What Is an Ethical Leadership?

A company’s ethical leadership should be at the forefront

Managers should obey the rules not only to be legal but also because the same characteristics are ingrained in their belief structures. Good leadership strategies generate followers who are not only dedicated to the company’s aims but also move over and beyond to achieve them (Bachmann, 2017). Leaders are the company’s mirrors, and employees, partners, and consumers turn to them for leadership (Buchholtz and Carroll, 2014). Investors are now looking for a business that is not only aware of state rules but has also incorporated them into their workplace values (Bachmann, 2017). This research paper dissects the various ways in which ethical leadership can enhance the workplace and how it can be enforced. There is a close analysis of Nike Inc. company and Coca-cola to demonstrate the impact of ethical decision making for businesses. Nike had formerly being involved in a lawsuit regarding the establishment of sweatshops in Asia (Singh, Jindal & Samim, 2011). Coca-cola also had scrutiny because they did not pay attention to the environment and would hence pollute the water bodies with their waste products (Singh,et al., 2011). The examples above illustrate how company heads can turn around negative publicity by owning up to their mistakes and making a commitment to change and be compliant with the environmental laws. There is a great sense of responsibility that results from the knowledge that one’s actions potentially affect the environment and the society. This research paper hence gives a broad definition of ethics, what ethical leadership is and the benefit to companies to prompt organizations to engage in healthy business practices.

Key words: Ethical Values, Sweatshops, ethical leadership, environment

Ethical Leadership

Ethics is the framework that sets right and acceptable behavior in the community. Leaders are guided by their virtuousness and their level of morality which hence determines how others perceive them. Ethical leadership is guided by respect for professionalism and proper values. A noble leader understands that he is representing a greater good and hence does not always act on his own selfish needs. Being ethical also means that the manager pays attention to the laws of the land and therefore does not compromise the services the company offers for personal gains (Buchholtz & Carroll, 2014). Companies understand that good leadership entails putting the employee’s needs above the company’s agenda (Singh, Jindal & Samim, 2011). The community does also look up to the company and consider the decisions that they make. Businesses that hence seek to thrive must be mindful of how they relate to the society.

Ways in which Businesses can Maintain Ethical Leadership

Offering Training

Companies can enhance good leadership by continually training their employees on the best practices in the market. There is a need, therefore, to always review the company’s position in regards to morality and assess where it could be lagging behind (Buchholtz & Carroll, 2014). In this case, the leaders should promptly address any sticky concerns that the employees may have towards the activity of the company and ensure that it always updates them on any changes that seek to be made (Bachmann, 2017). The company should also create a favorable atmosphere where employees can voice their concerns without harsh criticism. Further, the employees should be content knowing that the company will listen to their views without being judgmental. The company should also make clear boundaries and explain measures for any disciplinary cases involving unethical behavior within the organization (Buchholtz & Carroll, 2014). Leaders should lastly be able to demonstrate what ethical leadership is from their perspective and give incidences where they are convinced that they followed proper leadership practices.

Leading by Example

Often, companies advise their employees to follow sound industry practices and always emphasize on been ethical. The best approach, however, is to lead by example and illustrate step by step what moral behavior is (Buchholtz & Carroll, 2014). It is worth noting that employees are likely to follow a leader that pays close attention to the welfare of others and demonstrates the same in their actions. For instance, companies can engage in corporate social responsibilities activities like cleaning towns and offering public lectures on appropriate ethical behaviors to create the same culture among the staff. Additionally, the company can also educate or informing the employees on past incidences where they were faced with an ethical dilemma and how they successfully solved it.

A case in example is Nike INC company that was charged with the establishment and running of the sweatshops. Sweatshops are industries set up in the low-income countries and which may source cheap labor (Gurnani, 2015). Nike set up the industries in nations from Asia because they were assured of abundance resources and ready taskforce that would carry out the production process (Flammia, 2012). In Nikes sweatshops, workers complained of mistreatment and lack of timely payments from the company (Gurnani, 2015). The company heads would also mistreat the employees by throwing shoes at them whenever they erred and even slapped them. The company was also guilty of employing young children thus denying them the chance to get an education and advance their lifestyle (Flammia, 2012).

Additionally, the industries lacked proper ventilation, and the employees are required to stand for long hours while working without breaks (Gurnani, 2015). There was also no protective materials to use with their dangerous adhesive, and this means that the employees were exposed to harsh chemicals that would result in respiratory problems (Gurnani, 2015). In fact, most of the employees would complain of having asthma, trouble breathing and severe headache (Flammia, 2012). Students and human rights activists in America set up demonstrations against the company, urging people to boycott Nike’s products until they rectify their mistakes. As people failed to buy the sports apparel from Nike and preferred the competitive brands like Adidas, Reebok, and Puma, Nike’s sales started dwindling, and they realized just how much the negative reviews on their unethical practice affected their sales. Nike, however, recognized that their unethical practices were not only spoiling their reputation but well-eating onto their profits.

