Ethical leadership does not occur by accident. It is a conscious decision. Leaders must be in tune with the world as the world is to understand circumstances and to purposefully respond in ways that honor individuals' needs, values, and goals if they are to be effective. When leaders are focused on the long-term, they understand that operating ethically improves relations and the organization's status among the outside community.
Ethical leadership helps establish a positive work environment—one that fosters ethical behaviors in turn creating a positive cycle that inspires staff to give their best. In addition to increasing productivity, it fosters loyalty—staff have less incentive to move elsewhere thus lowering turnover rates.
Unconscious leaders, the kind that are easily overruled by instincts and habits, tend to pursue goals that are not conducive to the health and productivity of the organization. More so, behaving unethically can deteriorate a person's self-esteem, causing suboptimal performance preventing a person from expressing their full potential.
Traits of an Ethical Leader:
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