Contingency Theory Of Ethical Leadership

Superior Essays
Conclusion
Contingency theory of leadership considers their supporters as one of the situational factors that leaders need to manipulate in order to achieve specific outcome (Uhl-Bien et al., 2013).
This theory signifies that whether ethical or unethical, leaders influence their followers. Using their own convincing skills as an asset, leaders are successful in making followers work their own way. Unethical leadership thus impacts the organization. sometimes It is difficult for followers to distinguish between ethical and unethical leaders, but a good follower put time and efforts in making informed decision about their leaders and what they embrace. Accordingly, they take proper action (Kellerman, 2007). When a follower disrupts the agenda
…show more content…
At times organizations does not represent their product fairly, to sell their products to the customers. Organizations try to manipulate their financial statements to save taxes, resulting in tax evasion.
Communication
Communication play a major role in ethical business. Advertisements which are false, misleading and deceptive can affect consumers and can result in failure.
Organization should address their ethical issues in following manner:
Code of conduct and ethics
It is really important for an organization to follow the code of conduct as it specifies the rules and regulation which needs to be adhered by the organization.
Make decision in a group
An organization should allow team participation while taking any decision, this will boost the morale of the employees and bring them a sense of ownership among them. This approach will result in reduced biasedness.
Create an atmosphere of trust
Employees should be encouraged to report any misconduct by the others. Thus, a trustworthy atmosphere can be built.
Set an example from the
…show more content…
and Petersen, L., 2017, How the influence of Unethical Leadership on Followers Is Affected by Their Implicit Followership Theories. Journal of Leadership and Organizational Studies, 24(4), pp.450-465. [Accessed 17 Jan. 2018]. Available at: (-- removed HTML --)
Laurentiu, R. M., 2016, The Evolution and Importance of Business Ethics in the Companies, Vol.1. [Accessed 16 Jan. 2018]. Available at: (-- removed HTML --)

Martin, S., Liao, H. and Campbell, E., 2013, Directive versus Empowering Leadership: A Field Experiment Comparing Impacts on Task Proficiency and Proactivity. Academy of Management Journal, 56(5), pp. 1372-1395. [Accessed 17 Jan. 2018]. Available at: (-- removed HTML --)

Peterson, R. and Ferrel, O., 2005, Business Ethics New Challenges for Business School and Corporate Leaders, M.E. Sharpe. [Accessed 18 Jan. 2018]. Available at: <https://books.google.co.in/books?hl=en&lr=&id=DoMDAaIYFyAC&oi=fnd&pg=PR9&dq=business%20ethics%20ra%20peterson&ots=DjI0MxiQuO&sig=hEDk4A97XUxDDpwFe9IzwbY2KsQ#v=onepage&q=business%20ethics%20ra%20peterson&f=false>

Robbins, S. and Judge, T., 2015, Organizational Behavior, Sixteenth Edition. Pearson Education Limited,

Related Documents

  • Superior Essays

    Introduction Organizational culture is defined as a “system of shared assumptions, values, and beliefs showing people what is appropriate and inappropriate behavior.” (Carpenter, Bauer, Erdogan, 2009) Culture within an organization can play a detrimental role in how successful a company can be. There are numerous dynamics that contribute to the overall organizational culture but the factor that plays the principal influence to this unique culture is ethics.…

    • 935 Words
    • 4 Pages
    Superior Essays
  • Great Essays

    Ethics and social responsibility are two important aspects of business law. In order for companies to be successful, putting these concepts into practice is a must. From rules, to regulations, to standards, business law incorporates it all. Part of running a successful business involves knowing every detail associated with the law. Along with that comes a social responsibility and ethical performance that is expected by society.…

    • 1126 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Current Event #1 Over the last years the news stories about police corruption has increased dramatically. Police officers are part of the primary leaders of our society. Their primary duty is to enforce the law and be examples of what a good citizen should act.…

    • 640 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Areas of concern like accounting and auditing matters, ethics and compliance issues, suspected violations of American Red Cross would be the main focus. American Red Cross has seen its fair share of unethical issues in the past so the main goal is to keep from having more unethical issues going forward. Reference: Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2015).Business ethics: Ethical decision making & cases (10th ed.). Mason, OH: Cengage.…

    • 93 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    The three primary ethical issues of the Breakaway project are gambling, violence and sex. The game lured the user in by offering credits to advance in the game. This behavior is very similar to the compulsive gambler. The company was plotting to entice the user to buy more credits to get further in the game just as casinos do luring the gambler in by showing winners receiving millions of dollars. The positive in the game is providing entertainment to the non-compulsive users.…

