Ethical leadership has a crucial place in all types of organisations and, by extension, in society as a whole, because ethical behaviour builds the foundations for prosperity. However, theoretical principles do not always translate into success when applied in practice. For example, a Gallup poll (2024) of American employees evaluated their relationship with their supervisors and the organisation in which they work. Only 20% of employees said they trusted the leadership of the organisation. 

Yet, or precisely because of this, it is important to recognise that ethical leadership is key to the sustainable functioning of organisations. This is primarily because good leadership can encourage employees to:

✅ find meaning in their work;
✅ feel part of the organisational culture and reinforce it themselves;
✅ feel trust, stability and security in the workplace
✅ perform better, be motivated and engaged;
✅ were more resilient to stress and burnout;
✅ work better together as a team and promote inclusion;
✅ were more loyal and reduced turnover in the workplace;
✅ avoided unethical behaviour, discrimination;
✅ were interested in contributing to the long-term vision of the organisation.

👉 It is now clear to us why ethical leadership is key to the sustainable development of organisations and how it can contribute to building trust, stability and a safe working environment. Now get on with the task and then browse other resources for inspiration. You will then learn more about different models of ethical decision-making in the next chapter.