In a business environment characterized by rapid-fire changes and expectations, ethical decision-making has become a cornerstone of effective leadership. Employees want to know where their leaders stand, and creating a strategy that aligns with the company’s internal and external mission is crucial to ensuring sustainable success and fostering trust among stakeholders.
Southeastern Oklahoma State University’s online Master of Business Administration (MBA) in General Business program equips aspiring leaders with the knowledge and skills to integrate ethics into their decision-making processes. This degree prepares them for impactful roles across the corporate landscape.
The Impact of Leadership Styles on Conduct
Leadership styles profoundly influence organizational behavior and culture. Ethical leadership, characterized by integrity, transparency and accountability, sets a standard for conduct that permeates all levels of an organization. According to the Harvard Division of Continuing Education, ethical leaders prioritize the common good over personal or financial gain, considering the welfare of employees, customers and the broader community in their decisions.
This approach not only enhances the organization’s reputation but also fosters a culture of mutual respect and collaboration, leading to increased employee engagement and productivity. According to Harvard Business School, ethical leadership choices can range from large scale, such as JetBlue Airlines CEO David Neeleman changing policies and drafting a “customer bill of rights” after mishandling departures during a snowstorm, to small scale, such as a company terminating their contract with a client who mistreated staff.
Conversely, leadership that lacks ethical grounding can result in misconduct, legal issues and a toxic work environment, underscoring the critical role of ethical leadership in shaping organizational conduct. Harvard Business School points to an example of a large bank chain that opened millions of unauthorized bank accounts that employees opened fraudulently to meet their workplace’s sales targets. Further reporting showed the work culture prioritized quantity over quality at all costs, leading to illegal activity. The company lost the trust of customers, staff and investors and incurred penalties from federal agencies.
Embedding Ethics Into a Company’s Mission and Practices
Effective leaders integrate ethics into a company’s mission and overall culture, leading with transparency, empathy and responsibility, according to Forbes. However, the effort requires deliberate strategies and a commitment from top executives. One viable approach is the development of a comprehensive code of ethics that outlines expected behaviors and decision-making frameworks. As Diligent points out, such a code serves as a foundational document, guiding employees in navigating ethical dilemmas and reinforcing the organization’s dedication to integrity.
Beyond documentation, leaders must exemplify ethical behavior, leading by action. Harvard Business Review outlines how leaders make decisions through two systems: the intuitive system, which is fast and more emotional, and the deliberative thinking process, which is slower, more logical and takes much more effort than intuitive reactions. Most decisions involve intuitive thinking, but the deliberative process is more rational because it requires leaders to compare multiple options at once.
Making deliberative decisions can be as simple as requiring staff leaders and managers to take a moment to reflect before making decisions. The process allows time to consider the ethical ramifications and consult people affected by the decision. The other strategy involves incorporating input from various groups and individuals to gain a comprehensive understanding of the potential impacts of a decision, thereby reducing biases and enhancing ethical outcomes.
By modeling ethical decision-making, leaders set a precedent and encourage employees to uphold similar standards. Additionally, providing regular ethics training and creating safe channels for reporting unethical conduct are essential practices that embed ethics into the organizational fabric, ensuring that ethical considerations remain at the forefront of business operations.
Learn to Set Ethical Standards With Southeastern Oklahoma State University
Southeastern Oklahoma State University’s online MBA in General Business program offers a robust curriculum that equips students for ethical leadership in today’s complex business world. Courses such as Principle Centered Leadership and Ethics help students understand how to approach ethical issues within a management context and find satisfactory resolutions for both the individual and the entire organization.
Another pivotal course, Strategic Management, gives students the tools to develop long-range plans that accomplish the company’s overall goals without compromising the company’s mission or ethical standard. Upon graduation, rising business leaders have the insights they need to lead with integrity and take on the ethical complexities of the corporate world without fear.
Learn more about Southeastern Oklahoma State University’s online MBA in General Business program.