OnojaCMGT7019-2

Cyril Onoja

Leadership refers to a procedure of influencing others for

accomplishing a common objective.

Leaders have the principal role to play in guiding the organization

towards right direction for ensuring organizational success.

Ethical stewardship and trust relationship are the two major

components of leadership behaviors.

In the present dynamic business

environment organizational leaders

have been encountering the

challenge of gaining trust as well as

commitment of the employees

while they are expected to guide the

company to achieve success in the

intensely competitive international

market.

Concept of leadership and ethical behavior of leaders.

Investigation of the relationship between the leadership

behavior and gaining trust along with the ethical duties.

The significance of trustworthiness and ethical

stewardship.

According to Katz and Kahn (1978), “Leadership is the influential increment

over and above mechanical compliance with the routine directives of the

organization.”

Leaders are responsible for influencing others for achieving organizational

objectives.

According to three factor model, relationship development, resource utilization

and image management.

Efficient leaders emphasize on development of organizational culture as well as

systems which will help in enabling the people for becoming successful.

For gaining trusts, the leaders focus on developing a system that reinforces the

organizational principles and messages.

Ethical leadership refers to the decision

and activity of leader by knowing as

well as doing what is right.

The leaders are responsible for

influencing the organizational people for

acting responsibly.

Ethical leadership assists in developing

ethical behavior in organization and

builds trust.

Trustworthiness is an important aspect of the organizational relationship and it

is a subjective perception understood by each party as well as estimated which

helps in assessment of integrity benevolence and ability.

According to Caldwell and Clapham (2003), interpersonal trustworthiness can

be referred to the evaluation of the likelihood that a party can be trusted for

honoring duties.

Leaders need too earn trust by being accountable as well as trustworthy

consistently.

Ethical stewardship is considered as the corporate governance theory

that assumes leaders may capitalize the secret information for

satisfying personal interest.

Stakeholder theory recognizes the ethical duties of a leader.

The balance between the interest of the organization and stakeholder

must be maintained by the organizational leaders.

It is a superior level duty of the corporate governance in which the

motivation of the manager which is based on the pro-organizational

behavior instead of the behavior focused on self interest.

It is associated with complex set of ethical obligations.

Ethical Stewardship emphasized on service over self

interest.

Ethical stewardship is committed to the wholeness, growth

and welfare of the stakeholders by honoring the

transformational obligations which has developed new

scopes as well as reframed the traditional command and

control notion of the leadership.

Ethical stewardship is important as it helps in achieving the

objective of maximization of long term wealth creation.

Ethical stewardship emphasizes on maximizing the

ownership and the commitment of stakeholders.

It will help in maintaining balance between organizational

interest and stakeholder's interest.

It will help in long term healthy relationship with the

stakeholders and improves the organization’s image.

Significant association among leadership, trustworthiness and ethical

stewardship has been identified.

Ethical stewardship helps in achieving a balance between the

organizational interest and interest of the shareholders and it leads to

better management of the relationship.

Leaders can achieve trustworthiness through demonstration of ethical

behavior.

Theoretical studies have established a strong correlation

among leadership, ethical stewardship and trustworthiness.

Example of ENRON can help in understanding the strong

association of these three factors.

The unethical behavior of leaders of ENRON has led to

financial collapse of the organization.

The ineffective ethical stewardship has affected the

trustworthiness of the company. Thus, leadership, ethical

stewardship and trustworthiness are correlated.

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