Ethical leadership strategy for achieving sustainable companies in the VUCA environment

Authors

  • Donny Satya Budy Universitas Diponegoro
  • Wicaksono Andy Kuncoro Universitas Diponegoro
  • Fuad Mas’ud Universitas Diponegoro
  • Eisha Lataruva Universitas Diponegoro

Keywords:

VUCA, Ethical Leadership, Ethical Decision-Making, Sustainability, Business Resilience

Abstract

The VUCA environment (volatility, uncertainty, complexity, and ambiguity) has significantly changed global business situations. This circumstance has required firm executives to be more adaptable and agile, as well as to maintain ethical standards. Ethical leadership is defined as a leadership style that upholds moral ideals in behavior and communication. Ethical leadership in the VUCA environment is critical because an unpredictable climate puts leaders' integrity to the test while making decisions that support the company's viability. This study investigates alternative ethical leadership techniques for business sustainability in the context of the VUCA world. The systematic literature review (SLR) will be applied to this study, which will subsequently look at the ideas of ethical leadership, ethical decision-making, and corporate sustainability strategies. According to literature study, ethical leadership and decision-making may boost a company's resilience, creativity, and competitiveness in the face of unpredictability and complexity in the business environment. This study's findings demonstrate that ethical leadership not only has a short-term benefit, but may also promote long-term business performance sustainability. The findings of this study can help corporate executives establish more responsible and sustainable leadership strategies in the face of a VUCA environment.

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Published

2025-02-25

How to Cite

Budy, D. S., Kuncoro, W. A., Mas’ud, F., & Lataruva, E. (2025). Ethical leadership strategy for achieving sustainable companies in the VUCA environment. Forum for University Scholars in Interdisciplinary Opportunities and Networking, 1(1), 791–805. Retrieved from https://conference.ut.ac.id/index.php/fusion/article/view/2867

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