e
new and in very of benefits.
culture, there willno•be
vati
noTvheeidteam
technologie s, pwrou celdssaels,o ben
s
favouritism, no layersetc.aofwork efit from su
•bureaucracy c u l t u r e where each ch
The memand no undue
h
bers of thaes the freedom individual
cherishfor
advantage te am feel o f expressing
ed aany
nd employee.
i d e as a n d
work toget opinions. h is
t he gnatural
• It is but uided lethat h e r u n d er
adeanrs inclusive
der. will makehyour
leaculture
work
ip of the et
hical
subordinates more receptive to
your ethical leadership as they all
feel treated equally and enjoy equal
benefits.
Ensure an Effective Whistleblower System
4
Ensure an Effective Whistleblower

System:
• Ethical leaders should ensure
that their organization has an
effective and sound
whistleblower system or an
effective process for free flow of
information in the team.
Ensure an Effective Whistleblower System 4
•You should
consider th
eyes and ea e whistlebl
rs of the or owers as th
to point ou g a nization as e
t the wrong they help
Ensure an Effective Whistleblower
taking place d o ings that m
in your orga ay be
System: • Whist nization.
leblowers s
• Ethical leaders should
of otheensure h o u ld b e p u
r employee t forward in
r s as ro l e front
e w
that their organization
ardihasng aan m odels by
nd apprecia
effective and
• sound ting them.
As an ethic
al leader, it
whistleblower system
you stand u or an is your mor
al duty that
p for and p
effective process
whforistlefree
blowflow of rotect such
ers.
information in the team.
Ensure an Effective Whistleblower System 4
• By doing so
, yo
transparen • u establish yourself as
t and hYoonuesh a
your subord st opuelrdsocn oninsidtheer tehe
inatees.yes an yeswohfistleblo
• You sh d e a rs of the or wers as the
ould keep ito point out th g a nization as
n m i n d e w r o n they help
whistleblow t h
taking placaet it is these ings that ma gd o
Ensure e rs t h at point ou in your organi y be
sysan
temEffective Whistleblower
and h•elp yW t p roblems in za ti on .
System:
by solving t o h
u itst
o l e
bbelco meersasgho t h e
hose porfoobtlhee ow reualtdlebaedpeur t
forward in
• b y you.leaders should ensure
Ethical r
msetm ptlogyoeuen
hathat front
rewarding a s a
nos tiroceledmode
• Etheir organization has an nd apprecia
effective ls by
thical leade • ting them.
rs s hA
ous ladn system or
aand
nd wsound whistleblower
ays that theyo cerethaitceasl oleuanddepr,riotcies syso
exanpreffective ir uefor
stp eusr moral du
ess their process
v i e
m afree
lodyeueflow
n psfcoarn of
anudseptrootect ty that
ininformation wws h
, i s
sutclehbtlh s u ch
formation i in the team. oawtem rs a. x i m um
s u s ed i n t h
making. e leader ’s d
e ci s i o n -
Encourage Open Communication
5
Encourage Open Communication:

• Ethical leaders should always strive
to base their decisions on open,
truthful and un-biased logic.
• You should encourage your
subordinates to openly express
their views and opinions on
anything, including issues.
Encourage Open Communication 5
• When
Encourage Open Communication: employees
speak open are given th
ly, they will e freedom
h e to
• Ethical leaders shouldto kalways strive
eep track o l p a n ethical le
f his morals ader
to base their decisions
• Su b o ron open, a n d ethics.
d i n
truthful and un-biased logic.ates should be e
the quality ncouraged
of candor w to possess
• You should encourage speayour
k the truth h i c h is the abi
a n d to lity to
out. express
subordinates to openly s p e ak up and s
peak
their views and opinions on
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5
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• When
• You sOpen
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houldCommunication:
also enspcoeuakr op are given th
to have inte ageeynoluy,r tshuey w e freedom
• Ethical leadersgrshould b o rdi l
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eperepsterravck o n a t l p a
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and act on e t hfehi i s m
r prinocriapllseasnd e ader
to base theirtdecisions
h•em. on open, t h ic s .
• truthful Subordinat
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uarlietyenof ca ncouraged
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rad o r to possess
t e
• You should encourage opesnpleyacyour
kanthtehetrnuth g e dw h i c
to h is the abil
expressing b e a
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t h e boeulite.fs,express
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tand up for be who the
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t
their views and heopinions
ir beliefs.on a r e and
Tip
• Ethical Leaders should always try to

instil ethics and moral values in their
team members by telling a
compelling and morally rich story.
• However, it is equally important that
they ethical leaders must also
personify that ethical and moral
story by living the story.
Are You an Ethical Leader?
So, you know that becoming an

ethical leader is all about better
understanding of yourself and to use
your leadership skills, knowledge,
and abilities to foster an environment
of ethics and moral values.
You should use ethics to make your
decisions.
So, how can you find out if you are an
ethical leader or not?
You should try answering the following questions to find out if you are an
ethical leader or not:
Are you doing the right Are you respected by

Are you doing what a
and fair thing every time others for your actions
‘good person’ would do?
in all situations? and decisions?
Do you treat others Are you honest towards

Are you serving the
equally, fairly and others and your
community?
generously? organization?
Are your goals fair to
Are you concerned your employees,
Are your decisions about your employees, customers,
based on ethics and customers, suppliers, shareholders,
moral values? shareholders, and organization and
organization? yourself?
Objectives
How to Develop Ethical Leadership in Leaders?
There are many ways in which you can develop ethical leadership in leaders at
the individual, group and organizational levels. The following are some of the
ways of developing ethical leadership in leaders:
Life Experiences and Rearing

Contemplation
Role Models
Ethics and Moral Values

Communication

• Life Experiences and Rearing:

