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Comparing Unethical versus Ethical - Essay Example

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Summary to essay on topic "Comparing Unethical versus Ethical"
The argument by leaders of AIG was raised due to a feeling of being obligated to fulfill the commitments set by the contract with the executives, which required them to pay bonuses. In this case, failing to pay their bonuses by citing reasons of being bailed out by the U.S…
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Comparing Unethical versus Ethical
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Download file "Comparing Unethical versus Ethical" to see previous pages... The leaders were ethical by showing courage and standing for what was right and by deciding to offer these bonuses to the executive in these conditions. Furthermore, AIG leaders showed respect to the executive by honoring their contract, and they strived for fairness, honesty and straightforwardness for the sake of these executives.
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Giving bonuses to the executives is a way of encouraging and developing them; hence, it is an indication of ethical leadership. Therefore, in this situation AIG leaders can be considered ethical by possessing these attributes, portrayed through the decision of giving bonuses to the executives.
According to Kellerman and Matusak (4), participative leaders commit themselves as members of the team, whereby they discuss with the team members in the decision-making process. Therefore, they seek consensus in order to make the final decision. For example, a participative leader seeks a consensus during negotiations, whereby he or she settles at a deal after consulting with the other team members. On the other hand, the authoritarian leadership is known to dictate task and timelines for completing the assignment for group in order to achieve the set objective. For example, authoritarian leadership style can be applied during a crisis, when the leader has to take control of a situation. Nevertheless, these leaders do not involve members of the team in decision-making.
Servant leadership focuses on leading through virtue aimed at satisfying the needs of the team members. Therefore, this leader establishes a form of democracy among the team members. For example, democratic leaders are keen to listen to the members of the team, whereby the members are given the chance to offer their ideas to the process of decision-making. Moreover, power is achieved by these leaders through values and ideals, though there are convictions that this style of leadership is behind other leadership styles.
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