Executive Summary
Business ethics is concerned with people and companies’ shared beliefs, principles, and ideals. Corporate executives must maintain and embody good moral standards to help build the desired corporate culture. Leaders with high ethical standards go beyond simply managing their employees; they also motivate and encourage their followers through their words and deeds. However, some Corporate executives believe that ethics is a personal concern that should only be addressed between individuals and their moral compass. They forget that management and ethics are inextricable ideas in contemporary corporate settings. This is increasingly linked to the absence of comprehensive ethics education programs in higher education and ethically-informed personal and professional objectives and development plan.
Introduction
Modern businesses must constantly adjust their corporate structure to the increasingly competitive and dynamic environments in which they operate. However, the workforce’s response might be an obstacle to the success of organizational changes, particularly if they lack the ethical mindsets to see transformation as an essential part of growth. Although ethical executives who serve as a mentor and sources of support may also have an impact by decreasing unpredictability, they also have the power to influence an organization’s culture and contribute to its productivity. For instance, it is undeniable that values such as honesty, respect, integrity, fairness, trust, and openness are crucial in driving support for change (Ferrell & Fraedrich, 2019). There is hardly any research on how businesses can use ethical leadership to encourage personal and professional development in their staff. These research gaps underscore the importance of underpinning the scope of ethical leadership and personal values in business management.
My Personal, Professional, and Business Values
Being a business educator has enhanced my understanding of integrating ethical leadership in business management and related courses. Even though I have had a lot of opportunities in the professional world, I have not been able to make full use of them since I do not have a strong business background. The difficult part has been applying knowledge, particularly in ethical leadership, in real-life scenarios. In hindsight, I have come to see that, although business students are often well-versed in all the areas pertinent to their disciplines, formal education sometimes downplays the value of ethical education in preparing them for the challenges of the corporate world.
Accordingly, my personal, business, and professional value revolve around education as the core of business excellence. Education of future business leaders must be centered on ethical leadership and the development of essential values that foster social responsibility above profits. In my opinion, the biggest difference between businesspeople and entrepreneurs is that the latter must uphold greater social obligations and corporate ethics, while the former are mercenaries. For instance, the market economy is built on the principles of honesty and integrity. They are indeed entrepreneurs’ social responsibility and a form of corporate ethics.
Honesty and integrity foster team members’ ability to forge close bonds with one another and with customers and prospects. Undoubtedly, these attributes can increase team performance and general productivity (Ferrell & Fraedrich, 2019). I have become a more trustworthy and responsible professional by learning to incorporate these attributes into my job. Individuals that are honest and have integrity demonstrate strong ethical and ethical convictions. Such people often demonstrate trust, responsibility, accountability, and reliability (Ferrell & Fraedrich, 2019). Honesty and integrity, in my view, strengthen leadership, fosters a great organizational culture, emphasize ethical decision-making, and promote diversity. In other words, a company’s commitment to ethical principles indicates the type of work culture it will foster, ensures that employees know what is expected of them, and fosters a sense of trust and loyalty among its clientele.
The Challenges of Ethical Leadership
Some executives view ethics as a personal subject that should only be discussed privately between people and their moral compasses. These managers are ready to label any misbehavior as a rare incident or the product of an insubordinate worker. They never consider that the business may be held accountable for a person’s wrongdoings. Admittedly, research has shown that management has no apparent connection to ethics (Engelbrecht et al., 2017). On the contrary, it has been acknowledged that management and ethics are inseparable concepts in modern business environments (Ferrell & Fraedrich, 2019). Personality shortcomings of a single player seldom provide a complete justification for corporate wrongdoing. The majority of the time, unethical business practices enlist the implicit, if not outright, support of others and are indicative of the mindsets, beliefs, and predispositions that make up an organization’s working culture. Therefore, ethics is a problem that affects both individuals and organizations (Ferrell & Fraedrich, 2019). Executives who do not provide effective leadership and implement systems that promote ethical behavior bear accountability alongside those who plan, carry out, and profit from corporate wrongdoing.
