I agree with the above assesment, probably because its the correct(safe) thing to do give the recent scandals like Enron etc., But before I give my reasons for agreeing, let me play devil's advocate for a moment. These days, the success of a business and thereby the effectiveness of its leader is measured in the numbers on the Financial Statement. This could accomplished by ethically questionable strategies by getting inside information on a competitor's strategy or spreading false rumors on the effectiveness of competitor's products and services etc., In this context the concept of ethics and effectivness don't go hand in hand.
Having said that, let me give counter argument. If a leader starts a rat race by indulging in the above activities, what will stop the competitor from doing the same back at our leader. Then those two company's management will be busy trying to tarnish each others reputation than on investing time in improving the basics like customer service, quality of products and employee benefits and satisfaction. This is crucial in increasing the company's standing among the clients and its own employees and will help it in achieving it goals.
I think it takes a leader with high ethical standards to block the temptation of instant gain by following cheap tactics and set a strategic vision for the future. That way he will lead as a example to follow for his subordinates which will propagate down the chain to the grass root level. That will make the employees taking pride in what they do and how they do it, thereby increasing efficiency.
Another important issue in light of the recent scandals is, the increase media attention to the white collar crimes. The business leaders are under a spot light where all of their actions are under the tight scrutiny. If they are involved in any unethical activity, they are putting themselves and their company in jeapordy. An ethical leader will have more time in his hand on constructive activities than an unethical one who has to do a lot to cover his tracts and lose scope for the future.
In short ethics fosters confidence and credibility which are crucial for an effective leader. Yes, I agree with this assesment that most effective leaders are those whose value ethics.
