Ethics word came from the Greek word “ethos” which described as custom habit or novelhabit (Holjevac; 2009). There are several researcher and philosophers discussed it as a vital sign for not only human, but also for the corporate & society to perform their duties with the great transparency and responsibility (Holjevac; 2009). Researcher Taylor stated that the ethics means judgment made by individual, principles followed by society and human behavioral (Taylor, 1975, p. 1). Researcher Trevino et.al (2000) described that to create the ethical environment, leaders and manager play a very important role and they referred this term as a moral manager. Based on Robin et al (2010) research ethical leadership right conduct though the leaders take decision, make action and create interpersonal relationship.
Social learning theory throws lights on ethical leadership and its impact on the organization and at the individual level (Brown & Trevino 2010). The theory described if the leaders conducts ethically, he become role models for employees and peers very quickly. Also it impacts thinking of the individual leaders. Because most of the individuals are taking ethical reference from the outside world (Kohlberg, 1969 Cited by Brown & Trevino 2010), ethical leaders consider as a source of information, guidance and that is because of their ethical characteristics and role model (Bandura, 1986). At the personal level ethical leaders become extremely credible because they most of time consider as trustworthy and follow what they preach (Newman, 2011).
Taking example of DLF and Indian real estate organization, committed towards ethical leadership. Despite of the construction industry the company has won the customer, stakeholder, society and its employees trust because of their ethical policy. Company has three fold policy Board of directors are ensure they set right ethical example, while treating government, customer and employee fairly, and ensuring there are monitoring happen to ensure morality in the DLF. As highlighted in the research done by Ciullan (1995), senior leader has to take wider responsibilities to create transparent and ethical environment while using the long term vision, communication and culture in the account. Taking example of Mr. KP Sing founder of DLF, he often considers as one the great Indian real estate leader (Choudhury, 2012). He consider as the charismatic, knowledgeable and inspire leaders, and why is successful because he followed ethics diligently. While doing not Mr. KP singh has build the solid foundation for the company, and become India’s number one real estate company not in terms of revenue but also brand creditability, quality and customer reference (Forbes, 2011).
He created an open culture system in the organization, and picked only employee those are qualified and attach to the ground level realities, to ensure that their construction manager knows that there are several thousands of workers are also working. Mr. Singh able to create a centralized decision making model against of all odds to monitor ethics very closely. He is role model of entire real estate Industry, who know for ethics, aggression and how to take a best out from centralized decision making process (Choudhury, 2012). This has helped the organization to the large extent as well, his charismatic leadership style and persona not able to influence the top Indian and foreign bureaucrats but to the extent customer and employees also. His philosophy to become partner of government in urbanization of India consider as huge successful (Singh, 2013). At the personal front because of his ethical behavior and transparency, he became one richest real estate person.
Ethical leadership is a value addition for the organization, which not only able to win the trust of the customer, but become the role model of various employees and become trustworthy person by himself/herself.
To conclude at the age of changing business need, working, customer environment, and performance driven organization. It is not easy to come out from the ethical dilemma, therefore Moral awareness become central point of the ethical decision making process (Johns, 1991). Although it is important for ethical leaders to before taking any decision at given situation they understand the magnitude of consequences on himself, firm and the others. Whenever there are harms exist in the decision making process, and the situation handle in appropriate manner which is also win trust from the follower than leader consider as the ethical leader. In current time not only organization looking for ethical leadership which help them to take best decision on behalf of management and stakeholders but also institute trying to identify the ethical students who tend to be more ethical in their studies and create the future decision model for leaders.
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