Leaders must be aware of their influence on corporate ethics and embrace this chance to foster the relationships and credibility essential to their organizations’ sustainability. In today’s rapidly changing strict legal climate, managers who disregard ethics face the possibility of experiencing personal and organizational liabilities (Ferrell & Fraedrich, 2019). Furthermore, they deny their businesses the advantages of new regulatory requirements for punishing organizations accused of misconduct. The Enron scandal is an illustrative case since it led to a series of new laws and regulations aimed at improving the reliability of financial reporting by publicly listed firms. The Sarbanes-Oxley Act (2002), the most significant of these provisions, established severe penalties for willfully or maliciously deleting, changing, or forging financial documents (Gorshunov et al., 2022). These sentencing laws acknowledge the organizational and management underpinnings of unethical business practices and assess penalties in part on the actions made by businesses to curtail them.
Motivated by the possibility of clemency, several businesses are racing to develop ethical programs focused on regulatory requirements. Organizational attorneys develop these systems to deter, identify, and punish legal infractions. However, corporate ethics include more than averting criminal action; presenting workers with a set of rules does nothing to tackle the inherent causes of unethical activities. To develop a culture that supports exceptional conduct, businesses need a complete strategy transcending the frequently harsh legal accountability standpoint (Ferrell & Fraedrich, 2019). A regard for the law and a focus on managerial accountability for professional ethics are both components of a strategy for ethics and social accountability founded on the principle of integrity. While honesty and integrity programs might differ in how they are designed and the areas they cover, they always have the same overarching goal: to identify a company’s underlying values, ambitions, and norms of thinking and behavior (Geddes, 2017). Such approaches, when incorporated into an organization’s daily operations, may assist in preventing harmful ethical slip-ups while also appealing to strong human instincts for moral self-awareness and conduct. When this occurs, an organization’s value system shifts from a restriction within which every business must function to its guiding principle.
The repercussions of unethical behavior may be devastating. In many jurisdictions, legislators have enacted several new civil and criminal charges, raised punishments, and bolstered resources for police agencies, all of which have heightened the risk of lawsuits and culpability. Corporate firms convicted of bribing governmental employees in China risk penalties as high as RMB200,000 (Kurakin & Sukharenko, 2018). Up to five years in jail are possible for those in control of the business organization and other involved parties. If found guilty, corporate organizations that commit the same offense face penalties ranging from RMB 100,000 to double the sum of the kickback (Kurakin & Sukharenko, 2018). The business entity’s management team and any other staff members accountable for the offense could face a fine and a 10-year jail sentence. Bribe takers can face a minimum five-year jail sentence and have their assets seized (Kurakin & Sukharenko, 2018). Accordingly, a lack of ethical culture can put organizations in conflict with the law and society consuming it entirely.
Solution
The primary responsibility of business institutions is to provide an atmosphere conducive to learning and growth. As part of building such an atmosphere, educators should provide programs on ethics that equip graduates with the knowledge and tools they need to reflect objectively on their moral codes and the profession and assess the pros and cons of alternative solutions. Undoubtedly, learning the views of the greatest thinkers on the topic of ethics may inspire students to examine their beliefs and the behaviors that stem from them. These thinkers may include Socrates, Aristotle, Plato, and Kant. Potentially, with the right type of guidance and instruction, students may form the kind of value- and ethics-informed work habits that will serve them throughout their careers.
Personal Ethical Leadership Goals and Action Plans
Become A Mentor
Senior workers can benefit from having a mentor since it increases their self-assurance in a leadership role. The senior worker’s duty to mentor others involves imparting knowledge, inspiring confidence, and offering constructive criticism. Leaders need to possess all of these qualities to be effective. My team will turn to me as a leader for mentoring, counsel, and direction. Therefore, I intend to be a better mentor in the future.
Action Plan
Be an active listener: When creating my objectives, I will prioritize impactful mentoring to support my team’s development in their responsibilities and as employees.
I will accomplish this by meeting with each team member to learn about their professional aspirations. Then, brainstorm strategies for achieving these objectives with them. Following the meeting, I will provide them with ongoing feedback and guidance to assist them. I will demonstrate my interest in their growth by attentively listening to their concerns and giving them opportunities for further self-development.
Reinforcing my emotional intelligence and interpersonal abilities: An organization can only thrive if its members are emotionally intelligent. Empathy and other soft skills are best acquired via experience, and a mentoring program is an excellent way to get started. As a guide, I may practice responding after hearing what the other person is saying. Further, I will gain experience in delivering constructive criticism to my mentee, which may be a source of tension between us. Thus, mentoring is an excellent approach to improving my emotional intelligence and communication skills.
