According to the article, “Ethical leadership is about doing what is right for the long-term benefit of all stakeholders. It is about balancing the organization's short-term goals and longer-term aspirations in a way that achieves a positive result for all those who could be affected by the organization and the decisions of its leader. It is not only about ensuring that others are not adversely affected by the leader's decisions and actions, but also actively looking for ways to make sure that others benefit from these decisions. It goes without saying that the more senior the leadership role, the more influence and impact that leader's decisions will have on a broader group of stakeholders.”
Therefore, the more senior the leader, the more careful and circumspect they should be in reaching decisions. This is the very essence of establishing sound oversight and governance. Structures should be in place to provide the leader with a sounding board and advisory conscience. This will help to prevent them from taking ill-advised decisions and actions which may ultimately cause harm.
The research suggests that there are several levels of behaviour, from the unethical through to the highly ethical, as follows:
Level 1: Rejection. Exploit,
use and abuse others, and especially their relative disadvantages, for your own
gain, without any regard for consequence.
Level 2:
Non-responsiveness. Operate from a position that measures success only in
terms of one’s own gain; exploit others where there is a power or monetary gain
to be had; little real concern for the law of regulation.
Level 3: Compliance.
Do the minimum required by the relevant law of the land, and continue to
exploit others, but minimize consequential risk. In other words, don’t get
caught.
Level 4: Efficiency.
Regard yourself as a good citizen (individual or corporate) and act in a manner
that respects and upholds the morals, values, regulations, customs and styles
of wider society; act in a holistic, integrated way across all areas of
activity.
Level 5: Proactivity.
Be a proactive agent for values-led leadership in the context of wider society
in all areas of activity, recognizing this as a point of personal or corporate
distinction. Or, be a role model by going “above and beyond.”
Level 6: Sustaining.
Recognize one’s place in the grander scheme of things, and the inter-connectedness
of everyone and everything; act as a co-evolutionary element to foster greater
effectiveness for the whole.
The article observes that: “They are mindsets, attitudes or ways of being. And this goes to the heart of the matter. An ethical leader operates from Level 4, 5 or 6. They have a sense of mission in life. They operate according to their identity, and the values and morals they clearly possess. They are marked out by the perspectives they bring to problem-solving, the capabilities they develop in themselves and others, the choices they make and how this is all expressed in their behaviour...a leader operating from Levels 1, 2 or 3 is not an ethical leader.”
Learn more by reading the full article “Instilling ethical leadership” in the June 2013 issue of Accountancy SA, the premier stakeholder communication vehicle of the South African Institute of Chartered Accountants (SAICA). Also, see the article on “The Art of Ethical Leadership” and refer to other guidance materials about “ethics and integrity.”
