Ethical Leadership Then and Now

Today’s business leaders are scrutinized like never before, and not just for their ability to lead organizations to financial success. The pressure is on for CEOs to adhere to accepted values. Thanks to social media, leadership behaviour is constantly monitored by a public ready to share news of transgressions. As a result, the price for departing from expected behaviour is steep for both leaders and organizations. But does following the standard of what is considered good as a CEO really lead to sustainable business with higher profits? Or do nice people finish last? <br><br> This article explores these questions by looking back in time and highlighting the findings of a study that examined the impact of ethical leadership on the kingdom of Judah. After using a common ethical standard to review 19 kings between 931 BC and 586 BC, it was posited that organizations with ethical senior management have better long-term performance. Modern examples of how senior executives influence their organizations support this conclusion. As a result, firms should seek leaders who demonstrate normatively acceptable conduct. That means leaders who are concerned with how numbers are achieved as well as the organization’s impact on employees and the environment. It means leaders who are credible and possess leadership character. And it means leaders who ensure that subordinates follow their example. For organizations that do this, ethical leadership will likely result in a scandal-free reputation, increased morale, job satisfaction and performance — and a positive bottom line.

• Ethical leadership
• leader character
• Global Financial Crisis
• IBJ Insights