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LITERATURE REVIEW 1
Ethical Leadership
Jeremy Polacek
School of Business, Liberty University
LITERATURE REVIEW 2
Abstract
The ability to set a good example is a valuable trait in a leader. Ethical leaders should
understand that their actions will speak volumes about their credibility as ethical leaders. A
person’s actions speak louder than words when it comes to making an impression. Ethical
leaders may start to gain the respect of colleagues and followers, modelling honest, ethical,
and selfless conduct for their subordinates. A leader who treats people with dignity and
honesty may inspire stronger loyalty from their followers. Ethical leaders, among other
things, are responsible for emphasizing the significance of ethics in the larger context of
society, not just organizations.
LITERATURE REVIEW 3
Annotated Bibliography
AlShehhi, H., Alshurideh, M., Kurdi, B. A., & Salloum, S. A. (2021). The impact of ethical
leadership on employees performance: A systematic review. In Proceedings of the
International Conference on Advanced Intelligent Systems and Informatics 2020 (pp.
417-426). Springer International Publishing.
The authors sought to determine whether there is a correlation between the
performance of employees and ethical leadership. AlShehhi et al. (2021) found that the
relationship was positive. Workers performed better when the leader displayed ethical
standards. The hypotheses proved to be true, which led to that conclusion. Hind AlShehhi is a
credible authority on the subject because she is a senior administrative officer at the College
of Business Administration at the University of Sharjah, UAE. Alshurideh, Kurdi, and
Salloum also have the authority to contribute to the topic since they are faculty members at
respectable institutions of higher learning.
The source contributes to the research by showing how the performance of employees
relies on ethical leadership. The source is included in the final research paper since it narrows
its focus on one area and explores it extensively. Additionally, it will prove helpful since it
shows that the attainment of the goals and objectives of a company depends significantly on
ethical leadership.
Ashfaq, F., Abid, G., & Ilyas, S. (2021). Impact of ethical leadership on employee
engagement: role of self-efficacy and organizational commitment. European Journal
of Investigation in Health, Psychology and Education, 11(3), 962-974.
The overall ethical conduct in an organization depends on the leadership style.
Employee engagement is a huge determinant of how the organization performs. Thus,
organizations should ensure they foster employee engagement. Ashfaq, Ilyas, and Abid are
reliable authorities on the subject since they work at the Department of Management Sciences
LITERATURE REVIEW 4
at Lahore College for Women University, while Abid works at Kinnaird College for Women
at the Department of Business Administration.
The article is a good source for the research paper since it shows how employee
engagement is affected by ethical leadership. This is an area of interest since employee
engagement is critical in organizational performance. Engaged employees commit to the
organization. Thus, it is crucial to understand how ethical leadership can be used for its
improvement.
Chughtai, A., Byrne, M., & Flood, B. (2015). Linking ethical leadership to employee well-
being: The role of trust in supervisor. Journal of Business Ethics, 128(3), 653-663.
The authors contribute to the research paper from the perspective of a supervisor-
trainee relationship. In addition, the authors explored work-related well-being and its link
with ethical leadership. The study found that work engagement was affected by ethical
leadership. Byrne and Flood work at DCU Business School, Dublin City University.
The article contributes significantly to the research topic by showing its relationship
to employee well-being. It slightly resembles Ashfaq et al. (2021) since it shows work
engagement and how it is affected by ethical leadership.
Engelbrecht, A. S., Heine, G., & Mahembe, B. (2017). Integrity, ethical leadership, trust and
work engagement. Leadership & Organization Development Journal, 38(3), 368-379.
Trust is crucial in the organization. Subordinates should be able to trust their leaders
in order for the organization to succeed. Ethical leaders have integrity and this makes it easy
for followers to obey them. Engelbrecht is employed at the Department of Industrial
Psychology, Stellenbosch University. Thus, it can contribute to the topic with authority.
Work engagement and trust are influenced to a great extent by ethical leadership.
LITERATURE REVIEW 5
The article is included as a source since it offers a unique perspective on the topic.
Integrity is a critical element of ethical leadership. This is because it cultivates trust in the
leader and allows subordinates to engage in the organizational objectives and mission.
Gaji, M. B., Kassim, R. N. M., & Raju, V. (2017). Integrity, Trust and Nigerian Banks’
Employee Engagement. International Journal of Business Management and
Economic Research, 8(4), 982-986.
Employee engagement is affected by the trust and integrity of the supervisors.
Employee performance depends on the leadership style. The concept is especially important
in the banking sector. Gaji is a faculty member at the Limkokwing University of Creative
Technology; thus, he qualifies as an authority on the subject.
