How do you as an ethical leader ensure that the organisation you run is ethical? Leadership involves influencing a group of people to work together towards a common goal. Given that an organisation has people from different backgrounds making decisions on behalf of the organisation, those people may be prone to exercising their individual moral judgement based on their unique and varying experiences. An ethical leader may possess an internal compass shaped over the years by his or her belief system, but how does the leader effectively translate those values and consequently ethics to members of that organisation?
Last week we discussed the role that values play in shaping ethics in an organization, and emphasized the importance of infusing ethics into corporate values, particularly in an ethically challenged society. However, values are subjective, and the resulting behavior and decisions based on shared values may vary based on the lens of the interpreter. For example, if we say we treat people fairly, two different people may have two different interpretations of fairness. This is where tools like a code of ethics come into play. A business should have a code of ethics document. This document should clearly specify the organisation's policies on ethical issues like: conflict of interest, bribery and corruption, sexual harassment, treatment of vendors, use of company property and other key issues. It should prescribe what the employee must do when confronted with those issues and the penalty for non-compliance. However, in addition to this, equipping employees with frameworks for ethical decision making can be helpful in training your organisation to reflect your ethical beliefs.
The ethical decision-making process is often carried out subconsciously by an individual. Leaders can train their team on how to intentionally arrive at an ethical decision through the following steps: Identify the Ethical Issue/Dilemma, Gather Information, Evaluate Options, Make a Decision, Implement the Decision, and Review and Reflect.
Identify the Ethical Issue/Dilemma:
This involves correctly defining the problem. Different definitions of the same issue will result in different courses of action. For instance, a civil contracting company is working on a building renovation project for a multinational organization, and discovers that their subcontractor is using underage workers on the project site. Upon investigation, they find out that the subcontractor in question has traveled out for the weekend, and left underage workers on the site. What does the project manager do in this instance? The project manager’s action depends on their definition of the problem at hand. Here are 5 ways the problem can be defined:
Child Safety and Welfare Issue: The project manager could define the problem primarily as a child safety concern. This perspective focuses on the immediate risk and welfare of the underage workers present on the site, emphasizing the need for urgent action to ensure their safety and remove them from potentially hazardous work conditions.
Legal and Compliance Issue: The definition could focus on the legal implications of employing underage workers, which likely violates national labor laws and potentially international labor standards. This view would frame the problem as a compliance issue, requiring the company to rectify the situation to avoid legal repercussions and potential fines.
Contractual and Vendor Management Issue: The problem could be defined in terms of poor management and oversight of subcontractors. This definition would lead to actions focused on reviewing and strengthening contractor management processes, ensuring better oversight and compliance with ethical standards in future.
Human Rights Violation: By defining the problem as a human rights violation, the project manager places a high emphasis on the fundamental rights of the underage workers. This broader perspective might prompt actions that go beyond mere compliance, leading to advocacy and long-term strategies to prevent similar issues in the industry.
Project Integrity and Reputation Risk: Here, the problem is viewed through the lens of project integrity and the potential reputational damage to the company if stakeholders or the public become aware of the issue. The focus would be on resolving the issue discreetly and quickly, ensuring such practices are not associated with the company or its projects.
Each of the above definitions of the issue, will inform the prescribed solution to the problem defined. It is therefore important to pay close attention to how the issue is defined.
Gather Information
In this step, the leader collects all relevant facts and viewpoints to understand the situation better. It’s crucial to get information from diverse sources to have a well-rounded understanding. In the contracting company's case, this might mean consulting legal advisors and reviewing local labor laws.
Evaluate Options
This involves considering all possible courses of action and their potential outcomes. It's essential to weigh the consequences of each option, not just in terms of immediate effects but also long-term impacts on all stakeholders.
Make a Decision
After evaluating the options, the next step is to make a decision that aligns with the ethical standards of the organization and the leader's values. This decision should also consider the well-being and rights of all stakeholders involved.
Implement the Decision
Once the decision is made, it needs to be implemented effectively. This includes communicating the decision to all relevant parties and organizing the necessary actions to follow through.This is the crux of ethics. The Management Library defines Ethics is moral values in action. Beyond the principles and expressed moral values, for an individual or organisation to be truly ethical, they must demonstrate the courage to act according to their conviction regarding right and wrong.
Review and Reflect
After the implementation, it's vital to review the outcome of the decision. This reflection helps understand what was done well and what could be improved. This step also involves considering the feedback from those affected by the decision and using this feedback to refine future ethical decision-making processes.
In Summary
As Linda Treviño and Katherine Nelson, authors of Managing Business Ethics, suggest, ethical leadership extends beyond individual leaders and must be embedded into the culture of the organization through policies, training, and consistent practice. Meanwhile, Michael Schwartz, in his article for Business Horizons, emphasizes that developing a culture of ethical decision-making within an organization helps ensure that ethical considerations are not an afterthought but a fundamental aspect of everyday business operations.
Equipping an organization with a strong ethical foundation involves more than just setting up rules; it requires a continuous commitment to ethical behavior and decision-making at all levels of the organisation.
Nwamaka Nwobi Okoye is a thought leader on Ethical Leadership and Sustainability.
Comments