Leading organisations and people is one of the most important aspects of effective organisations. Leaders provide direction and vision and are often said to influence followers in a goal directed path. Whilst many people use leadership and management synonymously they are in fact different by related concepts. Two of the most recognised management models by Henri Fayol and Henry Mintzberg both identify leadership as a function of management. This means that managers by definition need to lead, but not all leaders are necessarily managers. The importance of this distinction can be linked back to Unit 4 when we considered Kohlberg's cognitive moral development model and the importance of leadership in the conventional stage. In both levels of Kohlberg's second stage, leaders, be they of groups, companies or states, play a major role in shaping the accepted norms of the group. Ferrell, Fraedrich and Ferrell (2015) also highlight the key role that leaders play as 'significant others' in influencing ethical behaviour. This unit seeks to explore the concept of ethical leadership and how these capabilities can be developed. It looks at the "virtues" that leaders need to demonstrate with behavioural consistency so as to not just be seen as, but to be genuine ethical leaders with a concern for others. Learning objectivesThis unit has the following learning objectives:1.To understand the concept of leadership and the role of power as the means of follower influence2.To define ethical leadership.3.To identify the benefits of ethical leadership in leader-follower relationship.4.To understand the importance of effective role modelling5.To understand the important of ethical leadership in building an ethical culture OverviewNoted scholar and Professor of Management at McGill University, Henry Mintzberg conducted landmark studies of managers and leaders in the 1970s and replicated these studies again in the 2000s. He found that managerial work was then and still is, characterised by brevity, variety and fragmentation. This means that managers and leaders tend to break up their tasks, spend only short periods of time on each task and not necessarily attend to them in a cohesive and structured manner. He also found that despite decision making being a critical component of a manager's role they are not reflective thinkers but tend to be reactive and make decisions with insufficient information. What is Leadership?In the Governance and Leadership course we will examine leadership and leadership behaviour in more depth, however, one of the perspectives that will become apparent during that course is the importance of behaviour as a way of role modeling. There is clear evidence that employees look to senior leaders and their managers to establish what behaviours are acceptable in an organisation. At its simplest, leadership can be considered as influence directed towards others, in a given situation, in order to obtain specific goals. Leadership is a dynamic relationship between leaders and followers, and affects a work group's activities towards goal setting and achievement (Robbins, 2004). Leadership is not necessarily a concept that is limited to the manager or owner of the business. Leadership as a concept is therefore intimately bound up with ideas of responsibility and accountability and of behaviour. Ciulla (1995) describes leadership as any process or act of influence that gets induces or people to do something. It can be considered as a dynamic interpersonal relationship of influence because the decision of the follower's to act is his or her own. Followership cannot be required or demanded (Guillen and Gonzalez 2000). Bolman and Deal (2010) state that leadership is a subtle process of mutual influence bringing together thought, feeling, and action, so as to produce cooperative effort in the service of purposes and values of both the leader and followers.Ethical Leadership: Building CompetenceA major problem with traditional leadership literature is its focus on power relationships, how to acquire it, attain more and to exert influence on others, rather than focus attention on moral relationship that exists between leaders and followers (Freeman 1991). Ethical leadership is the critical factor in influencing ethical behaviour of employees as it is not the corporation itself that exerts moral responsibility but rather the individual members of the organisation (Ritchie, 1996). Ethical leadership can be defined as "the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making" (Brown et al. 2005,p.120). Svenson and Wood (2011) identify that ethical dimension of leadership refers to the right decision and actions combined with good intention and accompanied by moral correctness of behaviours. Ferrell, Fraedrich and Ferrell (2015) provide a common definition of leadership as the ability or authority to guide and direct others toward a goal, They state that ethical leaders create an ethical culture, have the power to motivate others and enforce the organization's norms, policies, and viewpoints and develop a positive relationship with the organizational citizenship of employees and a negative relationship with deviance or misconduct.