This articleexplores the theory of ethical leadership, backed by research, and demonstrates why it’s essential for leaders committed to sustainable success. If you’re focused on leadership coaching, self-awareness, personal leadership development, or team leadership, ethical leadership is the foundation that ensures your influence is both impactful and lasting.
What Is Ethical Leadership?
Being an Ethical Leader is the practice of leading with integrity, fairness, and a commitment to doing what is right – not just what is profitable or convenient. It extends beyond personal ethics to include the ability to foster an ethical culture within a team or organisation.
According to Treviño, Brown & Hartman (2003), ethical leadership is a combination of two key factors:
- Moral Person: The leader’s own integrity, values, and ethical decision-making.
- Moral Manager: The leader’s ability to shape ethical behaviour in others through communication, accountability, and reward systems.
Why Ethical Leadership Matters
Ethical leadership is more than a moral responsibility – it has a clear strategic advantage. Research consistently shows that ethical leaders drive higher employee engagement, stronger team performance, and greater organisational success.
According to Brown & Treviño (2006), organisations with ethical leadership experience:
- Greater trust from employees and stakeholders
- Increased loyalty and productivity
- Lower rates of unethical behaviour and misconduct
Furthermore, ethical leadership builds long-term brand reputation and sustainability, making it a crucial aspect of personal leadership development.
Key Theories Behind Ethical Leadership
1. Transformational Leadership (Bass & Avolio, 1994)
Ethical leadership aligns closely with transformational leadership, where leaders act as role models, inspire vision, and empower teams.
2. Servant Leadership (Green leaf, 1977)
A servant leader prioritises the needs of their team, ensuring ethical decision-making benefits employees and the wider community.
3. Stakeholder Theory (Freeman, 1984)
Ethical leadership requires considering the interests of all stakeholders, not just shareholders, ensuring sustainable business practices.
4. Moral Development Theory (Kohlberg, 1973)
Leaders must operate at the highest stages of moral reasoning, prioritising universal ethical principles over self-interest.
Read More About These Theories
How Ethical Leadership Strengthens Team Leadership
A strong leader influences not just individuals but entire teams. Ethical leadership plays a critical role in team leadership by:
- Creating a culture of trust and transparency
- Encouraging open communication and psychological safety
- Aligning team values with organisational goals
- Developing future leaders through mentorship and ethical role modelling
When leaders act with integrity, they foster teams that are more engaged, innovative, and committed to achieving excellence.
Developing Ethical Leadership: Practical Steps
1. Increase Self-Awareness
Great leadership starts with deep self-awareness. Ethical leaders must regularly reflect on their values, biases, and decision-making processes. Leadership coaching can be a powerful tool in enhancing this self-awareness.
Learn More About Self-Awareness in Leadership
2. Create Clear Ethical Guidelines
Set clear standards for ethical behaviour in your organisation. Ensure policies support integrity and transparency at every level.
3. Lead by Example
Employees take cues from leadership. If you want ethical behaviour in your organisation, demonstrate it in every action you take.
4. Foster Open Communication
Encourage a ‘speak-up’ culture where employees feel safe to voice ethical concerns without fear of retaliation.
5. Implement Ethical Decision-Making Frameworks
Use models such as Rest’s (1986) Four-Component Model to evaluate ethical challenges through moral sensitivity, judgment, motivation, and action.
The Future of Leadership Lies in Ethics
Ethical leadership isn’t a trend—it’s a necessity. In an era of corporate scrutiny and evolving workplace expectations, leaders must ensure their actions align with both their values and those of their organisations.
If you’re ready to elevate your leadership development and embed ethical leadership into your practice, we can help. Our leadership coaching programmes focus on strengthening self-awareness, personal leadership development, and team leadership, ensuring you lead with integrity and influence.
Take the next step. Contact us today to explore tailored ethical leadership coaching and training programmes.