What term describes a leader's behavior when directing a team based on moral principles?

The correct term that describes a leader's behavior when directing a team based on moral principles is ethical leadership. This concept emphasizes the importance of integrity, fairness, and accountability in leadership practices. Ethical leaders are known for their commitment to doing the right thing and inspire their team to uphold similar values. They not only make decisions that align with ethical standards but also create an environment where team members feel respected and valued. This approach often leads to increased trust and cohesion within a team, fostering a positive organizational culture centered around ethical practices.

In contrast, transformational leadership focuses on inspiring and motivating followers to achieve their potential and exceed their own expectations, but it may not always center explicitly on moral principles. Transactional leadership involves structured tasks and clear rewards or punishments based on performance, which does not inherently prioritize ethical considerations. Charismatic leadership relies on a leader's charm and personal magnetism to influence others, rather than a strong foundation in ethical behavior. Thus, ethical leadership distinctly highlights the importance of aligning actions with moral values in guiding a team.