We believe ethical leadership matter, really matter, but why? When a business is established it should automatically commit to behaving ethically. It should make a commitment to behave in a manner that is socially responsible. This is good business practice and it’s morally the right thing to do. Guiding your workforce in an ethical fashion is essential to its success.
The code of values and principles that a person or a group of people actively portray is what makes ethical leadership important. An individual’s sense of ethics will impact on how they conduct not only themselves but their business persona. Choosing the difference between right and wrong for most people goes without question. The application of this knowledge of right and wrong within the business realm is what makes a leader ethical.
Business’ write codes of ethics that are given both to their employees and will be on documentation that the customer or client can read. However, the written word only holds value if the actions of the people within the business advocate these intentions. It goes without saying that a business can only be as ethical as the people that are running it. So how the company’s leaders act and behave will characterise the ethical nature of the business.
A business’ corporate culture should, therefore, be characterised by its ethical behaviours. The decisions that both the leaders and the staff make should be socially responsible ones that are motivated by ethics rather than purely a profit seeking motive. A company needs to think about the potential impact that it has on the stakeholders involved. By focusing on this and ensuring that the decisions made are congruent with its values a Company demonstrates its integrity.
If you want to understand more about Ethics in business, review our White Papers: