Leadership has a critical role in shaping the society. Various organizations rely on the leadership quality to realize its set objectives. The influence leaders have on the masses makes it important to consider their characteristics. Top on the quality leadership is observance of ethics. The concept of ethics is wide in scope but emphasizes adherence to socially constructed and accepted code of behavior. Organization managers give directives hence their ethical standards determine the future of the entire company (McPherson, 2013, pg.286). Ethics is relative since it is defined within the confines of given social set up which is different across the world. However, in the context of business, business ethics are somehow homogeneous. Ethical leadership offers sustainable solutions to the organization based on realities and values of the company (Northouse, 2013, pg.432). In most cases, Ethical leadership promotes transparency which translates to responsible and accountable workforce. Informed judgment and participatory decision making in an organization is a product of ethical leadership with significant growth. Besides, Ethical leadership embraces teamwork which portrays consciousness to the diverse needs of the community (Michalos, 2013, pg.601).

The dynamic global business environment put most leaders in dilemma with significant criticism for some actions. The legal structures of different business environments around the world present varying ethical approaches (Dhiman, 2011, pg.71). Since the firm seeks to satisfy the stakeholder interest, profit maximization, ethical practices may be confused with legal observance. In respect to human resource management, discipline by the manager may appear unethical and create misconception on the leader’s motive. In this era of globalization, dispersed value creation activities promotes conflict with local culture from one organization values (Michaelson, 2010, pg.244). In that respect, what a supervisor may get away with in Asia may not be the case in Europe or America. The emerging debate on ethical leadership requires a balance between rules, regulations and socially acceptable norms that are consistent with any given cultural group.

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