Assignment 1: Discussion—Ethics In Leadership And Ethical Le

Assignment 1: Discussion—Ethics in Leadership Ethical leadership is certainly a hot topic in today’s business environment. In this assignment, you will examine the role of ethics in being a successful leader. You will explore current media coverage on ethical or unethical leadership practices and examine the issues and responsibilities of the leader(s). Research the issue of ethics in leadership using your textbook, the Argosy University online library resources, and the Internet. You can use the following terms for your search: “News Story Ethics†or “News Story Ethics Business.†Select a news story for study in this assignment and complete the following: Summarize the case and describe the issues. Be sure to provide a reference for the article. Respond to the following: What do you believe caused the issue? What do you believe the leader’s responsibility is when it comes to ethics in a situation such as this? Give reasons in support of your assertions. Write your initial response in 1–2 paragraphs. Apply APA standards to citation of sources. By Saturday, July 11, 2015 , post your response to the appropriate Discussion Area . Through Wednesday, July 15, 2015 , review and comment on at least two peers’ responses.

Paper For Above instruction

Ethical leadership is a cornerstone of sustainable and effective management in the contemporary business environment. Ethical leaders set the tone for organizational culture and influence employee behavior through their commitment to integrity, transparency, and accountability. In recent media coverage, one prominent case that exemplifies issues of ethics in leadership involves the scandal at Wells Fargo, where employees created millions of unauthorized bank accounts to meet aggressive sales targets (Corkery & Cowley, 2016). This case highlights significant ethical breaches driven by leadership pressures, competitive incentives, and a failure to prioritize customer trust and organizational integrity.

The Wells Fargo scandal was a consequence of a toxic organizational culture that emphasized sales metrics over ethical considerations. Employees, motivated by the fear of not meeting sales goals and facing punitive repercussions, engaged in unethical practices to fulfill targets set by leadership. This creates a situation where the organization's core values are compromised, and organizational trust is eroded. The leadership’s role in such a scenario involves clear ethical standards, fostering an environment where ethical behavior is rewarded and unethical conduct is penalized. Leaders are responsible for establishing policies that promote transparency, integrity, and accountability, and for actively monitoring compliance to prevent such crises.

The root causes of the Wells Fargo misconduct can be attributed to misguided leadership strategies and incentive structures that prioritized quantitative performance over ethical considerations. Leadership failed to cultivate a culture of ethical decision-making, instead incentivizing employees to meet sales goals at any cost. This neglect of ethical oversight and organizational values led to short-term gains but long-term damage to the company’s reputation and stakeholder trust. Ethical leadership requires proactive engagement with ethical standards and creating systems that support ethical behavior, including regular ethics training, open communication channels, and accountability measures.

In this context, the leader’s responsibility extends beyond mere compliance with regulations to cultivating an organizational culture rooted in ethical principles. Leaders must demonstrate integrity through their actions and decisions, serving as role models for ethical conduct. They should implement comprehensive ethics programs, ensure accountability for unethical behaviors, and foster an environment where employees feel empowered to voice concerns without fear of retaliation. Ethical leadership is essential not only for maintaining legal compliance but also for preserving stakeholder trust and organizational reputation in the long term. Therefore, leaders should view ethical integrity as integral to strategic success and organizational sustainability.

References

• Corkery, M., & Cowley, S. (2016). Wells Fargo fined $185 million for abuses. The New York Times. https://www.nytimes.com/2016/09/09/business/dealbook/wells-fargo-fined-for-years-of-abuse.html
• Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. Leadership Quarterly, 17(6), 595-616.
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