The article is selected as a source since it explores the topic and shows that the
hypothesis still holds in developing economies. The business environment is uncertain, but it
is manageable when a company has engaged staff. Leadership and management style
significantly influence employee engagement.
Halbusi, H. A., Ismail, M. N., & Omar, S. B. (2021). Ethical leadership and employee ethical
behaviour: exploring dual-mediation paths of ethical climate and organisational
justice: empirical study on Iraqi organisations. International Journal of Business
Governance and Ethics, 15(3), 303-325.
Scholars and other interested parties are increasingly developing an interest in ethical
leadership due to blatant misconduct in the past. The authors are in the Department of
Business Strategy and Policy in Malaysia; thus, they can be relied upon to contribute to the
topic. The ethical misconduct in the media has highlighted the need to develop an interest in
ethical leadership. The scandals can be minimized with the correct leadership approach.
The article qualifies as a relevant source for the final research paper since it shows
that leaders should be good examples to followers. Unethical behaviors and scandals are
LITERATURE REVIEW 6
becoming common in the business sphere due to poor leadership that trickles down to
subordinates.
Huang, L., & Paterson, T. A. (2017). Group ethical voice: Influence of ethical leadership and
impact on ethical performance. Journal of Management, 43(4), 1157-1184.
Ethical performance is critical to the overall performance of an organization. Ethical
leaders are paramount to organizational performance. Group ethical voice is necessary in
order to create a positive image for the company. Huang works in the Department of
Management while Paterson is at the University of Idaho. Thus, they have authority on the
topic.
The source is not broad enough but qualifies to be on the references list of the
research. This is because it provides important information on group ethical voice. Ethical
performance depends on the overall ethical stand of the group.
Le, P. B., & Lei, H. (2018). Fostering knowledge sharing behaviours through ethical
leadership practice: the mediating roles of disclosure-based trust and reliance-based
trust in leadership. Knowledge Management Research & Practice, 16(2), 183-195.
Ethical leadership encourages knowledge sharing. Generally, followers look at how
leaders behave and emulate their behaviors. The authors argue that leaders should share
knowledge with their subordinates in order to foster such a culture in the organization. The
authors can be trusted since they work as instructors at the School of Business
Administration, Hunan University, Changsha, China.
The article is selected as a source since it explores the topic and shows that the
hypothesis still holds in Asian economies. The business environment is uncertain, but it is
manageable when a company has engaged staff. Leadership and management style
significantly influence employee engagement through knowledge sharing.
LITERATURE REVIEW 7
Potipiroon, W., & Faerman, S. (2016). What difference do ethical leaders make? Exploring
the mediating role of interpersonal justice and the moderating role of public service
motivation. International Public Management Journal, 19(2), 171-207.
Ethical leadership is also relevant in the public sector. Ethical leaders make a huge
difference in the management of public organizations and non-profit organizations. The
authors use social exchange theory to show that leaders greatly influence the behavior and
performance of subordinates. Potipiroon is an Organizational Behavior lecturer at Prince of
Songkla University, while Faerman is a distinguished teaching professor. Therefore, they are
credible sources of information on the research topic.
The source was selected for the research since it offers a different understanding of
the topic. The authors show that the performance of the public sector also depends on ethical
leaders. Leaders are role models and should behave in a manner that does not mislead
subordinates. Thus, public management is affected by the leadership style implemented at the
top.
Viitala, R., Kultalahti, S., & Kangas, H. (2017). Does strategic leadership development
feature in managers’ responses to future HRM challenges? Leadership &
Organization Development Journal.
Organization’s strategy implementation depends on leadership development. The
authors argued that leadership development should be linked to business needs. In addition,
the human resource department has a critical part to play in the leadership style. Viitala et al.
have written other papers on the subject of management, meaning that they are reliable.
The article will contribute to the topic through the perspective of HRM. Generally, the
leadership style is the responsibility of all departments.
LITERATURE REVIEW 8
Wahyuni, R. S., & Syamsir, S. (2020). The Influence of Integrity and Human Resource
Management towards Employee Performance. International Journal of Research and
Analytical Reviews (IJRAR), 7(1), 780-785.
The authors show that HRM and integrity are significant determinants of employee
performance. On average, leaders contribute significantly to good employee performance.
The authors are an authority on the subject since they have experience in management in
West Sumatra, Indonesia.
The source is not broad enough but qualifies to be on the references list of the
research. This is because it provides important information on good employee performance.
Ethical performance depends on the overall stand of employees.
