ETHICAL LEADERSHIP AS A FACTOR IN IMPROVING CORPORATE GOVERNANCE: LESSONS FROM FOREIGN COMPANIES FOR THE UKRAINIAN BUSINESS ENVIRONMENT

This article explores ethical leadership as a strategic component of modern corporate governance in response to global sustainability trends and reputational challenges. Drawing on transformational, authentic, and moral leadership theories, the study analyzes how ethical values shape managerial decision-making, internal corporate culture, and the integration of ESG (Environmental, Social, and Governance) principles. Particular attention is paid to psychological factors such as integrity, empathy, and transparency, which form the basis of trust and accountability within organizations. The article reviews empirical studies conducted in different countries and industries, highlighting the correlation between ethical leadership and the effectiveness of boards of directors, financial performance, and employee engagement. It also outlines the systemic obstacles to embedding ethical principles into daily business routines, including the lack of ethical KPIs and standardized reporting. A comparative table illustrates the differences between formal and values-driven ESG implementation approaches. The research emphasizes the role of ethical leadership in transforming ESG from a regulatory compliance tool into a sustainable strategic framework. Practical examples from foreign and Ukrainian companies are provided, demonstrating how ethical leadership can drive long-term transformation and resilience. The study proposes actionable recommendations for Ukrainian businesses, including the incorporation of ethical competencies in executive recruitment, the development of internal codes of ethics, regular training programs, ethical audits, and the integration of ESG metrics into performance evaluation systems. Furthermore, the paper reflects on the importance of cultivating ethical awareness at all organizational levels, stressing the need for continuous leadership development and transparent stakeholder dialogue. The article aims to contribute to the ongoing academic debate while offering a practical roadmap for managers, educators, and policy-makers striving to build transparent, resilient, and ethically sustainable organizations aligned with global governance standards.