Leadership is not value-free. In assessing its effectiveness, we need to address the means that a leader uses to achieve goals as well as the content of those goals. The role of the leader in creating the ethical expectations for all members is crucial. Leaders rated as highly ethical tend to be evaluated very positively by their subordinates, who are also more satisfied and committed to their jobs, and experience less strain and turnover intentions.

Ethical leaders also increase group awareness of moral issues, increase the extent to which the group is willing to speak up about ethical issues, and raise their empathic concern for others. Ethical and charismatic leadership intersect at a number of junctures. To integrate ethical and charismatic leadership, scholars have advanced the idea of socialized charismatic leadership—conveying other-centered (not self-centered) values through leaders who model ethical conduct.

Because top executives set the moral tone for an organization, they need to set high ethical standards, demonstrate them through their own behavior, and encourage and reward integrity in others while avoiding abuses of power. For ethical leadership to be effective, it is not enough for the leader simply to possess high moral character. Leaders must be willing to express their ethical beliefs and persuade others to follow their standards. To convey their beliefs, leaders should learn to express their moral convictions in statements that reflect values shared with their organization’s members.