What Is Ethical Leadership And Why Is It Important?

How to Be an Ethical Leader

When You are a manager, there is a difference between being a boss or a leader.

The difference is where the boss gives orders, the leader helps by guiding.

Boss, whereas the leaders help in inspiring.

The difference lies in how you are making the employee feel and view the relationship.

Being a good leader makes you responsible to inspire my nurturing and genuinely help them so they can improve.

Ethical leadership is known as one of the leaders who are exerted by the respect that others have for the leaders.

To know more about this leadership style, here is what can help.


Define ethical leadership

The CEO of Employee Fanatiz, Heather R., says that an ethical leader is someone who lies as well as dies for integrity.

For them to do the right thing even if it hurts, the leader follows this mantra.

Well, Ethical leadership ingles the leaders demonstrating appropriate conduct. It’s not just inside but the outside of the business too.

They demonstrate good values by doing the right action and saying the right words.

According To Harvard Business Review, the definition says the leader will not overlook when something is wrong, even if it’s helping the business and earning the benefit.

Showing integers and choosing what is right is the core of being an ethical leader. Such leaders set an example for everyone.

To understand the concept, here is what you can also need to know –

  • Ethical leadership means that the leader will act depending on moral practices that they do in day-to-day life.
  • Also, it means staying true to what moral principles you have but also being aware of the complexity of some of the ethical issues and the sensitivity to different views.

Unfortunately, ethics and leadership are not something that common in combination; according to the Institute of Leadership  & Management study reported :

  • More than 63% of managers have been asked to perform a task that cancels their own ethical code.
  • 9% of the tasks include breaking the law.
  • 42% have been told to behave indirectly in the organization and in their values statement.

ethical leadership in the workplace

The Enron scandal happened in October 2001, and yet the company is still suffering from doing the wrong things.

The lack of ethical leadership caused the collapse of the company everywhere, even in countless books, movies, newspapers, articles, documentaries, and in theatre.

When you are running a business, reputation is what holds value.

When you do the wrong things, people will not let it go for a very long time.

Even when ethical lapse, it won’t lead to such collapse but still affect the business reputation.

Another example, BBC News reported that Cambridge Analytical Scale tarnished the image of Facebook.

And Volkswagen is still trying to live down its mission statement since 2015

This shows what happens when people from top organizations have poor ethical choices and how they end up in courts or news.

Ethical leadership is important as the management style word for regales what kind of organization it is,  but to start the style,  there were some of the reasons :

ethical leadership

To Create The Positive Culture

The employee’s morale is required to improve so the work behind the ethical leader can be easier.

Staff won’t feel like what they are doing is corrupting the person and helping in earning more.

To create a cipher where everyone has their strong morale and sense of doing what is wrong and what is right.

Ethical leaders have their own capacity to inspire, and the postie culture helps in nurturing those in everyone.

To Improve The Brand Image

The leaders of the company need to have an understanding of what their brand is doing, what they have to offer, and what can improve the image.

Since there are a lot of examples of businesses whose image got transitioned because of their poor ethical choices, it becomes more difficult to have ethical leadership in a company to guide the actions well.

To Prevent From Scandals

The need for ethical leadership to prevent the bad PR of the company, but also to help the company to prevent scenes that are not just damaging the image but lose the trust of the customers.

To Improve The loyalty

Not just the employees but the customers are likely to be more loyal if they know they are supporting a company that is guided by strong ethical leadership.

Employees, can be more invested to perform better, and the customer will not turn to the competitors that easily.

To Improve Well Being

Emotional well-being is important as workplace stress can damage the productivity level of a company. If the company has toxic leadership, it can also decrease efficiency.

Why is Ethical Leadership Helpful For The Organizational?

The situation when the company has ethically collapsed can have profound consequences.

  • Not just from loss of reputation, it also led to the company’s collapse.

