Impact of Ethical Leadership on Performance of Government Parastatals in Afghanistan: A Literature Based Review
Abstract
The study sought to examine the impact of ethical Leadership on the performance of government parastatals in Afghanistan. The study was a literature-based review. The study found that ethical Leadership is key in improving governance. Effective governance is achieved when there is a high practice of Ethical Leadership. Ethical Leadership includes being honest, accountable and transparent. The benefit of accountability is that leaders admit mistakes they make instead of blaming others. Integrity in leaders describes being straightforward, reliable, and also trusted. Leaders with honesty act according to their words and own up to their errors instead of concealing them, condemning their group, or making reasons more successful. The study concluded that leading with transparency helps ensure that both workers, as well as company expectations, are appropriately established and satisfied. The association between transparency, financial, non-financial information board of directors and corporate financial performance is positive. It is concluded that understanding how to improve accountability in the public sector is essential to ensure good governance. Moreover, the study concluded that unethical decisions and immoral management hurt the performance. The study recommended government parastatals in Afghanistan need to work toward ethical Leadership. Those given the mandate to look after the resources of the public need to be accountable. It is also recommended that policymakers need to take the required steps to enhance the employees' accountability and integrity with the parastatals. Ethical Leadership is fundamental in improving performance. The performance is achievable with ethical leaders. Unethical behaviors of the leaders make other employees not be hardworking and be dishonest as well. Corruption is one of the hurdles affecting most government institutions globally, notably to those with porous policies. Ethical Leadership is very crucial for good governance and thus needs to be intensified.
Keywords: Ethical leadership, integrity, transparency, accountably, Afghanistan
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