Leadership: Trustworthiness and Ethical Management Problem Statement The problem to be investigated is the leadership challenge to ensure that organizations are efficient, effective and financially solvent but, more importantly, that leaders earn the trust and respect of their employees and other stakeholders. Introduction Leaders must possess and demonstrate trustworthy and ethical behavior in order to operate effectively in a more socially responsible and global business environment (Jennings, 2012). Leaders' ability to earn trust is based in part on their perception of a primary motivator: their commitment to the organization (Collins, 2001). The dynamics between leadership, perceptions of trustworthiness, and ethical management are critical to building successful organizations today (Donaldson & Dunfree, 1999). Corporate social responsibility is a valid source of indicators of intangible competitive advantage (Melo & Galan, 2011). It is not used to its full potential because it has less impact on financial indicators (Melo & Galan, 2011, p. 423). This statement is currently true in this writer's opinion, but it is changing. The change is occurring because old economic models do not contain all the variables necessary to truly measure the economic impact of corporate social responsibility known as CSR (Paine, 2002) and because successful leadership models are also changing (Kanter, 2009 ). However, this is not a universally shared concept. AnalysisThere are well-known economists, business leaders and academics who disagree. Discussion among some economists postulates that the only responsibility of businesses is to make a profit. Milton Friedman who lived in the 20th century...... half of the paper ...... excerpted from http://www.nationalaffairs.com/doclib/20080208_1981632whatisbusinessthicspeterfdrucker.pdfFerrell, O.C., Fraedrich, J., & Ferrell , L. (2011). Business Ethics: Ethical Decision Making (8th ed.). Retrieved from Mason, O. H. Greenleaf, R. K. (1977). Servant Leadership: A Journey into the Nature of Legitimate Power and GreatnessJennings, M. (2012). Business Ethics Case Studies and Selected Readings (7th ed.). Mason, OH: South-Western Cengage Learning.Kanter, R. M. (2009). World-class: Thriving locally in the global economy. New York: Simon & Schuster. Melo, T., & Galan, J. I. (2011). Effects of corporate social responsibility on brand value. Journal of Brand Management, 18(6). doi:10.1057/bm.2010.54Paine, L. S. (2002). Value shift: Why the company must combine social and financial imperatives to achieve superior performance. New York: McGraw-Hill.