« The best way to do is to be. »
Lao Tzu
How to reconcile business and ethics in times of crisis? This is a question that many managers are asking themselves in the face of the current crisis, with its various repercussions like inflation, quiet quitting, markets closing off such as Russia, American protectionism, etc… Some are tempted to stretch the truth, promise much more than they can deliver, and struggle with being truthful. Finding the right way to reconcile ethics and business is the key: compromises, yes; compromises of integrity, no!
Within the framework of ethical leadership, a leader behaves according to the principles and values that form the foundation of the common good, namely integrity, respect, trust, fairness, transparency, and honesty. However, in practice, situations in business can be very complex, and it’s not always easy to find the appropriate behavior.
« Conscious Business » is used to describe a leader who is mindful and attentive to the world around them as well as their inner world. The key to conscious business is understanding the circumstances we live in and how we respond to them, while honoring our needs, values, and goals.
Commitment to ethical leadership must be consciously decided. Only under these conditions can we face circumstances and pursue our goals while staying aligned with our values. We often act unconsciously, guided by habits and beliefs, and sometimes we lack free will!
Ethical leadership is based on various key values to integrate:
- Honesty and transparency are how ethical leaders gain the trust of others in challenging times. This means committing to presenting facts as they are, respecting rules, and communicating honestly with others. Honesty is about telling things as they are but also knowing how to stay positive.
- Avoiding injustice is the motto of an ethical leader: be wary of favoritism, avoid inappropriate behaviors, manipulations, or other harmful actions. Leading by example, as well as being willing to reduce a bonus, not promoting someone who isn’t honest or respectful, is crucial.
- An ethical leader respects everyone regardless of their position, gender, identity, etc. They value diversity and practice inclusion.
- Integrity manifests when values, words, and actions are aligned and consistent. It also requires taking concrete actions and acting accordingly to demonstrate integrity. Personally, I was fired for exposing an abusive practice of the company I worked for, and in hindsight, I am very proud of it. It allowed me to establish my own company with a true ethical foundation.
- Taking responsibility means embracing one’s role. It involves exercising power and fulfilling implicit duties by being present in difficult situations, much like a ship captain in a storm.
- Dialogue: establishing open dialogue, accepting different opinions, and providing necessary information to others so they can carry out their tasks are key success factors.
“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
Consequences on the organization
The leader is an ‘influencer’ of their entourage. They are at the forefront of setting an example, creating a positive context that encourages others to follow them in their endeavors. It initiates a virtuous circle: teams identifying with the values and conduct of the leader will embrace their style, feel motivated to follow them, and even emulate their ethical behavior. This movement will strengthen the sense of belonging, teamwork spirit, and consequently boost motivation and performance both individually and collectively.
Ethical leadership establishes a culture of respect and trust within the company that radiates far beyond the organization. From composed and motivated teams will emanate a positive aura towards suppliers, customers, partners, thereby enhancing the market reputation and fostering customer and employee loyalty.
Some environments are more ethical than others, and this is evident with certain sports federations consistently plagued by scandals involving financial ethics or harassment practices. The leader’s responsibility is also to work within this environment to lead it towards greater ethics: Rome wasn’t built in a day! The leader would benefit from protecting themselves by surrounding with a strong legal team, solid HR resources in these matters, and having a supervisor to provide a safe space with a « sparring partner ».
Incorporating supervision (executive reflection) to stay on course
Supervision is a multi-year support process that involves sessions held every two or three months, allowing leaders and supervisors to thoroughly explore the topic of ethics. Regular reassessment of operations, the development of sound compromises and their implementation, as well as gaining perspective, enable adjustments to be made before it’s too late and the company is discredited.
How to improve one’s skills in ethical leadership?
First and foremost, clearly define your values for yourself and with your team, along with what is important to you. Then establish guidelines by aligning your behavior and words with the desired ones. Regularly assess and make necessary adjustments to remain consistent. Uphold these values, even in challenging situations. Your credibility will be greater when exceptions are rare and justified.
Respect also entails telling the truth. Your collaborators will trust you more if you are honest. Everyone can live with imperfection, but no one can live with lies.
Surround yourself with individuals who share the same ethical values as you: collaborators, partners, suppliers, etc. They will resonate with your way of operating and thus contribute to the visibility of your values and your company.
Ethics and leadership go hand in hand. Finding the right balance between profitability and ethical practices is key for the long-term success of a leader.
And for you, what are your values and codes of conduct that enable your teams and your organization to thrive and succeed?
#ethics #leadership #supervision #management #honesty