In a press briefing, Nike Company former CEO, Phil Knight admitted to engaging in the activities but promised that the company would make amends for their mistakes. As such, Nike fired all the children that had been placed in the companies and compensated their parents. Nike also offered to pay the employees for their forfeited pay and improve the working conditions of the industries (Gurnani, 2015). Nike’s case study highlights the impact of unethical leadership on a company and industry. For Nike, it as all about making profits without minding the welfare of the society (Flammia, 2012). When Phil Knight also publicly admitted to the company’s mistakes, he demonstrated ethical leadership, a factor that would be embraced by the company and it has been followed till date. Company heads should never shy away from correcting their mistakes in public, and they should understand that they are a reflection of the company (Singh et al., 2011). Leading by example means that one is aware that the public relies on the company’s directive and sense of direction when well calculate the plans before embarking on any activity (Gurnani, 2015). Company leaders should learn how to follow ethical behavior and embrace the same in their business.

Sustainability

Ethical behavior may also entail having sustainable practices within a firm. Sustainability means that today’s activities will not affect the future generation and there will be a continuum activity. For instance, companies that engage in production should aim to reduce environmental pollution because that affects the next generation (Bachmann, 2017). Paris agreement sets the framework by which countries should follow to reduce the carbon footprint hence protect the world from global warming. As such, it is vital that company heads ensure that their actions do not deteriorate the environment but leaves it clean and unpolluted. For instance, Coca-Cola company had been in the spotlight for discarding their dirty water on the rivers and depleting the water sources in India (Selart & Johansen, 2011). It is evident that Coca-Cola extensively uses water to make their beverages and it as hence not logical that they pollute the source of water for their services. Such a case denies people access to clean water and makes them susceptible to diseases like typhoid and cholera. Companies should have a regular check-on their progress, confirming that it is compliant with the environmental laws (Buchholtz & Carroll, 2014).

Accepting Responsibility

Ethical leadership may also entail admitting one’s mistakes and looking for means to amend the adverse actions to save face in the community (Selart & Johansen, 2011). Leaders ought to also benchmark their activities against reasonable set standards to ensure that they are at par with other industry players hence do not appear on a negative sphere. Companies can also enhance ethical leadership by having a code of conduct that guides the actions of every employee. The managers should hence decide on the factors that mean most to them and educate the employees on the same attributes (Bachmann, 2017). Employees are likely to get attracted to companies that pay attention to ethics, and the managers would also have an easy time attracting and retaining good talent to the firm (Buchholtz & Carroll, 2014). Deviations to the code of conduct should be discussed among the various teams promptly to ensure that the company stays on course (Selart & Johansen, 2011). Lastly, the leaders should conduct a performance evaluation of all the employees to measure the existing gaps within the firm.

Conclusively, Ethical leadership has three phases where one decides to do as required by the law, what they believe is right and encouraging others to do the appropriate thing. Practicing good ethics is hence more than following well-laid-out rules that can be broken anytime. When the managers set a good example, they steer the company forward and encourage the other employees to do the same. It is hence more efficient for the leader to reflect good behavior than merely order the employees to follow the company rules. Ethical leadership assures customers of excellent customer service, and it also prevents the company from getting into expensive lawsuits. Employees are also guided by the right framework to follow which makes everyone in the organization accountable.

References

Bachmann, B. (2017). Ethical leadership in organizations: Concepts and implementation. Switzerland: Springer.

Buchholtz, A. K., & Carroll, A. B. (2014). Business and society: Ethics, sustainability, and stakeholder management. Australia : South-Western.

Flammia, M. (2012). Preparing Students for the Ethical Challenges of Global Citizenship. Sytemics, Cybernetics and Informatics, 10(4), 41-45.

Gurnani, R. M. (2015). Globalization and ethical challenges. The Business & Management Review, 5(4), 116.

Selart, M., & Johansen, S. T. (2011). Ethical decision making in organizations: The role of leadership stress. Journal of Business Ethics, 99(2), 129-143.

Singh, H. P., Jindal, S., & Samim, S. A. (2011). Business Ethics: Relevance, Influence, Issues and Practices in International Business Scenario. Special Issue of the International Journal of the Computer, the Internet and Management, 19(1), 1-5.