  • Even though you might not have the operating scale as Enron, but your business can still be at risk/

  • When the post-mortems were conducted after the scandals of different companies, it was clear that some of the actions could have been avoided if they had strong ethical leadership.

  • As when such leaders are in the company, they might have asked the questions and taken the right action to prevent the problem before it escalated to such a case.

  • However, there is new research conducted at Cornell University that says that ethical leadership is related to how their employee performs if it is about o positive signs, it will work.

  • Another study by Science Direct says that such leadership made employees leave much less. Also, given the high cost of employee turnover which is a signified problem.

What Causes Ethical Collapse In The Workplace?

Well, it is not a one-time solution that prevents everything from happening if you have the ethics. leadership

There was a lot of access when the company had such a setting but still failed miserably.

So what were the causes that led to an ethical failure?

According to the Author as well as the expert Linda Fisher Thornton, the connected facts which play an important role usually are the reason why the leaders fail.

The causes include ignoring boundaries of what the organization values or the industrial codes. It can be following the crowd, which means what everyone is doing is what they should do, and having a lack of self-control.

An organization that lack positive role models, lack accountability and lacks codified standard behavior or training causes damage.

Apart from this, the unethical behavior behind the organization also has its signs.

Marianne M. Jennings, who is a business ethic professor at Arizona State University, published in her book called The Seven Signs Of Ethical Collapses In 2006/

In her book, she introduced the model, which showed the scene’s important signs. it included :

Pressure Of Maintaining The Numbers

Regardless of what kind of organization you have, there is always an important pursuer that determines the performance level.

Well, the pressure sometimes is good, but getting obsessed with meeting the goals can raise all the good judgment and ethics.

The goals are often based on finances, but they revolve around performance measures.

This leads to cases of fraud and manipulation in order to meet the goals.

A Culture Of Silence And Fear

Well, one of the signs that she mentioned was the culture of fear and science which masks the problems related to ethics.

For melee, if someone employees spot the failures, the decision-makers are not supportive or sympathetic towards the corner.

The others might be In fear of not speaking about it; maybe it’s related to getting fired or demoted

It makes others feel worthless and not let anyone take the right actions.

The Bigger Than Life CEO and Young ‘Uns

Another sign is that the young executives who are ambitious don’t make the collapse of ethics invariable.

However, the pole that the managers who are not many princes at night notice the trouble but they feel they can challenge the decision of their CEOs.

Might be the CEOs are someone larger than life, it creates a lack of confidence and fear in their working environment before approaching them.

Also, the CEOs get away with their decisions even though it’s approved because no one in the management team is willing to challenge them.

It makes the CEO presume that he knows more about the situation, 

Also, it leads to more unethical decisions in the future.

Having A Weak Organization Board

There is an important of why the company needs an organization board.

Well, if the board Is weak, it also leads the ethical leadership, it can be due to various reasons maybe the members are not that sufficient, or they are wasting  by fighting, having more critics and have missed the meetings, or they are bored because they are engaged

The structure of the board meeting is also helpful in understanding why it isn’t weak.

Well, it can be the major proposal that might be done over the phone or online or giving thorough reviews to the key members.

Weak boards can also be a sign that the organization might collapse, simply before they have no strength or cohesiveness that needs to challenge the unethical CEO or the senior team of management.

Conflict Of Interest

Some organizations have the risk of conflict of interest.

For example, if the high-ranking executives want the contract to work out with a friend or someone from eh family members, they might be voted onto the board because the CEO wants finance to inflate the earnings.

When the decision has a different cost of interest, Here you get two roles, either it will lead the company, or people will end up looking for their owners.

This also leads to the chances of getting unethical decision-making.

Innovation That Is Higher Than Anyone

Another sign that can be considered an ethical closing is the organism having pride in their innovation, which makes them feel that they are above anyone, including the law.

Innovation user is a good thing, but the trouble happens when they orient innovations without considering the ethics or the launch.

This can be an important decision that has huge risks.

