Trust Through Integrity: Ethical Leadership Practices
Ethical Leadership is the practice of exemplifying morally good and virtuous behaviors both within and outside the workplace. At its core, it's about acting with integrity and ensuring that one's actions consistently uphold the organization's moral standards.
There are several key characteristics of an ethical leader’s approach. They serve as role models, not only practicing ethical behavior themselves but also inspiring and encouraging it in their teams. These leaders demonstrate unwavering integrity, communicating with honesty and transparency while adhering to high moral standards. They take full accountability for their decisions and actions, ensuring that both they and their teams operate in accordance with ethical principles. Ethical leadership practices are foundational to building trust, a crucial component of Integrity. By consistently demonstrating ethical behavior, leaders earn the trust of their teams, fostering an environment where honesty and transparency become the norm.
“An ethical leader is someone who lives and dies for integrity. The ethical leader’s mantra is doing the right thing, even when it hurts.”
Self-Assessment:
Ethical Leadership Practices
Please take a few moments to contemplate the following self-reflection questions. Where can you identify opportunities for personal growth in your leadership approach?
1. Do I consistently act with integrity and uphold ethical standards in all my decisions?
2. Am I transparent and truthful in my communication with fellow employees?
3. How often do I hold myself accountable for my actions and decisions?
4. Do I show respect and inclusiveness to all individuals, regardless of their background or position?
5. Is fostering a safe environment for employees to voice concerns without fear of retaliation one of my priorities?
6. Do I actively reward and recognize ethical behavior among my employees?
7. Am I open to seeking mentorship and guidance from experienced ethical leaders?
8. Do I make an effort to lead by example, demonstrating ethical behavior in my daily activities?
Remember, this self-assessment is just a starting point for understanding your knowledge of Ethical Leadership practices. It's essential to reflect on your responses and actively work on areas where improvement is needed. Additionally, seeking feedback from others and working with your ECFL Leadership Coach can provide valuable insights into your strengths and weaknesses.
Research indicates that individuals are often unreliable when reporting on their own integrity and ethical practices in the workplace. This is especially true when considering only surface-level assessments. The Ethics & Compliance Initiative (ECI) has been conducting studies into workplace conflict since 1994, and their latest Global Business Ethics Survey® had some upsetting results: Businesses today face a higher risk of misconduct, erosion of integrity, and loss of public trust than ever before.
ECI has discovered that certain "outcome" metrics are key indicators of a workplace's well-being in terms of ethics and compliance. Here is what they deem to be most important measures of the state of ethics and compliance in organizations:
Pressure in the workplace to compromise ethical standards
Observations of misconduct by employees as they go about their day-to-day work
The reporting of misconduct when observed
Any retaliation perceived by employees after they report misconduct
Strength of workplace culture from an ethics & compliance perspective
“Ethical behavior is doing the right thing when no one else is watching—even when doing the wrong thing is legal.”
Based on these standards, their most recent report revealed several key findings that reflected employees' direct perspectives. The message is clear: 87% of employees feel their workplace lacks a strong ethical culture. Employees report experiencing pressure to compromise their standards and cover up unethical conduct, as it's already commonplace in their company. Despite an increase in employees' willingness to report observed misconduct, the risk of retaliation remains high, potentially silencing voices within organizations.
The most significant finding is that employees feel their companies are lacking in effort, missing the opportunity to implement high-quality ethics and compliance programs, which are shown to have positive results. Unfortunately, only 30% of surveyed employees report that their organizations have implemented such programs, and even these are often only basic versions.
These findings highlight the critical need for ethical leadership in fostering trust within organizations. The high percentage of employees reporting a lack of strong ethical culture underscores the urgency for change. By prioritizing and implementing comprehensive ethics and compliance programs, leaders can build a culture of trust, where integrity is upheld and employees feel safe to report misconduct without fear of retaliation.
