Date Published: August 5th, 2016

Ethical Leadership leads and set examples create positive environments; develop others for corporate entities and other businesses.

Read the article below in the context of leadership, and in your understanding of leadership in the real world, and in all works of life, and click on the links below and read the publications on corporate scandals based on CEO leadership behaviors. Remember, when corporate ethics are violated, governments hold the company liable and they pay heavy financial penalties. The company losses trust to the public and the company is perceived as doing unethical business. It takes time to gain confidence and market trust from customers. But who will actually pay the price for the corporate damages, it’s the consumer. The company will increase selling price on all products to recover the cost of damages paid to government, and try to recover from the losses, so think about this in your discussion. So here are two questions to consider in your discussion short answers:
Do you believe the behavior of corporate leaders can be corrected, and how? If not, why not? How can Ethical Leadership be introduced and adhered to in corporation’s esthetics: leading and setting examples, creating positive environments, developing others? 

The wave of corporate scandals around the world continues to dominate the headlines of the media and the press nearly every day. Corporate scandals are growing exponentially, year after year, with reports on television and other media, the press have shown that this unethical behavior is caused by Chief Executive Officers – CEOs and Managing Directors--MDs. We know from leadership study, leadership is about behavior. To help see the situations of corporate scandals, click on the links at the end of the discussion to read news reports. We know also that leadership is a complex phenomenon involving the leader, the followers, and the situation. Some leadership researchers have focused on the personality, physical traits, and/or behavior of the leaders. Others study the relationship between the leaders and the followers. Still others have studied how aspects of the situations affect the ways leaders act. Some have extended the latter viewpoint so far as to suggest there is no such thing as leadership, they argue that organizational success and failures often get falsely attributed to the leaders, but the situation may have a much greater impact on how the organization functions than does any individual, including the leader (Mendel & Ehrlich, 1987).
Perhaps this can be one of the best ways to begin to understand the complexity of leaderships from the researches argued. Then my question is: Why study leadership? Because of this question, it is appropriate to turn our attention to the leadership behavior itself, for it could identify how successful leaders acts compared with the unsuccessful leaders, then we conclude a design system that allow us to hire, develop, and promote the skills necessary for organizations to succeed in the future. Leadership behaviors (which include skills and competencies) are a function of intelligence, personality traits, emotional intelligence, value, attitude, interests, knowledge, and experience. Leaders model the way, inspire a share vision, and this is what we expect successful and credible leaders to do.
What is Ethical Leadership? Researchers define ethical leadership as the demonstration of appropriate conduct through personal actions and relationships and the promotion of such conduct to subordinates through two-way communication, reinforcement, and decision making. We can view definition from three key components of ethical leadership. First, leaders become credible and authentic as ethical role models by engaging in ongoing behaviors that subordinates deem unselfish and ethically appropriate. These behaviors include being honest, showing consideration for others, and treating people fairly and with respect. This entails engaging in transparent, fair, and caring actions. (a) By so doing, leaders become an example of how to behave and a model for others to identify with and imitate. (b) An ongoing process; subordinates are continuously evaluating their leaders, so a leader who is ethical, it is always possible to do what is right. Second, ethical leadership entails directing attention to ethical issues and standards.  Ethical leadership requires emphasizing the importance and significance of ethics.
Communicating about ethics on a consistent basis is a key component to ethical leadership; leaders who behave ethically but never talk to their subordinates about ethics will fall short in ethical leadership. Third, ethical leadership entails creating ethical climates that set the conditions for positive outcomes, ethically appropriate behavior, and provide negative outcomes for inappropriate behavior. Ethical leaders must direct attention to ethical issues, enforce ethical standards, and allow subordinates to bring up ethical issues with them. Subordinates must inform their leaders about ethical issues they may face (that the leader is unaware of), and ethical leaders must clearly inform followers of ethical standards.
Here are examples of how ethical leadership affects people. (a) Ethical leadership results in positive relationships between the leaders and their subordinates. (b) Strong positive relationships between ethical leadership and trust in the leader. (c) Ethical leadership had a positive relationship with subordinate satisfaction with their leaders and their perceptions of how fairly their leaders treated them. (d) Followers were more optimistic about the future when their leaders were ranked high in ethical leadership. (e) Ethical leadership results in important behavioral outcomes as well. (f) Ethical leadership led subordinates to be more willing to report problems and to engage in higher levels of effort found that ethical leadership was associated with less unethical behavior and more positive helping and citizenship behavior by subordinates. In short, ethical leadership leads to ethical behavior and followers that are more effective. To this date no research has revealed any negative effects of ethical leadership, and that is not expected to change.