Bringing Ethics into Your Leadership Strategy

In recent years ethics in business have been studied more closely. With what seems to be increasing opportunity to behave unethically in business, costing credibility of the company, its individuals, and innocent bystanders, what are the checks and balances to ensure moral behavior? 

The dynamic at play is of unique consequence; laws have been implemented to insist upon certain transparencies and practices, e.g., penalizing the act of bribery or inflation of revenues. Yet, according to the National Business Ethics survey, employees – or members of the organization – on whom society relies for whistleblowing, are consistently silenced for fear of employer’s retaliation. With this knowledge, researchers seek to understand what influences individuals to behave ethically.

In sorting through the data, I think the most helpful insights are as follows: individuals rely on their judgment about an ethical issue but place more importance on social expectations. Meaning, when social consensus is high (agreement that something is unethical) individuals more often than not follow suit – e.g., charitable behavior is “good.” This shared behavior can supersede the self-view, acting as a motivator to behave ethically. (If interested in the full study by Albert, Reynolds, and Turan, 2015, I will gladly make it available to you.)

The reason this matters: societies – and micro-societies (your office) can drive and influence behavior. Knowing this, I wanted to look for how. How can we make sure we are leveraging ethics as a culture-driver?

It’s two-fold. Companies have an opportunity to incorporate their values into decision-making. Further, the company values should align with ethical expectations. In fact, researchers emphasize the importance of trust and trustworthiness as a guiding principle. After additional research by Hoover and Pepper (2015), it was found the practice of sharing ethics statements, publicly, increased approval ratings both externally and internally.

Sure, anyone can conjure up an ethics statement, but it circles back around to the essentiality of using frameworks every day. The example I often return to is the importance of a vision statement. This isn’t merely a statement. It needs to be the leading force and the guiding light behind every employees’ behavior. From an ethical perspective, leaders have an opportunity to integrate a complementary ethics statement. (Just in case there is any uncertainty about how a person should behave!)

The goal is to enable each person to take responsibility for their decisions, irrespective of the existence of a formal organizational hierarchy. This ownership mentality – guiding employees to do the right thing – helps decrease the fear of retaliation for the expectations are ubiquitous. This, in turn, creates commonality among team members and social expectation which, as the research tells us, influences others through social consensus.