Positive ethical leaders have characteristics they focus on the needs of their employees, they make decisions on what is right. Not who will be affected, they have a high level of integrity and they provide a sense of fairness. Below are some aspects of ethical leadership and what makes them important.
Table of Contents
The dangers of unethical leaders
People tend to follow their leaders, and when the leader is unethical, it can be hard to keep the rest of the group. Unethical leaders will be able to make a decision on a whim and expect everyone else to follow along. If an unethical leader says a company should work long hours for low pay, for example, those who are inclined to agree with that type of behaviour will follow along without question.
Isn’t it better to have a leader who is ethical? In fact, ethical leaders face challenges as well. It’s hard to lead by example when you are following rules that are too inflexible or unrealistic. For example, if your company has a policy against working 80-hour weeks even though you know that’s what it will take to keep up with demand this season, your employees might have trouble trusting your judgment if they see you working 60-hour weeks while they’re pulling extra shifts.
There is also the possibility that you’ll be tempted to cut corners in order to get ahead. Maybe you decide to make some business decisions based on what you think. Will look best for your boss instead of what would be best for the company overall.
Guidelines on how to lead ethically
Leadership can be a slippery term. The dictionary defines it as the “act or ability to lead or guide”. But in business, it often means something more specific, those who have the power to make decisions. And direct the resources of an organization. And with that power comes responsibility.
The ethical leader is not necessarily the most charismatic person in the room, even the most popular. He is someone who will make decisions based on what’s best for his company, customers, and employees not just what’s best for him. It’s not always easy being a good leader; ethical leadership isn’t necessarily rewarded. But it’s worthwhile to do because doing so will lead to better outcomes for everyone involved including you.
You have an obligation to yourself and your company to set a good example for others by practising ethical leadership. And if you don’t practice this type of leadership now, it becomes harder over time because your moral compass may become so warped that you no longer even realize when you’re doing wrong by other people or by your own organization.
Ethical leadership is not always easy
There are a lot of things that make ethical leadership more difficult. First, ethical leadership is not always easy. It requires you to do the right thing even when there may be negative consequences associated with doing so. Second, it means that you have to be responsible for and accountable for your actions in a way that many people don’t want to be. People may say “That’s not my problem” or “I didn’t make this decision.” You have to take responsibility for the decisions you make and their consequences.
Another complication is that ethical leadership doesn’t always lead to positive outcomes. This can be very difficult because those who are not used to ethical leadership tend to think in terms of black-and-white outcomes. They want instant gratification and immediate payoffs, but ethical leadership does not always lead to such results. Finally, good leaders have a strong sense of integrity, which means they have a strong sense of self and know what they stand for and what they believe in both personally and professionally.
When you talk about ethics, there are two categories: one category is legality and the other is morality. Good leaders need to know both because legal issues arise when their organization’s policies inhibit them from doing the right thing morally.
Ethical leadership is a state of mind
Ethical leadership is not only about what you do, it’s also about how you think. If a leader has a personal set of values that are rooted in integrity and honesty, they will be more likely to make decisions that reflect their personal ethical standards. And if they have the ability to influence other people to follow them by demonstrating the proper way to behave, their actions will lead by example and send a strong message of what is expected from others.
A leader who lacks an ethical mindset may have difficulty discerning right from wrong. This can result in unethical choices being made. A common example of this is when a leader makes a decision based on self-interest, as opposed to what would be best for the organization as a whole.
An individual who behaves ethically not only understands the difference between right and wrong but also makes choices which reflect those standards. A leader who does this will inspire others to behave in the same manner, creating an environment of trust and respect among those who follow them.
Being ethical requires discipline and self-awareness
All of us are flawed, and in some ways, we all have room to improve ourselves. We often strive to be better people, to act in ways that make us proud of ourselves and the people around us. It’s natural, then, that we might extend those efforts beyond our personal lives and into the lives of others: by creating and enforcing ethical standards for our organizations and our leaders.
But it’s not enough for an organization or a leader to simply say “we’re doing things right”. it’s important that we demonstrate our ethics in every aspect of our operations. That means not just doing what’s ethical but being ethical and that requires discipline and self-awareness. Leaders need to keep their actions in alignment with their values; otherwise, they can easily lose sight of what they’re doing and why they’re doing it.
They also need to be open about when their values shift or their actions are out of alignment with their ideals otherwise, they won’t have the opportunity to course-correct before it’s too late, potentially causing harm to themselves or others. The key is knowing what motivates you as a person and your organization and then taking action to ensure that your leadership is always in alignment with those goals.
Ethical leaders are better than unethical leaders
Ethical leaders are better than unethical leaders. Just as a team that plays well together is more likely to win, a team where everyone knows and acts on the same ethical standards will be more successful in its endeavours than one where people make decisions based on greed or self-interest.
In the business world, ethical leaders can earn higher stock valuations for their companies, and produce better productivity from their employees. And even have better customer retention rates. In short, having an ethical leader at the helm of your company is good for almost every aspect of your business not just the perception of your company or brand.
Dealing with unethical leaders is draining and frustrating for all parties involved. People who work for the report are more stressed and feel like time is spent at work. Not only does this mean that employees are less productive, but it also means difficulties with trust and morale. That can last long after an unethical leader has moved on to another company. The fallout from unethical behaviour can damage a company’s reputation and prevent it from attracting quality talent in the future.