The Critical Importance of Business Ethics For Effective Leadership


How important are ethics to be an effective leader? According to the American Management Association, is an important characteristic of successful leaders today. In a survey of 462 executives who asked: “What characteristics are required to be an effective leader today?” 56% ranked ethical behavior as an important feature, after a judgment (51%) and be adaptable / flexible (47%).

However, with due respect for the AMA survey, I believe strongly that there is much more than “important,” it is “vital, essential and non-negotiable” signs of effective leadership. Strong business ethics is a strategic pillar of my strategic thinking corporate training efforts on a daily basis. Customers are encouraged to develop a set of core values ​​and guiding principles and publish them for their customers and stakeholders to know that this is the way they do business. And furthermore, customers are constantly reminded to make sure that baseline out in everything they do.

Examples of unethical behavior abound in stories of companies worldwide. And people witness of any kind of unethical behavior in their workplace every day. Unethical behavior where people deliberately going to harm themselves or others, develops from and is reinforced by, destructive states of mind, including fear, greed, anger and jealousy. The agreement, ethical behavior increases the welfare of all because it evolved from IDS and supported by strong impulses and emotions, such as love, joy, generosity and compassion

We need to ask these questions :. “How morally vulnerable is our business or organization?” “What are the core values ​​and principles of our organization?” “We are committed to live and demonstrate our core values ​​in everything we do?” The answers to these questions will define the status of ethics in our business.

Leadership in business must set the standard and “walk the talk” when it comes time to ethical behavior. There can be no compromise on ethics. There can be no “waiver of ethics.” A leader must constantly keep his or her actions above reproach. If leaders are committed to a high standard, there will be no more Enron, WorldCom, Tyco, and ADELPHIA ethical meltdowns.

Knowing what is right is very important for personal and business ethics. Do what is right is absolutely critical to personal and business ethics. Strong unwavering commitment to your values ​​and mission of your company or organization will lead to the right ethical decisions and actions. In the absence of these measures, all one has is good intentions and simply is not enough for effective leadership.


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