Leadership integrity sets the tone for ethical behavior throughout the organization. An organization’s ethical climate affects how employees perceive, interpret, and respond to moral dilemmas. Employees who observe strong leadership integrity are more likely to behave ethically themselves. Leaders who demonstrate high levels of integrity create trust between themselves and their followers which fosters open communication about ethical issues as they arise. This enables superior problem solving skills while making sure that all decision makers feel comfortable sharing their opinions without fear of retribution or judgement from others in the company.
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