o The life experiences and the rearing
or upbringing of a person play a
crucial role in the basic morals,
ethics and standards etc. that a
person believes in.
o So, a person who has been brought
up in an environment where he is
taught to be ethical and moral will
be more inclines to be an ethical
leader.
• On t h
e other han
• Life Experiences andhaRearing: d, a person
ve ethics an who does n
d morals in ot
ri
o The life experiencest fandg h romthe c u l c ated in him
hisrearing
ch i l d h o o d t
or upbringing of upabperson
ringing play hrough his
will naot nat
ethibasiccal lemorals, urally beco
crucial role in the ader. me an
ethics and• standards
Howeveetc. that a
r, it is possi
person believes to in.become mo ble to train
re ethical. T s u c h p eo p l
a h e
o So, a person who has l s o playbeen
a crubrought e l i fe experien
cial role in c es
a l t
up in an environment e ring twhere
he ethihe fo r m i ng and
cs aisnd mor
taught to be ethical and moral will als of a per
s on .
leader.
• If any of th
e morals or
person has ethics of a
• On t h l e ad him to tro
e other han s o m e uble at
• Life Experiences andhaRearing: d, a person point of time in
ve ethics an w his life,
d morals in there haoredtoweos nwoatys
right fand cu l c in which
o The life experiences romthe childhood t thesaetelifdein
hisrearing h i m
experience
u p b
or upbringing of a person ri n g ing play hh r o u g h h s may affec
will naot nat is moralissan
d e t
e t h i cal lemorals, u ra l l y b t h i c s .
crucial role in the basic ader. • Eitherecome an
ethics and• standards he would te
Howeveetc. that a
r, it is possi such moral nd to alter
person believes to in.become mo ble to train s and ethics
ge s u c
re ethical. T tting inhtopteroopulbele to avoid
also has he in future or
o So, a person who playbeen cial role in he wliofeuledxlpeearrinento
a crubrought c esstick
a l te ri n g t f
mo r m i n g a to his
up in an environment where he ethihe cs aisnd mor orals annddethics in
taught to be ethical and moral will adavlserosfitay.person. the face of
leader.
Contemplation
Contemplation
• Contemplation:
o A person can develop his ethical
leadership skills by taking action
based on his ethics and moral values.
o After taking the action, it is equally
important for the leader to reflect
and contemplate on the action that
he took.
Contemplation
Contemplation
• He should r
eflect and t
action that hink wheth
he took is m er th e
• Contemplation: should also be in sy o ral and ethi
n c cal and
organizatio w i t h his as we
n ’s
o A person can develop his ethicalals. g o ll as the
• Leade
rs areaction
leadership skills by taking under cons
t h ei r w orkmoral tant pressu
based on his ethics and load avalues.
s w re from
superiors to e ll as from their
p ro
o After taking the action, it is equallyd uce results
at all costs.
important for the leader to reflect
and contemplate on the action that
he took.
Contemplation
Contemplation
• It is import
ant that as
person sho an ethical l
uld constan eader, a
actions, de tly scrutiniz
c i
• sioHne-m e h is
conduct an s ha oki
u n g p
d roauctinoes t ld rerfloeccetssa,nadttithtuindke,wh
conducting n tho ma ether the
himshseoluf in a at heketosoukreistm haotrhael ais
nd ethical a
• •Contemplation: ld alnsoetbheicin alsm nd
A leader ne organ ynacnw neitr.h his
eds to beizin ation’s goa as well as t
o m A operson
de. can a
develop his ethical constant leal s . he
• Leade rning
• Tleadership rs
skills by taking areaction
under cons
hese reflec their w tant pressu
based on histioethicsns andand oco
rknmoral
l o values. re from
h i m a l o t o f s u p er teamdpalastiwoenll as from
food for itohros to produ s give t h ei r
o wAfter
hich htaking
e can the action, it isu g htequally c e
and waryessuinlts at all c
improve his osts.
animportant
d becomefor the leader etothreflect i ca l leadership
an even be
and contemplate on the tteaction
r ethicthat al leader.
he took.
Role Models
Role Models
• Role Models:
o It is the prime duty of a leader to act
as a role model for others and to set
a moral example for his
subordinates.
o Research studies have proved that
people learn quickly and efficiently
when they observe others and try to
emulate the observed behaviour.
Role Models
Role Models
• Hence, mos
t human be
through mo havior is lea
d el l i n g . rned
• Role Models: •
This means
that people
o It is the prime duty of a
get an idea leader to act observe oth
about the k ers, then
as a role modelthfor others
at they hav and to set i n d of new beh
e to manife aviour
a moral example for
• T h is n his st i n t hemselves.
subordinates. ew behaviour t
performing hen serves
f u t u re as a guide t
o Research studies have proved that ons. a c ti o
people learn quickly and efficiently
when they observe others and try to
Role Models
Role •Models
A role mod
el serves as
helps in soc a mentor w
ial learning ho
• Social .
• Hence learning inv
, most hum so olves learn
through mo an b e c
h i
a a l s i t
vior isatiu o in g in a
delling. models l e n w h
arne ere an indi
• Role Models: • the behavd io r o f a m o
vidual
This means e x p e ri e n re
t h a t p e o p c e d l e a d e r or
o It is the prime duty
get anofidaeleader to act le o
a abou•t theHencbeserve others, thencolleague.
as a role modelthfor
at tothers
hey haand to set kind o, it is i
ve to manleifaders f newmbpeohratvainotutrhat ethical
a moral example
• Thisfor his est insthhoeumld them
subordinates. new behav role model selves.selves serve as a
iou r th en s e to their sub
performing
f u t u
al so follows tahs a guid ordinates and
r v e
o Research studies have proved that re acti onns. e modeelltiong
ow leaders to d o f t h ei r
people learn quickly and efficientlyleadersh evelop ethi
ip s k i l l s in t cal
when they observe others and try to hemselves.
• Ethics and Moral Values:

o It is crucial that the organizations
should also have a written code of
ethics or a set of guiding values and
principles.
o Ethical leaders can then use this
code of ethics as a guide to assess
their own decisions or actions.
• Each organ
ization shou
core values ld clearly d
and standa efine its
define how r d s and also s
• Ethics and Moral Values: its employe h o u ld
values. e s can ‘live’ th
o It is crucial that the organizations ose
• Howe
should also have a written ver, juscode
t havof
enough to d ing a code o
ethics or a set of guiding values evelopand f ethics is n
ethical lead ot
• Leade
principles. ers.
rs should b
w i e encourag
l l
o Ethical leaders cangtheni n nessuseto fo
this ed to have
l l ow such co a
and princip d es of ethics
code of ethics as a guideletos.assess
their own decisions or actions.
Ethics and Moral
•
Values
The code o
f ethics can
guidelines t just serve a
o h el p t h e l s
decide wha e ader to
• Each o t actions to
rganization ethical poin take from a
core values s h ould clearly t of view. n
and sta•nda A d efine its
define how r ds s
s aoo
• Ethics and Moral Values: its employein ndnaalsoansheom ulpdloyee is in
values. estocatn he‘liovreg’atnhiza ducted
o It is crucial that the organizations clearly info o sti
e on , h e s h o u
• Howe rmed abou ld b e
should also have a written ver, juscode
t havof relevance o t th e
enough to d i n g a code of e f the organiz
va t h i c ation’s
ethics or a set of guiding values
evelopand ethical leeasdand cosdies onfoet th
l u
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rs should b • The code .
• Leade
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w i e encourag of ethics an
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o Ethical leaders can theni n g n essuse
to fo
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l l ow such co n i za ti on’s valuesa
and princip d e s o t h ic s s h o u l d b e
code of ethics as a guideletos.assess onstantly rfeem
c
inded to th
their own decisions or actions. its leaders. e team by
Communication
Communication
• Communication:
o Communication can also play a
crucial role in developing the ethical
leadership skills in leaders.
o A leader should be taught to
communicate effectively with each
of his team members.
Communication
Communication
• He should h
ave an ope
communica n and unbia
tion to und s ed
• Communication: person’s a erstand the
mbitions, fe oth er
a rs , challenges
o Communicationopcan inioalso
ns eplaytc. a and
• in developing
crucial role Communicathe ethical
tion can he
leadership skills in leaders.
more ethica lp a leader
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h i s d e ci s i o n d i s cuss the rea
o A leader should be taughtsto and also m son for
by after con a k e joint deci
communicate effectively sultineach
with g w i t h s ion s
an issue tha o t hers especi
of his team members. t requires a ally on
moral judge
ment.
Communication
Communication
•
He should h
ave an ope
communica n and unbia
tion to und s ed
• Communication: person’s a• erstand the
mbitiCoonms,mfeu oth er
n
a i
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o Communicationopcan inioalso
ns eplay
tc. aa leader negenslyaw ndith others w
to keep tra i l l h el p
• in developing
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tion carnalhvealues and to m wn ethics a
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moinreleaders. c o n l p a l e a
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o A leader should be taughte c i s ionstoand aiclsaol amnd unbsiathseedr.eason fovrior remain
by after co•n ake joint de
communicate effectively sulH
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Roll your mouse

