THE ETHICS OF LEADERSHIP

Debbie Taylor | DECA Inc. Leadership Specialist

Ethical leaders exist in all walks of life. They are the individuals who step forward when crises occur, come to the rescue of others and generally do what's right—no matter what. Anyone can talk the talk, but can they walk the walk? In today's high-visibility, social world, more people are taking note of leaders’ behavior and holding them accountable.

WHAT IS ETHICS?

Ethics is defined as "moral principles that govern a person's behavior by which people conduct themselves personally, socially or professionally." Ethical leaders are not afraid to do what they believe is right, even if it is unpopular. As a leader, your reputation is critical and when you make unethical decisions, people will remember them for a long time. Whether in your future career or everyday life, ethics is what creates a fair, safe and trustworthy environment for everyone.

Ethics is essential for all organizations to be successful—from a major corporation to your local DECA chapter. We all face ethical challenges, and effective ethical leaders will stand up for what they believe is right. As a DECA member, you will need to make many choices and it is crucial to think about the ethical principles that aid in making wise choices and ethical decisions (i.e., integrity, trust, accountability, transparency, fairness, respect, rule of law and viability). Companies, schools and DECA chapters will often have a code of conduct to set-up clear expectations and what that organization's ethics are and any requirements that are expected of the employee, student or chapter member.

ETHICAL DECISION-MAKING

Ethical decision-making is the process of evaluating and choosing among alternatives in a manner consistent with an individual's ethical principles. In making ethical decisions, it is necessary to perceive and eliminate unethical options and select the best ethical alternative.

Three main philosophies teach what ethical decision-making should consider. Utilitarianism states that decisions should be based on what benefits the greatest majority. Deontology implies that all ethical decisions should be the same. If the right choice is X, then it should also be X in a similar situation. This eliminates any subjectivity in the decision-making process. Virtue Theory is the approach most people tend to use. It implies that all ethical decisions are made based on the character of the individual.

When you encounter so many diverse viewpoints daily, your “wrong” may be “right” to someone else, and vice versa. Therefore, it is helpful to have a basic understanding of the steps in ethical decision-making. Following the steps can help provide an honest, supportive and fair culture, but may also save an organization from getting into legal trouble in the future.

STEPS TO ETHICAL DECISION MAKING

1. RECOGNIZE A PROBLEM OR ISSUE | Is it a social problem or a legal problem? Is it damaging?

2. GET THE FACTS | What people or groups will be impacted? What are the possible actions you can take?

3. EVALUATE ALTERNATIVE ACTIONS | Which option will produce the most good and do the least harm? Which option respects others’ rights and dignity? Which option enables deeper understanding or development?

4. MAKE A DECISION

5. ACT, THEN REFLECT | What was the outcome? What would you do differently in the future?

ETHICAL LEADERSHIP

Ethical leaders are not just born with ethical leadership skills; instead, they learn them over time. These skills can certainly be "taught," but perhaps not in the traditional sense of the word. The key to becoming an ethical leader is seeking out opportunities to learn about, develop and apply ethical leadership knowledge and skills firsthand. An ethical leader develops appropriate and professional behavior for their team and for those they lead. Alternatively, a leader who lies, avoids responsibility or does not contribute to the workload is not demonstrating ethical behavior. Their team or employees will not respect them.

Leading ethically is not always easy. To grow as a leader, it is important to understand your own beliefs and the beliefs of others. There are many conflicting ideas about what is considered right and wrong. Ethics may vary across individuals, organizations, cultures and countries. However, in a cross-cultural study conducted in 2013, researchers found that there are many shared ideas of what is considered ethical.

As you make a decision, ask yourself the following questions:

Is this the right thing to do?

Is it respectful to others?

Is it honest?

Is it responsible?

Does it make the community better?

Does it follow the "Golden Rule" to treat others as you would like them to treat you?

Does it follow the “Rule of Universality” - Would it be OK if everyone did it?"

As an emerging leader, you will play an essential role in leading organizations in the future. Whether this is in your DECA chapter, school, community, association or the world, remember to consider the ethics and how your decisions impact others.

SCANDALOUS!

If you were to search for corporate scandals on the internet, you would find thousands listed. It is important that as you develop your leadership skills, you lead by example and demonstrate that you do not condone unethical behavior in yourself or others. Making unethical decisions as a leader can have a severe negative impact on others. Consider the following few examples of top executives that have become famous for unethical behavior and/or condoning the inappropriate actions of subordinates.

In 2015, Volkswagen's CEO, Martin Winterkorn, resigned following the discovery of illegal software in VW's American cars allowing them to falsely pass emissions tests.

The Consumer Financial Protection Bureau revealed on September 8, 2016 that Wells Fargo employees had opened more than two million unauthorized deposit and credit card accounts to reach sales targets and other incentives. Thousands of employees had opened accounts without customer consent due to top-down pressure from higher-level management to open as many accounts as possible.

In 2017, the Equifax Inc. scandal was one of the largest data breaches in history. The creditreporting firm exposed the personal details of up to 143 million U.S. customers. Some of the company's top executives sold over $1.8 million worth of shares in the company just days after the breach was discovered. The public was not aware of the breach until more than six weeks later.

More than two dozen current and former International Federation of Association Football (FIFA) officials, including (then) FIFA President Sepp Blatter, are accused of deep-rooted corruption, including schemes involving bribes and kickbacks totaling over two hundred million dollars.