1 The Qualities of an Effective Ethical Strategic Leader The concern for ethical strategic leadership comes at a time when people’s trust in the concept of effective leadership is gradually getting eroded. In today’s world, it has become increasingly common for prominent leaders to be racked with scandals that expose their lack of ethics and inability to lead strategically. Leaders ought to be the source of moral development for the people they lead. They should also have a clear vision of the goals of the organization, and how to achieve them. An ethical strategic leader is an effective leader, and is also able to steer the organization to success. In essence, an organization's success is to a great extent determined by the ability of its leaders to lead strategically and ethically. Ethics and strategy are significant aspects of competent leadership. Leaders who demonstrate poor strategic skills and are unethical demotivate the workforce, reducing the organization’s overall productivity.
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2 In recent decades, the level of turbulence in the external environment of organizations has increased significantly, ranging from financial crises to global pandemics. To maintain a competitive advantage in the ever-changing environment, the leader ought to develop their competence in order to provide direction to their teams and steer the organization forward. This requires leaders to transform how they operate more than ever to overcome these challenges. In such a dynamic environment, the leader should focus on designing an effective strategy and becoming ethically competent in order to move ahead. Strategic leadership involves being intentional about providing top-quality leadership. Ethical leadership entails ensuring that the actions and decisions made within the organization promote its well-being and that of its stakeholders and create a climate conducive to ethical conduct. To be an ethical leader, one requires the ability to decipher what is right and what is wrong and to set an example of good behavior for the rest of the organization. There are four main features that identify an ethical leader. Firstly, their behavior is accepted as appropriate and serving the well-being of the organization. Secondly, they communicate and explain their actions to their subordinates to ensure that they are held accountable to the same ethical principles as the rest of the organization. Thirdly, they outline the ethical standards to be followed, and set rewards and punishments for right and wrong behavior. Fourthly, they incorporate these ethical standards in their attitudes, speech, decision-making, and actions (Agarwal, & Bhal, 2020). In other words, they practice what they preach. An ethical leader is an effective leader because he does the right thing at the right time, and acts for the good of the organization. Strategic leadership involves designing and maintaining structures that support the objectives of the organization. It also involved empowering the members of an organization to
3 innovate and contribute actively to the attainment of the mission, vision and goals. Strategic leadership supports fundamental aspects of organizational success, such as human resource management, resource optimization, and project management. An ethical strategic leader is an individual who inspires the organization's members to realize and release their full potential towards the fulfillment of specifically outlined objectives. The leader also creates a work environment that is conducive to productivity and success. An ethical strategic leader creates a significant positive impact on the organization. They also create sustainable change, such that their absence from leadership will not lead to a decline in the organization. Undoubtedly, today’s fast-paced and competitive global environment requires an effective ethical leader. This paper explores the qualities of an ethical strategic leader, integrating these qualities with biblical teachings on good leadership. Importance of Ethical Strategic Leadership Renowned leaders across the world in political, corporate, social, and other domains have demonstrated that ethical and strategic leadership are a primary feature of successful leadership. This type of leadership facilitates growth, productivity, and profitability. An ethical strategic leader is able to influence his followers to perform their responsibilities willingly and with minimal supervision. This frees up the leaders and management of the organization to perform other crucial tasks that ultimately lead to higher success (Hitt, Ireland, & Hoskisson, 2016). The work of an ethical strategic leader is challenging and demanding. It involves working towards the short-term, medium-term, and long-term objectives of the organization simultaneously, while ensuring that it maintains its profitability. Ethical strategic leadership is a direct result of successfully implementing ethical principles and strategic management processes. The Qualities of an Effective Strategic Leader
