“One bad apple spoils the bunch.”
You have likely heard this metaphor used to describe how a single individual’s poor decisions or behavior can influence those around them. And if you are a business leader, you may have seen it first-hand in the workplace. One disengaged employee with a poor attitude or substandard work habits can influence other employees to adopt the same approach to their work. If left unchecked, it can undermine team efforts and stagnate progress, spoiling the culture you have worked hard to foster throughout the organization. Luckily, the attitudes of high-performing individuals are also contagious, especially when it comes from the top down.
The values and attitudes embraced and demonstrated by your organization’s leadership set the stage for the entire organization. For better or worse, employees notice how leaders conduct business and interact with others. The values these individuals demonstrate become the expected standard and define the company culture. Ethical leaders set the bar high for every employee and set the stage for ethical business operations. Companies with ethical leaders reap many benefits at all levels of the business, which is why Utah executive search agencies seek out ethical leaders for their clients.
What are ethical leaders?
Ethical leaders act and make decisions based on critical values, including honesty, respect, transparency, integrity, and trust. These values lead them to consider the long-term effects of their decisions and how they will influence others. They focus on doing the right thing by their customers, employees, and stakeholders rather than choosing the course that will yield the best business results. However, profit is always a key consideration. These individuals breed trust within the organization and with external stakeholders.
How do ethical leaders benefit an organization?
1. Boosts Recruitment and Retention
According to a study published by the National Institutes of Health (NIH), there is a positive correlation between ethical leadership and employee satisfaction in the workplace. Employees who believe management acts in their best interest and communicates transparently with employees are more engaged. Employees engaged with their work are less likely to leave in search of greener pastures. Ethical leaders make your business a great place to work for prospective and current employees, saving you money in the long run on recruiting and training employees.
2. Supports Company Culture
The fairness, honesty, and mutual respect fostered by ethical leaders help to build a sense of community. It creates a community where all feels heard and can contribute. This type of environment encourages collaboration and innovation. It also opens a pathway to achieving equity and inclusion goals. The values ethical leaders weave into their interactions become a part of the culture company-wide.
3. Encourages Autonomy
Employees motivated by the same values exemplified by management are trustworthy. Like their leaders, they consider the broader picture and understand how their actions and attitudes influence business outcomes. Guided by these principles they are high-performers managers can trust to get the job done without management intervention. Managing these self-motivated teams requires less time, freeing up managers to tackle other tasks.
4. Attracts Investors
Immoral behavior in the business world is risky. Misleading customers can lead to lost contracts. Deceiving employees may cause attrition. Side-stepping regulations can also have serious consequences, including government fines and bad press. Whether the infraction is large or small, the consequences that follow influence the bottom line.
A company regularly engaging in dishonest or immoral practices will not look like a wise investment to a savvy investor. Investors would rather back organizations with ethical leaders who avoid taking unnecessary risks. An ethical leader safeguards the company’s future and investors’ money.
5. Increases Customer Loyalty
With a wealth of information at their fingertips, customers can learn all about your company, and many do. They look for those who share their values and ideals, whether that be integrity, sustainability, fair treatment of employees, giving back to the community, or accountability. Customers can and will choose to do business with organizations that demonstrate the qualities they respect and value.
6. Builds Trusting Relationships
In business, relationships are key. And like customers, vendors and suppliers are drawn to businesses they respect. The values that govern your business interactions will attract like-minded business partners. This “like attracts like” interaction can work to your advantage or your detriment. If you want to do business with trusted partners, be a partner they can trust. Building these relationships begins with placing ethical leaders at the helm of your organization.
7. Supports Life-long Habits
As much as we would all like to think that when we go home, we hang up our work hats and become different people, it simply isn’t true. Fostering ethical values in decision-making and interpersonal interactions in the workplace will affect other aspects of our lives. Becoming an ethical leader or employee will lead to more ethical behavior outside the office, which benefits everyone. It is contagious and supports the development of these traits among all business leaders and employees.
Recruiting for Ethical Leadership
While people can change, it is a process that takes time. Leaders who are used to cutting corners to get the job done may struggle to become the ethical leader you want to lead your organization. Individuals who live by a high moral code are prime candidates to be your next ethical leader. Need help with how to evaluate candidates and identify an ethical leader? Salt Lake City recruiting firms specialize in finding the best candidate for any position. They can help you find the best candidate to lead by example and model your organization’s values.
Infographic
Ethical leaders prioritize values like honesty, respect, transparency, integrity, and trust in their decision-making. They consider the long-term impact of their actions on customers, employees, and stakeholders, focusing on doing what is right rather than simply seeking profit. Discover how ethical leadership benefits organizations in the infographic.