Management Essays on Application of Ethical Leadership

Application of Ethical Leadership

Creating an Ethical Climate

An important approach in establishing an ethical climate is to establish expert power. Expert power is the employee’s discernment whereby they believe that a leader or any other person in a higher position of an organization possesses a high level of expertise compared to other employees in the organization (Lombardo n.d.). To establish the expert power, organizational leaders need to demonstrate that they possess the expertise and recognize ethics as a vital corporate value. Leaders, therefore, need to ensure that ethics is upheld above anything else in the everyday operations of the organization. In most instances, several factors, for instance, time restraints and budgets can lessen the significance of upholding an ethical climate in an organization. These factors affect the entire organization by masking the meaning of what is significant. Therefore, for Paradigm Toys to experience a noteworthy transformation to its ethical climate, they must define the most important elements that will ensure the organization attains its success. Paradigm Toys must create an ethical climate that will transform their managers or leaders into ethical experts. The outcome of this approach will enhance informed decision-making process and enrich longstanding business outcomes.

Organization Stakeholders

Corporate Social Responsibility ensures that an organization has put in place policies and procedures, which incorporate social, environmental, ethical, human rights or consumer concerns into business operations and core strategy, all in close collaboration with stakeholders (Financier Worldwide Magazine, 2015). The main purpose of corporate social responsibility is to ensure organizations attain a constructive impact on society while maximizing the formation of shared value for business proprietors, personnel, shareholders, and stakeholders.

The board of directors (BOD) of Paradigm Toys will meet their corporate social responsibility to the organization’s stakeholders in two ways. Foremost, the BOD will meet the desires of the primary stakeholders through making the most of their monetary and legal obligations. Subsequently, they will address the desires of secondary stakeholders through enhancing their ethical and benevolent duties. Paradigm Toys organization has two main primary stakeholders, proprietors, and personnel. The two categories of stakeholders comprise the foundation of the achievement and failure of the organization. As a way of meeting the needs of the proprietors, the organization must ensure they are coming up with Toys that match the needs of customers to maximize the profit. For any organization to realize profits, employee’s needs must be given priority. Therefore, the organization must ensure all business processes are proper to both internal and external perspectives.

Besides the primary stakeholders, the organization has two main secondary stakeholders, that is, the media and community around the company. These stakeholders are vital to the organization because they can damage the reputation and interest of the entity. Paradigm Toys, therefore, needs to approach these parties and identify their desires. Organizations that tend to work in collaboration with their secondary stakeholders get more goodwill and cooperation that favors the development and other essential positive business activities (Randall, 2012).

To address the corporate social responsibility requirements of the organization’s primary and secondary stakeholders, Paradigm Toys will need to integrate active approaches in implementing different obligations that are vital to each group. For the organization to efficiently attain a positive image among the groups, the stakeholders need to be precise about the company’s acts, particularly relating to trustworthiness, integrity, and nurturing actions that positively affect the society.

Importance of Ethical Leadership

Organizational ethics entail the policies, measures, and culture of undertaking the right actions regardless the prevailing circumstance of the firm. Developing an organization’s ethical culture that accentuates ethical behavior ensures the success of an organization, especially in controlling the misconduct of organizations. For organizations to develop a culture that focuses on doing the right thing, it begins with the leaders who should consider the ethical consequences of their actions (Truxillo, Bauer & Erdogan, 2016).

An ethics audit refers to a contrast between a real employee’s conduct and the guidance for worker behavior as stipulated in guidelines and procedures. Undertaking an effective audit can be important in ensuring that an organization’s employees adopt behaviors that are in line with the code of conduct (Randall, 2012). At Paradigm Toys, ethics audit can assist in combining all the aspects that affect the organization’s repute by examining how it conducts business. Having this information will help the organization spell out its values, recognize difficult areas, and get to understand what inspires employees.