over the icon,
to learn more.
Did You Know?
The captain of the ship called ‘Ethical
Leadership’ is the CEO of the company. Hence,
the drive for making your organization and its
people ethical starts at the top of the
hierarchical order with the Board of the
company and most importantly ‘ethical
leadership’ should be whole heartedly
embraced by the CEO.
Objectives
What is meant by Ethical Dilemmas?
When an ethical leader is faced with a situation where
his important moral values come into conflict and the
leader has to make a choice between these values,
then the situation is an ‘Ethical Dilemma’.
Hence, for example, sometimes the

leader may have to choose between
two values that are important such
as success and honesty.
So, in such situations the leader

should assign priorities to values and
one takes precedence over the other.
However, it is crucial that the leader should take

care to balance between both the values in order
to avoid unethical decision making.
Ethical dilemmas usually occur due to the

multiple stakeholders that are involved in
and affected by a decision.
Hence, it becomes even more

challenging for the ethical leader
to make a decision that is right
for all the people being affected
by the decision.
So, an ethical leader must always

focus on making ‘right good’
decisions, or making decisions that
are right ethically and good from an
economic perspective.
Some of the most common examples of
ethical dilemmas that are faced by leaders in
organizations are to decide whether to use
dishonest business practices to achieve
greater success and financial stability.
Hence, such a mentality of leaders

of ‘winning at all costs’ often leads
to unethical behaviour.
Hence, it is important that ethical

leaders should bear in mind that one
should not try to gain success or a
competitive advantage over others
by unfair or unethical means.
Classification of Ethical Dilemmas
There are two main categories into which ‘Ethical Dilemmas’ are classified by
Kidder in 2005. The following are the two main classifications of ethical
dilemmas as per Kidder in 2005:
s
Right versu
g D i l e m m a
Wron
Right ve
rsus
Right Di
lemma

Right versus Wrong Dilemma
s
Right versu
ng D i l emma
Wro
•
The first type of dilemma classified by Kidder in
2005 is the ‘Right versus Wrong Dilemma’.
In the ‘right versus wrong dilemma’, the dilemma

occurs due to ethical issues that arise when a core
moral value has been broken or ignored.
Right versus Wrong Dilemma
s
Right versu
ng D i l emma
Wro
•
The first type of dilemma classified by Kidder in
• Fisothe
2005 r ex‘Right
ampleversus
, a persWrong Dilemma’.
‘truthfulne o n may consid
ss’ as an im er
finds anoth portant val
In the ‘right versus e r
wrong persdilemma’,
o the ue and if he
dilemma
person wou n is to lie, the
occurs due to ethical l d naturthat
issues arise when n athcore
e
as being un a l l y see the ac
moral value hasetbeen hical.broken or ignored. t o f l yi n g
• There
fore, in suc
i s s im p l y t h h a t yp e o f
e obvious d dilemma, e
ifference be th i c s
what is righ tween
t and what
is wrong.
Right versus Right Dilemma
Right ve
rsus
Right Di
lemma •
The second type of dilemma classified by Kidder in
2005 is the ‘Right versus Right Dilemma’.
In the ‘right versus right dilemma’, the dilemma

occurs due to ethical issues that arise when two
core values come into battle with each other.
Right versus Right Dilemma
• A leader m
ay face such
both the co a dilemma
re values ar when
Right ve and one va e importan
rsus lue shows p t to him
Right Di arguments owerful mo
lemma • for one cou ral
the other v rse of actio
alue shows n an d
argum entsoffodilemma powerful m
The second type r anotheclassified oral in
by Kidder
r course of
• 2005
In suischthe ‘Right versus Right Dilemma’. action.
a d i l e m m a,
choose bet the leader h
ween the tw as to
as he canno o courses o
In the ‘right versust chright
o o s edilemma’, f action
the dilemma
et ics is a m b o t h . I n s u ch
occurshdue atterissues
to ethical of right verarise when
that casestwo
,
core values come into battle with sueach
s righother.
t.
Objectives
Four Paradigms of Dilemmas
12 3 4
There are four paradigms or perspectives of dilemma that are identified by
Kidder. The four paradigms of dilemma identified by Kidder are as follows:
Truth versus Justice versus

Loyalty Mercy Short-term versus
Long-term
Individual versus
Community
Truth versus Loyalty
1
Truth versus Loyalty:
• The first paradigm or perspective of dilemma identified
by Kidder is that of ‘truth versus loyalty’.
• In this category of dilemma, the leader is faced with
the dilemma of conflict between honesty and integrity
against allegiance, duty, or promise-keeping.
Truth versus
Loyalty
Individual versus Community
2
Individual versus Community:
• The third paradigm or perspective of dilemma
identified by Kidder is that of ‘individual versus
community’.
• In this category of dilemma, the leader is faced
with the dilemma of conflict between us versus
Individual versus them, self versus others, or smaller versus larger
Community groups.
Justice versus Mercy
3
Justice versus Mercy:
• The second paradigm or perspective of
dilemma identified by Kidder is that of
‘justice versus mercy’.
• In this category of dilemma, the leader is
faced with the dilemma of conflict between
Justice versus fairness, impartiality and equal application of
Mercy
the law against pity and care.
Short-term versus Long-term
4
Short-term versus Long-term:
• The fourth paradigm or perspective of dilemma
identified by Kidder is that of ‘the short-term
versus long-term’.
Short-term versus
Long-term • In this category of dilemma, the leader is faced
with the dilemma of conflict between immediate
needs or goals versus future needs or goals.
Using Moral Courage to Overcome Ethical Dilemmas
One of the most common
methods to overcome ethical
dilemmas and to make ethical
decisions is to use ‘moral
courage’.
‘Moral Courage’ means
applying the ethics and moral
values that a leader believes
in, identifying the risks
involved in applying the
values and ethics and finally
braving out the hardships
that have to be faced owing
to the application of the
ethics and moral values to
one’s conduct, decisions and
behavior.
Using Moral Courage to Overcome Ethical Dilemmas
Hence, just applying the
ethics and values to your
decisions and conduct is not
enough. An ethical leader
should also be brave enough
to face and bear the
hardships and persevere in
the face of the adversity that
comes his way.
He should be brave enough
to stick with the “right”
decision, and ignore
misdirection, faulty logic and
justifications. Hence, an
ethical leader should always
‘think, say, and do’ the right
thing always.
MCQ
Q. Which of the following is NOT one

