Leadership and management in business go hand in hand but while management is doing things right, leadership is all about doing the right things. When businesses aim to build the right corporate culture and appropriate ethics at work, they recognize the fact that this is only possible by setting the suitable precedents in leadership.
The directions in which business leaders steer their organizations are largely dependent on how they treat their employees in everyday interaction and how they find ways to encourage them.
The behavior of a good business leader among his employees reflects not only his values and his mindset; it also sets an authoritative example of his expectations from them. When top management and leaders in business teach by example, they gain the trust and confidence of everyone who is answerable to them. A lack of trust among the workforce lowers the morale and drains productivity, which is exactly why good leaders encourage team-building exercises regularly. The manner in which they deal with difficult or crisis scenarios demonstrate their decision making skills and instigate their employees to do the same under such circumstances. Ethical leadership has the ability to create an amicable atmosphere within the organization wherein employees feel empowered.