LITERATURE REVIEW 9
Outline
I. Introduction
a) Potipiroon & Faerman (2016) ethical leadership as “the demonstration of
normatively appropriate conduct through personal actions and interpersonal
relationships, and the promotion of such conduct to followers through two-
way communication, reinforcement, and decision-making.” The topic is
important due to the regular occurrence of scandals and unethical conduct in
business.
b) Themes and trends. Positive workplace culture, Integrity, Work engagement,
and Justice.
II. Theme One
a) A leader who treats people with dignity and honesty may inspire stronger
loyalty from their followers. Ethical leaders, among other things, are
responsible for emphasizing the significance of ethics in the larger context of
society, not just organizations.
b) Positive workplace culture. Positive workplace culture plays a significant role
in the ability of an organization to attract and retain employees. The
surroundings should be conducive to employees and ensure they work in the
best possible conditions that encourage them to commit to the company.
III. Theme Two
a) Integrity. Integrity has been found to contribute positively to employee
performance (Wahyuni & Syamsir, 2020). In their study, Gaji, Kassim, &
Raju (2017) argued for the importance of integrity. An ethical leader leads
with integrity and humility.
LITERATURE REVIEW 10
b) Sub-theme trust. Trust and selflessness in leadership are crucial in creating a
positive workplace environment.
IV. Theme Three
a) Work engagement and Employee Engagement. A study by Engelbrecht,
Heine, & Mahembe (2017) affirms, “Because employees are more likely to
engage in their work if they are drawn upon themselves to perform their roles,
trust on the part of management is essential. Excessive monitoring and
enforcement from management can hamper employees’ tendency to engage in
their work.”
V. Conclusion and Recommendation. The success or failure of an organization depends
on its leadership. The leader communicates the vision and directs the subordinate
employees toward the mission and vision of the organization. A leader has the ability
to comfort interested parties that the enterprise is a good performer and deserves to
receive substantial investment. A customer is likelier to develop and maintain loyalty
to the corporation if they see ethical managers. As with employees, partners and
suppliers will feel more comfortable working with a company if they see it display
ethical leadership. Recommendation. Unethical scandals such as the Enron case
highlight the importance of ethical leadership. Misconduct from the top management
can be detrimental to the organization and stakeholders, such as the loss of life
savings. Thus, it is crucial for leaders to be ethical.
LITERATURE REVIEW 11
References
AlShehhi, H., Alshurideh, M., Kurdi, B. A., & Salloum, S. A. (2021). The impact of ethical
leadership on employees performance: A systematic review. In Proceedings of the
International Conference on Advanced Intelligent Systems and Informatics 2020 (pp.
417-426). Springer International Publishing.
Ashfaq, F., Abid, G., & Ilyas, S. (2021). Impact of ethical leadership on employee
engagement: role of self-efficacy and organizational commitment. European Journal
of Investigation in Health, Psychology and Education, 11(3), 962-974.
Chughtai, A., Byrne, M., & Flood, B. (2015). Linking ethical leadership to employee well-
being: The role of trust in supervisor. Journal of Business Ethics, 128(3), 653-663.
Engelbrecht, A. S., Heine, G., & Mahembe, B. (2017). Integrity, ethical leadership, trust and
work engagement. Leadership & Organization Development Journal, 38(3), 368-379.
Gaji, M. B., Kassim, R. N. M., & Raju, V. (2017). Integrity, Trust and Nigerian Banks’
Employee Engagement. International Journal of Business Management and
Economic Research, 8(4), 982-986.
Halbusi, H. A., Ismail, M. N., & Omar, S. B. (2021). Ethical leadership and employee ethical
behaviour: exploring dual-mediation paths of ethical climate and organisational
justice: empirical study on Iraqi organisations. International Journal of Business
Governance and Ethics, 15(3), 303-325.
Huang, L., & Paterson, T. A. (2017). Group ethical voice: Influence of ethical leadership and
impact on ethical performance. Journal of Management, 43(4), 1157-1184.
Le, P. B., & Lei, H. (2018). Fostering knowledge sharing behaviours through ethical
leadership practice: the mediating roles of disclosure-based trust and reliance-based
trust in leadership. Knowledge Management Research & Practice, 16(2), 183-195.
LITERATURE REVIEW 12
Potipiroon, W., & Faerman, S. (2016). What difference do ethical leaders make? Exploring
the mediating role of interpersonal justice and the moderating role of public service
motivation. International Public Management Journal, 19(2), 171-207.
Viitala, R., Kultalahti, S., & Kangas, H. (2017). Does strategic leadership development
feature in managers’ responses to future HRM challenges? Leadership &
Organization Development Journal.
Wahyuni, R. S., & Syamsir, S. (2020). The Influence of Integrity and Human Resource
Management towards Employee Performance. International Journal of Research and
Analytical Reviews (IJRAR), 7(1), 780-785.
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