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A code of ethics within an organization is a set of principles that is used to guide the organization in its decisions, programs, and policies. [2] An ethical organizational culture consists of leaders and employees adhering to a code of ethics. [2]
Proposes one ideal style that may not be best in all circumstances. Ignores leadership presence. The model does not disagree with Blake & Mouton's ideal of balancing concern for task with concern for people, but it also allows for changing the emphasis if the situation requires it. Leadership presence is an integral part of the Three Levels model.
A commonly used measure of ethical leadership is the Ethical Leadership Scale (ELS), developed by Brown et al. in 2005. It consists of 10 items with an internal consistency of alpha = .92 and shows a satisfying fit, with indices at or above recommended standards. [1]
Authentic leadership, while having no formal or unequivocal definition, is a growing field in academic research. [1] The idea has also been embraced by leaders and leadership coaches, who view it as an alternative to leaders who emphasize profit and share price over people and ethics.
The Global Leadership and Organizational Behavior (GLOBE) Project is an example of cross-cultural leadership research, as it aimed to compare leadership ideals in various countries and regions. However, it looked at leaders operating within their own culture, rather than across culture. [ 146 ]
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. [1]
The chief ethics officer (EO) is a senior ranking individual in an organization. The primary role is to build a strong ethical culture within the organization. In order to perform these responsibilities the chief ethics officer must be given support, independence, and opportunity to influence key decision-making board members.
Change agents communicate the new culture. They must embody courage, flexibility, interpersonal skills, organization knowledge, and patience. These individuals must be catalysts, rather than dictators. [76] The fourth step is to modify the organization to support change. This includes identifying systems, policies, procedures and rules accordingly.