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Five Ethical Leadership Behavior 1

Five Ethical Leadership Behavior

1. Be Honest and Trustworthy and Have Integrity in Dealing with Others. Trustworthiness contributes to leadership effectiveness. A perception that high-ranking business leaders were untrustworthy contributed to the spectacular decline in stock prices during the 2000-2002 period. An ethical leader is honest (tells the truth), and trustworthy (constituents accept his or her word). In other words, he or she has integrity. According to Thomas E. Becker, this quality goes beyond honesty and conscientiousness. Integrity refers to loyalty to rational principles; it means practicing what one preaches regardless of emotional or social pressure.

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2. Pay Attention to All Stakeholders.

An ethical and moral leader strives to treat fairly all interested parties by his or her decisions. To do otherwise creates winners and losers after many decisions are made. The widely held belief that a CEO’s primary responsibility is to maximize shareholder wealth conflicts with the principle of paying attention to all stakeholders. A team of management scholars observes: “We used to organize corporations as both economic

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