Chapter
       44
      Ethical Leadership 
              and 
      Corporate Culture
                               Learning Outcomes
     At the end of this chapter, you should be able to:
      Define ethical leadership
      Describe the two pillars of ethical leadership – moral person and 
         moral manager
      Explain the meaning and importance of the right tone from the top 
         in the context of ethical leadership role
      Explain some critical elements of a formal ethics programme
      Define corporate culture and ethical corporate culture
      Explain  the  role  of  ethical  leadership  in  establishing  ethical 
         corporate culture
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    © Oxford Fajar Sdn. Bhd. (008974-T), 2014                            1– 3
                        Defining Ethical Leadership
                            How do we achieve ethical leadership? 
                                Show  exemplary  behaviour,  practise   
                                   two–way  communication    and  make 
                  :
                n
              io
            it
        fn
       e
     D              f              ethical decisions
                   o
                y
              lit
             i
            b
        e a
      h                        
     T                             Show strong commitment to ethics
                 to
              er 
            d
         lea
         
      a          e          Leaders are influential  because  they  have 
               at
           ulc
          c
        in                     the    ability   to    shape     employees’ 
                 l 
                a
              ic
            h
          et                   behaviour.
                   in 
                    
                ur
              io
            v
         ha
        e
      b                     Employees learn from their leaders through 
                 
             an                observation.
                   ion
               zat
           ani
          g
       or                   It is highly likely that unethical leaders breed 
                               unethical employees and vice versa.
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    © Oxford Fajar Sdn. Bhd. (008974-T), 2014                            1– 4
                   Two Pillars of Ethical Leadership
                                          These  two  pillars  basically 
                                          reinforce    the   idea    that 
                                          ethical  leadership  requires 
                                          someone that does not only 
                                          have  a  set  of  core  ethical 
                                          values and acts upon them, 
                                          but also establishes various 
                                          platforms    and     a    work 
                                          environment  that  promotes 
                                          such  values  among  his 
                                          followers.
    Business Ethics                                            All Rights Reserved
    © Oxford Fajar Sdn. Bhd. (008974-T), 2014                           1– 5
                            Moral Person
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   © Oxford Fajar Sdn. Bhd. (008974-T), 2014           1– 6