Which of the following is true about ethical leadership?

A) It is a foundational requirement for impacting the long-term valuation of the firm.
B) It is necessary for the firm to achieve profitability to satisfy shareholders.
C) It maintains a short-term orientation to ethical decision making.
D) It requires ethical leaders to have charismatic personalities.
E) It usually avoids transactional leadership.

Ethical Leadership

A form of leadership in which individuals demonstrate conduct for the common good that is both ethical and effective.

Long-Term Valuation

Assessing the worth or potential future value of assets, investments, or companies over an extended period.

Profitability

The ability of a company to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.