ACCA Strategic Professional · Strategic Business Leader · Leadership and organisational culture
Teva Retail's CEO, after a data breach, immediately admits the failure, apologises, dismisses the responsible manager regardless of seniority and publishes the corrective steps. Some directors say this is only to protect the share price. Which statement best describes the leadership implication under an ethical leadership view?
Ethical leadership is judged by consistent, visible conduct that models stated values. Whether the CEO's actions build trust depends on genuine motive and sustained follow-through, not just legal compliance or share price protection.
- AEthical leadership is judged by consistent, visible conduct that models values, so motive and follow-through determine whether it builds trustCorrect
- BEthical leadership depends only on compliance with the law
- CLeadership ethics is about outcomes for shareholders alone
- DEthical leadership requires avoiding any public admission of failure
Explanation
Ethical leaders act as role models; credibility comes from visible, consistent behaviour matching stated values. Mere legal compliance is a minimum, not the whole. A shareholder-only view ignores wider stakeholders, and concealing failure undermines trust.
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