An work. Increased ethical culture among senior leaders,

ethical leader stimulates growth within a company. Since these leaders are in a
position of power they must ensure their decisions and actions influence others
through ethical behavior. They must also lead by example in order for their
employees to behave a certain way, raise organizational culture, increase
employee’s values, and encourage trustworthiness.

            According to the article “Most really difficult moral decisions made by
leaders are risky, because they have imperfect or incomplete information and
lack control over all of the variables that will affect outcomes” (Ciulla,
2003). Ethical leaders must be self-aware and must already know how their
decisions affect other people. They must put their self-serving interests aside
and think of the outcomes that will benefit their employees and the company. It
is important to already have formed an understanding of core values. Those same
values we’ve learned over time in our previous personal and professional
decisions. I don’t believe difficult moral decisions are risky because leaders
lack control over all variables that will affect outcomes. This is because I
believe all ethical leaders should not only have strong core values but must
also have a vision. We all have a sense of what is morally right and wrong. When
leaders are put in a position to make a risky decision, a vision puts outcomes
into perspective. A company’s reputation could also be at stake if a leader
doesn’t make ethical decisions. Leaders could also see a decrease in employee’s
loyalty and morale. The code of ethics should be a used as a guideline on
ethical behavior within a company. But setting high ethical standards could
increase the possibility of employee’s following your lead. Employees will work
hard to meet organizational goals, adhere to policies, and will increase the
quality of their work. Increased ethical culture among senior leaders,
frontline managers, and employees enhances quality products and services. This
creates an overall reputation within not only the financial market but also the
community. As we’ve seen in current events within the United States, unethical
responses to controversial topics from business leaders can lead to employees
and consumers to boycott businesses and their products. This can quickly leads
to the downfall of a business. Some businesses never recover from the financial
damage their unethical decisions or unethical public responses they’ve made.

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            “Once a leader develops an inner
ethical maturity, how does he or she influence followers to pursue ethical
living?” (Monahan, 2012). Ethical leaders are distinguished
for having qualities such as trustworthiness, openness, people orientations,
justice, supportiveness, mutual respect, collective motivation, altruism,
balanced decision making, fair treatment and clear vision (Zhu et al., 2004;
Brown et al., 2005; Resick et al., 2006; Brown & Trevino, 2006). When
subordinates recognize that leader is caring for followers’ best interest, they
reciprocate by exerting more efforts and innovation in work (Yidong &
Xinxin, 2013). Moreover, ethical leaders via demonstrating qualities such as
honesty, collective motivation, openness, altruism, justice, trustworthiness
and fair decision making (Brown et al., 2005; Resick et al., 2006; Brown &
Trevino, 2006) can change employee perception of work and work context, hence
motivating subordinates to exert more efforts in work and practice innovative
work behavior. Additionally, ethical leaders by supporting two-way
communication and listening to their subordinates encourage followers to
express their concerns and opinions, stimulating employees to generate new
ideas for improving work processes and procedures (Martins & Terblanche,
2003). In the second stage of innovative work behavior (i.e., idea promotion)
ethical leaders contribute via exhibiting traits of altruism and honesty
(Gardner et al., 2005), making employees feel more psychological safety to
speak up for promoting their ideas and to share knowledge with coworkers.

Furthermore, ethical leaders play substantial role for implementation of new
ideas, work processes and procedures (third stage of innovative work behavior). 


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