The Truth About Managing People, Third Edition

Truth 31. Ethical Leadership

Unethical practices by executives at organizations as varied as Enron, HealthSouth, Countrywide Financial, Berkshire Hathaway, Fannie Mae, AIG, and News Corp. have increased the need to consider ethical standards when evaluating a leader’s effectiveness.

Ethics touches on leadership at a number of junctures. For instance, charisma has an ethical component. Unethical leaders are more likely to use their charisma to enhance power over followers, directed toward self-serving ends. Ethical leaders use their charisma in a socially constructive way to serve others. Leaders who treat their followers with fairness, especially by providing honest, frequent, and accurate information, are seen as more effective. Leaders rated ...