How ethical leaders set an example

What can happen when the leaders of an organization make bad ethical decisions? Ethical leaders place ethics above profit, and research has shown that this choice helps teams to be loyal, dedicated, and ethical as well.

What causes ethical failures?

Ethical lapses can be caused by a variety of factors including ignoring established boundaries for organizational values, industry codes, doing what others are doing, and a lack of self-control. A lack of good role models, poor standards of practice and training, as well as a lack of accountability will add to a company’s ethical failings.

How to be an ethical leader

For the remainder of this article, there are six steps you can take to define ethical standards and begin putting those high standards into practice.

1. Define your organization’s values

The values ​​of a company should be exemplified by leaders and managers but if these people do not know what the values ​​are they cannot impart them to others.

2. Know your personal values

Good leaders will have established their personal values ​​to be used in conjunction with the business values. Every leader and manager should know what the standards of behavior are for their business. Determine specific values ​​of other leaders you admire and see if you identify with those values. Would those values ​​conflict with yours, especially if they lead to a competitive disadvantage?

3. Set the tone

Once you’ve identified and accepted your personal and business values, you can begin to establish the right environment for your team. The important aspect is to be a good role model. Others will copy your behaviors and thus set an example for others to follow.

4. Identify and resolve ethical dilemmas

You must identify the situations that create dilemmas in the company that often come from the functions of purchasing, human resources and more. Any threat to the revenue image of the business could negatively affect your judgment. When you understand where most ethical dilemmas come from, you’ll be attuned to risk. Your conscience will alert you when something is not right, which will give you a feeling of unease. If something goes against your core values, stop it immediately and reassess.