of the ‘Four Paradigms of
Dilemmas’?
Click on the
radio button
to select the
correct
answer!
MCQ
GooWhich
Q. d! Thaoft'sthe following is NOT one
R ight! of
of the ‘Four Paradigms
Dilemmas’?
Correct Ans
wer:
‘Career ver
sus Moneta
of the ‘Four ry Growth’
Paradigms is NOT one
o f Di l e m m a
s’.
lic k h e re to
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continue
MCQ
ThatWhich
Q. 's NotofQthe following is NOT one
u ite Right!of
of the ‘Four Paradigms
Dilemmas’?
‘Career ver
sus Moneta
of the ‘Four ry Growth’
Paradigms is NOT one
of Dilemma
s’.
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continue
How to Determine Ethical Strength of Leader?
The following are some of the ways in which you can determine the ethical
strength of any leader. Does the leader:
Value the establishment
Follow the functioning of governance structures
Give importance to governance structures
Communicate the code of ethics and values clearly to all involved
Take proper action against people who violate these values
Support proper control mechanisms within the organization?
Use established proper, anonymous feedback mechanisms to know about

breaches
How to Determine Ethical Strength of Leader?
The following are some of the ways in which you can determine the ethical
strength of any leader. Does the leader:
Make sure that management is informed of the issues facing the
organization
Take advice and feedback from all the people around him
Be open to suggestions from various stakeholders
Seeks open and honest feedback from his colleagues
Is open to being challenged on important issues
Respond positively to questioning and criticism from his own team
Lead by example, by living the values

Objectives
Core Responsibilities of an Ethical Leader
Core responsibilities that an ethical leader has to fulfil
towards his subordinates, peers, seniors, organization are:
He has to formulate and personify the purpose and ethical

values of the organization
He has to focus on organizational success first rather than on

personal success and egotism
He should find and hire the best people and develop them to
fit the organization’s values and ethics
He should clearly communicate about ethics, values and the

creation of value for his employees, suppliers, stakeholders
and organization
He should have clear defined processes and routes to address
any kind of disagreements that others may have to his views,
decisions and opinions
Core Responsibilities of an Ethical Leader
Core responsibilities that an ethical leader has to fulfil
towards his subordinates, peers, seniors, organization are:
He should be empathetic and understanding of others’ values

and ethics
He should make tough decisions while sticking to ethics and

moral values and at the same time meet the organization’s
goals
He should be well aware of the limits of the values and

ethical principles that can be practiced
He should carry out all his behaviour, conduct and actions in

Roll your mouse over
ethical terms
the icon, to learn
more.
He should maintain a clear balance between basic value
creation and ethical legitimacy
Tip
As an Ethical Leader, you must convey the following to

your team members:
• How they should develop their unique ethical
identity?
• What they are at present?
• What they can become in future?
• How they live at present?
• How they could live better in future?
Objectives
Key Traits of an Ethical Leader
The following are the key qualities or traits of an ethical leader:
1 6
2 7
3 8
4 9
5 10
Listening to Other's Views/Opinions
1 Listening to Other's
Views/Opinions
6
2 • Listening to Other's Views/Opinions: 7

o One of the most important traits of an ethical
leader is the capability of listening to other
3 people’s opinions. 8
o An ethical leader would listen with an open
mind to different points of view or opinions.
4 9
5 10
Listening to Other's Views/Opinions
1 Listening to Other's
Views/Opinions
6
2 • • Suchto Other's Views/Opinions:

Listening a leader wo 7
where othe uld strive to
rs a create a clim
o d One re free to exptraits ate
isagof the most important
ree ents w re
of an ethical
s s t h e ir
leader ism ithout of
the capability any fear of to other
listening
3 • Howe
people’s
ver, opinions.
an ethical l
eader also
conflicts.
8
stop the ar knows whe
o vAn ethicalgleader
umentwould
s after listening an openn to
listen with
arious opin toopinions.
the
ions anpoints
mind to different d to mof view or
ake a final d
ec i s io n .
4 9
5 10
Ability to Mentor
1 6
2 Ability to Mentor 7
3 • Ability to Mentor: 8
o An ethical leader should have the ability to
mentor other people.
4 o He should not only mentor other people with 9
respect to their job responsibilities but he
should also try to instil qualities of moral
values, ethics, integrity, honesty and character
5 in his subordinates. 10
Ability to Mentor
1 6
2 • HAbility
e shoutold Mentor
teach his su
7
their moral bordinates
s and value to stick to
mistakes an s, to accept
d weakness t h e ir
t h em . es and to le
3 • Ability to Mentor:
• An et
arn from
8
hical leleader
o An ethical ader sshould
learning in hould ehave the ability to
stablish a c
his opeople. ulture of
lementor other
arns from t
rganization
where each
he good as person
4 o thHee oshould
ther. not only mentor well aother
s badpeople
qualitiewith 9
respect to their job responsibilities but hes of
should also try to instil qualities of moral
values, ethics, integrity, honesty and character
5 in his subordinates. 10
Sharing Credit for Success with Others
1 6
2 7
Sharing Credit for Success

