For a business organisation, the primary goal of the business is make profit to ensure the organisation could survive in the strong competition business environment. So that ethical leadership is very important to build brand image and get good common for different organisations to continue existence in the world. So, What is Ethical Leadership? Mullins (2013:676) mentioned that ‘ethical leadership is to do with good and bad, or right and wrong’. In this process, leaders need to understand what makes things good and what makes things bad. Yukl (2010) has a different other view of Ethical Leadership, he mentioned that ethical leadership is about espoused and actual behaviors consistent with a serious of justifiable moral principles.
The debate about ethical leadership is so complex. The 2 principle theories identified the different sides of the debate about ethics. It includes deontological and teleological. Deontological ethics is about individual’s objectives, affords certainty in decision-making, dictates that certain actions are always not right. This theory emphasizes duty, for instance, what have to do or not to do irrespective of the result. It refers to what individual do, not with the consequences of their acts and the badness or goodness is evident in the action itself. But, deontological ethic is overly dogmatic, it may lead to conflicting duties and support acts which result from the wrong position.
Deontological theory focuses on moral reasoning. It is based on the moral duties and rules. Teleological theory is more focuses on the outcomes or results. Comparing with these two principles, Deontological ethics are less flexible but practical than Teleological ethics. It judges acts or decisions which according to the moral rules. The goodness of the consequence will be forecasted.
On the contrary, Teleological ethic is about the consequences from decision-making or acts and evaluate it is right or not. This principle theory presented that “A bad action can have good results”. The goodness and badness is evident in the results. BBC (2014) was mentioned that “The more good consequences an act produces, the better or more right that act”. It means that the better ideas or actions that people do, the more good results will be show at the end of the tasks or projects. The consequentialist ethics is more flexible and applicable to all moral dilemmas. However, this approach required that the result of each action should be evaluated and researched.
Be ethical is so important today to avoid the bad results from loss of value and consequent behaviours. For example, Barclays Manipulated Fed rate is happened when a loss of consequent behavior.At the same time, ethical leadership requires a manager to understand the core values to get good commons from publics.Milton said that ‘Value is an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or en-state of existence’. Developed by Dr.Grace, the 4-V model of ethical leadership demonstrates all aspects within ethical leadership. The following image is the 4-V model of ethical leadership.
This model shows 4 sides of the ethical leadership which is Virtue, Value, Voice, and Vision. First of all, value is the primary factor in this model. In order to develop ethical leadership, organisation have to begins with an understanding of individual core values. Second, vision refers to the ability to structure leader’s acts. Third, voice is the process of following the vision to other people in a reasonable way of the actions. Fourth, virtue related to the understanding of we will become what we practice. It stands for the common good of the character what we what to be. For example, the good common is fostered through real do the right things.
One of the typical organisational example that illustrate the 4-V model of ethical leadership is Tom’s Shoes. Firstly, Blake Mycoskie founded Tom’s with a core value “One for One”. it is a business model that help a person in need with every product purchased. Then, Tom’s identifies its vision develop a campaign’ one day without shoes’ to tell people donate shoes to in need children is a right thing. Thirdly, the company gain many voice form different common to express their vision to customers. Finally, virtue been achieved by the actions that Tom’s did and the company get a good commons from publics.
There are many reasons behind ethical leadership. It is important to obtain the trust from customers and help them understand what organisation does. It helps the organisation get competitive advantages from strong competition situation. It starts with leader’s value and influences recruitments of employees to get the best result from tasks (Ethisphere, 2011).