Founder & Head Coach/CEO, The Funds2Orgs Group. getty The digital revolution impacted all aspects of people's lives, including leadership. As a result, how leaders communicate with their teams and the public is more transparent and accessible than ever. With this shift, there’s a need for mindful, ethical decision-making recognizing the impact of digital decisions on larger populations. Moreover, it’s essential to grow your business and remain relevant. How does a leader practice ethical decision-making? The answer is discussing three critical principles for ethical decision-making: transparency, responsibility and empathy. These principles are essential for all leaders to consider as they navigate the challenges and opportunities of the digital era. Moreover, leaders must think about how decisions can impact others through good and bad consequences moving forward. The Role Of Leadership In The Digital Era Leadership in the digital age is a tricky topic. With unprecedented access to information and evidence, leaders face difficult decisions that may have consequences for businesses and organizations at large. It can be incredibly challenging for ethical decision-making since many of the implications of these decisions may not be apparent until after the decision happens. To navigate this new era, you want to take a leadership approach mindful of three fundamental principles: transparency, responsibility and empathy. These principles enable you to make informed decisions while also considering their impact on your entire organization or community. Transparency is a core leadership principle that helps leaders make clear and consistent decisions. Leaders should be open about their values, ethical standards and other aspects of their leadership philosophy. Doing so allows employees, your customers and the public to know what they should expect from someone who serves as a business leader. Responsibility is another critical principle in influencing ethical decision-making because it forces leaders to consider the broader impacts of their actions before making a final decision. When making a crucial decision for your company, think beyond just how it will impact you or your team members — think about what could happen if it gets out into the public realm or affects other stakeholders in any way. Lastly, empathy is the soft skill of feeling like standing in someone else's shoes. In other words, it's the ability to understand someone else's feelings. This principle is essential, especially in the digital age, when smart offices, remote work and digital information could cloud our thinking and ideas. When a leader empathizes, they create positive relationships. Three Key Principles To Guide Ethical Decision-Making Leaders often face difficult decisions that carry wide-ranging consequences. As more and more of your leadership happens digitally, it becomes increasingly vital to think about your decisions' impact on others. 1. Transparency Transparency has been a top topic in the past few years. The use of technology has made it easier for people to catch others in actual or perceived wrongdoings because the information is shared so quickly, and anyone can find out what's going on. Therefore, there’s a high demand for transparency because it creates a level playing field. A lack of transparency can get misinterpreted as hiding things. If you're not open about your actions or what you do with your time, people will question what you're trying to hide. Transparent leaders earn more respect from their followers because they know they can trust them. To establish this trust, leaders must be honest and straightforward about their decisions and why they make them. 2. Responsibility For decisions, it’s essential to consider the implications of an action. It means looking at how decisions will impact society as well as yourself. You must be aware of your efforts' potential consequences on others and not just yourself. As digital technology advances, business leaders have more ways to make decisions that can have a significant societal impact. For instance, it's much easier to let go of workers without notice. This change has negative implications for employees who rely on their steady income to meet expenses or save for retirement. The decision by employers to terminate without notice could lead to these employees experiencing financial insecurity and lacking necessities like food and shelter. As digital technology advances, leaders need to think about how their decision-making will impact themselves and those around them through good and bad consequences. 3. Empathy The most important of these three principles is empathy. Empathy is defined as the ability to understand the feelings of another person. It's hard to be empathetic in an online world, but that doesn't mean it isn't vital. Remember, real people exist on the other end of your online interactions, not just screens. With digital marketing, you can reach so many people so quickly, which means you have the potential to do great good — or harm. As a leader, you want to make sure you consider how your choices could affect others around you. That's why it's essential to consider how your actions impact those around you before taking any action. You also want to think about how each decision affects those who interact with your brand online — whether that's through social media posts, ads or something else entirely! It's also why it's so crucial for leaders to be mindful of their digital decisions and ensure they're ethically sound. Doing Better For Your Company And The Public Modern leaders, especially those with an online presence, are simultaneously expected to be perfect and imperfect. It’s partially due to the never-ending stream of content consumption, exposing every flaw and human error. But it's also because most everyone now lives in a digital era. Therefore, leaders need more ethical leadership skills than those from earlier times. You must now think strategically and holistically about your business. And you need to understand the role of technology as the driving force for change. By making decisions with the three principles of transparency, responsibility and empathy, in mind, you’ll do better not only for your company, team and profitability, but you'll also do good for the public — and that matters. Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?
