Contributor: Anekwe Angela Ekene
Introduction
Ethical leadership involves leaders and managers making decisions based on the right thing to do for the common good, not just based on what is best for themselves or for the bottom line.[1] In today’s ever-evolving business landscape, the concept of ethical leadership stands as a beacon of integrity and moral fortitude.[2] Ethical leadership is a dynamic construct that embodies the unwavering commitment to ethical principles, even in the face of adversity or temptation.[3] Leaders who embody ethical leadership not only adhere to ethical standards themselves but also inspire those around them to uphold similar principles.[4] However, the true test of ethical leadership lies in its ability to withstand challenges, and remain uncompromised in the pursuit of organizational goals.[5]
This article explores the importance of ethical leadership amid evolving workplace norms and increasing public scrutiny. It discusses core principles such as integrity, transparency, inclusivity, and accountability, with a focus on their application in legal, corporate, and governmental institutions. Through analysis of common ethical dilemmas and real-life scenarios, the article provides actionable strategies for professionals to lead with moral clarity and resilience. The piece will be particularly relevant for emerging leaders, in-house counsel, and executives navigating complex ethical challenges in today’s professional environment.
IMPORTANCE OF ETHICAL LEADERSHIP IN A CHANGING WORK ENVIRONMENT
Ethical leadership is crucial for fostering a positive organizational culture, building trust among stakeholders, and promoting sustainable organizational performance. In today’s highly competitive and interconnected business landscape, organizations face increasing scrutiny from various stakeholders, including employees, customers, investors, and the broader society. Ethical leadership helps organizations navigate ethical dilemmas, mitigate risks, and uphold their reputation and credibility. Furthermore, ethical leaders inspire employees to adhere to ethical standards, resulting in higher levels of employee engagement, commitment, and productivity.[6]
CORE PRINCIPLES OF ETHICAL LEADERSHIP
The core principles of ethical leadership include the following:
Integrity: Integrity is the cornerstone of ethical leadershi;, encompassing honesty, transparency, and adherence to moral and ethical principles. Ethical leaders demonstrate consistency between their words and actions, uphold ethical standards, and earn the trust and respect of their followers through their ethical conduct.[7]
Disclosure and transparency: A principle of good governance is that stakeholders should be informed about the company’s activities, what it plans to do in the future, and any risks involved in its business strategies. Transparency means openness, a willingness by the company to provide clear information to shareholders and other stakeholders. For example, transparency refers to the openness and willingness to disclose financial performance figures which are truthful and accurate. Disclosure of material matters concerning the organisation’s performance and activities should be timely and accurate to ensure that all investors have access to clear, factual information which accurately reflects the financial, social, and environmental position of the organisation.[8] Organisations should clarify and make publicly known the roles and responsibilities of the board and management to provide shareholders with a level of accountability. Transparency ensures that stakeholders can have confidence in the decision-making, and management processes of a company.
Accountability: Accountability entails taking responsibility for one’s actions, decisions, and their consequences. Ethical leaders hold themselves and others accountable for upholding ethical standards, addressing ethical lapses, and promoting a culture of accountability and integrity within the organization.[9] Under the corporate governance, corporate accountability refers to the obligation and responsibility to give an explanation or reason for the company’s actions and conduct.
In brief: The board should present a balanced, understandable assessment of the company’s position and prospects. The board is responsible for determining the nature and extent of the significant risks it is willing to take. The board should maintain sound risk management and internal control systems. The board should establish formal and transparent arrangements for corporate reporting and risk management as well as for maintaining an appropriate relationship with the company’s auditor. The board should communicate with stakeholders at regular intervals, a fair, balanced, and understandable assessment of how the company is achieving its business purpose.
Fairness: Fairness involves treating all individuals with impartiality, equity, and justice, regardless of their background, status, or personal characteristics. Ethical leaders strive to create a fair and inclusive work environment where diversity is respected, and everyone has equal opportunities for growth and advancement.[10]
Responsibility: The Board of Directors are given authority to act on behalf of the company. They should therefore accept full responsibility for the powers that it is given and the authority that it exercises. The Board of Directors are responsible for overseeing the management of the business, affairs of the company, appointing the chief executive and monitoring the performance of the company. In doing so, it is required to act in the best interests of the company. Accountability goes hand in hand with responsibility. The Board of Directors should be made accountable to the shareholders for the way in which the company has carried out its responsibilities.