Where do you start in your journey toward being regarded as an ethical leader? The first step is crucial: be an example for those you lead by respecting everyone, regardless of differences. Respect is the cornerstone of ethical leadership. As an ethical leader, you should demonstrate deep respect for all individuals, embrace diversity, and cultivate inclusive environments. By prioritizing open communication, you’re able to create an atmosphere where team members feel safe voicing concerns and engaging in ethical discussions.
Most importantly, being an ethical leader means serving as a role model for your team by practicing ethical behavior; your actions set the precedent and inspire your team to follow suit. You must demonstrate unwavering integrity, communicate with honesty and transparency, and adhere to high moral standards. Full accountability must be taken for your decisions and actions, ensuring that both you and your teams operate in accordance with ethical principles.
When your ethical principles guide decision-making at every level, from the boardroom to the front lines, it enhances your organization's reputation while benefiting your employees. This approach equips them to navigate challenges and build trust within their teams, ultimately fostering a strong, ethical workplace. Such an environment allows employees to thrive, leading to a more resilient and successful organization.
It’s one thing to talk about what it takes to act ethically in the workplace, it’s another to actually be put into a compromising position. What would you do in this situation? Read the story and then reflect upon each of the questions that follow. Feel free to discuss this scenario with your coach.
Giles is a Senior Manager at Sunnydale Industries, a leading tech and manufacturing firm. He has worked closely with Willow, a trusted colleague and fellow manager, for over five years. One afternoon, Xander, a junior employee, comes to Giles with serious allegations against Willow. Xander claims that Willow has been falsifying safety inspection reports to cover up minor violations. Giles is shocked and doesn't want to believe the allegations against Willow, as she has always been a reliable and dedicated team member. However, Giles also understands the importance of maintaining the company's high safety standards, which are crucial to their reputation and the well-being of their employees.
Reflect on these questions:
How should Giles handle the allegations made by Xander?
What steps can Giles take to verify the validity of Xander's claims without prematurely accusing Willow? If the allegations are proven true, what actions should Giles take next?
How can Giles balance his loyalty to Willow with his responsibility to uphold ethical standards?
What processes should Sunnydale Industries have in place to handle such situations fairly and transparently?
“Earn your leadership every day.”
Organizations that embrace ethical leadership are better positioned to navigate challenges and build trust among their teams. When ethical principles guide decision-making at all levels, from the boardroom to the front lines, it enhances the organization's reputation and benefits the employees. This approach fosters a strong, ethical workplace where workers can thrive, ultimately resulting in a more resilient and successful organization.
Here are some best practices for being an ethical leader:
Lead by Example. Demonstrate ethical behavior and set the tone for the organization.
Cultivate Self-Awareness. Leaders should be aware of their influence and the impact of their decisions.
Communicate Effectively. Clearly articulate the organization’s ethical norms and commitment levels.
Develop a Strong Ethical Framework. Draft a code of ethics with input from others in the organization and ensure employment practices align with these ethical standards.
Establish Accountability. Hire individuals who embody ethical standards, and both reward ethical behavior and penalize violations.
Manage Work Conditions. Avoid overworking employees, reduce time pressures, and maintain a clean and well-lit work environment to support ethical behavior.
Set Realistic Goals. Ensure that goals are attainable without compromising ethical standards, with moderate rewards to avoid encouraging unethical shortcuts.
Foster Open Communication. Encourage discussions about ethics as it relates to daily work, and ensure leaders are approachable and open to dialogue.
Schedule Regular Reminders and Follow-ups. Keep ethics in frequent discussion and review organizational alignment with ethical values regularly.
Elevate your understanding of Ethical Leadership by taking flight with the following resources. Use this opportunity to navigate, uncover, and expand the horizons of your leadership influence.
Ethical Leadership, Part 1: Perilous at the Top | Concepts Unwrapped (7:49)
5 Research-Backed Strategies for Building an Ethical Culture at Work
Susie Allen