The Relationship Between Leadership Ethics and Organizational Success

Abstract

Over the last few decades, business fraud and examples of scandalous management behaviors have sparked a lot of attention among several interested stakeholders. These increasing scandals have necessitated the question on the necessary steps required to prevent their frequent occurrence. The lack of commitment to strong ethical standards by management has been underpinned as the cause of ethical misconducts in organizations. The fiscal crisis of 2007-2009 witnessed many leadership misconducts and abuse of leadership responsibility. The fiscal crisis revealed the loss of about $11 trillion in household wealth, 26 million Americans losing their jobs, and 4.5 million Americans who could not afford their mortgages. These events and statistics show the prevalent lack of ethical leadership in organizations. While leadership ethics is a concern for all stakeholders within business organizations in the United States, only a few segments of the industry are taking steps to incorporate ethical awareness within their global organizations.

The Influences of Participatory Management and Corporate Governance on the Reduction of Financial Information Asymmetry: Evidence from Thailand

“…Financial fraud is often takes place in various ways, for example counterfeiting documents, evidence of financial transactions, sources of information with intentional misunderstandings, omissions or misrepresentation of accounts, or other important information in the financial statements made. Moreover, there are deliberate offenses regarding the selection of accounting policies and methods used to measure and recognize the value, inadequate disclosure of information, or the presentation of the part that needs to be disclosed, including asset transfer and account adjustment to avoid taxation or personal gain (Rezaee, 2005;Randall, Saurage-Altenloh, & Osei, 2020). Moreover, opportunities for financial frauds arise because of the information asymmetry which leads to a lack of transparency between third parties (Ndofor, Wesley, & Priem 2013).…”

Ethical Leadership and Whistle-blowing Intentions: Mediating Role of Moral Identity

“…Organizations are going through a lot due to unethical/immoral actions of employee. These unethical activities of employees upset the functioning by menacing its well-being (Randall, Saurage-Altenloh, & Osei, 2020). Therefore, organizations are solely concerned with increasing employees' positive conduct so that they can save themselves from harm and encourage them to blow the whistle.…”