The Power of Ethical Leadership: Building a Better Society in Today's Business World

"Stand for something, or you will fall for anything. Today's mighty oak is yesterday's nut that held its ground." - Rosa Parks

This quote is quite appealing, especially at a time of relentless change and unprecedented interconnectivity. When we are bombarded by the news of corrupt politicians, systems and companies, the need for ethical leadership has transcended from being a mere concept to a cornerstone in the construction of a progressive society. Ethical leaders are distinguished by their unwavering commitment to a set of values that include integrity, accountability, transparency, respect, empathy, courage, and humility. Their influence, however, extends beyond the confines of their organizations. These virtuous leaders have the potential to shape the very fabric of society. In this week’s Newsletter, we will delve into the power of ethical leadership and its transformative impact on society.

What is Ethical Leadership?

At its core, ethical leadership revolves around a leader's commitment to a set of moral and ethical values, and their dedication to demonstrating these values in their actions and decisions. It's about leaders taking responsibility for their actions and upholding transparency in their dealings. Their actions serve as a beacon, guiding their followers towards a collective ethical mission.

The prominence of ethical leadership in society cannot be overstated. In a world marred by instances of corporate greed, corruption, and exploitation, ethical leaders represent a beacon of hope. They emphasize the importance of morality and ethics in business, paving the way for organizations that are not only successful, but are also socially responsible.

When #leaders embody ethical principles, they inspire their followers to do the same. Their influence permeates throughout the organization and into society, promoting a culture of integrity, fairness, and respect for all. The importance of ethical leadership, therefore, extends far beyond the walls of the business world, it fundamentally shapes the society we live in.

Characteristics of Ethical Leadership?

Integral to ethical leadership are some key characteristics. The first is integrity. Ethical leaders are principled individuals who stay true to their ethical and moral convictions, even in the face of adversity. They set a powerful example for their followers through their unwavering commitment to integrity.

Accountability is another important aspect of ethical leadership. Leaders are not infallible; they make mistakes, just like anyone else. However, ethical leaders take responsibility for their actions, regardless of the consequences. They do not shirk from owning up to their mistakes and are always eager to learn from them.

Finally, humility plays a pivotal role in ethical leadership. Ethical leaders are self-aware and understand their limitations. They value the input of their followers and are not averse to seeking their guidance when necessary. They are not driven by ego, but by the desire to serve their followers and the greater good.

Impact on Organizations

In today's world, ethical leadership has a profound effect on organizations. It channels a strong and ethical culture within the organization. Ethical leaders, with their commitment to transparency and accountability, foster a culture wherein ethics are not merely preached but practised.

Leaders who embody ethical principles encourage ethical decision-making among their employees. Employees, inspired by their leaders, adhere to ethical guidelines in their day-to-day operations, resulting in an overall ethical organizational environment.

Furthermore, ethical leadership enhances employee morale and trust. Employees feel valued and respected when leaders uphold ethical principles. This fosters a positive work environment, where employees are motivated to put in their best effort. It also builds public trust and support, as customers and clients are more likely to engage with organizations that have a reputation for ethical conduct.

However, there are multiple examples of companies whose greedy and unethical leaders led them into legal troubles or even bankruptcy. Just to mention Tesla, which faced scrutiny in 2020 over allegations of workplace safety issues and labour rights violations or Theranos, whose founder, Elizabeth Holmes, was convicted of fraud in connection to her blood-testing company.

Influence on Society

Beyond forming a pillar of organizational culture, ethical leadership also has a deep-seated influence on society. By promoting social responsibility, ethical leaders inspire individuals and organizations to give back to their communities and contribute to societal progress.

Ethical leaders are also instrumental in combating corruption. By operating with transparency and holding themselves accountable, they set a standard for others to follow. This helps in reducing corruption and promoting a culture of honesty and integrity.

Lastly, ethical leaders foster inclusivity and diversity. They respect and value the unique perspectives brought by individuals from different backgrounds, cultures, and experiences. This helps in creating a fair and just society, where everyone is valued for their unique contributions.

Examples of Ethical Leaders

History is replete with examples of ethical leaders who, through their actions, have left an indelible mark on society. Mahatma Gandhi, with his doctrine of non-violence and truth, led India to independence. His commitment to his principles has inspired numerous leaders and individuals across the world.

Nelson Mandela, in the face of immense adversity, fought against apartheid in South Africa. His courage and resilience have become a symbol of resistance against discrimination and injustice.

In the contemporary world, leaders like Malala Yousafzai, Ellen Johnson Sirleaf, and Jacinda Ardern have embodied ethical leadership. They have tirelessly worked towards the upliftment of marginalized sections of society, gender equality, and promoting peace and harmony.

Organizations such as the Humanites Institute , Fundacja Ocalenie | Ocalenie Foundation in Poland, have been instrumental in helping businesses develop ethical leadership and assisting refugees and migrants, respectively.

Challenges and How to Overcome Them

While the path of ethical leadership is noble, it's not devoid of challenges. Resistance to change is one of the most common obstacles ethical leaders face. Adapting to ethical practices often requires an overhaul of existing systems and practices, which can be met with resistance from employees and other stakeholders.

In a fiercely competitive business world, maintaining ethical standards can be a daunting task. With competitors often resorting to unethical practices to gain an upper hand, sticking to ethical principles can sometimes seem like a handicap.

Furthermore, addressing conflicting values, especially in a diverse organization, can be challenging. Balancing different perspectives and finding a common ethical ground can often prove difficult.

Despite these challenges, ethical leaders should stay steadfast in their commitment to their values. They should engage in open and honest communication with their followers, explaining the importance of ethical conduct and its long-term benefits. To foster an ethical culture within the organization, leaders can provide ethical training to their employees, promoting a greater understanding and appreciation of ethical practices.

The Future of Ethical Leadership

Looking ahead, ethical leadership will play a crucial role in shaping a brighter future. As society becomes increasingly aware and conscious of ethical issues, the demand for ethical leaders is bound to rise. These leaders, with their commitment to integrity, accountability, and social responsibility, will be instrumental in tackling global issues such as climate change, income inequality, and social injustice.

Encouraging and supporting future ethical leaders will be a key task for organizations and societies. This involves promoting ethical leadership in schools and universities, and inculcating ethical values in the young generation.

Having worked with senior executive leaders for nearly 20 years now, I can say that many of them paid a high price for resisting corruption or their commitment to social responsibility. However, they could hold their heads up, knowing that the true test of a man's character is what he does when no one is watching.

I would love to hear your comments!

Zofia Dzik , Maciej Chojnowski

Bye for now,

Beata