Leading with Ethics: A Guide for Managers

If Business Ethics is merely theory, then history would not be littered with cautionary tales. 

Take the example of Enron, the major Energy Corporation that was destroyed by the Leadership’s financial frauds. Or the recent story of  the now-defunct Theranos, whose CEO Elizabeth Holmes jeopardised public health and misled investors by making fraudulent claims about a blood testing device. Both companies no longer exist, and Miss Holmes is now awaiting trial.  

The lesson is clear - unethical Leaders will face the consequences of their actions, sooner or later. 

As an aspiring Leader, it is crucial that you actively incorporate Ethics into your approach to management. Not only will it build a positive work environment, it can also enhance brand reputation, customer loyalty and employee productivity. So how can you begin leading with Ethics? Here are some Expert-given pointers to begin with:

How Can You Promote Ethics as a Manager?

• Don’t Just Talk the Talk — Walk it!

  • Simply mentioning how much Ethics means to you in a company-wide email or a speech will be ineffective. The only way to highlight the importance of ethics in your practice, and the company culture as a whole, is to act ethically everyday.
  • When you prioritise doing the right thing — especially when it is difficult — employees will notice it. Not only will this increase their respect and trust for you, it will encourage them to be fair in their own tasks and responsibilities. 
  • It will also allow employees to understand where the boundaries of right and wrong lie, guiding them in their own ethical dilemmas. In psychology, this is called Modeling, and it is an effective way to inspire true change in an environment. 

• Develop Codes, Protocols and Provisions

  • Be clear on core values. In addition to honesty, integrity, transparency and fairness, what other values come into play? What about Corporate Social Responsibility, work-life balance, or a free channel of communication between employees and leaders? 
  • Creating, or atleast collaborating on the company guidelines on acceptable behaviours is a way to codify the organisation’s commitment to ethics. 
  • This can include creating general boundaries differentiating right from wrong, creating a bias-free grievance redressal system and setting penalties for unethical behaviour.
  • It is not sufficient to simply develop an Ethics Code - putting it into active practice by sticking to its promises and delivering penalties when needed is key to making Ethics an integral part of the organisation. 

• Prepare Yourself for Grey Areas

  • While you may encounter situations where the distinction between the right and wrong course of action is clear, it is not uncommon to see the boundaries blur. 
  • In situations where you are unsure, it is wise to take counsel from experienced peers who also value ethics.  Be sure to do your own research and consider possible outcomes before settling on a final decision.
  • Always remember that any unethical decisions, no matter how favourable it may seem at the moment, will definitely end poorly. Do not sell your morals. 

Some Final Thoughts

Ultimately, building an ethical managerial approach and organisational culture is an ongoing process. It will take some trial-and-error, and you will need to revise and redo - but the effort will pay off in the end. 

https://www.forbes.com/councils/forbescoachescouncil/2019/01/07/leading-with-ethics/ https://www.indeed.com/career-advice/career-development/what-is-ethical-management