Ethical leadership, defining it as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement and decision-making”… [and] the evidence suggests that ethical leader behavior can have important positive effects on both individual and organizational effectiveness (Rubin et al 2010: 216-17).
First of all, let’s look at what is Ethical?
The modern Oxford English Dictionary says:
“Ethical is that Relating to moral principles or the branch of knowledge dealing with these…” (Oxforddictionaries, 2014)
Why managers or leaders have to practice ethical?
This question might comes to people mind why they have to do that, what are the reasons of being ethical leaders or managers in organisations.
However, the objective of being traditional leaders or managers is that to develop, control resources within organisations for the best outcomes and earn the most profit. Time changes, there are many new competitors and issues in the industry, so organisation itself has to find ways or method to maintain their reputation and profits in order to survive in the industry. Practicing ethical is one method to show how much managers or leaders response to the community and environment, which related to organisation. Leaders or managers have to encourage their team members or subordinates to practice ethical as well to achieve the goal of organisation and the organisation as a whole with vast spans of communication and disparate areas of responsibility needs a bonding agent to make people feel they are making a unique and valuable contribution to the whole. (Ethicalleadership, 2014)
According to above statement, ethical leader or manager behaviour can have significant positive effects on both individual and to organisations that he or she belongs to.
Most of the task that leaders or managers have to do is influence and encourage their teams. Furthermore, the most important point is to make the purpose of practicing ethical for organisation clearly for effective performances. A good leader or manager should take a responsibility in leverage values of subordinates to use in ethical way. Also as a manager or leader should be supportive for team members such as, keeping their records, reward them when necessary, develop and employee handbooks, and communicate any policy changes (be updated). (Sba, 2013)
Below here is the commitment or code of practice of CMI about ethical leadership.
For the wider community I will:
- Be honest, open and truthful in all external communications
- Respect the customs, practices and reasonable ambitions of others
- Ensure that I am aware of, and comply with, all relevant legislation and regulations in the country where I am operating
- Respect social, environmental and wider corporate responsibility concerns, assessing the impact of my actions on the environment and society around me, and seeking to conserve resources wherever possible (CMI, 2014)
It can be the competitive advantage of organisation in particular industry. There are many companies nowadays developing CSR in order to gain a reputation and build an image for organisation themselves. It is obviously seen that in hospitality industry, most of the big hotel chain are developing CSR across the world to show that they are concerning about environment and community in the area that hotel situated such as, hotel in Shangri-La group, Six-senses group, and etc.
“We do not inherit the earth from our ancestors, we borrow it from our children.” – Native AmericanProverb
It is obviously seen that there are many advantages of practicing ethical in organisation both for individual and organsations, which you can see from the video above.
Furthermore in fashion industry, there are many brands in different markets that using CSR to build a brand promise and brand reputation to their clients.
In conclusion, from my perspective, it is not only managers or leaders responsibility for practicing ethical, however they are the most important key driver to drive organisations or firms to work effectively and more productive. Not only to earn profit and reputation, but also for themselves in order to change team members mind about ethical for peaceful society in the near future.
Mullins, L.J. (2013). Management and Organisational Behaviour. United Kingdom: FT Publishing International.
Oxforddictionaries. 2014. ethical: definition. [ONLINE] Available at: http://www.oxforddictionaries.com/definition/english/ethical. [Accessed 26 March 14].
CMI. 2014. Code of Practice for Professional Managers. [ONLINE] Available at: http://www.managers.org.uk/code/view-code-conduct. [Accessed 18 March 14].
Caron B.. 2013. How To Be an Ethical, Fair and Lawful Manager of Employees (While Protecting Your Interests). [ONLINE] Available at: http://www.sba.gov/community/blogs/how-be-ethical-fair-and-lawful-manager-employees-while-protecting-your-interests. [Accessed 20 March 14].
Eco-business. 2013. Corporate social responsibility in the fashion industry. [ONLINE] Available at: http://www.eco-business.com/opinion/corporate-social-responsibility-fashion-industry/. [Accessed 21 March 14].