Ethical framework for Addressing an Ethical Dilemma

In my organization, Femca seeds, we produce innately modified seeds that are pesticide resistant. The organization has faced a prolific media condemnation in the past years because of unscrupulous business practices largely affecting small business farmers. The organization subjects farmers to buy their products and if they refuse, they litigate them until farmers become bankrupt. This conduct undermines the value of corporate social responsibility. According to the organization’s code of conduct, Femca vows to endeavor to act with veracity and support farmers across the globe yet what they practice is exactly opposite. Moreover, the seeds and chemicals they use affect the land and users. The organization is a large corporation and uses its financial muscles to find its way in the corridors of power.

The organization’s code of ethics is aimed at establishing an ethical culture. It encompasses all the required assurances from the management team, principled catchphrases, and organizational pledges. These encompass the workers, suppliers, clients, and the society. Therefore, if an organization adhered to the document plan as presented, the outcome would be a positive ethical culture. The company has the correct plan primed but lacks the implementation. The firm needs to value the standards it endeavors to ensure the development of an ethical culture, the. The starting point should be with the management team down to the rest of personnel. If all the employees in the organization will begin to advocate this level of ethical fineness, the organization will start to enjoy the benefits of successful business processes. The administrative team at the organization only values the monetary benefits of running an organization does not focus on the significance of attaining the pledges made in the code of ethics. For the organization to transform this, the management team needs to obligate to focus on the bearing the organization is having on its primary and secondary stakeholders. I would recommend the ethical approach solution that will assist in changing the organization from its present state.

Paradigm Toys Ethics Training Program

The training program at Paradigm Toys will be grounded on the ethics audit undertaken.  The program will comprise three main components, namely; workers, standards, and execution. The accomplishment of any new program majorly relies on the people involved. The initial aspect that the organization needs to put in place towards ensuring a fruitful training program is to appeal and maintain proper talent. This begins with career adverts, continues through the hiring process, and finally, the contracts provided. Apart from incorporating ethical personnel in the organization, the process will also assist present employees in seeing what expertise of skills the organization wants. In this area of training, the focus will be put on models of hiring practices that revolve around moral decision-making. The approach will also rectify on the bad conducts by present workers to ensure that the two groups are tailored to what is accurately significant to the organization.

After the organization hires the correct personnel and demonstrates to them the significance of being ethical, the subsequent phase in the training program is to warrant that organizational communication is official, which is an essential part of processes and decision-making. The principles and objective of the organization must control the principled code and provide the ground for the training program. This approach entails integrating ethics into all constituents, for instance, worker orientations, organization courses, and business conferences, among other daily activities of the organization. Through upholding the subject embedded into routine decision-making, the organization can anticipate an improvement in the preservation and execution of its ethics program.

Employing the correct personnel and continuous communication on the significance of ethics will ensure that the ethical code is deep-rooted in all employees, which is important in decision-making. The execution development of the training will emphasize on affixing the decision-making process, and designing how achievements can be attained besides setting up remedial action in case of any defilements. In this phase of training, limitations will be put in place to allow each worker to make individual decisions constricted within the structure. Providing trust in the decision-making process will allow the personnel to develop the feeling of empowerment and ownership in their responsibilities.

After all the three components are executed, the basis of the ethics program will be established. The Paradigm Toys ethics foundation will be built through a mixture of online and classroom centered courses. The most recommended approach will be a quarter training course that should be mandatory for every employee that will occur at different times to accommodate all programs. Moreover, an external online-grounded ethics-training program that is non-ending will supervene. Emphasizing on these three components and approval from the executive team will ensure the organization attains a positive ethics-training program.




Financier Worldwide, (November 2015). The importance of corporate social responsibility. Financier Worldwide Magazine. Retrieved from

Lombardo, J. (n.d.). Organizational Ethical Climate: Definition, Issues & Improvement – Video & Lesson Transcript | Retrieved January 5, 2016, from

Randall, D. M. (2012). Leadership and the use of power: shaping an ethical climate. The Journal of Applied Christian Leadership6(1), 28.

Truxillo, D. M., Bauer, T. N., & Erdogan, B. (2015). Psychology and work: Perspectives on industrial and organizational psychology. Routledge.