Perhaps no other topic can define the difference between management and leadership more dramatically than the individual’s attention to ethics.
A manager must focus on the day-to-day aspects of keeping the department, team, or organization running smoothly. This includes making sure the department is adequately staffed, that the company is on target for sales, that production is on target, and so on. A leader, on the other hand, must be able to set goals and aspirations for the team, set the tone for the organization, motivate and inspire the group, etc. Realistically, managers should be able to do both. They must inspire and motivate and must ensure that the business operates effectively. Setting the ethical tone of the organization is a leadership function. The challenge for most managers is spending enough time to focus on leadership functions without being totally consumed by the day-to-day operations of the team. Because “business ethics has to do with the morally functional nature of our business relationships … giving them the attention and care they deserve is crucial to the success of an organization” (Hamm, 2003, p. 1). I suggest six steps a manager must follow to lead ethically.
1. Reflect on values. To focus adequate attention on the ethical tone of the organization, a leader must “build on his own core values and capabilities” to optimize his leadership potential (Quinn, 2005, p. 76). To do this, leaders must find time to reflect and identify their own personal moral compass, as well as to ask themselves what are the key ethical issues and dilemmas facing their organizations. Just as a manager must take the time to understand their market, budgets, production deadlines, etc., an ethical leader must take the time to understand their own personal values, team values, what are the organization’s value statements. . It must be and identify the gaps that exist in the aspired goals and current behavior within the organization (Hamm, 2003, p. 3).
2. Establish trust. Build an environment of trust with employees to create an environment in which employees feel free to discuss ethical dilemmas and problems with management.
3. Establish a shared ethical vision. To ensure buy-in and commitment from the organization, include members from various levels of the team to help create a “Code of Conduct” that is aligned with the organization’s Ethical Vision (p. 3).
4. Communicate the ethical vision and the code of conduct. A leader must ensure that the vision and code are communicated to everyone within the organization. This can be done through policy manuals, training events, individual and team coaching, newsletters, team meetings, etc. “Communicating the program frequently is another important success factor (p. 3), as is establishing a path for employees to communicate their concerns to management safely and confidentially.
5. Act. To be effective, the leader must demonstrate that the entire organization takes ethical behavior seriously. All reports of unethical behavior should be thoroughly investigated. Furthermore, all violators of ethical standards should be punished equally and fairly throughout the organization, regardless of whether the perpetrator is a senior executive or a front-line employee. In addition to punishing negative behavior, an effort should be made to reward and recognize positive ethical behavior (Treviño and Nelson, 2005, p. 304). Just as a good manager knows that it is important to reward employees for achieving goals, the ethical leader will recognize that equal importance should be given to recognizing those who exemplify ethical behavior within the organization. Taking action also means leading by example by allowing ethical behavior to guide the actions of leaders at all times. Doing so will help establish and maintain a culture of ethical behavior.
6. Monitor and maintain ethical behavior. The leader must consider ethical leadership as a key aspect of his role as a manager. It cannot be seen as a passing organizational fad. An effort should be made to gather feedback through surveys, focus groups, personal interviews, etc., to identify employee concerns regarding the ethical environment in which they work. This should be a continuous improvement process to identify concerns and improve the overall ethical environment.
There are at least seven benefits for a manager to focus on being an ethical leader, including; improvement of the public image of the organization, restoration or improvement of investor confidence, prevention and reduction of criminal penalties, prevention of civil lawsuits from employees who could not satisfactorily resolve their complaints within the company, improvement of retention of employees, market leadership by improving customer satisfaction and setting an example for others in the market (Hamm, 2003, p. 1-2).
References:
Hamm, BA, (2003). Do you want a company that you can be really proud of? Try a business ethics program. Quinn, R. (2005). Moments of greatness: Entering the fundamental state of leadership. Harvard Business Review, July-August 2005. 75-83.
Treviño, L. and Nelson, K., (2005). Corporate social responsibility and business ethics. Hoboken, NJ: John Wiley and Sons, Inc.