Leadership in Business Is First and Foremost about Ethics * Incedo Group

Leadership in Business Is First and Foremost about Ethics

May 15, 2014
, 5:30 am
, Leadership

The choices a leader makes not only affect the leader but impact others and the business they are leading. That’s why ethics are an essential component of leadership in business. Ethics are action-guiding. Not only must the definition of ethics cover issues like right and wrong and/or good and evil, but it must encompass the practical aspect of dealing with these issues in an everyday business setting. I believe that ethics in leadership means to set values and standards and to live by them.

Ethical behavior is not a tap that can be turned on and off at will. A “sometimes” style of ethics simply doesn’t cut it. Either leadership in business includes an ethical standard or it doesn’t. You have to walk the talk and be willing to do and say the tough things. It’s easy enough to act ethically when the choices are no-brainers; it’s more difficult when the decisions get tough. If, as an example, you have the opportunity to cheat a customer (or vendor) and the likelihood of their ever knowing that it happened is very low, do you choose to do it? Before you answer, consider what you would say if the decision could save you thousands or possibly tens of thousands of dollars. The choice then becomes more difficult. And if you do decide to let your ethics slip this time, will your staff think you are smart and business-savvy, or simply unethical?

When it comes to ethics we all want to believe we are ethical and we also want to believe we have ethical standards that we apply to all situations. The reality is far different for most leaders. And if as a leader your ethics or standards change as the financial impact changes, then how do the folks who work for you know what standards to apply and adhere to? As your principles waver, people do not know what to expect and the trust they place in you erodes. Telling people what you are going to do and then doing it builds trust and that trust builds loyalty. Without trust you will not have loyalty from clients, staff, vendors or colleagues, and you cannot build and maintain a successful business. Ethics equals trust equals loyalty. That’s why I say that leadership in business is, first and foremost, about ethics. Of course, you can choose to make it a sometimes thing. Just be prepared for outcomes you may not like long-term.