¶ … perceived to be an ethical leader, am I an ethical leader? Why or why not? What happens when perception and reality are not congruent? Can I be a toxic leader and still be an ethical leader? Why or why not?
Just because I am perceived to be an ethical leader does not mean that I actually am one. The leaders of Enron were viewed as being ethically and morally upstanding as they promoted themselves and their workplace organizational culture as being transparent and accountable -- but the reality was that they were simply lying both to themselves and to stakeholders in the company. Their accounting practices were deceitful and they basically orchestrated a Ponzi-scheme with their finances in order to dupe investors (Eichenwald, 2005; Elkind, McLean, 2013). This is an example of why perception is not always reality when it comes to ethical leadership.
What happens when perception and reality are incongruent is that an environment and culture of suspicion can be fostered. People will begin to suspect that things are not on the up-and-up with their leaders and they will search for the truth; meanwhile, morale will suffer as the bad example of being dubious or untrustworthy can be spread throughout a firm as a result. People who want honesty...
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