Accept Responsibilities
As a leader, I am responsible for acting ethically in all circumstances and carrying out all assignments to the best of my abilities. A leader with moral obligations must agree to master a skill or follow a set of norms. They are constantly prepared to provide a hand to others around them and never consider themselves above organizational needs. A leader who frequently accepts ownership for their actions demonstrates their trustworthiness. They take the initiative, can be relied upon in all circumstances, and are not hesitant to make tough choices. These traits combine to form an exceptional leader, the kind of person any company or team would be lucky to have at the helm.
Action Plan
Be involved in projects: Nobody looks up to a boss who does nothing while their team works tirelessly. A good leader is not afraid to get their hands dirty. No matter how big or lengthy the job is expected, I will be there to provide a hand. It is essential to demonstrate that I am involved in the team’s success; therefore, even if I am already overwhelmed, I will volunteer to take on a modest, easily manageable activity.
Take accountability: An accountable leader acknowledges the consequences of their actions. This person accepts blame or quickly acts to resolve an issue rather than avoiding it. I will not pass the buck; instead, I will take responsibility for and solve the problem. When we are not held accountable for our actions on the job, it is hard to take the initiative and stay on top of all that needs doing. No one is perfect, including even the most responsible of leaders. When discussing our team’s missteps, I will use the first person and accept personal blame. I will not let failure phase me, and I will do everything I can to assist my team in succeeding despite adversity.
Improve on Self-Discipline
Leaders who practice self-control at work can focus entirely on the job in question. According to studies, managers who exhibit good self-control and tenacity are far more likely to be conscientious and interested in their job (Lian et al., 2017). In the future, I want to exercise more restraint in the face of workplace decision-making pressure. When making decisions, I will put the needs of the organization and my team ahead of my ambitions. I will analyze all potential possibilities and select what is right rather than the most advantageous. I will demonstrate my leadership integrity by making impartial decisions.
Action Plan
Practice mindful meditation: The practice of mindfulness meditation is increasing in the corporate sector and is being hailed as a remedy for many of today’s workplace challenges. Mindfulness training will help me sharpen my concentration by teaching me to hold my attention on one thing without getting caught up in the fluctuations of my thoughts or feelings. A marked decrease in impatience is recognized as one of the many benefits of regular meditation for leaders (Korponay et al., 2019). Therefore, mindfulness meditation will support me in maintaining my attention and composure when in stressful situations.
Conclusion
When someone leads ethically, they act per a framework of principles and values widely accepted as providing a solid foundation for the collective benefit. Such qualities in business include honesty, respect, integrity, fairness, trust, and openness. Together, they become the face of an organization’s ethical framework when adequately integrated into systems and processes. Executives with honesty and integrity can redirect their self-importance away from themselves and concentrate on the larger aim of developing an excellent organization since their emphasis is on the business rather than their ambitions. Moreover, they not only ask for assistance when in distress but also own mistakes and assume liability for the business’s outcomes. The leaders’ personality enables them to perceive the responsibility they must carry to enhance their company’s potential for success.
References
Engelbrecht, A. S., Heine, G., & Mahembe, B. (2017). Integrity, ethical leadership, trust and work engagement. Leadership & Organization Development Journal, 38(3), 368–379. Web.
Ferrell, O. C., & Fraedrich, J. (2019). Business ethics: Ethical decision making and cases. Cengage learning.
Geddes, B. H. (2017). Integrity or compliance-based ethics: Which is better for today’s business? Open Journal of Business and Management, 5(3), 420-429. Web.
Gorshunov, M. A., Armenakis, A. A., Feild, H. S., & Vansant, B. (2020). The Sarbanes-Oxley Act of 2002: Relationship to magnitude of financial corruption and corrupt organizational cultures. Journal of Management, 21(2), 73. Web.
Korponay, C., Dentico, D., Kral, T., Ly, M., Kruis, A., Davis, K., Goldman, R., Lutz, A., & Davidson, R. J. (2019). The Effect of Mindfulness Meditation on Impulsivity and its Neurobiological Correlates in Healthy Adults. Scientific reports, 9(1), 11963. Web.
Kurakin, A., & Sukharenko, A. (2018). Anti-corruption in the BRICS countries. BRICS LJ, 5, 56. Web.
Lian, H., Yam, K. C., Ferris, D. L., & Brown, D. (2017). Self-control at work. The Academy of Management Annals, 11(2), 703–732. Web.