3 with Others
8
4 • Sharing Credit for Success with Others: 9

o This is a trait that helps to establish trust and
togetherness amongst the subordinates and
5 their leader. 10
Sharing Credit for Success with Others
• An ethical l
1 for any orga
eader shou
ld learn to s
hare the cre
6
nizational s d it
subordinat u c cess with h
es and peer is
• He sh s .
ould learn t
2 with all of t o share the
hose involv credit of su
cce s s
7
• Sharin e d .
g his laurels
subordinat with others
es to pfor will help th
Sharing Credit e rcSuccess
e e
3 open, gene
rouOthers
with
i
s, honest an
ve their lea
der as bein
g
8
• You sh d modest.
ould keep i
the organiz n m in d t h a
ation is tea t any work
mwork and d o n e in
credit to yo
4 feel apprec
ur teafor
• Sharing Credit m fSuccess
o r with
their effort
if you give
Others: 9
iated and a s, they wou
o This is a trait that pahelps
rt of tto ld
heestablish
success. trust and
togetherness amongst the subordinates and
5 their leader. 10
Sharing Blame for Failure with Others
• Sharing Blame for Failure with Others:
1 6
o Sharing the blame for failure with your team
members is equally important as sharing the
credit for success with them.
2 o Hence, even if the mistake is done by any one
7
member of the team, as the leader of the
team, it is your moral responsibility that you
3 share the burden of the mistake with the 8
offender in front of the management.
4 Sharing Blame for Failure

with Others
9
5 10
Sharing Blame for Failure with Others
• •Sharing
You sBlame for Failure with Others:
1 hould alwa
ys keep in m 6
o dSharing
esert thethe blame
team mem for failureinwith
d nevyour
er toteam
mmembers ber who haas sharing the
istake to bise equally important
ar the brun s made a
incredit
front ofor f thsuccess t o f t h e m is
e manawith them. take alone
2 • o You sh
Hence,ouldeven
gement. 7
stanifd the
u p
mistake is done by any one
for yas
andmember
put fortof outhe
r teleader
h athe
u n
team,
i te d
am meof
froresponsibility m the
b er
mateam,
nagemitenist.your moral nt to face t that you
he
3 • Youshare the burden of the mistake with the
s h o u ld s p ea 8
indicoffender k up of
in front onthe
behmanagement.
ate that yo alf of the te
u and the enti am and
blame. re team we
re to
4 • YoSharing
u shouldBlame
with
for Failure
enOthers
sure that yo 9
managem ent that yo u convey to
u as well as th e
would mak your team
e up for the
mistake.
5 10
Being Aware of One's Weaknesses
1 6
2 7
• Being Aware of One's Weaknesses:
3 o An ethical leader is aware of his strengths and 8
is also aware of his weaknesses.
o Only when a person knows his weakness, he
4 will be able to compensate for that weakness. 9
Being Aware of One's

5 Weaknesses
10
Being Aware of One's Weaknesses
1 6
2 • As an ethic
al leader, yo
7
weaknesse u s h o u ld w
s and never ork on your
compromis let them m
• Being Aware of eOne's
on yoWeaknesses:
u ake you
while maki r m oral value a
3 •o InAnfaethical
n g d e c is i o n
leader is aware
nd ethics
s. of his strengths and 8
ct, baware
is also eing aofwahis
you to be c re oweaknesses.
f your weak
autious of t ness will he
o wOnly
hen twhen hem eshis lp
hey beacperson
ome an obs
knows p e weakness,
c i al he
ly in times
4 etwill be able
hical leader to compensate
s h ip .
tacle in youweakness.
for that
r path of 9
Being Aware of One's

5 Weaknesses
10
Ability to Control Emotions
1 Ability to Control Emotions 6
2 • Ability to Control Emotions: 7

o One of the most crucial traits of an ethical
leader is the ability to control emotions.
3 o Controlling one’s emotions is crucial in ethical 8
leadership because only a rational person
who is free from any emotions will be able to
4 make the right decisions.
9
o There may be times when as a leader you may
feel ill-treated, angry, frustrated or biased.
5 10
Ability to Control Emotions
• However, if you leAbility to Control Emotions
1 actions, there ma
t such emotions c
ontrol you and yo 6
y be times when ur
on your morals an you would compro
d ethics to listen mise
to your emotions
• It is importa .
nt that you do no
2 • emAbility
otions to
thaControl
t you mEmotions:
t ignore the nega
tive 7
ay feel towards so
s om ing. of the most crucial traits of m
oethOne e n e or
an oethical
• Then yoleader
u shouis ld the ability to control emotions.
try to find a positi
3 of co
hannControlling
elling theseone’s emoti emotions
o n s s u
ve or constructive
is crucial in ethicalway 8
constructive discu c h as through a
leadershipssbecause
ion or feonly
edback.a rational person
• This positiwho
ve cishafree from any emotions will be able to
nnelling of your e
motions will help
4 vent out make
your ethe
condouct or ethica
right decisions.
motions as well a
s n ot hamper your e
you to 9
There may l debecistimes
ions. when as a leader you may thical
feel ill-treated, angry, frustrated or biased.
5 10
Knowing to Replenish in Times of Stress
1 6
2 Knowing to Replenish in
7
Times of Stress
3 • Knowing to Replenish in Times of Stress: 8

