Ethical Leadership Theory

Leadership is defined as a process whereby an individual influences a group of individuals to achieve a common goal (Northouse, 2007). Theoretically, there are three basic ways to explain how people become leaders: the trait leadership theory, the great event theory and the process leadership theory (Bass, 1990). Trait theory is a situation where some personality traits may lead people naturally into leadership roles. A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person; this is the Great Events Theory.The process theory is a situation when leadership skills are learnt. According to Burns (2008), the leadership process occurs in one of two ways, either

Ethical leaders help give meaning to their employees‟ work and ensure that organizational decisions are based on sound moral values(Piccolo, Greenbaum, Den Hartog, & Folger, 2010).Ethical leaders are always making efforts to incorporate moral principles in their beliefs, values and behaviour; they are committed to higher purpose, prudence, pride, patience, and persistence (Khuntia &Suar, 2004).In conceptualizing of ethical leadership, Trevino, Hartman &Brown (2000)present a matrix comprising unethical leadership weak moral person, weak moral manager, hypocritical leadership weak moral person, strong moral manager, ethical leader strong moral person, strong moral manager, and ethically silent or neutral leadership (weak/strong moral person, weak moral manager). In a similar fashion, Trevino &Brown (2004) propose an executive must be perceived as both a “moral person” and a “moral manager to have a reputation of ethical leadership. “A “moral person” is related to good character; the leader is honest and trustworthy, show concern for employee welfare and is seen as approachable. Whereas, a “moral manager,” is one who leads others on the ethical dimension, allow employee to know what is expected, and holds them