1.

Ethics tells us the way to act in a certain situation not just to achieve a particular
objective but considering everything around us. Business ethics refer to a set of
professional or applied ethics that review or study ethical or moral principles and ethical
or moral problems that appear in any business environment. Issues regarding business
ethics arise when there is a conflict between profit maximizing and the concept of social
and legal responsibilities of the business. Business firms became aware of their ethical
state in the ending of 1980s and early 1990s to avoid business scandals like loan and
savings crisis. The basic concepts of business ethics are involved with three different
types of moral or ethical issues. Some concepts focus on the issues covering the
function of business within the environment where the business activates i.e. political,
economic, legal and other social factors. Other concepts focus on the corporate issues, i.e.
the issues pertaining to the functioning of a certain business or company. While the other
concepts focus on the individual issues, i.e. the issues pertaining to the conduct or
behavior of individuals within a business or company.
2. Ethical leadership is about far more than having an understanding of the right values, or
of having a strong character that leads by example. An ethical leader not only has high
values and the determination to succeed but also understands the importance of building a
strong framework that allows others to follow the examples set so that everyone benefits.
Ethical leadership is about striving for the same goal and embodying the same purpose,
values and vision.An ethical leader works to create an open conversation, and working
practice, that encourages the sharing of ideas, knowledge and vision so that the benefit of
the learning is shared. The leader must also compel others to follow the lead that he/she
sets by the standards that are reflected in the way they live, influence and inspire. The
ethical leader understands that positive relationships are the gold standard for all
organizational effort. Good quality relationships built on respect and trust—not
necessarily agreement, because people need to spark off each other—are the single most
important determinant of organizational success. The ethical leader understands that
these kinds of relationships germinate and grow in the deep rich soil of fundamental
principles
3. 1. Justice
An ethical leader is always fair and just. They have no favorites, and treat
everyone equally. Under an ethical leader, no employee has any reason to
fear biased treatment on the basis of gender, ethnicity, nationality, or any
other factor.

2. Respect others
One of the most important traits of ethical leadership is the respect that is
given to followers. An ethical leader shows respect all members of the team
by listening to them attentively, valuing their contributions, being
compassionate, and being generous while considering opposing
viewpoints.
 3. Honesty
It goes without saying that anyone who is ethical will also be honest and
loyal. Honesty is particularly important to be an effective ethical leader,
because followers trust honest and dependable leaders. Ethical leaders
convey facts transparently, no matter how unpopular they may be.

4. The increased job satisfaction is driven by the leadership theory’s focus on communication and
collaboration. An employee won’t feel out of line for expressing their opinion and the
relationship between the people in higher ranks and the people in lower positions is based on
mutual respect. Each individual is treated with respect and the work they do is appreciated.

Furthermore, since ethical leaders lead by example, the helpful behavior is likely to spread across
the organization. Ethical leaders shape the organization and therefore, the organization will attract
people whose own moral and ethical framework is similar to that of the leader and the
organization. In fact, David Mayer et al found in a study published in 2012 that ethical leadership
reduces unethical behavior in subordinates. Therefore, the leadership theory has a powerful impact
across the whole society.

The strong ethical framework and leadership example can also help ensure employees report on
problems quicker. Issues that might not arise otherwise can become something subordinates feel
compelled to discuss with the leadership, which can guarantee the organization won’t run into troubles
later. For instance, in companies such as Enron, a stronger ethical framework would have alerted the
leadership about the wrongdoing (assuming they didn’t know about it).

5. a, Autocratic leadership
Autocratic Leadership relies on coercion, and its style is paternalism, arbitrariness,
command, and compliance. The autocratic leader gives orders which must be obeyed by
the subordinates.He determines policies for the group without consulting them and does
not give detailed information about future plans, but simply tells the group what
immediate steps they must take.However, some autocratic leaders may happen to be
“benevolent autocrats.”Generally, they are willing to hear and consider subordinates’
ideas and suggestions, but when a decision is to be made, they turn out to be more
autocratic than benevolent.

Advantages of autocratic leadership

 It is the speed with which decision can be made; the leader does not have to obtain group
members’ approval before deciding.

