Corporate governance and ethical leadership

Corporate governance and ethical leadership have grown in popularity in the discourse of strategy. Corporate governance is about leadership and is the processes and decision-making approval process that governs the way in which firms function.

Governance is focused on efficiency, probity, responsibility, transparency, and accountability with effective and ethical leaders a part of a governance system.

Suggested to possess these traits, leaders are expected to make ethical decisions and do so in a manner aligned with the mission, vision, and values of the firm. The leader’s beliefs, values, visions and actions are suggested to generate the tone of a firm and the standard of governance in corporations and influence ethical choice of the strategies by the firm.