July 28, 2016 10:20 - 11:50

Leading ethically in banking: A framework for developing ethical leaders and ethical leadership

[Speaker] Rojon, Céline:1
[Co-author] Soltys, Marko:1
1:University of Edinburgh Business School (United Kingdom)

This study aimed to examine how organisations can effectively develop ethical leaders who make the right decisions, given both positive (e.g., increased job satisfaction) and negative implications (e.g., decreased organisational productivity) of ethical and unethical leadership respectively. Following a thorough review of the extant literature, we gathered in-depth qualitative interview data from senior leaders (N=10) of a large UK bank; the banking industry was purposefully selected here to represent organisations that have recently come under scrutiny for unethical behaviour. Findings enabled the development of an ethical leadership framework, this suggesting that a variety of organisational programmes, including role modelling, training and rewards systems, may be effective in developing ethical leaders(hip). The framework further indicates that any such programmes are more likely to be effective when organisations have a well-developed understanding of ethical leadership and when initiatives specifically address antecedents of ethical leadership. Theoretical and practical implications are discussed.
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