4 An effective ethical strategic leader is in essence a transformational leader due to their ability to impact the organization and the workforce positively. This type of leader considers it their duty to lead by example and to inspire, and nurture the workforce to facilitate the success of the organization. One of the outstanding features of an ethical strategic leader is honesty and integrity. Honesty is a crucial trait because as a leader, there are several opportunities for one to pursue their selfish interests, but when one possesses this virtue, they will always prioritize the best interest of the organization and its stakeholders. When a leader demonstrates that they are honest and have integrity, they inspire their followers to act appropriately. To ensure that they are held accountable to the same standards of honesty and integrity as the rest of the organization, a good leader implements structures that facilitate transparency and appropriate behavior. An effective strategic leader strives towards increasing their leadership aptitude through embracing continuous learning. This is done through enrolling in programs where they develop the skills they require to become more competitive and steer the organization successfully. A leader of this nature also seeks to learn from other people, be they his seniors or juniors in rank. Additionally, it is important to learn from one's mistakes and failures. The leadership of the organization has a significant effect on the followers. In organizations where ethical strategic leadership is exercised, there is a positive work culture because the followers model the behavior that the leaders exhibit. This brand of leadership also empowers followers to make decisions on behalf of the organization, and to play an active role in the process of working towards its vision and objectives (Hitt, Ireland, & Hoskisson, 2016). The second quality of an ethical strategic leader is their strong focus on achieving the objectives of the organization. A good leader is often successful because they take their role with
5 utmost keenness. This sharp focus enables him to outline goals for the success of the organization and work single-mindedly towards achieving them. Leadership comes with immense power and influence and there are numerous opportunities for one to take advantage of this power, to the detriment of the organization and its stakeholders. An effective ethical strategic leader has a wide variety of duties and he is supposed to apply ethics and strategy appropriately in each of the responsibilities. The leadership style used by the strategic leader matters because it determines whether or not he will be successful. The transformational leadership style is most effective in promoting ethical strategic leadership. It motivates employees to be more innovative, open to change and to perform beyond what is expected of them. An effective ethical strategic leadership makes intentional efforts to demonstrate these virtues in his leadership. There are five main strategic actions that guide the leader in this process. These are; firstly, designing a strategic direction for the organization and the team. Secondly, ensuring that the organization’s resources are prudently managed. Thirdly, creating a successful organizational culture. Fourthly, making it compulsory for ethics to be practiced at all levels of the organization; and fifth, creating controls that guide the organization. Designing the Strategic Direction for the Organization and the Team For the followers to fully comprehend what is expected of them, the leader must communicate a clear vision and objective, as well as the strategies that will facilitate their attainment. In some cases, for instance, when the economy is extremely turbulent, the firm is not able to achieve its objectives despite the leader’s best efforts. The leader should, therefore, be flexible enough to accommodate changes in the internal and external environment. It is crucial to have a neutral attitude towards risk.
6 Ensuring that the Firm’s Resources are Well-Managed Effective ethical strategic leadership also involves being a good steward of the resources that the organization owns. Organizational resources fall into three categories human capital, social capital, organizational capital and financial capital. Each of these resources needs careful management. A good leader should also be capable of integrating the resources to strengthen each other. For instance the human resources of the firm can be used to enhance its social capital by training them how to interact professionally with stakeholders, thus, improving the image of the organization. The ethical strategic leader seeks to enhance its core competencies, leveraging the strengths and eliminating the weaknesses. An ethical strategic leader realizes that employees are the most valuable asset of an organization, and as such demonstrates a high level of competence in managing the human resource. In an efficiently led organization, the leader creates an environment that supports the growth of its workers. When the human capital of an organization thrives, it translates to the success of the organization (Hitt, Ireland, & Hoskisson, 2016). Strategic leadership is more than the ability to make the firm profitable in the short term, it is also the ability to sustain the productivity of the organization in the medium and long term. Creating a Successful Organizational Culture The culture of the organization is, to a significant extent, derived from the attitudes, actions and ideologies of the leader. An ethical strategic leader therefore creates an organization that has a culture of ethics and strategic thinking. Today’s business environment is volatile, and to succeed, the leader is required to have an entrepreneurial attitude and an openness to change. Making It Compulsory for Ethics To Be Practiced at All Levels Of The Organization