BENEFITS OF CORPORATE GOVERNANCE
Strong corporate governance maintains investors’ confidence, whose support can help to finance further growth. Companies who implement the principles of good corporate governance into working environment life will ensure corporate success and economic growth. They are the basis on which companies can grow.
THE CHANGING WORKPLACE: NEW CHALLENGES, GREATER SCRUTINY
The modern work environment is undergoing significant transformation due to globalization, digitalization, hybrid work models, and increased emphasis on social responsibility. With these changes come new ethical challenges.
a. Technological Ethics: With artificial intelligence, surveillance tools, and data analytics now commonplace, ethical leaders must confront questions around privacy, bias, and automation.
b. Workplace Diversity and Inclusion: Leaders are increasingly expected to foster inclusive cultures that respect diversity across gender, race, age, and ability. Failing to do so may erode employee trust and public reputation.
c. Environmental and Social Governance (ESG): Stakeholders now demand that organizations go beyond profit to address social and environmental responsibilities, requiring leaders to adopt long-term ethical strategies.
d. Remote and Hybrid Work: Leading with integrity in decentralized work environments poses new challenges in maintaining transparency, accountability, and team cohesion.
ETHICAL DILEMMAS IN PRACTICE
Ethical dilemmas often arise when values, conflict, or when legal practitioners must choose between two difficult options. Some common scenarios include: When as a lawyer, there is need to protect integrity when handling and managing client finances. A lawyer must ensure to protect the image of the legal profession and ensure to keep to the core principles of the legal profession and professional conduct. In terms of an organization, the issue of Bias in Recruitment or Promotion may arise, this emanates from the question as to how an organization can ensure fairness in their hiring and advancement processes. In such situations, ethical leaders must be guided by a well-developed moral compass, a strong organizational code of ethics, and the courage to make principled choices.
CONCLUSION
In an age of constant change, ethical leadership is more crucial than ever. It goes beyond compliance or public relations; it is about leading with purpose, clarity, and courage. By promoting integrity, transparency, inclusivity, and accountability, ethical leaders can not only navigate the challenges of today’s professional environment but also shape a more, just and sustainable future.
For emerging leaders, in-house counsel, and senior executives alike, embracing ethical leadership is not just a professional imperative, it is a moral calling.
RECOMMENDATIONS
To foster ethical leadership in today’s dynamic work environment, organizations must institutionalize ethical values at every level. This begins with leadership development programs that emphasize moral reasoning, emotional intelligence, and ethical decision-making. Organizations should establish clear codes of conduct and ensure that employees are trained to understand and apply them in real-life scenarios. Creating safe and confidential channels for reporting unethical behaviour is also essential, as it reinforces a culture of transparency and accountability. Furthermore, ethical behaviour should be recognized and rewarded to encourage continued commitment to these values.
Reference
- Valerie Kirk, ‘What is Ethical Leadership and Why is it Important? (2024) https://professional.dce.harvard.edu/blog/what-is-ethical-leadership-and-why-is-it-important/#The-6-Main-Principles-of-Ethical-Leadership accessed 22 September, 2025. ↑
- John Ughulu, ‘Ethical Leadership in Modern Organizations: Navigating Complexity and Promoting Integrity’ (2024) 8(5) International Journal of Economics Business and Management Research 52-62
DOI:10.51505/IJEBMR.2024.8505 ↑
- Ibid. ↑
- Ibid. ↑
- Ibid. ↑
- Treviño L. K & Brown M. E, ‘The role of leaders in influencing unethical behaviour in the workplace’ (2005) Vol.4, No.1, Lawrence Erlbaum Associates, pp. 169-188 ↑
- Treviño, L. K et al, ‘Moral person and moral manager: How executives develop a reputation for ethical leadership’ (2000) 42(4), California Management Review, 128-142 ↑
- Hawksford, ‘The core principles of good corporate governance’ (2024) https://www.hawksford.com/insights-and-guides/the-core-principles-of-good-corporate-governance#:~:text=A%20company%20which%20applies%20the,help%20to%20finance%20further%20growth accessed 22 September, 2025. ↑
- Bennett R. J & Robinson S. L, ‘Development of a measure of workplace deviance’ (2000) 85(3), Journal of Applied Psychology, 349-360 ↑
- Folger, R & Cropanzano R, ‘Organizational justice and human resource management’ (1998) Vol.2, No.1, Sage Publications ↑
