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Ethical Leadership Impacts on Organizational Culture
Section 1: Introduction
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Introduction to ethical leadership and organizational culture
Topic background and foundation

Section 2: Leadership and Ethics
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Interrelation between ethics and organizational leadership
The role of leadership in promotion of ethical standards

Section 3: Literature Review
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Review of relevant literature
Analysis of past studies on the impact of ethical leadership on organizational culture
Role of ethical leadership in motivation

Ethical Leadership and Organizational Culture Change
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How ethical leadership promotes cultural change
Impact of ethical leadership on workers’ readiness to change
Limitations to change

Organizational Leadership
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Role of leadership in strengthening corporate culture
Relationship to ethical standards and corporate values

Working Environment and Motivation/Job Satisfaction
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Work environment and job satisfaction
Relationship between ethical leadership and conducive working environments
Staff motivation through upholding ethical standards

Section 4: Unethical Behavior in the Workplace
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Causes of unethical behavior
Ethical Frameworks and Models

Section 5: Factors Influencing Ethical Behavior
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Social and personal factors affecting ethical behavior and standards

Section 6: Impact of Ethical Leadership on Employees’ Motivation
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Ethical Decision-Making and Leadership
Human Resource Management

Section 7: Implications of Unethical Leadership

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Organizational implications
Individual implications

Section 8: Summary and Recommendations
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Relevance to organizational management and business administration

Section 9: Conclusion
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Synthesis of ideas

References


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ETHICAL LEADERSHIP IMPACTS ON ORGANIZATIONAL CULTURE

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Table of Contents
Section 1: Introduction .................................................................................................................... 3
Section 2: Leadership and Ethics .................................................................................................... 4
Section 3: LITERATURE REVIEW .............................................................................................. 7
Ethical Leadership and Organizational Culture Change ............................................................. 7
Organizational Leadership .......................................................................................................... 9
Working Environment and Motivation/Job Satisfaction .......................................................... 11
Section 4: Unethical Behavior in the Workplace .......................................................................... 13
Ethical Frameworks and Models .............................................................................................. 13
Section 5: Factors Influencing Ethical Behavior .......................................................................... 15
Section 6: Impact of Ethical Leadership on Employees’ Motivation ........................................... 17
Ethical Decision-Making and Leadership ................................................................................. 19
Human Resource Management ................................................................................................. 19
Section 7: Implications of Unethical Leadership .......................................................................... 21
Section 8: Summary and Recommendations ................................................................................ 23
Section 9: Conclusion ................................................................................................................... 24
References ..................................................................................................................................... 26

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Section 1: Introduction
Organizational culture defines how an institution functions, and how rewards are awarded
within the workplace, in reference to productivity and results. The need to embody ethical
leadership within an organizational culture is fundamental to growth, productivity, and
profitability. The motivation of workers is critical in ensuring that the workforce maximizes
productivity, and is in sync with corporate goals and values. Ethical leadership is the foundation
of this form of organizational culture, where the management and other corporate leaders work
to ensure that everyone is treated with dignity, and his or her values are respected within the
corporate structure. Ethical leadership spans all aspects of inclusivity and corporate culture,
allowing workers to feel as if they are respected, and their values upheld within the company.
Failure to uphold ethics within the workplace results in poor leadership, with the company
failing to achieve set out goals, as well as generating internal and external conflicts with different
stakeholders. Ethical decision-making promotes order and enhances a positive corporate culture,
allowing the workforce to reach its full potential, and maximizing corporate productivity and
profitability. Ethical leadership and organizational culture have to be entwined to drive corporate
growth, ensuring that all stakeholders feel like part of the organizational team and maximizing
motivation levels, which consequently improve productivity, profitability, and organizational
growth.

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Section 2: Leadership and Ethics
Ethical leadership exists and begins with top-level management, who set the tone and
pace for the rest of the workforce. Without ethical leadership at the top, the corporate culture
does not promote ethical behavior, resulting in numerous ethical issues among employees, who
represent the organization (Leroy et al., 2015). Leading by example is critical for organizational
culture change, motivating workers to follow in the steps of their leaders, who uphold ethical
values and morals. Ethical leadership is directly linked to transformational leadership, allowing
for corporate change and alignment of goals with company objectives and values. Issues such as
corporate scandals, bribery, and sexual allegations, among other ethical issues within the
workplace are a result of lack of ethical leadership, and institution of morals and ethical conduct
within company processes.
Leadership has numerous divergent views, based on how it is perceived and the nature of
the social organization. Early philosophers and theorists such as Socrates, as well as modern
management experts have striven to best define leadership, and expectations of the role by both
the organization and the subordinates. According to Ouma (2017), effective leadership is a
prerequisite for the changing global business environment and the ongoing multiculturalization
of organizations. Globalization has created a need for emphasis on the nature of leadership
adopted by an organization, to ensure that it remains competitive in the dynamic business
environment. Teams have been found to be fundamental in driving organizational success, and
can only be nurtured through effective leadership and elevation of ethical leadership standards
within the organization. Motivating teams and individuals within the workplace is dependent on
the adopted leadership style, and how it relates to the corporate culture, serving as an inhibitor of
progress or a growth factor within the workplace.

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Large multinational corporations over the recent past have experienced downfalls
stemming from unethical conduct among top-level leadership. Enron, Lehman Brothers, and
Theranos are the most publicized such downfalls, which are a result of the propagation of lies
from the top leadership, resulting in the eventual fall of the company and ceasing of operations.
The leaders in these companies lied to their customers and investors, resulting in financial gain
over the short-term, but eventual failure in the long term. Ethical leadership ensures long-term
success and prevention of scandals and damage of the corporate image, which is vital for
financial growth. Great leadership motivates workers to uphold morals and ethical conduct,
resulting in the development of a conducive working environment and a positively strong
corporate culture (Ouma, 2017). It sets up the foundation for the organization, mitigating risks
and issues associated with poor conduct and bad morals among employees and corporate
leadership. The embodiment of ethical leadership in decision-making allows top-level
management to be weary of consumer and employee needs, ensuring that they are respected, as
well as those of investors (Leroy et al., 2015). Ensuring that every stakeholder feels valued and
respected is critical for business success, resulting in development of a strong corporate culture,
and thus a formidable organization with numerous competitive advantages over its rivals.
Interlinking leadership with ethical behavior sets a good precedent for the organization,
allowing the workforce an...