    • 421 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Bernie Madoff was a well-respected, intelligent, and charitable individual. Having served on a government regulatory board and as Chairman of the NASDAQ from 1990-93, further entrusted individuals to Madoff (Ferrell, Fraedrich, & Ferrell, 2013). Holding increased titles within the community, Bernie Madoff was respected not only for his business savy, but for his philanthropy. The investment firm operated in an “invitation only” approach that added to the air of a high-class, elitist firm, yet being wealthy did not guarantee membership (Gregoriou & Lhabitant, 2009). When only a few can be part of the club, many strive to obtain a membership.…

    • 348 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    Ethics in business is of crucial importance in the decision making of reputable companies in the United States and abroad. It's regarded as, "a significant factor which has an influence on both the success and profits of modern companies" (Sroka & Lorinczy, 2015, p. 156). The G2Q case study is one such entity. From inception, the South Pacific business venture appears to be tainted with injustices. There are many layers of inequities in favor of monetary gain in the form of profit sharing and substantial bonuses on behalf of the company, managers, and local officials; with no regard for the indigenous workers or the local community.…

    • 1489 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Code of Conduct Sprint Corporation, Inc. Since the beginning of trade, ethics has played into business. Although codes of conduct have been documented for many years, there still continues to be scandals in corporations concerning ethics. “The very exercise of developing a code is in itself worthwhile; it forces a large number of people...to think through in a fresh way their mission and the important obligations they as a group and as individuals have with respect to society as a whole." A Corporate code of conduct should have these four actions documented clearly: • statement of unacceptable behavior • how the policy will be enforced • how and whom to make an incident report to • training and reference materials for organizers, staff,…

    • 831 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Ethics is a part of almost everything in our lives. It’s what allows us to consciously make good decisions and avoid bad decisions to guide us through life. Even if someone is unfamiliar with the word ethics, a majority of people can distinguish what is the right thing to do in most situations but can also consciously do the wrong thing. This can apply to anything from miniscule daily tasks to giant corporate decisions that can affect many lives, that is ethics. In the following pages, we will discuss; What I feel is the responsibility of top leadership in regards to balancing profits and stakeholder concerns, how businesses have greatly improved on ethics since the 1800’s, welfare capitalism and its role in contemporary business ethics, and…

    • 1461 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    For leaders to be effective they need to be able to influence people to carry out particular requests and implement decisions. The key concept of a leadership is how they use their power to influence another person. Power “may refer to the agent’s influence over a single [person], or over multiple [people]” (Yukl, 2012, p. 186). According to Yukl, there are five different types of power: legitimate power, reward power, coercive power, referent power, expert power, information power, and ecological power (2012, p. 189). A leaders’ power is based on the position they hold in an organization or the persons’ personal attributes.…

    • 885 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Fund embezzlement, employee assault, intended false advertising, fraud, are just a few in many unethical practices in the market place since a long time ago. This raises a question: Does business ethics really exists? Of course, does exist given that each one of every company is given an ethical conduct of some sort, and all required to submit Social Responsibilities Report at the end of every year. However, business ethics is different, because it is more twisted in the market place. It is usually not taken very seriously and even sometimes changed to fit certain situations, such as it is not “right” for the employee to go around and talk about how his or her CEOs or coworkers are cheating with accounts.…

    • 1291 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    Apples’ Corporate Responsibility and Marketing Strategies Mouad Nouidei Strayer University Corporate Responsibility Some of the main levels in business for consumers are corporate social responsibilities and business ethics. A lot of businesses now a days come across different questions from patrons and stockholders regarding the company’s ethical and social responsibility (Munson, 2014). Business ethics can include anything from the way the company hires or how a company can make their claims in advertising (Munson, 2014). Businesses depend on their employees who represent the business in public and on their customers, to represent a trustworthy image that is joined together with the goals and objectives in the company (Munson, 2014).…

    • 1616 Words
    • 7 Pages
    Great Essays
  • Brilliant Essays

    When employees in organizations make decisions to act unethically, they affect not only the company itself, but also its shareholders, employees and customers. Employees make a countless number of choices every day in businesses, if they act unethical, they can damage a company's productivity, profits and…

    • 1804 Words
    • 8 Pages
    • 6 Works Cited
    Brilliant Essays
  • Improved Essays

    If the organization and all of the employees believe in a code of ethics, then most likely the decision will be ethical. Opportunity factors are based on whether there are opportunities to make ethical or unethical decisions. If the company promotes the do whatever it takes motto, then…

    • 566 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Nowadays, Laws are used to as rules to set the standards of behaviors act by people. As the most advanced mammal on the earth, human beings also have morals to enforce the power of those standards or set up other groups of standards of right and wrong that influence people’s behaviors which are also unknown as ethics. That is the ethics for the society people live in, while there is another term called ‘business ethics’ related to rules, standards and moral principles those are set up in the world of business to guide business related behaviors. An increasing number of companies noticed the benefits of business ethics and the advantage of improving ethical behaviors, but there is always one issue which is profit versus ethics. As businesses…

    • 1369 Words
    • 6 Pages
    Improved Essays