Ethical leadership must be a conscious decision. As Fred Kofman writes in his book Conscious Business, “To be conscious means to be awake, mindful. To live consciously means to be open to perceiving the world around and within us, to understand our circumstances, and to decide how to respond to them in ways that honor our needs, values, and goals.” He continues, “To be unconscious is to be asleep, mindless… Consciousness enables us to face our circumstances and pursue our goals in alignment with our values. When we lose consciousness, we are swept away by instincts and habits that may not serve us. We pursue goals that are not conducive to our health and happiness, we act in ways that we later regret, and we produce results that hurt us and those we care about.”
There are many good reasons to be an ethical leader. From a collective perspective, leaders can inspire those around them to behave ethically. By setting an example and giving the direction for ethical behavior, others will observe and act similarly. In this way, ethical leaders can positively influence many others, presenting them with a set of actions that they can adopt for the greater good. On a personal level, being an ethical leader is essential for credibility and reputation. If one aims to be a leader, it is a long game. Behaving unethically can automatically take a leader out of the A-league and may heavily damage their personal or company brand. Moreover, unethical behaviors often deteriorate one's self-esteem, leading to a suboptimal outcome and a missed opportunity to express one’s full potential.
Ethical leadership encompasses many things but ultimately boils down to these six main elements.
“The best way to do is to be.” – Lao Tzu Leaders play a crucial role in corporations, as they have been chosen to guide others. What do great ethical leaders do, and what ethical traits do they have in common?
Ethical leadership provides enormous benefits to organizations, in many ways.
Great leaders know there is always room for improvement. Here are some ways you can become a better ethical leader.
Want to see what ethical leadership looks like in action? These ethical leadership examples will demonstrate some real-world scenarios.
An ethical leadership example in actionImagine you’re on a call with your biggest customer, alongside your boss, and the customer is extremely dissatisfied. Your product had an outage that severely impacted their business and they want to make sure it doesn’t happen again. Your boss assures them this is a one-time occurrence, and that it won’t be a problem in the future. When you hang up, you remind your boss that this issue has been occurring among customers with increasing frequency and that a fix is still in the works. Your boss nods and says, “Yes, but they don’t need to know that just before their contract renewal.” Fast forward a couple of months, and your customer calls to cancel their contract following another outage. Your boss again gets on the line to say how sorry they are and that this is a rare occurrence, but that they can’t cancel their contract without ample notice. Is that the kind of person you want to work for? Or do business with? They knowingly put their customer in a bad position, so they could get credit for a contract renewal. This not only creates a strained relationship with your customer, but it also demonstrates to everyone on your team that this sort of behavior is expected. As others emulate this behavior, your company begins to get a bad reputation, lose customers, and struggle to find new customers. Now imagine if your boss had owned up to the outages, promised to keep the customer in the loop about fixes, and sincerely asked the customer to stay onboard. The customer may or may not renew, but they wouldn’t be leaving with bad blood. They may even come back at a later date or refer other potential customers. That’s the difference ethical leadership can make. It may literally be the difference between survival and failure.
Ethics and leadership go hand-in-hand. While some tend to think there is a choice to make between being profitable and successful, or behaving ethically, That’s simply not the case. Ethical people and leaders are necessary drivers for success. What if we give ethical leadership a chance?
Professional Development Leadership & Management Published April 9, 2021 |