The Influence Of The Top Management

On Employees' (Ethical) Behavior by Using Ethical Leadership

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In today’s business world, a company’s integrity is crucial for its long-term success. Scandals and ethical breaches can significantly damage a company’s reputation and cause millions in panalties.

Therefore, the role of leadership in setting an example and promoting ethical values is of great importance.

In my research, I examined how leaders can influence their employees' behavior through role modeling and promoting values.
Focusing on ethical behavior is critical because economic crimes cause billions in losses each year.

Why is Ethical Leadership Relevant?

Studies show that many ethical breaches are committed by employees, often without direct orders from their supervisors.

Ethical Leadership is a leadership style based on ethical principles.
An ethical leader is characterized by honesty, care, and fairness and serves as a role model for employees.

Research findings show that employees who perceive their leaders as ethical are less likely to behave unethically, as ethical leaders build trust and inspire their teams to act ethically.

The results of my study clearly show that leadership significantly influences the ethical behavior of employees in the following ways:

1. Role Modeling:
   When leaders demonstrate ethical behavior, employees adopt these values, even in large companies across multiple hierarchical levels.

2. Communication of Values:
   Clear communication of corporate values and ethical standards sets expectations for employee behavior.

3. Promoting an Ethical Climate:
   An environment that rewards ethical behavior and sanctions unethical behavior motivates employees to act ethically.

4. Moral Identity:
   Employees with a strong moral identity are less prone to unethical behavior, even if it is modeled by others.

In summary, the results of my work show that employees who perceive their leadership as ethical exhibit lower levels of moral disengagement. This means they are less likely to justify unethical actions.

Practical Implications:

Promoting Ethical Leadership can positively influence employee behavior.
Ethical Leadership requires effort. The positive effects however, such as a positive work climate and reduced unethical behavior, make this investment valuable.

For a deep dive into my findings with practical implications, read the full article here.

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