The term leadership ethics refers to the value system that the leaders in an organization hold true. Although every organization has their own set of leadership ethics, not all companies expound on them efficiently enough.
This would then help a leader in making decisions that are ethically sound. The same way the staff of an organization are governed by a specific code of ethics, the leaders of the same organization need to have leadership ethics that govern them.
The basic component of leadership ethics is the fair treatment of all employees. All leaders should have it indoctrinated to them that the staff should not only be treated in an equitable manner, but should also be treated with respect.
Other things would include the mandatory compliance to regulations set by the specific industries plus upholding business practices that are fair. Leadership ethics are not only sequestered to the organization and its employees.
Good leaders will ensure that they practice leadership ethics when they are dealing with people who may not necessarily work in the company but are involved with the organization in one way or another. This would include its application when relating to suppliers, customers and even other companies that may be partners with the organization.
A leader must understand that the bulk of their responsibility is to ensure that the shareholders of the company are happy. For a leader to ethically run an organization, they need to ensure that the mission statement of the organization is delivered.
Mission statements tend to be intangible thus the company will nee d to elaborate to the shareholders whether they will see the mission statement in action either through a rise in profits or through excellent customer service.
To ensure that the mission statement is adhered to, the leader must employ leadership ethics in different areas ranging from resolving of conflicts that may arise to ensuring that the company has met all the legal regulations.
Leadership ethics also ensure that the leaders in an organization do not take advantage of their customers. If a leader properly utilizes this, then they can come in handy in many situations that involve the customers ensuring that they remain happy.
One of these areas is the slippery line between maximizing of profits versus exploiting the customer. A leader with leadership skills will know where to draw the line between profit for the company and taking advantage of their customers. Leadership ethics will also come in when it comes to the advertising that a company decided to employ.
A leader who is excellent in this aspect will ensue that the advertizing they use does not lie to the clients. Though less experienced leaders may think that when they use misleading advertizing sales will increase, they fail to realize that not only is this a temporary solution but when the masses find out, they will no longer pledge any loyalty to that brand.
By John Vaughan