7 An ethical strategic leader is an effective leader because they do what is required of them at the right time and in the right manner, using the most ideal approaches. This translates to the success of the organization. The ethical strategic leader prioritizes the implementation of a culture where the right values are rewarded, and inappropriate behaviors are discouraged. Leading by example is also prioritized, such that their actions set the path for the rest of the team (Hitt, Ireland, & Hoskisson, 2016). Ethical strategic leaders ensure that the organization has well-detailed ethical codes that the entire organization, including themselves, abide by. Essentially, in an organization that is led using this leadership approach, the leader expects ethical conduct from the shareholders, and the shareholders also expect the leader to act ethically while practicing a strategic approach to matters. The leader should ensure that the expected ethical standards are clearly communicated and continually updated to keep up with the changing times. The ethical strategic leader also creates systems and structures that ensure that the organization is held accountable for its actions. Such structures include an internal audit process that guides certain processes. It is crucial to encourage ethical behavior by creating a fair reward system that encourages an ethical culture. Additionally, ethical strategic leaders create a work environment where each individual, regardless of their rank within the organization, is treated with dignity. Creating Controls that Guide the Organization Controls are a crucial aspect of strategy and ethics. They are implemented to provide the structure that guides the application of strategy and ethics. An effective control system also builds the leader’s credibility, and leads to favorable organizational outcomes. The Bible and Ethical Strategic Leadership
8 The Bible provides the truth on each aspect of life including ethical strategic leadership. Christian leadership, although not rooted in the worldly concepts of leadership, also entails the application of ethics and strategy. Ethical strategic leadership is a biblical concept that is demonstrated from the very beginning of times, in the book of Genesis, where God created the world in six days, bringing to life all living things of the air, sea and land. This shows that God honors the process of strategic thinking and planning. The book of Exodus also reveals that Moses was a strategic thinker. He led the Israelites out of Egypt, and ensured that they were well-taken care of in the wilderness through a proper strategic plan, where he delegated the leadership duties to various leaders. He also demonstrated the ability to think strategically when he sent spies to assess the land of Canaan (New International Version, 2016). Jesus also provides a key example of ethical strategic leadership. His ministry despite only spanning three years, was highly effective, and is impactful thousands of years later. He inspired the disciples to share his vision, by doing good deeds and thus demonstrating what a Christ-like world would be like. The sick were healed, the hungry were fed, and the outcasts were accepted. Jesus performed his work strategically and accomplished great deeds within a short time because He understood his purpose on earth. In the same way, the strategic efforts of leaders are more effective when they understood the purpose of their actions and roles. Jesus also demonstrated that He was an ethical leader by always speaking the truth and treating people fairly regardless of their status in society. The Christian concept of ethical strategic leadership differs from the worldly concept of the same, because the leader does not simply do it according to his knowledge and skills. He also has to make sure that his strategy matches God's will. This is done by reading scripture and praying for God's will to be revealed.
9 God designed human beings with the ability to plan. From the moment he created the earth in six days, allocating each day to a new creation, it became clear that He is a God of order and strategy. In Ephesians 5:15-17, the Bible advises people not to be foolish but to be careful how they live (New International Version, 2016). Foolish living, in this case, is living without a strategy, which ultimately results in missed opportunities. To live wisely according to the Bible, is to maximize our strengths and opportunities. All this can be accomplished incorporating the scripture and God’s will into our lives. Proverbs 14:8 encourages planning when it says that the wise demonstrate their wisdom by being thoughtful about what they do. Proverbs 21:5 further advises on the importance of planning. It says that the plans of the wise are successful. Psalm 90:12 provides instruction on the importance of planning and strategy when the Psalmist asks God to teach him to number his days so that he may live in wisdom (New International Version, 2016). Ethical strategic leadership is encouraged by scripture. The key to successful leadership is to find out what the will of God is, and then obey it.
References Agarwal, S., & Bhal, K. T. (2020). A Multidimensional Measure of Responsible Leadership: Integrating Strategy and Ethics. Group & Organization Management, 45(5), 637-673. Hitt, M.A., Ireland, R. D., & Hoskisson, R.E. (2016). Strategic Management: Concepts: Competitiveness and Globalization. Cengage Learning. New International Version. (2016). BibleGateway.com. www.biblegateway.com/versions/NewInternational-Version-NIV-Bible/#booklist