o An ethical leader may face a lot of stress and
pressures when he tries to do everything as
4 per moral values, standards and ethics. 9
o Sometimes it may seem easier to you to just
give up all your values, morals and ethics and
5 do what seems the easier thing to do. 10
Knowing to Replenish in Times of Stress
1 •
6
Many time
s sticking to
cause you t the path of
o become f ethics may
out. r u strated and
stressed
2 • Hence
Knowing to Replenish in
7
, it is crucia Times of Stress
learn the ar l that an et
t of relaxati hical leader
on and hum s h o u ld
off the frus or to shake
tration and
3 s
You shoutoldReplenish in Timesoof
• • Knowing
t re s s f th e d a
Stress:y. 8
learn to rep
lenish your
oeneAnrgieethical
s to facleader
e the challeface a lotseoflf stress
may and yoandur
You should nges of the
pressures alswhen
o encohe uratries next daas
to do everything y.
atmospher ge a health
4 per moral e ofvalues,
laughtestandards
r and fun iand
y ethics. 9
n your team
o Sometimes it may seem easier to you .
to just
give up all your values, morals and ethics and
5 do what seems the easier thing to do. 10
Managing Directly
1 6
2 7
3 Managing Directly 8
• Managing Directly:
4 9
o An ethical leader should learn to manage
directly even if he is high up in the hierarchy.
5 10
Managing Directly
• When you learn to conn
1 establish lasting connectieoctnswwitithhpeople on a one to one basis, you 6
them.
• Your subordinate
s will perceive you to be
caring and empathetic.
• Also, when you le
2 person’s fears, moatirnvato manage directly you get understand the othe7r
tions, ambitions etc.
• You may not get
the time to interact wit
leadership every day. h everyone under your
3• However, Managing Directly 8
you should make it a po
on a regular basis to ma int to connect with each
ke your team aware of th one of them
there for them. e fact that you are
• Managing Directly:
•4 You should spen 9
d ti m e talkleader
ing witshould
h your learn
opinion’, hoo An ethical
lding team meetings an
team tomemanage
mbers, taking ‘public
everyone’s handdirectly even if he isdhigh
makiupng in
it athe
p ohierarchy.
int of shaking
.
5 10
Sticking to Fundamental Goals/Values
1 6
• Sticking to Fundamental Goals/Values:
o As an ethical leader, it is your prime
2 responsibility to stick to the fundamental
goals or value system of your organization.
7
o You should learn not to compromise on your
individual ethics and morals as well as the
3 ethics culture of your organization. 8
4 Sticking to Fundamental
Goals/Values
9
5 10
Sticking to Fundamental Goals/Values
1 • So m e 6
• Sticking totiFundamental
mes it may Goals/Values:
seem diffic
done while ult to get th
sticking to y in g s
o aAsndan ethical
goals, howe leader, it o
is u r
yourf u n prime
damental e
ve r, y th i c s
2 orkarounds to stickoto
wresponsibility u sthe
houfundamental
l d try to find 7
without co
• Wgoals or value system ofmyour promorganization.
is i n g o n t h e
hen your te m.
a m m e m
o whYouo stishould
cks to learn not bto ercompromise
s view you on your
as a man
his morals a
woindividual
uld also leethics n
and morals d vaas luewell
s, thas the
3 theethics
arn from yo
ir leadculture
er. u and respe
of your organization.
ey
ct you as
8
• You w
ill be able t
and create o set an exa
a cultSticking mple for th
em
4 your team u r to
e of ethics Fundamental
and organizGoals/Values a n d morality i
n
9
ation.
5 10
Communicating Goals/Vision Openly
1 6
• Communicating Goals/Vision Openly:
o An ethical leader always communicates open
2 with his subordinates and the people around 7
him.
o He should openly and frankly communicate
3 his goals, vision, ethics, values etc. to other
people to help them understand the reasons
8
for his decisions.
o He should be able to communicate his goals
4 to his team members. 9
5 Communicating
Goals/Vision Openly
10
Communicating Goals/Vision Openly
1 6
• Communicating Goals/Vision Openly:
o• An Anethical
ethicalleader
leaderalways communicates open
s h ould ake
2 useshis
with
u n
ple words a andm
simsubordinates
n d co m m
sure tharound
the people at he 7
d
him.erstanding of u ni
the concern cates with an
• You sh s of others.
o He should ouldopenly and
make sure frankly communicate
chis
omgoals,
municvision, thvalues
at you etc. do nto
3 • Ypeople
ate witethics,
h malice to
wardthe
otother 8
ou shouto help them understand
ld also enco
anyreasons
one.
cofor
mm his decisions. urage two
unication th -way
at is beneficia
o foHesteshould
r a sensbee of ethicacommunicate
able to l andhis
hegoals
4 antodo rgateam
his nizatimembers.
on.
l c u l t u re in your te
lps to
am
9
5 Communicating
Goals/Vision Openly
10
Real Life Example

understand the traits
of an ethical leader.
Real Life Example
• Oswald Thornton is the Vice President
(Operations) at Kirk & Patrickson Inc.
• Oswald has been working in the

leadership role for many years now.
• He has always been looked up to by

his employees and management as a
great ethical leader.
Real Life Example
• Let us try to understand some of the

key traits that Oswald possesses and
has also developed over the many
years of leadership which make him a
great ethical leader.
Real Life Example
• Oswald has a great ability of listening
carefully to other people’s views or
opinions including his subordinates,
peers and superiors.
• This ability allows him to understand

other people’s fears, ambitions, likes,
dislikes, challenges etc.
Real Life Example
• Oswald has a great ability of listening
carefully to other people’s views or
opinions including his subordinates,
peers and superiors.
• This ability allows him to understand

other people’s fears, ambitions, likes,
Using this k dislikes, challenges etc.
nowledge a
p eo p l e t h i n bout what
k Oswald is other
d ec i s i o n s t h able to mak
at are more e better
respected b acceptable
y o t h er p eo and
p le.
Real Life Example
• Oswald is also a great mentor.
• In fact, any person in his department

who gets newly promoted as a team
lead or to other leadership role always
depends on Oswald for guidance.
• Oswald is open and very helpful and is

always available to all his
subordinates and peer as a constant
source of support and guidance.
Real Life Example
• Oswald is also a great mentor.
• In fact, any person in his department

who gets newly promoted as a team
lead or to other leadership role always
depends on Oswald for guidance.
He does no
t keep his k
experienc•e Oswald nowledge a
limited to h open and very
is nd yhelpful
ears of and is
i
with others always available m but share
. to all shis
it openly
This makes subordinates and peer as a constant
him more a
appreciated source ofpsupport
proachaand
b l e guidance.
by his co-w and
orkers.
Real Life Example
• Oswald never misses a chance of
praising others or rewarding his team
members for their hard work and
efforts.
• He always shares the credit for all his

professional successes with others.
• He constantly makes people feel that

he is a great leader because they all
are great followers.
• He attributes his as well as the team’s

overall success to each and every
individual of the team.
Real Life Example
• Oswald never misses a chance of
praising others or rewarding his team
members for their hard work and
efforts.
• He always shares the credit for all his

This trait m professional successes with others.
akes each o
feel special f Oswald’s t
, i m
• Hepoconstantly
rtant and cmakes peopleeam memb
h e r feel ethat
r
i s
They feel th he is a great leader because h e d .
at their har they all
d work and e
being appre are great followers.
ciated and fforts are
their best. g et motivate
d to give
• He attributes his as well as the team’s
overall success to each and every
individual of the team.
Real Life Example
• Oswald also does not miss a chance of
supporting his team in times of need
and crisis.
• He stands by his team like a solid rock

and shares the blame for failure with
others.
• Even if it is the fault of any one

individual in the team, he supports
the individual and shares the blame
with him in front of the management.
Real Life Example
• Oswald also does not miss a chance of
supporting his team in times of need
and crisis.
• He stands by his team like a solid rock

and shares the blame for failure with
This trait m others.
akes him a
leader beca grea
use his team t ethical
know
he will no•t Even if it is the fault
s thof
at any one
abandon th
crisis. individualem
in ithe
n a team,
time ohe
f supports
the individual and shares the blame
with him in front of the management.
Real Life Example
• Oswald not only is aware of his
strengths but is also aware of his
weaknesses.
• Oswald knows that is greatest

weakness is inefficient time
management.
• To overcome this weakness, he uses

several strategies and tools.
• He delegates his tasks to other people

to complete them under his
supervision while saving time for
himself for more crucial tasks.
Real Life Example
weaknesses.
• Oswald knows that is greatest

