Why Is Ethical Leadership So Important?

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Ellie Hoe answered
Now-a-days organizations are spending lots of efforts and money to project themselves as ethical and socially responsible organizations in the eyes of their customers. After the cases of Enron and failure of other organizations, people have started emphasizing the concept of ethical leadership. An organization can incorporate ethical practices only if its leaders enforce ethical values into the organization. For example Johnsons & Johnsons once called back the whole order of its famous drug Tylenol and faced $240 million losses when two or three of the bad incidents reported about the usage of drug. This action was highly acclaimed by the critics and showed that Johnsons & Johnsons is a very ethical and socially responsible organization. Being ethical increases the reputation of the organization. Ethical leadership enables the employees to engage in good practices which overall result in welfare of everyone in the society.

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