Integration of strategy and ethical leadership in the performance of public institutions critical Literature Review

Purpose: The purpose of this paper is to address the issue of integrating strategy and ethical leadership to enhance performance if public institutions. It aims to show that ethical leaders who are presumed to act in agreement with their own values and that of the organization do the opposite. The underlying assumption that only leaders should be ethical, understanding the strategy and culture of the organization, has been overtaken by dynamic changes, both within and external, which requires other stakeholders to uphold ethical values, have the same understanding of the institutional strategy and culture as that of leaders. Design/methodology approach: This is a review of literature Research limitations/implications: The subject of integration of strategy and ethical leadership has not been fully researched in the discipline of strategic management. Consequently, there is limited literature on the subject. Empirical research is needed to address the issue of integrating strategy and ethical leadership for virtuous performance in public institutions. Practical implications: Public institutions must strive to integrate strategy and the cultural tenets of the incumbent and novice employees. Ethical leadership and efficient performance in public institutions is possible when all stakeholders are involved in strategy formulation and implementation in due regard of the dynamic realities both internal and external to the institution. Strategy and ethical values should be objective and unbiased. Originality/value: The paper fills the gap in the literature review in that strategy and ethical leadership are inseparably intertwined before and after the institutions’ processes come into play. In addition, it brings into bear that all stakeholders in public institutions should be ethical, not only leaders and mangers as evidenced in the literature reviewed. Reciprocal ethical behavior is a function that is equally done by top manager, employees and other stakeholders.