Essay on Ethical Leadership in Organizations

2383 Words May 20th, 2010 10 Pages
Ethical Leadership in Organizations
Lisa Hunsucker
MGT 380
April 19,2010

Leadership is by all means a special talent that not all people possess. A leader must also have ethics to be effective for the long term in the corporate world. These leaders generally implement ethical programs in order to influence an organizations climate (Yukl, 2010). I will evaluate the importance of ethical leadership and the role it plays into today’s organizations. In addition, I will discuss the repercussions a company may have when its leadership allows and even rewards unethical business practices. Lastly, I will apply my personal leadership perspective. My perspective will include the path-goal theory and ethical practices that I find important to
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All these are that of a servant leader, but also an ethical leader. Any time a leader can gain trust of their subordinates it will lead to a better relationship as well as more influence that the leader has in accomplishing tasks.
Roles of Ethical Leadership
Leadership has many roles, but ethical behavior versus unethical behavior has its rewards and repercussions. The consequences of unethical leadership can reflect in a business or industry in many negative ways. At times in the short term unethical behavior can actual be perceived as valuable and for a short time, boost revenue. In the end, unethical leadership will catch up to you. I use the example of the mortgage Industry. For a number of years rules and regulations were very tight when it came to lending. As time went on and the American dream became a driving force to allow for mortgages to be extended to everyone, tactics were taken on, that were unethical. As I owned and operated a mortgage company myself, I saw firsthand the unethical leadership of many companies and the repercussion that laid in their wake. The lenders were loosening their strings and not regulating the housing market as they once were. Homes were getting appraised for well over their fair market value which was being given a blind eye. As the bubble burst, our

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