Ethical Leadership

Ethical Leadership as a Success Factor

The leadership style of managers plays a central role in the success of a company. Not only are planning skills important, but also the way managers interact with employees is a crucial factor for the company's productivity. In this respect, ethical leadership proves to be particularly beneficial. In this article, you will find all the information about the ethical leadership style and additionally some signs that will help you identify toxic behaviour from a leader.  

What do we mean by ethical leadership?

Ethical leadership is based on firm values and principles that the manager models. The focus is on moral principles and open handling of misconduct. The values demonstrated serve as a positive example for the workforce, which ideally adopts this behaviour in their daily work. 

The 6 fundamental principles of ethical leadership are:

1. Fairness: No favoritism among certain employees and equal consequences for the same behaviour.

2. Responsibility: Managers and employees openly take responsibility for their own mistakes.

3. Trust: There is trust in the skills and reliability of the employees. 

4. Honesty: Honest communication among all team members.

5. Equality: The work environment is kept free from discrimination, and discriminatory behaviour is addressed.

6. Respect: Other team members are respected, even in the event of differing opinions. 

How does a toxic boss behave? 

Unfortunately, not every company has a leader who embodies an ethical leadership style. Many employees struggle with toxic managers who significantly deteriorate the work atmosphere and the well-being of the employees. Toxic leaders are generally understood as those who negatively influence the mood and productivity of the employees through their destructive behaviour. 

Some characteristics that help identify a toxic boss include:

• Abuse of power

• Frequent selfish decisions

• Micromanagement and excessive control

• Intimidation

• Lack of empathy

• Manipulation and unclear intentions

• Unconstructive criticism

What are the benefits of an ethical leadership style?

The ethical leadership of a company not only has personal benefits for the employees. It increases productivity and promotes collaboration among team members. Furthermore, it can protect the company from significant reputational damage and consequently financial losses. Ethical behaviour creates a positive corporate culture that has long-term effects on the positive development and growth of the company. This positive culture also improves employee retention and customer loyalty. Ethical leadership is also a decisive competitive advantage in the race for skilled professionals. 

Tips for implementing ethical leadership

Managers who wish to implement an ethical leadership style should consider the following points: 

1. Set a good example. If you expect specific behaviour from your employees and set standards, you should also adhere to those guidelines yourself.

2. Communicate openly. Open communication not only speeds up processes but also helps prevent conflicts and misunderstandings.

3. Handle changes positively. The way changes are coordinated can greatly influence the mood and satisfaction within the team.

4. Be consistent in addressing misconduct. To ensure that the ethical principles are upheld by everyone in the team, misconduct should be addressed openly. It's also essential to monitor yourself closely in this regard.

5. Implement stress management tactics. In high-performance teams, stress often builds up, making it difficult for employees to cope. To maintain productivity and well-being, you should help manage stress.

6. Treat everyone equally. Unequal treatment contradicts the principle of fairness and often leads to friction within the team.

7. Mediate in conflicts. Some conflicts cannot be resolved by the employees alone. Help to mediate fairly to quickly find a productive solution.

Conclusion

Anyone looking to build a sustainable company should adopt the ethical leadership style. This style not only increases employee satisfaction and employee retention but also conveys a positive image of the company to the outside world. In the long term, ethical leadership helps to build an organisation where both employees and customers feel comfortable.