Finding an acceptable method of determining right and wrong, and then acting upon that determination is the basis for a practical definition of ethics. Lord Moulton describes ethics as being different than the law; he further stated that ethics was the “obedience to the unenforceable.” (Moulton as cited in Silber, 1995) He felt that if individuals merely followed the law of the land, then they would not necessarily act civilly or ethically in those areas that were not enforceable. An action is unethical if it places the organization or its employees in opposition to the law. An organization is deemed unethical if its employees engage in illegal activities, or if the organization fosters a situation or environment that takes advantage of a cycle of trust that exists between the organization and areas such employees, customers, and suppliers.
Ethical leadership, as defined by ( Brown, T. and Harrison 2005 : 120), ‘‘ is the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision making’’ Ethical leaders are more successful in organizations than those that operate on
References: Bass, B. M. (1990). Bass and Stogdill’s Handbook of Leadership: Theory, research and managerial applications Brown, M. E., Klebe-Trevino, L. (2002). Conceptualizing and measuring ethical leadership: Development of an Instrument: Academy of management Wright, P. (1996) Managerial Leadership. London: Routledge Friedman, E