Disadvantages of autocratic leadership

 Autocratic leadership does have a negative impact on group -morale.

 Members may resent the way in which decisions are made and thus support them in only
a minimal fashion.
b..Democratic leadership

democratic leader usually gives instructions only after consulting with the group. He sees to it
that policies are worked out in group discussion and with the acceptance of the group.

That means democratic leadership solicits employees’ participation and respects their opinions.
Diagrammatically it can be shown in the following way;

Advantages of democratic leadership

 It often enhances the morale of the employees

 It increases acceptance of management’s ideas.
 It increases cooperation between management and employees.
 It leads to a reduction in the number of complaints and grievances.

Disadvantages of democratic leadership

 It accounts for slow decisions, diluted accountability for decisions.

 There may be possible compromises that are designed to please everyone but does not
give the best solution.

C. Free rein leadership

The leadership style which allows maximum freedom to followers may be called free rein leadership. It
gives employees a high degree of independence in their operations.

A free rein leader completely abdicates his leadership position, to give all responsibility of most
of the work entrusted to him to the group which he is supposed to lead, limiting his authority to
maintain the contact of the group with persons outside the group.

This is also known as the permissive style of leadership.

Diagrammatically it may be shown in the following way;

Advantages of free rein leadership

 Opportunity for individual development is offered to group members.

 All persons are given a chance to express themselves and to function relatively independently.

Disadvantages of free rein leadership

 It may result in the lack of group cohesion and unity toward organizational objectives.
 Without a leader, the group may have little direction and a lack of control.
 The result can be inefficiency or even worse, chaos.
D. Paternalistic Leadership

Under Paternalistic Leadership, the leader assumes that his function is paternal or fatherly.

His attitude is that of treating the relationship between the leader and the group as that of a
family with the leader as the head of the family.

He works to help, guide, protect, and keep his followers happily working together as members of
a family.

He provides them with good working conditions and employee services.

This style has been successful, particularly in Japan because of its cultural background. It is said
that employees under such leadership will work harder out of gratitude.

This mode of leadership produces good and quick results if the followers are highly educated and
brilliant, and have a sincere desire to go ahead and perform with responsibility.

6. Transformational leaders often promulgate an inspiring vision of the future. Yet, in many
circumstances, this vision is not integrated into the daily work of all individuals and,
therefore, does not enhance work satisfaction, commitment, or performance. Kohles,
Bligh, and Carsten (2012) developed a model that highlights the measures that can be
introduced to prevent this problem. According to their model, managers and subordinates
need to engage in bidirectional conversations about how to integrate the vision into their
daily activities. The managers can offer suggestions on how individuals can change their
tasks and activities to align with the vision. The subordinates, however, also should be
granted opportunities to discuss how they can shift their tasks and activities to align with
the vision. As a consequence of these bidirectional conversations, subordinates should be
more likely to integrate the vision into their work, ultimately enhancing job satisfaction,
commitment, and performance. They conducted a study that verifies this model. The
participants were 1425 employees within a health maintenance organization or HMO.
They completed measures of bidirectional communication, including items such as "My
immediate supervisor initiates conversation with me about aligning my work behaviors
and decisions with the company's vision" and "I suggest ideas to my immediate
supervisor concerning how the company's vision can be used to guide my work behaviors
and decisions". They also completed a measure that gauges the degree to which the vision
is integrated into the daily tasks of individuals (e.g., "The vision serves as a 'mental
guideline' for how to do my job"). Finally, job satisfaction, organizational commitment,
and performance, as gauged by supervisors, were included in the model as well. As
hypothesized, bidirectional conversation was positively associated with job satisfaction,
commitment, and performance. These relationships were mediated by integration of the
vision into daily tasks. Consequently, unless the managers and subordinates converse
about how to institute the inspiring vision of a charismatic leader, this vision will not be
instituted.
 7. Suggestion Box

Gathering good ideas is the first step to making good decisions. Create a system for employees to
give you their suggestions. This might be a physical suggestion box. Or, you might have a digital
alternative, such as a designated email or online form.If you do have a suggestion box, make sure
you regularly check it. Don’t let it go unopened for long periods of time. Create a routine of
checking it. This helps you make timely decisions.When employees give you suggestions,
respond to them. Tell them how you will use their ideas. If the idea isn’t right at the time, make a
note of it. Tell the employee that you appreciate their idea and explain why you aren’t using it.
Be careful about rejecting all employee ideas. If employees notice that you never act on their
ideas, they may quit submitting them.

