PEOPLE.IDEAS.PERFORMANCE

88 (7+,&$/ /($'(56+,3 ,1 0$/$<6,$ 38%/,& 6(59,&(6 .KDLURO $18$5 ,6+$. $PHU '$586 Universiti Utara Malaysia Malaysia (7+,&$/ /($'(56+,3 ,1 38%/,& 6(59,&(6 Leadership is very important factor in determining organisations effectiveness. Excellence in organizations is due too many factors. The issues of leadership are an important agenda for the private sector and public sector in each country developed or developing countries like Malaysia. This issue is rapidly deteriorating because of the changing environment and it’s an on -going challenge to be faced and addressed by leaders in all sectors. Among the factors that lead to constant changes are as follows: Improvement and changes in technology such as ICT; Expectations for service quality from the customers; Increasing diversity in society – the organization needs to be more inclusive their approach on the provision of services; Increasingly needs for performance – focused organization; Economic and financial pressure. Leaders who can address these changes will lead the organization towards excellence. Thus, ethical leadership is important because the leader is the agent of change and as the architect of the key elements of organizational culture. Recently, many organizations have become interested to create and develop the ethical leadership within in their organizations. Problems of ethics in management can affect an organization and as result of the country had to bear significant lost. For example, the arrest of several senior officers of the Immigration Department for the offense of abusing power. This negative impact of this country because of the possibility of the other countries will impose a new policy to Malaysia passport holder will enter these countries. The study by Wart (2003) have explained about effective leadership in which each provides services and goods of high quality and more efficient; provides sense of cohesiveness through personal development to achieve high levels of satisfaction among those conducting the work; in addition also provides an overarching sense of direction and vision which is aligned with the environment and a healthy mechanism for innovation and creativity, and a resource for invigorating the organizational culture. He also describes about today ’s leaders are faced with various challenges which makes leadership more difficult. This is due the public have greater access to view leadership today such as by media, internet as well as increasing the level of public awareness. According to Daft (2011), leaders at all levels have a greater responsibility to determine the ethical climate and they can act as role models for others. However, these leaders also face challenges in determining what was right or wrong. Among the serious obstacles that are personal weakness and selfishness. In addition, the pressure of cost reduction, profit increase, to meet the demands of vendors or business partners and look successful can be contributed to the collapse of ethics. According to him, as leaders, they can absorb the ethical values in making action and to set an example that you want your followers