Ethical Leadership

« The best way to do is to be. »

Lao Tzu

How to reconcile business and ethics in times of crisis?

This is a question many leaders ask themselves facing the current crisis with its various repercussions such as inflation, quiet quitting, markets closing like Russia, American protectionism, etc. Some are tempted to stretch the truth, to promise much more than they can deliver, struggling to tell the truth. Finding your right way to balance ethics and business is key: compromises yes, compromises of integrity no!

In ethical leadership, the leader acts according to principles and values that form the basis of the common good, namely integrity, respect, trust, fairness, transparency, and honesty. But in practice, business situations can be very complex, and finding the appropriate behavior is not always easy.

The English term "Conscious Business" describes a leader who is vigilant and attentive both to the world around them and to their inner world. The key to Conscious Business is understanding the circumstances we live in and how we respond to them, honoring our needs, values, and goals.

Commitment to ethical leadership must be a conscious decision. Only then can we face circumstances and pursue our objectives while staying aligned with our values. We often act unconsciously, guided by habits and beliefs, sometimes lacking free will!

Ethical leadership is based on several key values to integrate:

  • Honesty and transparency: Ethical leaders earn others’ trust during difficult times by presenting facts as they are, respecting rules, and communicating honestly. Honesty means telling things as they are, but also knowing how to stay positive.

  • Avoiding injustice: The ethical leader avoids favoritism, inappropriate behaviors, manipulation, or harmful conduct. Leading by example and being willing to reduce bonuses or not promote someone who is dishonest or disrespectful is crucial.

  • Respect and inclusion: An ethical leader respects everyone regardless of position, gender, identity, etc., values diversity, and practices inclusion.

  • Integrity: This is shown when values, words, and actions align and are coherent. Concrete actions must back up integrity. Personally, I was fired for exposing an abusive practice at a company I worked for, and in hindsight, I am very proud, it allowed me to found my company with true ethics.

  • Taking responsibility: It means owning one’s role and exercising power while fulfilling duties, especially during difficult situations, like a ship captain in a storm.

  • Dialogue: Establishing open dialogue, accepting everyone’s opinions, and providing necessary information for others to do their work is a key success factor.

“To be free is not merely to cast off one’s chains, but to live in a way that respects and enhances the freedom of others.”
— Nelson Mandela

Effects on the organization:

The leader is an “influencer” of their environment. They are frontline role models, creating a positive context that encourages others to follow. This initiates a virtuous cycle: teams identifying with the leader’s values and conduct will embrace the style, feel motivated to follow, and even emulate ethical behavior. This strengthens belonging, team spirit, motivation, and both individual and collective performance.

Ethical leadership builds a culture of respect and trust inside the company that radiates far beyond the organization. Calm, motivated teams generate a positive aura among suppliers, clients, and partners, enhancing market reputation and fostering loyalty.

Some environments are more ethical than others, as seen in some sports federations plagued by financial ethics scandals or harassment issues. Leaders must also navigate their environment to move it towards greater ethics, Rome wasn’t built in a day! Leaders should protect themselves by surrounding themselves with good legal counsel, strong HR on these issues, and a supervisor to have a safe space with a “sparring partner.”

Integrating supervision to stay on course:

Supervision is a long-term accompaniment, with sessions every two to three months, where the leader and supervisor can deeply discuss ethics. Regular re-evaluation of functioning, developing and applying good compromises, and taking a step back allow adjustments before it’s too late and the company’s reputation is damaged.

How to improve ethical leadership skills?

First, clearly define your values and what matters most to you and your team. Then establish guidelines aligning behavior and speech with these values. Regularly review and adjust to stay coherent. Stick to these values, even in tough times, you’ll be more credible when exceptions are rare and explainable.

Respect also means telling the truth. Your team will trust you more if you’re honest. Everyone can live with imperfection, but no one can live with lies.

Surround yourself with people who share your ethical values, employees, partners, suppliers, etc. They will echo your way of operating and contribute to spreading your values and your company’s reputation.

Ethics and leadership go hand in hand. Finding the right balance between profitability and ethical practices is key to long-term leadership success.

And you, what are your values and codes of conduct to help your teams and organization thrive and succeed?

#ethics #leadership #supervision #management #honesty

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My learnings from 2022