Meaning Behind Ethical Leadership
Ethical leadership entails acting in accordance with established moral principles in the company’s daily operations and decision-making processes. There may be challenging situations related to management ethics, as moral principles are not universally accepted and can vary significantly across different companies. Sometimes one moral principle conflicts with another, making it difficult for a person to make the right choice. Therefore, it is essential to consider in detail what ethical leadership means and refer to the example of such a leader.
Ethical leadership means being true to moral principles, being aware of the complexity of some ethical issues, being sensitive to employees’ different views, and managing conflicts that may arise. In most cases, the ethical qualities and behavior expected of an ethical leader can be characterized as non-corrupt, honest, and fair. However, these qualities cannot fully describe the breadth of behavioral patterns that an ethical leader should exhibit.
Actions of an Ethical Corporate Leader
Ethics and morality involve choosing between right and wrong actions towards others. A wrong act can be determined by asking whether it should be hidden. If the leader has nothing to fear and all his actions are correct, their activities will be as open and transparent as possible. This enables all employees to be convinced of the manager’s honesty, thereby increasing trust within the team.
However, an ethical act is the result of the actions that lead to it and the decision-making process that precedes it. An ethical leader must do everything possible to provide a safe, comfortable environment where employees can develop and take the initiative.
Example of a Corporate Leader with Ethical Qualities
It is worth giving an example to consider ethical leadership in more detail. Such a leader could be Sallie Krawcheck, the head of the Ellevate Network. At a point in her career, her leadership behavior manifested itself in a way that can be seen as ethical leadership. One of the trust funds began to lose value, and clients were at risk of going bankrupt.
Krawcheck faced a choice between several decisions that could impact the fund and her career in different ways. However, she decided to invest the money to support the fund’s work and prevent people from losing money (Bennett, 2019). This decision resulted in significant losses for her company but substantially increased its reputation and credibility. This is an excellent example of ethical leadership as it is consistent with social norms of responsibility and morality.
Reference
Bennett, L. (2019). Women Amplified: 20 Years of Insights from Trailblazing Leaders from the Stage of the Texas Conference for Women. Greenleaf Book Group.