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The five behaviours of an ethical leader
Contents
Think about the consequences of your actions
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Treat others with respect
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Act in line with your values
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Find allies and advisors
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Think about your legacy
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Pick up any newspaper, and it feels as though we are surrounded by unethical leaders. In the UK, we have an ex-prime minister who has been judged to have deliberately misled parliament over lockdown parties; a former US president indicted on multiple federal charges; and a rolling series of scandals involving prominent business executives.
In the current climate, you’d think it would be easy to stand out as an ethical leader, but it’s not always that simple.
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A broad definition of ethical leadership is someone who is clear about their values and acts on their principles, even if this means going against the majority. Ethical leaders work towards what we might call the ‘common good’, but one of the challenges is that a definition of ‘good’ often depends on the organisation, its goals, and the challenges it is up against.
Furthermore, in a world where people’s views are increasingly polarised, this is especially difficult. A leader of a social media company, for example, may come up against tough decisions about how content should be moderated or the impact that their product has on vulnerable groups such as children, while at the same time facing pressure from shareholders to meet financial targets. There are many technically innovative businesses where leaders began as brilliant innovators but may be ill-equipped to become ethical leaders.
Is it possible to learn ethical leadership? I’d argue there are five important
behaviours identified in ethical leaders that can be developed.
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1 Think about the consequences of your actions
This means looking at the impact of any decision from the point of view of others, particularly those that are directly affected. Ethical leaders listen actively, consider different perspectives and demonstrate empathy. Increasingly, there is pressure on leaders to consider the impact of their actions on the environment, which adds a further dimension. Shareholders are holding leaders to account on their environmental, social and governance (ESG) commitments, so examine how the actions of the business will affect targets in these areas, or whether the business should be doing more. At the same time, however, making a decision based on how you think it might ‘look’ or because other organisations are doing it will be viewed with scepticism. Sweeping statements about protecting the planet or a commitment to diversity and inclusion will be interpreted as lip service by prospective employees and customers unless they are backed up by meaningful actions.
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2 Treat others with respect
Whether they are a junior employee or a member of the board, treating others with respect is essential to building a culture of trust and psychological safety in organisations. Research from Google’s Project Aristotle has identified psychological safety (where people believe their views and feelings are heard and acknowledged so they are comfortable sharing them) as the single most important factor for effective teams. Not only does this mean treating others in a way you would expect to be treated yourself, it also requires a commitment to transparent communication and fairness. If difficult decisions need to be made, knowing the reasons behind them can prevent feelings of distrust bubbling to the surface and often mitigate some of the negative consequences.
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3 Act in line with your values
Ethical leaders act in accordance with their values and are willing to do the right thing, even if it is difficult or unpopular. This is especially true when unexpected events arise or there are hurdles to overcome. The pandemic took every business leader by surprise, for example, with swift decisions to be made about homeworking, front-line roles and who to place on furlough. Three years on, and many employees in organisations where they felt leadership behaviour was not in line with their values have voted with their feet, moving to businesses that better reflect their own ethics. A poll in 2022 by employee benefits company Amba found that almost two-thirds of employees were actively looking for a role with an employer that shared their own beliefs, while 58 per cent were considering leaving an organisation because their employer did not share their values. If leaders make difficult decisions in line with their values, and ensure the decision-making process is transparent and fair, employees trust their intentions and understand the ‘why’.
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4 Find allies and advisors
There are countless examples in politics and business where leaders have surrounded themselves with ‘yes’ men (or women) who will reinforce their own beliefs rather than challenge them. Ethical leaders build groups of advisors and allies that share the same broad values as they do, but who are also prepared to give constructive feedback or hold them accountable when they’ve made a mistake. Being a strong role model is also a characteristic of ethical leadership, and those allies and advisors can support leaders to be visible examples of good decision-making, which in turn filters into the wider workplace culture.
Ethical leaders understand that their actions speak louder than words and inspire others through their own conduct.
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5 Think about your legacy
The average tenure of a CEO at a Fortune 500 company is 6.7 years, according to analysis by executive search firm Spencer Stuart. Over that time, leaders will encounter economic highs and lows, risks to the reputation of the business and a constant stream of difficult decisions. So, leaders need to think about how they want to be remembered. Often in senior positions there is so much focus on day-to-day happenings and responding to immediate pressures that it is hard to envisage the longer-term implications of actions and decisions. One way to build a legacy as an ethical leader is to communicate a compelling vision and purpose, so everyone in the organisation knows what it stands for and ethical decision-making becomes part of their everyday roles as well. This way, even after leaders have moved on, their values live on.
As an Associate Professor of Behavioural Science and Entrepreneurship and Innovation, Dawn focuses on leadership and innovation, with a particular focus on destructive leadership. Embrace the power of people in your organisation with our suite of Future of Work Postgraduate Awards as part of the Warwick Leadership Pathways.
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