Question

1. Define and describe the principles of ethical leadership. which is the most important trait for an ethical leader ? give an example of someone in a leadership position who possesses this trait. How does it serve them in their leadership role?

Answer 1

Ethical Leaders Respect Others

Every religion teach us how to respect others. Therefore, if you are a spiritual person, this is part of your character. However, in the context of leadership what it exactly means ? Respect means that a leader listens closely to followers, is empathic, and is tolerant of opposing points of view. Every individual needs to value the differences of each individual and bear in mind that everyone is superior to others in some way. In other words, team members don’t have to be like you or you don’t have to be like them. Let each individual be themselves, have their own values, needs and purposes.

Ethical Leaders Serves others

It is about leader’s altruism behavior. They place their followers’ welfare foremost in their plans. In the workplace, this translates to activists such as mentoring, empowering, team building, etc. Ethical leaders have a deep understanding of each individual and make decisions pertaining to them that are beneficial and not harmful to their welfare. Ethical leaders must refrain from advancing their ambitions at the expense of team members.

Ethical Leaders are Just

Ethical leaders make fairness and justice a top priority to treat all of the team members in an equal manner. Equality is an core basis of any social group. As a rule, no one should receive special treatment or special consideration except when his or her particular situation demands it. In other words, equality necessarily means that leaders apply the same set of actions on each individual. As mentioned in Seven Habits of Highly Effective People, it could also mean “ Treat them all the same by treating them differently”. However, basis for different treatment must be clear and reasonable and must be consistent across all individual.

All in all, it all boils down to one golden rule which was there for many generations and taught in many religions “ Do unto others as you would have them do unto you”.

Ethical Leaders are Honest

Again, if you are spiritual person this must be in your blood. To be a good leader, one must be honest. Honesty is easier understood by understanding the opposite which is dishonesty. Dishonesty is form of lying, a way misinterpreting the reality. Honesty is not only about saying the truth but also about being open. Having said that, leaders still have to strike balance between when to say what. Because there could be sensitive information that could result in unintended consequences if it is disclosed at the wrong time or in the wrong way. Therefore, leaders have to be matured enough to handle information. In organizations, it goes further to behaviors such as,

· Not promising what you can deliver

· Not hiding behind spin-doctored evasions

· Not suppressing obligations

· Not evading accountability

· Not accepting that the ‘survival of the fittest’ pressures of business release any of us from the responsibility to respect another’s dignity and humanity

Ethical leaders build community

Leadership is process whereby an individual influences a group of individuals to achieve a common goal. Defining the common goals requires the involvement of the entire community as these goals need to be compatible with everyone. Working towards these mutual goals change both leader and team members and this change must have a positive impact on everyone. A positive impact that is unique to each individual. An ethical leader is
concerned with the common good, in the broadest sense.

The most important trait for an ethical leader is

HONESTY

Example of a leader who possesses this trait is : A very well known personality : Mr. Ratan Tata

Since its inception, the Tata Group had sought to function with ethics, integrity, social consciousness, and fairness. According to Ratan, these values were an integral part of the group and the questions one needed to ask while making decisions were: "Does this stand the test of public scrutiny in terms of what I said earlier? As you think the decision through, you have to automatically feel that this is wrong, incorrect, or unfair.

You have to think of the advantages or disadvantages to the segments involved, be it employees or stakeholders." The group's strategy of 'Leadership with Trust' sought to achieve higher value for its stakeholders, better returns for society, and an ethical model of business..

When it comes about Tata Group, one of the leading business houses in India, a key emerging market. The group had a long-standing reputation for ethical leadership and was well known for its corporate social responsibility and principles such as the "Tatas don't bribe" and the "Tatas don't indulge in politics".Under the leadership of Ratan Tata, the group carried forward this legacy and consolidated its businesses further in India while also acquiring a global footprint. India, like many markets in transition, was passing through a period when excessive power was concentrated in the hands of the political elite and their cronies.

This had led to a government-dominated economy characterized by nepotism, patronage, and corruption. According to some experts, most Indian entrepreneurs operated in "oligopolistic markets and in sectors where the government had given them special privileges". Despite operating in this market, the Tata Group had managed to build its empire emphasizing the twin pillars of "trust" and "integrity" - so much so that these had become a key aspect of the Tata brand. However, in 2010, the group and its leader Ratan Tata were dragged into the infamous 2G scam that broke out in India. Investigations into the scam in the fast growing telecom sector revealed deep-seated corruption in the country. There was quite a bit of evidence of corporate wrongdoing, and many corporate houses including the Tata Group came under the scanner.