Employee Surveys

Regularly survey employees to get their feedback. You might use a paper or electronic survey.
The surveys can help you learn their opinions, ideas, and level of satisfaction.When determining
how to do a performance review, make sure you include a short employee survey. After you give
employees feedback, ask them to give you feedback. Their responses can help you make
decisions that will help your business and their positions improve.Once you receive the
feedback, use the results to take steps to improve your business. Look for common complaints
and ideas. You can pull employees who had ideas or felt strongly about something and ask them
for more details. Find out what changes they would make to improve your business.

Leadership Teams

You might set up leadership teams, or committees, at your business. The people on these teams
don’t have to be managers. The teams can comprise any employees.The leadership teams might
have a general focus on your business. Or, you can create specific teams. For example, you
might have a team that focuses on marketing decisions and another team that focuses on
developing your products or services.The teams should regularly meet to generate ideas and
make decisions. Or, you might set up a communication channel for ongoing conversation.
Committee members should feel free to give input about upcoming decisions.

8. a. Be honest and supportive

Even when it’s difficult, tell the truth and not just what you think people want to hear. Understand
what employees need to know and communicate facts while being considerate of their effort and
sensitive to their feelings. Showing support and understanding for your team members, even when
mistakes are made. It goes a long way in building trust as a leader.

b. Commit to follow through

Even the best-intended talk is hollow if not followed by corresponding action. Say you’ll do
something only if you are able to follow through, and don’t commit if there is a chance you won’t be
able to deliver. Breaking a commitment can destroy trust you’ve built as well as make people less
inclined to trust you in the future.

c. Be consistent

Consistently doing what you say you’ll do builds trust over time – it can’t be something you do only
occasionally. Keeping commitments must be the essence of your behavior, in all relationships, day
after day and year after year.

d. Model the behavior you seek

Nothing speaks more loudly about the culture of an organization than the leader’s behavior, which
influences employee action and has the potential to drive their results. If you say teamwork is
important, reinforce the point by collaborating across teams and functions. Give credit when people
do great work and you’ll set the stage for an appreciative culture.

e. Build in accountability

When you and other leaders acknowledge your mistakes as well as successes, employees see you as
credible and will follow your lead. You can encourage honest dialogue and foster accountability by
building in processes that become part of the culture, such as an evaluation of every project
(positives, negatives, things to change) or a status report and next steps in each meeting agenda
(tracking deadlines and milestones).

9. There are different areas where the importance of management leadership becomes
especially visible when it comes to occupational safety and health aspects. First of all
leadership should ensure that a good and functional management system is in place
integrating all possible OSH aspects in a structured approach Management systems are
most effective if they are lived and accepted within the whole company. The success of
occupational safety and health management is therefore also based on leader behaviour
when it comes to developing and transposing visions and strategies on OSH dimensions
for successfully building up a safety climate are reflected in the Nordic Safety Climate . It
reflects workers´ perception of the true value of safety in the organisation.” The
dimensions related to management behaviour and decisions regarding safety are:

1. Management safety priority and ability referring to managers´ ability and behaviour when
it comes to questions of prioritising OSH,
2. Management safety empowerment – relating to the question if managers make sure all
necessary means are given for successfully dealing with OSH issues at work,
3. Management safety justice dealing with the fairness of management behaviour in case an
accident occurs.

10. a. The right employees are trained in the right skills;

b. The best employees are promoted;
c. Each employee’s skills are developed to reach their full potential irrespective of their
personal characteristics.
d. Everyone is able to work productively in a non-threatening and non-harassing environment;
e. Your team and your organisation are more productive;