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HYPERLINK "" is according to Yukl, is the process of influencing others to understand and agree about what needs to be done [Yukl, 2010] . Thus, it is of value for a leader to demonstrate a moral high ground towards their followers. The direction of a company is also influenced by the ethical standard it adopts. The absence of a proper ethical practices could lead an organization towards its demise. There are many large multinationals that suffer the consequences of unethical business practices. For example; Enron with their manipulative accounting practices, Volkswagen that cheats emission tests, FIFA’s RICO problem and the list goes on. (Yakowicz, 2015) The 4Vs proposed Dr. Bill graceValues carry an individual’s ideas as to what is right, good or desirable and influene behaviour, perception and motivationVision: the ability to frame one’s actions in the service of othersVoice: process of articulating the vision with authenticity to motivate action in othersVirtue: understanding that we become what we practiceSource: the help of the 4vs model, Ethical leaders will be able to align their values, vision, and voice that will help in keeping with the common good. To put things into perspective, there are two principle theories in the field of ethics; Deontological EthicsTeleological EthicsImmanuel Kant asserts that for an individual to conduct oneself morally, that individual must act from duty (Deon). This Deontological ethics emphasizes that it is not of the consequences of the actions that makes it right or wrong but it is the ability of a person to carry the duty themselves that distinguishes whether the person is morally right or wrong. [Orend, 2000] Kant claims that a person is morally fine when the person ‘respects the moral law’. [Kant, 1785]Teleological ethics focuses on the consequences of an action. This means, as long as the end results is beneficial, the ‘action’ that is required to achieve the goal is justifiable. [BBC, 2016] Contrary to Deontological ethics, this model of consequentialism ethics believe that a morally right person will generate a good outcome. To put it simply; “The end justifies the means”Dan Price is the CEO of Gravity payments (a credit-card processing &financial services company) and he is a great example of a leader with great Teleological ethics. In 2015, He told his staff that he is raising their minimum wage to $70,000. This means that some employees would see their wages double. Dan, himself cut his own $1.1 million compensation to cover the cost and receive a minimum wage of $70,000, the same as his employees. Consequentially, this improved the organizations’ overall performance where Gravity payments has seen increased retention and happiness rate. This also added added 4,155 new clients in 20515 which is a 55% increase from?2014, compared to typical 5% growth. Some were inspired by the raises, while the news made others aware of Gravity’s discount prices. His action produced great results for his company, even though it was not in his ‘duty’ to increase the minimum salary of his employees. On the other hand, a former CEO of the third biggest bank in the United States have resigned after following a sales-tactic scandal. The Sales-tactic scandal revealed that bank employees had opened as many as two million accounts without the customers’ knowledge. [Glazer, 2016]. This accrued a fine of $185 million and resulted the firing of over 5,300 employees. Even now, Stumpf rejected criticism of the banks culture. He insisted that this is an operations and compliance issue. This is an example of a failure in Deontological ethics, Stumpf believes such “Operational issues” with extreme sales goals will create a certain motivation within employees by pushing them aggressively. This resulted in a backfire as employees are misguided by their ‘duty’, that even after the bank remove these sales goals, the malicious habit has been built. [Ochs, 2016] Some employees who refused to open phony banks are subsequently fired, which led to Bill Bado to call an ethics hotline. [Egan ,2016] A study done by the Journal of Managerial Psychology with the purpose to examine how ethical leadership and empowering leadership are related to, affective commitment, and leader effectiveness found that relationship between ethical leader and their follower tend to be more of a social rather than an economic one. The findings are consistent with theidea that ethical and empowering leader behaviors provide subordinates with important cues about the extent to which they can develop open and trusting relationships with their leader and such cues, in turn, may strengthen their emotional attachment to the work unit and modify their perception of leader effectiveness[Hassan, Mahsud, Yukl, 2013]Therefore, I believe it is safe to assume that ethical leadership promotes not only economical benefits but also social benefits. An ethical business practice will be able to minimize risks especially in litigation issues which could also be in turn be beneficial towards the organization, Will. "The 8 Most Outrageous Business Scandals Of 2015".?. N.p., 2017. Web. 14 Mar. 2017., Brian. 2000.?War and International Justice: A Kantian Perspective. West Waterloo, Ontario:?Wilfrid Laurier University Press:?Kant, Immanuel. 1785. "First Section: Transition from the Common Rational Knowledge of Morals to the Philosophical",?Groundwork of the Metaphysic of Morals., John Stuart?(1998).?Utilitarianism. Oxford: Oxford University Press.?ISBN?978-0-19-875163-2. Hassan Rubiná Mahsud Gary Yukl Gregory E. Prussia, (2013),"Ethical and empowering leadership and leader effectiveness", Journal of Managerial Psychology, Vol. 28 Iss 2 pp. 133 - 146 ................
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