Topics: Ethics, Leadership, Business ethics Pages: 11 (2592 words) Published: May 26, 2014
Leadership is always been interesting topic to be discussed. Given the theories that continue to grow and evolve. There is none of the theories that really can define what is the real meaning of leadership but we agree that the leader must have knowledge, skills on how to analyse the information in order to make appropriate decision. An effective leader is one who is able to read the situation, correct the problem, responsible, willingness to develop the followers, have integrity and good ethics. Effective leadership expected to act within the ethical framework. The ethical framework itself is about what right or wrong and good and bad. The reason why ethical decision becomes so important in the leadership is because business involves in a lot of transactions with people both within and outside the organisation. The purpose of this report is to provide better understanding about effective leadership, decision making and ethical management and how they linked each other both in theories and practices and how the leaders ensure that every decisions are made within the ethical framework.

. According to Ciulla (1998) Ethics is study about human relationships it is about the role that we play in life on what we should do and what we should be like as human being. Ethics is about right or wrong and good or devil. Ethics is the foundation of leadership. There are four theories in ethics: 1. Virtue ethics. Focused on in individual processes whether their act is expressing good character (moral virtues) or not. 2. Deontological ethics. In deontological perspective, intentions are the morally relevant aspects of an act. As long as the leader acts according to his or her duty on moral principles then the leader acts ethically, regardless of the consequences. In simple words, deontological focus on what is right based on the facts. 3. Ethical growth and learning ethics. Ethical growth and learning ethics also called as the character ethics. According to Covey (1992) the character ethics based on living effectively including things like integrity, courage, fidelity and so on. He believes that human have to go through the necessary stages in their life for their personal growth. Senge (1990), see learning process in each individual are important for the organisation learning development. 4. Teleological. This theory locates the ethics of the action in its results. Leadership

Leadership is the one of the specific type of human relations. There are a lot of thoughts behind the theory of leadership, even those theories still growing from time to time and it stills remain without satisfactory conclusion on that. According to Bolden, The theories of leadership are ranging as follow (Bolden et all.,2003):

1. Great Man theories.
These theories based on the idea that leaders are those who are incredible, born with leadership qualities and destined to become a leader. 2. Trait theories.
The theories based on the qualities and traits that leaders have. Trait theories often

3. Behavioural theories.
These theories are opposite from great man theories. The theories believe that good leaders are made, not born. 4. Situational theories.
These theories view leadership as something that is specific into the situations. For example: there are some situations that require the type of autocratic leadership, in other situation participative approach might needed. 5. Contigency theories.

These theories focus on particular variables related to the environment to suit the style of the leadership. According to this, successful leadership depends on numbers of variables including leadership style, follower’s quality and the conditions. 6. Participative theories.

The theories suggest that ideal leadership style is one that taking input from others. These leaders are more engaging the group members in decision making process. According to Lewin (1939) there are three leadership...

References: Bolden, R., Gosling, J., Marturani, A. and Dennison, P. (2003). A review of leadership theory and competency framework. Centre for Leadership studies, UK : University of Exeter
Linstead, S., Fulop, L., Lilley, S
Ciulla, J.B. (ED). (1998). Ethics, the heart of leadership. Westport, CT:Praeger.
Driscoll, D. M. & Hoffman, W.M. (2000). Ethics matters: How to implement values-driven management. Waltham, MA
Hitt, W.D
Johnson, C.E. (2001). Meeting the ethical challenges of leaderhip. Thousand Oaks, CA: Sage Publishers.
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