Ethical leadership has become important in today’s modern and dynamic organisational setting since it helps leaders work and decide on values that have a solid base in fairness and morality.
As the public gets more conscious of corporate governance and responsibility, there is a rising need for individuals who have the capacity and willingness not only to give results but also to do it in the right and legal way.
This article aims at discussing the definition of ethical leadership, its principles, theories and why ethical leadership is important for building responsible organisations.
Ethical leadership is defined as a style of leadership that considers ethics and morality in decision-making.
They include leading by example and making decisions based on a set of ethical principles, observing fairness and respect in dealing with stakeholders.
Ethical leadership definition by authors like Brown and Treviño (2006) underlines the orientation of communication, reinforcement, as well as role modelling of ethical behaviour among leaders.
Several theories try to explain how ethics in leadership impact success and the culture of an organisation. One prominent model is the ethical leadership theory, which proposes that leaders who are ethical, tend to promote a work environment with ethical behaviours. This theory connects leadership practices to the principles of ethical leadership, which include fairness, transparency and accountability.
The importance of ethical leadership goes beyond the role of the leader in making decisions. Ethical leaders determine the organisational culture, its ethical climate specifically, that defines appropriate employee conduct and relations.
An organisation with leadership ethics in the workplace usually enjoys a higher level of trust, satisfaction and loyalty among employees. This is because the employees feel more secure if they think their leaders act with morality in leadership decisions and that they are treated fairly and justly.
Moreover, ethical leadership is indeed important in creating and sustaining organisational image. It might be easy to answer this question if we ask, can a leader be effective without ethics? The answer is often no. Without correct ethical prematurity, leaders may get higher returns in the short-term but lower organisational reputation in the long-term.
Different ethical leadership styles exist, but they all share common characteristics that define them. 6 common ethical leadership principles include:
Integrity is among the major characteristics of ethical leaders. The followers of integrity leadership possess huge determination, be honest and transparent towards their employees. They will not be able to sell out personal or organisational ethics while procuring business contracts. They not only practice what they preach, but also maintain high levels of integrity and ethics, as they encounter various challenges, or when making difficult decisions.
Leadership integrity is essential as it builds trust in the employees and other stakeholders, enabling an environment with honesty and openness.
Ethics regards fairness as a core ingredient of the decision-making process. Ethical leaders make sure that every employee is treated equally when making decisions in the workplace, avoiding personal bias. There is consistency, assuring that everyone is held to the same expectations in the organisation.
Moreover, justice encourages cooperation within the team, as employees feel satisfied because they believe their work will be rewarded fairly and any complaints they raise will be handled impartially.
One of the characteristics of ethical leadership is the focus on respecting others. Ethical leaders understand and appreciate the intrinsic value of every individual, regardless of their position in the organisation. They encourage receptiveness on matters of diversity in ideas, thinking, and individuals, ensuring that everybody in an organisation, client, or stakeholder is valued as a person. This respect manifests as willingness to listen to everyone and where every voice is heard, encouraging a cooperative and inclusive work environment.
The ethical leaders are fully responsible for the decisions they make and the consequences of their decisions. They are responsible for all the victories and all the losses, acknowledging mistakes and taking corrective actions when things go wrong. This kind of responsibility extends to the organisation including ethical leaders who must oversee that their business practices align with the values and principles of the community and society at large. Ethical leaders promote accountability within the organisation because they embrace personal accountability on behalf of the company.
There is also one more characteristic of ethical leadership, that is Empathy. Empathy requires the ability to understand the feelings of others and can make a leader more responsive with members of their team. They invest their effort in listening to the employees, learning their difficulties as well as offering a helping hand when needed. The ability to engage emotionally with others builds strong and trusting relationships within the team and creates the atmosphere where each employee feels supported and appreciated.
Ethical leadership requires courage, the choice to do the right thing irrespective of the circumstance. Ethical leaders are also conformable to confront unethical behaviour, both inside and outside of the organisation. They are ready to take measures that they see as right, and to act contrary to what society expects of them. This courage is necessary for maintaining moral integrity whenever one is under immense pressure, and it acts as an inspiration to the rest. Consistently choosing to do the right thing will help the ethical leaders continue to nurture the right ethical standards within the organisation.
These characteristics lead ethical leaders to model and cultivate a warm and supportive environment and therefore promote morality leadership as an organisational culture.
The correlation between ethics and leadership is vital to the success of an organisation. Leaders are assumed to set a noble example for others to follow, ensuring that ethics of leadership prevail within the organisation. An ethical leader not only influences employee behaviour but also helps the organisation achieve high ethical standards on all policy levels.
Leadership goes beyond the achievement of organisational targets; it is the achievement of those targets in the right manner. Ethics of leadership dictate that goals can be achieved without having to compromise on principles or integrity.
There are many examples of leaders who put into practice ethical Leadership. For instance, Nelson Mandela is a model of ethical leadership since he demonstrated the principles of ethical leadership. The proposition of competence and integrity fully applies in his case since he worked for justice, equality and fairness using leadership, enduring great personal costs in the process. This demonstrates how leadership and ethics can go hand in hand to create positive change.
Another example of modern companies is companies that promise ethical leadership, such as the company that produces outdoor products called Patagonia, which complies with environmental and labour movements’ standards. These ethical leadership examples demonstrate that ethical leadership in any organisation can lead to a more responsible and respected brand image.
Knowing why ethics are important in leadership is crucial for anyone who wishes to become a leader. Ethical leaders get things done but they do so in a way that is in the best interest of the larger society. Ethics in leadership enables people to have confidence in their leaders and the organisations, ensuring the organisational practices correspond to societal values.
Moreover, leadership in absence of ethics can result in organisational disasters, frauds and ultimately erosion of stakeholder confidence. Today, unethical behaviour is likely to be given the spotlight, and this may harm organisations that do not practice leadership ethics.
In conclusion, ethical leadership is one of the key components of modern leadership that presupposes successful performance of activity in a fair and transparent manner. According to the values of ethical leadership, leaders cultivate trust, promote positive organisational culture, and image.
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What is the best example of ethical leadership?
One of the great examples of ethical leadership is a leader who practices ethical actions through integrity, honesty and being fair. One can recall specific examples, such as Nelson Mandela, who prioritised reconciliation rather than revenge and pursued justice in the new South Africa, only on condition that it would be ethical.
What are the 5 ethical principles of leadership?
The five ethical principles of leadership are:
Integrity: Being truthful and possessing strong ethical standards.
Respect: Being fair and respectful towards others.
Transparency: Being open and transparent about decisions.
Responsibility: Taking responsibility for action and the subsequent outcomes.
Fairness: Minimising biases and keeping fairness in the process.
What are the 5 ethical leaders?
Here are five ethical leaders known for their integrity and ethical practices:
Nelson Mandela: Worked for justice, equal rights and forgiveness.
Mahatma Gandhi: Supported nonviolent actions and ethical forms of an appeal to the authorities.
Martin Luther King Jr.: Was an advocate for civil rights but willingly used non-violent tactics.
Warren Buffett: Famous for his ethical business practices as well as philanthropy.
Jacinda Ardern: Recognised for being compassionate as well as for ethical governance.
What are the 4 V's of ethical leadership?
The 4 V's of ethical leadership are:
Values: Ethical leaders do have their personal and organisational ethical principles that they use to shape their behaviours.
Vision: They state a future that corresponds with ethical prescription.
Voice: They efficiently convey their ethical opinion, as well as motivate others to follow.
Virtue: Ethical leaders always act ethically in their professional practice, representing moral models they promote.