Ethical Leadership Practices and Factors Affecting It in South Addis Ababa District Commercial Bank of Ethiopia

Abstract

The study aimed examining ethical leadership practices and factors affecting ethical leadership practices in Commercial Bank of Ethiopia (CBE). In doing so, the research inspected presence of ethical leadership practices. Based on the correlation between ethical leadership and ethical behaviors such as people orientation, fairness, power sharing, ethical guidance, role clarification, integrity and concern for sustainability are indications of ethical leadership practices in CBE. The study again explored effect of ethical dimension or behaviors on leadership practices of the bank. Quantitative research was employed to collect primary data for the study because it is convenient to reduce bias in collecting and analyzing data and mostly the results of quantitative studies are more valid, reliable and can be generalized for the larger population. The finding of the study indicates that there is moderate level of ethical leadership practices in South Addis Ababa District (SAAD) of CBE. Moreover, it was found that ethical leadership practices have positive relationship with ethical behaviors except the fairness dimension which showed weak correlation with the ethical leadership practices of the bank. It was also, discovered that some ethical behaviors such as integrity has high effect on ethical leadership practices. Hence, South Addis Ababa District in particular and Commercial Bank of Ethiopia in general should work to raise the moderate level of ethical leadership to higher level and it is recommended to follow a strategy which strengthen ethical behaviors practices in the organizational leadership practices.

Keywords: Ethical leadership, Ethical leadership scale, Ethical leadership behaviors

DOI: 10.7176/EJBM/13-1-01

Publication date: January 31^st 2021