The Journey of Ethical Leadership Part 2 – Staying the Course

In our previous blog talk we looked at what defines ethical leadership and what resides at the core of an ethical leader. We looked at critical values such as fairness, transparency, integrity, and communication, just to name a few, and how integral they are in promoting healthy habits within our organisations.

In part 2, I’d like us to begin with a look at the other side of Ethical Leadership. What many might refer to as the ugly side of it.

The cost of being an Ethical Leader.

Let’s begin with the obvious fact that choosing to be an ethical leader, opting to serve the greater good, is going to cost you opportunities, profits, and yes, even colleagues, in the short to medium term.

Being an ethical leader will test your resolve at the highest level, and often with the greatest frequency. Take for example, a long serving and much loved team member is involved in illegal behaviours that can undermine the organisation; forcing your hand in terms of letting them go or turning a blind eye at keeping them on the team.

Ethical leadership can also be particularly difficult when faced with the grey areas.

In these instances, making the right call can actually cost your organisation time and money. For example, assume that you own a construction organisation or operate a healthcare company, you stand to profit well if you take a particular course of action, but before you do, you will need to do the due diligence, safety regulations, checks and studies, which will cost you money.

Do you go ahead and take the action or do you follow procedure?

Without a doubt, ethical leadership calls upon a special strength of character to stare down the wrong decisions and make the right ones.

It is no surprise that, as your business grows, it can become increasingly difficult to keep focused on what your organisation truly stands for.

You can have your core values all but tattooed on your forehead and yet, when we become more focused on our goals and profits and less focused on maintaining ethical standards, we are courting disaster.

It is somewhat ironic, how growth and profitability, brought about by unethical behaviours, can make it difficult for us to ensure that all team members follow the rules and exemplify the organisation’s mission, vision and cores values.

Ethical leadership is a struggle, fraught with challenges far too commonplace to not give them any thought ahead of time. Like most every leadership challenge, the ones opposing the ethical leader are not insurmountable.

The key lies in truly understanding what being an ethical leader means. It calls for us to define values and standards and never compromise them. It also calls for forgiving ourselves when we drop the ball and recommitting to getting back to leading our people the best ways that we can.

On the journey of ethical leadership, we must stay the course.

What an Ethical Leader Brings to the Table

For starters, your people are looking up to you.

Not just your staff but your customers and even the wider society. They scrutinise your decisions even more closely than you can possibly imagine.

Few, if any, of us are candidates for sainthood. So it is okay to stray on occasion, forgive yourself.

Dust yourself off. Tend to any wounds. Try again.

This is the greatest strength that the most effective ethical leaders possess – the ability to get back up. To never yield in the face of challenge.

Always remember that the journey is about being a more ethical leader. It isn’t an all or nothing situation. It is a growth and development situation. It is constantly being vigilant, brave, and ready to seize opportunities to do better, to be better.

Studies show that organisations led by highly principled leaders, develop practices that channel ethical leadership and yield a number of short-term and long-term benefits, including avoiding legal and compliance issues, engendering greater financial stability, positive public and investor relations, stronger corporate culture, and more satisfied employees.

Ethical leadership also tends to attract like-minded business partners as suppliers, vendors and other companies usually want to work with companies they trust. After all, their reputations are at stake, as well.

Research also shows that customers are more loyal to companies that follow ethical business practices. Facilitated by the rise of social media and networking, customers usually share their positive feelings with others and that can translate well into the bottom line as your organisation is seen as honest.

The difference lies in how you make your employees and customers feel and how you view your relationship with them. An ethical leader sees it as their responsibility to inspire, guide and nurture their employees to help them improve; they lead by example.

Developing Your Signature Ethical leadership

1. Define and align your values.

Consider the morals you were raised with: Treat others how you want to be treated, always show gratitude, listen attentively and be compassionate, for example.

There are fundamental truths about your organisation and yourself that have stood the test of time, and for good reason. Always remember them as they make it easier to stay focused on your true north.

Also, define and communicate these truths earlier and often. Share them with the team. Stand by them even on the darkest days…or when you think no one is looking.

Finally, ask yourself what matters to you as an individual, and then align that with your priorities as a leader.

Defining and aligning values not only expresses your authenticity but also encourages your team to do the same, creating a shared vision for everyone.

2. Don’t just talk the talk; Walk the Walk.

Don’t make false promises. If you make a promise, make good on it. And if you can’t, be open and honest in letting this be known.

Make it a practice to always act in an unselfish and kind way to everyone on staff. As a golden rule, treat everyone with respect, fairness, and integrity. To build an ethical company, you must start from the top down. Your employees will see your behaviour, choices, and values and will adopt them in their own practices.

Leading by example instils respect and lets your employees see that you truly believe in them and trust them to work, and is the best way to ensure an ethical business.

Walk the line you want others to follow.

3. Practice Make Perfect

Ethical behaviour should always be emphasised and reinforced through training opportunities. It can be hard to stay focused on doing the right thing but practice and training that drive home how treating others in an ethical way promotes a positive workplace can help tremendously.

For example, in the banking sector, employees are frequently trained in the latest AML (Anti-Money Laundering) and fraud detection techniques and practices. This constant reinforcement makes it easier to have staff more sensitive and alert to potential instances of fraud or wrongdoing.

It’s the Journey, not the Destination

As we have seen, being an ethical leader is not about sainthood; but it is about honesty, decency, fairness, and humanity. Becoming an ethical leader, therefore, is about the journey – the steps (and missteps) that we must take to serve our people better. Not the destination.

Even becoming an ethical leader is not an end in itself. As we have seen it takes constant practice and vigilance as ethical leaders are constantly tested.

However, once ethical behaviour becomes a staple of not only the organisation but the people within it, it becomes that much easier to practice.

What are some ways that you strive to become a more ethical leader? Let us know and discuss.