Which of the following is true about ethical leadership?

Question

Quizplus · Accepted Answer

Ethical leadership is a foundational requirement for impacting the long-term valuation of the firm. Research has shown that ethical leadership can promote employee commitment, reduce unethical behavior, and ultimately improve the financial performance and reputation of the firm in the long run.

Option B is incorrect because profitability can be achieved through unethical means, which may damage the long-term prospects of the firm.

Option C is incorrect because ethical leadership has a long-term orientation and focuses on creating a culture of ethics in the organization.

Option D is incorrect because ethical leadership does not require leaders to have charismatic personalities.

Option E is incorrect because ethical leadership may use transactional leadership strategies, such as setting clear expectations and providing rewards and punishments, to reinforce ethical behavior.

Which of the Following Is True About Ethical Leadership