Thus dealing with the ethical issues in a strategic manner prepares managers to avoid biases, problems and unnecessary pressures of the situations. Hickman quotes a famous saying of Aristotle for ethics that “the spirit of morality is awakened in the individual only through the witness and conduct of a moral reason” . Thus to make the company an epitome of ethics, it is essential to make its people ethical. For that to happen, it is essential for the managers or leaders to set an example of ethical behavior as it is observed that followers tend to learn by observing the leaders. Mackie, Taylor, Finegold, Daar, and Singer (2006) talks about the significance of a specialized leader who has charisma to conquer ethical dilemmas though consistent display of strong commitment sense. The employees tend to be committed to the ethics to which the manager is committed.
Ward (2005) talks about the importance of formal reasoning that direct people towards ethical behavior. He argues that it’s not just formal reasoning which paves the way to ethics but also the allegories, metaphors, parables, life experiences, and narrative storytelling. Even though all these ways do not contribute to the formal reasoning, but yet they are not entirely irrational. To make the followers grasp the ethical learning sharing of stories and examples have always been a great medium. One of the biggest examples is sharing of parables by Jesus to impart the teaching of ethics and morality on the followers.
Nekoranec (2009) specifies the job of a manager in leading position when managing his staff which says “identified role of leader is to personify espoused values, build relationship for harmony and purpose and work for mutually beneficial solutions” (p. 4). It is of paramount importance to create win-win situations. This needs to be taken more care with relation to the finances and ethics. The managers following the high ethical standards thus establish great ethical leadership with sustained profits and higher respect from his staff as well as seniors. Kaptein, Huberts, Avelino and Lasthuizen (2005) points out that we can sum up by mentioning that manager with high ethical standards can bring upon the same effect on his employees and in turn in the business by evaluating the consequences of his own actions.
Similarly, managers without any ethical values demonstrate low ethical structure of the company as well.