This handbook will help managers to understand the importance and the principle of the moral and ethical leadership, the path to a better ethical decision making, and ways to create a moral and ethical organizational culture. The Importance of Moral and Ethical Leadership Moral and ethical leaders are essential for any successful business because these leaders are the essential links between the organization’s objectives and its stakeholders. Leaders are the face of any organization, and their actions reflect the values and the ethics the organization they represent. Therefore, if a leader’s action and decision is ethical, the stakeholders and other organizations will respect the leader and the organization. Recent history has shown that ethical behaviors are important in sustaining businesses; large corporations such as Enron, Chevron, and Worldcom, destroyed people’s lives through unethical business behaviors (Josephson, M., 2013).
With this in mind, the subsequent section explains why ethical behavior and corporate social responsibility; indeed, can improve business performance and company success. Furthermore, the following sections explain why ethical problems occur business and the elements of ethical behavior. First, the following sections explains business ethics and why following them is essential to an organizations success. Business Ethics Notably, standards conducted in business; in fact, resembles the conception of right or wrong. Truly, ethics indicates weather are behavior is moral or immoral.
An ethical climate fosters an environment that nurtures confidence, productivity, building relationship and teamwork. Biases can play a major factor when dealing with moral decision making within the workplace. In order to avoid biases, individuals need to try and became aware of them. Ethical dilemmas have the ability to rip apart and organization but with the right managers and an ethical climate, they can be minimized. As a final point, in order for any organization to be successful ethics, morals and values must be instil in the company and every employee.
The foundation of this relationship is trust. The leaders themselves must be ethical in their decisions and actions in order to influence others to behave accordingly. Ethical leadership is to know one’s core values and having the courage to live them through one’s life. Ethics and leaders go hand in hand; ethics is the heart of leadership.
Leaders are considered as people who “generally implement ethical programs in order to influence an organizations climate” (Yukl, 2010). To any organizations, leadership plays an important role to empower another people to follow them. Therefore, ethical leadership can be defined as the process of impacting people through rules, principles, beliefs and values. I recognized that every leaders tend to have a highly ethical in their business practices. Ethical leadership will help leaders to lead their employees as legitimate.
Ethical leadership is of great significance to the prosperity of an organization. Ethical leaders usually motivate their employees to work hard. In that regard, ethical leadership requires a cocktail of ethical values ranging from rationality to independent and critical thinking. Most organizations nowadays have ethical leaders responsible for the good relationship among the members. Ethical leaders are usually more concerned about the welfare of other people rather than other motives.
When the leaders understand that the ethics development process that would make them an effective leader, an increasing number of leaders would have a personal ethics system. Understanding the importance of ethics is crucial because leaders will consciously work to develop and use ethics, which makes them more effective. This acceptance will result in ethical decision making and the ability to put theory into practice as well as create ethical organizations. This will lead to good leadership are further discussed in the following sections. What seems so minor on a personal level can actually affect the entire society.
These behavioral traits are essential in being a successful leader. Organizations need leaders that can work with their employees, build team work and be open to new ideas, (Lawler, 2003). In order for progress to be made, employees need to believe in their leader, and in turn, the leader needs to believe in their employees. Trust is obtained through mutual respect, building that bond of commitment to insure organizational success, (Lawler, 2003). The employees will follow a leader that promotes a positive attitude and enjoys expressing their ideas and stories.
Leaders considering ethical values in their decisions should keep in their minds the safety for their employee and not harming the environment. For the employees that their duties are associated with risk leaders should provide them with the tool and equipment necessary to reduce that risk. However, leaders should focus on minimizing each type of risk related to their business. Nowadays, since business ethics give the organization extra benefit among competitor, it become from the priority that CEOs of many organization keeps it in their minds when creating the strategies. A Corporate Social Responsibility (CSR) can be used as a tool to support ethics thus organizations use it in order to increase trust, value and care among the stakeholders.
People: Ethical Leadership Considerations and Recommendations One of the most overlooked components of the 3BL is the portion concerned with ethical decision-making and leadership within an organization. The ethics of a company are a direct reflection of the values and morals that are embodied in a company; a company cannot claim to be an employee-friendly organizations while its policies and procedures are designed to unfairly exploit the workforce. Ethical leadership is one way in which a company can change its entire character without having to invest in costly equipment or drastically change the company’s way of doing business. The management team of any company must remain keenly aware of the ethical image they are propagating. Not only must the management of the company maintain a personal commitment to high moral and ethical standards, they must expect the same of their subordinates and all associated with the company.