Business ethics is the systematic framework that includes business practices, policies, and
procedures related to trading, corporate governance, and corporate social responsibility. It
improves the overall structure of the organization. Business ethics is framed to improve
truthfulness among the workers. It is structured to expand the trust issue with key stakeholders. It
is one of the essential skills of the organization. It is helpful to guide employee behaviour. It is
important to frame the bottom line that would lead to profitability (Crane, et al., 2019).
Ethical leadership is described as leadership that includes establishing and encouraging the
suitable structure through professional relationships as well as a personal relationships. It is the
systematic manner to lead employees about their duties and take control of the performance of
employees. The connection between the employees and leaders must be strong that would lead to
a systematic environment. Ethical leadership is important in supporting organizational values. It
is the concept of fairness, trust, honesty, and integrity. It is beneficial for the development of the
organization (Den Hartog, 2015).
The ethical leader plays a major role in the development of the organization. An ethical leader is
responsible for ethical leadership in the organization. Three characteristics of an ethical leader
are as follows-
1) Ethical leaders are responsible for the behavior of employees.
2) Ethical leaders develop codes of conduct to shape the overall actions of the organization.
3) Ethical leaders are supposed to motivate and support employees.
There are benefits of ethical leadership is as follows
1) Ethical leadership is beneficial to develop a healthier environment in the organization.
2) Ethical leadership is beneficial to develop confidence in the potential stakeholders of the
3) Ethical leadership is beneficial o develop trust among suppliers and partners.
Ethical leadership is important for the overall development of the organization. It provides a
clear set of directions to employees of the organization (Lawton, et al., 2015).
There are four styles of leadership is as follows-
1) Autocratic leadership – In this leadership style, Leaders take full authority and responsibility
for the tasks. Tasks and orders are assigned to an employee without consulting with employees.
Sometimes it harms the organization's culture.
2) Democratic leadership – In this leadership style, Leaders give chance to suggest particular
subordinates. It is framed with the consultation of subordinated. He promotes candidates who are
actively participated in the decision making. It has a positive impact on organizational culture.
3) Free-rein or Laissez-faire leadership – In this leadership style, Leaders avoid responsibility
and power. Leaders give responsibility to decide the leadership to their subordinates and
employees. Leaders don’t provide any set of directions and make employees free to set their own
goals and resolve all the problems on their own. Sometimes it hurts the organization's culture.
4) Paternalistic leadership – In this leadership style, the connection between the leaders and the
employees is the same as the connection between the members of the family and the head of the
family. A leader takes suggestions from the employee and guides them to achieve their goals and
objectives. It has a positive impact on the organization's culture.
A charismatic leader is supposed to evaluate the existing condition of the organization. It
measures the control to implement a new version of the organization effectively and efficiently. It frames the new targets and goals in a documented manner. It provides a way to achieve the
desired goals and objectives of the organization. All the goals and targets are interrelated with
the vision of the organization (Hawkins, 2017).
Three strategies could be utilized to enhance employee participation in decision making such as
1) Develop a leadership team – A leadership team could be developed that focuses on the
decision-making process. A team focuses on marketing decisions as well as administrative
decisions. A regular meeting must be scheduled to take the outcome of each leadership team.
2) Conduct employee surveys – surveys could be conducted to collect all the suggestions and
ideas from employees. A regular survey could be conducted to keep a regular check on it.
Feedback must be given to each survey.
3) Suggestion box – It must be put to take suggestions from the employees regarding decision-making. It is one of the most common methods to collect all the suggestions. A suggestion box system
could be created to take suggestions from all employees. It could be a physical or digital
Three strategies must be applied by the leader to build trust and confidence with the
colleague's such as-
1) Active listening – The leader is supposed to listen actively to all the queries and issues of
2) Be supportive and honest – A leader is supposed, to be honest, and supportive towards the
3) Develop a culture of reliability – The leader is supposed to create a positive cultural
environment in the organization.
Leadership plays a major role in ensuring the work’s health and safety legislation and regulations. It
has a direct impact on the work, health, and safety department. It is beneficial to meet all the
health and safety requirements of employees. It must follow to ensure the health and safety
Five reasons must be followed in anti-discrimination law and give equal opportunity to every
employee such as-
1) It is helpful to develop the culture and reputation of an organization. All the employees feel
equality after getting equal treatment.
2) It is helpful to improve the innovation and productivity of the organization.
3) It is necessary to eliminate all the negativity from the organization that would lead to revenue
growth of the organization.
4) All employees would be motivated when they would not be treated for their colour, religion,
5) It is necessary to follow all the laws for the growth of the organization such as anti-
discrimination law (Feldman, et al., 2018).