Using Philanthropic Behavior to Justifying

One of the ways that the organization does this is to give generous donations to different community events, social causes, charities, etc., to justify unethical actions.

This can be seen in lots of examples of companies suffering from ethical collapse.

This doesn’t make the company immune from risk, as it still holds the chance of clapping.

Using philanthropic behavior for atoning what evil deeds the company did is not ethical either.

Impacts Of Ethical Leadership

Ethical leaders are helpful in assessing leadership, where positive and productive relationships can be formed.

Also, it includes the three levels, including –

  • The individual
  • The Team
  • The overall Organization.

Nurturing the relationship in the different levels can help in getting the benefits like :

Well Being of The Individuals

Maintaining a positive working environment can help individuals to be better.

Also, it’s one of the important roles for ethical leaders, as those who lead by example can help in influencing others to be the same.

Generally, people get affected when they are affected by something that happens around them.

Having positive communication among the employees can help in getting the influencer on attitude and productivity.

The Energy Within The Team

Ethical leadership also involves the management conducting and collaborating within the team.

The moral of the workplace is higher when the co-workers are working as a team.

But It can also help in building the relationship that can improve overall performance.

Also, it improves the team and the energy, which makes sure everyone feels energized to perform their assigned roles.

The Health Of The Company

It’s important to maintain a positive attitude in the working environment

Not only does it improve work and productivity, but it also helps the organization to be healthy from the inside.

When people show respect and value the pensions of others, it helps in creating a better working environment and more productive work.

An ethical organization also occurs when the communities of people who work together are in an environment where they have mutual respect.

It helps in growing the personality, building friendships, and contributing to the overall goal.


What Is Needed To Be A Ethical Leader?

There are lots of elements that are needed; even though it may sound lofty but it’s attainable when you think.

Here is what is needed to become an ethical leader.

Defining And Aligning The Values

Consider what morals you are brought up with; it includes the basics like treating others the way you want to be treated,

Saying thank you and helping if someone is needed, but when you grow, the values shift as well.

It may be because society progresses along with you and changes the conversation.

According to Matthew Kelly, founder, and CEO of Floyd Consulting, this will be the biggest challenge regarding the ethics that society, culture, and work will be changing, and also the challenge for ethical leadership.

  • To find what makes you a successful ethical leader, it’s important to consider how adhering to the specific values, and their benefits to the mission relate to the organization.
  • The mission is considered a king, and when the organization decides to follow the path, it might choose the medicare ways.
  • To become an ethical leader, first ask yourself what matters the most, not just as a leader but as an individual.
  • And now align this with the properties you have as leaders.
  • Defining what values you only express in the authenticity but encourage the team to do the same thing and create a shared vision.

Hiring Who Have Similar Values

Well, your values don’t have to be identical to the people whom you do but are important to establish a common ground.

This fits starts with the hiring and maintenance through the company’s vision statement.

Not all are fit for every company, and it’s something that should be normalized.

Companies require better jobs when they are looking for a person who has visions and values aligned with them, instead of just hiring because of their experience.

In fact, it is better to hire someone who has a different experience as well as perspective because this will give more ways to challenge and find solutions.

When it comes to values, it’s important to hire people who have the same ones.  No one wants to work with someone who doesn’t share a small value or is without mutual respect.

It not just makes it difficult to work but creates an environment where reaching goals can turn difficult.

Promoting Open Communication

The next important thing is to understand that every employee you are going to have is different, and even if they have some similarities, they will not be the same person.

With such a decision, it’s important to be transparent and encourage feedback from your team.

This will help in improving you as a leader and help you in working better as well as confit.

It’s one of the personalities that the company, in other no words, should have is to create an environment where open communication is promoted.

More important, listening to the employees what to say and two-way communication.

There are a lot of employees who are calling on the capes in order to change the poles or stand on current issues.

Well, the company can bend to every demand, but they can listen to what the employees are asking.

