Leadership and ethical conduct go hand in hand. Principled leaders demand principled behavior. In turn, ethical behavior is a foundation of effective leadership.
When it comes to organizational ethics, it starts at the top. No organization can achieve a sustainable ethical culture without senior management setting the example and leading the way.
Business leaders who aspire to build an ethical culture must start by defining what their organizations stand for. Then, they must identify a set of principles to guide them in realizing this goal. In The Power of Business Ethics Management, Kenneth Blanchard and Norman Vincent Peale propose five fundamental principles for developing an ethical culture, as summarized in the following infographic.