He also use weakness is inefficient time
s various to
to-do list, a management. ols such as
priority list
nd planner ,
more effecti etc. to plan h
• veTo is timehe uses
ly.overcome this weakness,
He constan several strategies and tools.
tly tries to o
and stay on vercome th
track. is weaknes
s
Real Life Example
weaknesses.
• Oswald w eknows
a k nessthatandis greatest
n ti fyin g h is
This abilityHoef ide weakness
s e e m m is
o re uman totime
inefficient
h his
alsokes hima
working otno-it ma uses vmanagement. rious tools
such as prio
d in a t eds o
. l i st , an d rity list,
subo r planner etc
more effecti
v a s c e r ta .
in to epalaknn his tis
w e s s e
ze t h a t e
•e alsTo
h h
loy.overcome this weakness, mehe uses
They Here a li s to woand rk o n h is
c o n t co n st a n
several t ly t r ie
strategies tools.
just likeatnhem bsutantly tries to overco
d sta me this we
weaknesses. y on track. akness
Real Life Example
• Oswald is a great ethical leader
because of his great ability to control
his emotions.
• He does not panic in times of crisis, he

does not show his frustration in times
of stress, he does not yell and shout
when he is angry with someone and
he does not insult someone for
disobeying him.
Real Life Example
• Oswald is a great ethical leader
because of his great ability to control
his emotions.
• He does not panic in times of crisis, he

Hence, bas does not show his frustration in times
ically Oswa
emotions a of stress, lhe
d isdoes
in tonot
tal cyell
t all times. ontrand shout
ol o f h is
when he is angry with someone and
He does no
t lehe
t hdoes
is emnot
brains and otioinsult
n
someone for
s take over
diredisobeying
ct his behahim. h is
vior.
Real Life Example
• One of the greatest traits that Oswald
possesses as an ethical leader is his
ability to replenish himself in times of
stress.
• He cracks jokes, holds small get-

togethers of the team, plans small
team outings, talks and laughs with
his team members in times when he
knows that the entire team is going
through a crisis or tough times.
Real Life Example
ability to replenish himself in times of
stress.
• He cracks jokes, holds small get-

He tries to togethers of the team, plans small
lighten toutings,
he moodtalks
around him team o f e
and laughs with
veryone
tohis
mteam
ake members
they are fee s u re that the times when he
in
linknows
g gets that stress that
work to the al l eviated and team is going
the entire
ir bthrough
est abiliatiecrisis or toughthetimes.
y can
s.
Real Life Example
ability to replenishal le a d e r himself in times of
him a gstress.re a t e t h ic
This trait makes t fe e l p r e s s u rize d or
d o es n o
because his team ’s co n st a n t r eminding
d e r
lea He cracks jokes, holds small get-
•
burdened by its o rk p re ssuof re.the team, plans small
ris is
He ctries too r w togethers
them of th lighten toutings,
around him team he moodtalks o f and laughs with
tohismteam e veryone
they are fee a k e s u members
re that the times when he
in
linknows
g gets that stress that
work to the a l l eviated and team is going
the entire
ir bthrough
est abiliatiecrisis or toughthetimes.
y can
s.
Real Life Example
• Oswald always stays in touch with the
people under him and manages them
directly.
• He connects with people on a one to

one basis and establishes lasting
connections with them.
• Managing his team directly helps

Oswald to understand the other
person’s fears, motivations, ambitions
etc.
Real Life Example
directly.
• He connects with people on a one to

Although O one basis and establishes lasting
swald is bu
work day, h connections sy m with them.
ost p art of his
e still make
with each o s it a point
ne of his te to connect
regular ba•s Managing m a
is to make t hismteam embedirectly
rs on a helps
h
that he is th Oswald toeunderstand
m
ere for them aware of the the other
fact
.
etc.
Real Life Example
directly.h is t e a m m e m bers,
alking wit h
He spends time t ld in g te a m m e etings
inion’, ho
taking ‘public op f s h a k in g e v eryone’s
oin t o
and making it a p • He connects with people on a one to
hand. Although Osw one basis and establishes lasting
ald is abtuessypwith
daya,khees shtiisllsuconnections
in me rc eive him to
them.
d
mbaoker s it a p ost part of
This traitem
aacnhdoenm . o i nt
his work
be carinbgas epoafthhiestitcea to connect
with
is to m•ake Managing m m e m b ers ondirectly
them awarhis team a regulahelps
r
is there for Oswald to understand e of the fac the other
t h em . t that he
etc.
Real Life Example
• Oswald makes sure that he sticks to
the fundamental goals or value system
of his organization, Kirk & Patrickson.
• He never compromises on his

individual ethics and morals as well as
the ethics culture of his organization.
• Sometimes he finds it difficult to get

things done while sticking to his
fundamental ethics and goals.
• However, he tries to find workarounds

without compromising on them.
Real Life Example
of his organization, Kirk & Patrickson.
• He never compromises on his

individual ethics and morals as well as
This trait is
grthe
eat ethics
helpfuculture of his organization.
ethical lead l to establis
er because h him as an
view him •a Sometimes whenfinds
his teitadifficult
s a man wh he m membto er
get
s
values, the things done o stiwhile
c ks tosticking
h to his
y also learn i s morals and
him as thei fundamental fromethics
him an and
r leader. d regoals.
s p ec t

Real Life Example
to s e t a nofexhis
a m ple for
organization, Kirk & Patrickson.
Oswald is a b le
at e a c u lt u re o f ethics and
them and cre • anHe d o rg ation.
anizcompromises
never on his
t y in h is te a m
morali individual ethics and morals as well as
This trait is
grthe
eat ethics
helpfuculture of his organization.
ethical lead l to establis
er because h him as an
view him •a Sometimes whenfindshis teitadifficult
s a man wh he m membto er
get
s
values, the things done o stiwhile
c ks tosticking
h to his
y also learn i s morals and
him as thei fundamental fromethics
him an and
r leader. d regoals.
s p ec t

Real Life Example
• Oswald always communicates openly
with his subordinates and the people
around him.
• He openly and frankly communicates

his goals, vision, ethics, values etc. to
other people to help them understand
the reasons for his decisions.
Real Life Example
• Oswald always communicates openly
with his subordinates and the people
around him.
• He openly and frankly communicates