And before that, they need to create an environment where they can share their viewpoint.

Gathering feedback can help in improving the leader and make the business move forward.

Keeping Yourself Beware Of Bias

As humans, people have their own beliefs, subconscious, etc.

Sometimes it can be outdated or erroneous, and the leaders don’t want to admit it.

This can make them self-aware and make the consequences bad for the company.

There is no doubt that people have bias, but when it stays for a long time, and they don’t call out, it won’t ever change.

The management and workplace are more diverse, and the leader requires to be aware of what biases they have.

Leading With Example

In order to build an ethical company, it’s important to start from the drop-down.

When the employees notice the behavior, choices, and values they also adapt their practices.

To effectively lead, the leader needs to walk the line where they want their employees to follow.

The best way to ensure the ethical business is going successful is important to lead by example.

Leading by example also instills respect and lets the employee see what they have to believe and trust.

Taking Care Of Yourself First

Well, as there is a saying that, you can’t fill when the cup is empty.

The same goes for the leader who should first take care of themselves in a dryer to do that for others.

Making sure you have a calm and capable demeanor makes the leader strong and also better at managing as well as caring.

This is also accomplished through what the leader wants but also keeping themselves ready for that.

It needs to focus on meeting the needs like taking proper sleep, balanced nutrients, and truly connecting with those you love/

Even though it is simple, it plays a crucial role in supporting your capabilities when you are following ethical leadership.

Leader who is happy and content in their life wants others to be the same way.

Identifying The Ethical Dilemmas

Well, there are different situations when the ethics dimples happen; maybe it’s not you; it can be seen within your team or from top executives or colleagues.

How would you react when an ethical activity happens around you?

For example, imagine the situation you are in a meeting with other top cues, and you see your colleagues exaggerating the team performance way too much.

In reality, your team helped in increasing the count earning by 4%, but he promises a 12%.

Obviously, he is close to you, maybe it’s a friend or colleague, but he is lying and being dishonest.

What you will do and how you will react.

There will be a lot of changes where you have to make a choice,  but before that, how you will recognize them :

Identifying What Triggers

There are certain situations that cause the essential things to happen; for example, it can be purchasing, promoting, hiring or firing, and maybe calculating bonuses.

Such things attract ethical dilemmas where you might be involved.

And it threatens the positions and income, even if it scares your judgment.

The questions like what you should do, should you admit or try to cover It.

By recognizing the ethical dilemmas that are most likely to occur and you can be attuned to the risk.

Listen to the Inner Voice

The conscience likely tells you if something is happening and it’s not right.

It will create a feeling of uneasiness and discomfort.

If a situation makes you uncomfortable and goes against your core value or belief, it’s important you listen to it.

And find a way to think rationally before proceeding.

Understand How To Deal With Ethical Dilemmas

While Engine is one thing, deciding and taking action is a whole new level.

And this is important. However, it’s not easy.

To know how you can respond to ethical dilemmas, here are some of the ways that you can consider.

Prepare Beforehand

Visualizing the theoretical series can help you to understand how two work through your feelings and decide what to do in real life.

In crises, you don’t have much time, and it will be only a few decisions and so registering beforehand can be a great help.

For template, consider the situation where you have to act, like your college will get fired if you weren’t legally allowed to say it; however, you would handle it,

Weigh Up The Evidence And Recalculate

Before you oppose anyone’s unethical behavior, it’s important to investigate  and assess, so you have the evidence,

Also, if you are not making sure what to consider, make sure you revalue your thoughts.

Be More Courageous

Sometimes you have to act, even though you might think it might not be the right thing.

Even if you are wondering if what you are doing is right but has unpleasant consequences.

Consider the leader who informs the audit about the accounting, which is irregular; she knows that’s what’s right, but it might be upsetting her colleagues and friends.

So this might be uncomfortable for the ethical leader, but this helps you in trusting your instincts.

Be courageous and calm your anxiety, and let your instincts guide you.


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