He commun his goals, vision, ethics, values etc. to
icates his g
members a other oals to his t
nd uses speople eam understand
to help them
communica the reasonsi m ple words a
tes with an for nd
his decisions.
the concern understand
s of others. in g o f
Real Life Example
• Oswald never speaks to anyone by

keeping malice toward that person.
• He also encourages two-way

communication that is beneficial and
helps to foster a sense of ethical
culture in his team and organization.
Objectives
Tips to Improve Ethical Leadership in Organization
The following are some tips to improve the ethical leadership in an organization:
An organization’s management should have proper ethics committees in place to

avoid unethical scandals.
The organization’s adopted values and code of ethics should be clearly defined,
communicated and propagated through the leaders to all the levels of hierarchy.
A well-defined business code of conduct should be created which defines the

right behavior, standard procedures, governance structures, policies of
organization.
Organization should set up and create ethics committees and subcommittees to
consider and support critical decisions.
An organization should conduct ethics training programs and introduce them into
the new employee induction training programs.
Organization should carry out regular ethics reviews such as internal audits
throughout the organization as part of established reviews.
Tips to Improve Ethical Leadership in Organization
The following are some tips to improve the ethical leadership in an organization:
Organization should make sure the selection processes to select new employees
are based on ethical considerations.
Organization should have a regular feedback system to rate the ethical index of
senior leaders.
Organization should have a protocol or an ethics hotline that can be used by

employees to report potential violation of ethics.
Organization should have a proper define process for dealing with violation of
ethics across the organization.
It is important that organization should make sure that senior employees know
when to consult with others on decisions that have long-term ethical aftermaths.
Organization should encourage employees to openly bring out issues that may
have serious ethical consequences.
Video
Look at the video given below to understand the meaning of ethical
leadership.
Click on the video

link to play it!
https://www.youtube.com/watch?v=3ygNKNaMv4c
Practice
Let us now practice all

that you have learned
about Ethical
Leadership.
Practice
Choose any famous leader from

business, politics or spiritual domain
known for his ethical leadership. Study
and find out about the leader. Now,
note down the following observations
about the chosen leader:
• Why was the leader well-known
for his ethical leadership?
• What kind of upbringing and life
experiences did the leader have?
• What ‘ethical dilemmas’ did the
leader face? How did he overcome
them?
• What are the core ethics that you
can learn and inculcate from this
leader?
Case Study
Peter Drunker is the Vice 1. What can Peter do to

President (Human make sure that the
Resources) at Yanking Inc. new employees
selected for Yanking
are ethical?
2. What efforts should be
made to make the new
employees aware of
Yanking’s ethical
culture?
Summary
Principles of Ethical
Leadership
Making Subordinates
Developing Ethical Open to Ethical
Leadership in Leaders Leadership
Ethical Leadership
Key Traits of an Ethical Elements of Character

Leader

Summary
Ethical Leadership
Elements of Character
Trustworthiness Demeanour
Esteem Caring
Dutifulness Candor
Summary
Justice for Others
Service to Others Honesty toward

Others
Building
Respect for Others Community with
Others
Principles of Ethical
Leadership
Ethical Leadership
Summary
Role Models
Ethics and Moral

Contemplation
Values
Life Experiences
Communication
and Rearing
Developing Ethical
Leadership in Leaders
Ethical Leadership
Summary
Leaders should be Preach what You Encourage an
Role Models Know Best Inclusive Work Culture
Making Subordinates Open

to Ethical Leadership
Ensure an Effective
Whistleblower
System
Ethical Leadership
Encourage Open
Communication
Summary
Listening to Other's
Views/Opinions Ethical Leadership
Ability to Mentor Communicating

Key Traits of an Ethical Goals/Vision
Leader Openly
Being Aware of Managing Directly

One's Weaknesses
Ability to Control Sharing Blame for

Emotions Failure with Others
Knowing to Replenish Sticking to

in Times of Stress Fundamental Goals
Sharing Credit for Success

with Others
Glossary
Click each alphabet to learn more.
W
Glossary
• Character – Character is the C

inherent complex of attributes
that determines a person's
moral and ethical actions and D
reactions
• Contemplation – Contemplation E
means a long and thoughtful
observation
R
W
Glossary
• Dilemma – Dilemma is a state of C

uncertainty or perplexity
especially as requiring a choice
between equally favourable
D
options
• Demeanour – Demeanour is the

behavioral attributes or the way E
a person behaves toward other
people
R
W
Glossary
• Ethics – Ethics are the principles of C

right and wrong that are accepted
by an individual or a social group
D
• Esteem – Esteem is the condition
of being honoured, respected or
well regarded
E
W
Glossary
• Role Model – Role Model is C

someone worthy of imitation
• Rearing – Rearing means

D
upbringing or helping someone
grow up to be an accepted
member of the community
E
W
Glossary
• Whistleblower – Whistleblower
is an informant who exposes C
wrongdoing within an
organization in the hope of
stopping it D
• Weakness – Weakness is a flaw
or weak point E
W
Yo u h a v e
s s fu l l y
Succe e
p l e te d th
C o m
u l e o n
Mod
n g ra t u l ah i c a l L e a d e r s hi p!
C o E t
ti o n s

3 - Ethical-Leadership

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3 - Ethical-Leadership

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ETHICAL

Ethical Leadership means using

Ethical leadership is a must for all the leaders as well

They also aim to gain returns that

Ethics has been defined and

Ethical leadership is about

‘Ethics’ is one of the most crucial qualities that

Leaders should understand the importance of

The greatest scandals in history have

The major ‘Ethical Theories’

The word ‘Teleological’ has been

‘Teleological Theories’ are more

Hence, as per ‘Teleological Theories’, the outcomes

Those theories that are related to duty or

The word ‘Deontological’ has been

‘Deontological Theories’ are more

It is also concerned with whether

Virtue-based Approaches(Theories related to Leaders’ Character)

• ‘Virtue-based Theories’ or the

© ICCD Canada. All rights reserved.

Virtue-based Approaches(Theories related to Leaders’ Character)

• ‘Virtue-based Theories’ vior

Virtue-based Approaches(Theories related to Leaders’ Character)

Virtue-based Approaches(Theories related to Leaders’ Character)

On the other hand, people such as

Teleological Theories (Theories related to Consequences)

• ‘Teleological Theories’ are

Teleological Theories (Theories related to Consequences)

Teleological Theories (Theories related to Consequences)

• Ethical Egoism: ‘Ethical Egoism’ stands for

Deontological Theories (Theories related to Duty or Rules )

• ‘Deontological Theories’ are

Deontological Theories (Theories related to Duty or Rules )

Deontological Theories (Theories related to Duty or Rules )

The following are some of the examples

Q. Theories that are related to

Q.Tha t's Notthat

Heifetz and Ethical

Burns and Ethical

skills to deal with conflict management. He

stressed upon the responsibility of a leader to help

ures and encourag

stressed upon the responsibility of a leader to help

Burns and Ethical • This becomes even more challenging in cases

Q. Who put forward the idea of ‘Ethic

Respect for Others

Let’s look at each in detail.

• Respect for Others:

• Respect for Others: •They also b

• Justice for Others:

• Justice for Others:

• Honesty toward Others:

• Honesty toward Others:

• Building Community with Others:

You must have heard the word ‘character’ in several

Let us look at each in detail.

• ‘Trustworthiness’ is the quality of being honest, being

• ‘Esteem’ means to treat others with respect, to

• ‘Dutifulness’ means being responsible in whatever

• ‘Candor’ is the quality of being fair, to follow the

• ‘Demeanour’ is the good way in which a person

• ‘Caring’ means to be kind, have empathy for

Let us now look at a