When it comes to guidance on making decisions that align with company values, many employees start at the top — looking to ethical leadership for solutions that help them stay accountable, responsible and fair.
Post-pandemic, leading by example with a clear set of values is crucial. As teams look to make key business decisions that align with company principles in new areas, it will help boost productivity and efficiency. It will also create a culture of strong ethical decision-making that extends to the next group of leaders and employees.
Canadian Firms’ Approach to Business Ethics
In general, ethical leadership promotes positive employee morale and workplace culture through ethical behaviour and consistent values and principles, such as integrity, respect and communication. With this leadership style, the decision-making process is streamlined and managers are working in the best interest of their team, and the organization as a whole.
Canadian citizens and employees “share a general understanding and care for what ethics is and what ethical behaviours mean,” and apply it to their businesses and stakeholders, noted the Institute of Business Ethics 2018 report on Ethics at Work, which surveyed Canadian employees for the first time. (The 2021 version of the survey did not include Canadian workplace data.)
According to the IBE survey, 83% of Canadian workers whose organizations had a comprehensive ethics program in place said honesty was always or frequently practised in their company’s daily operations, compared to 77% of employees in organizations with no ethics strategy.
In addition, some seven out of ten employees in companies with detailed ethics strategies noted that their organization “acts responsibly in all its business dealings”, compared with nearly half of workers in companies without these policies. They also were more likely to say that issues of right and wrong were discussed at their team meetings.
Confidence in company ethics starts at the top
Ultimately, as Gallup notes, creating an ethical corporate environment, including one where employees are comfortable speaking up, means creating trust and boosting confidence in the ethics of company leadership.
This, they say, involves consistently leading by example over the long term and sharing examples of difficult decisions. Leaders should also ensure ethics are part of the daily conversation and make sure reporting mechanisms are clear.
In this respect, having a clear business code of ethics in place is paramount, in order to chart a course for ethical decision-making in your company.
A business code of ethics, says the Society for Human Resource Management, outlines a company’s core values, setting out conduct standards for fostering an inclusive workplace. The code of ethics also works to create a culture of open and honest communication, accountability, avoiding conflicts of interest and can include sector-specific regulations.
Implementing this type of ethics reference point allows employees to approach decisions within the workplace from a place of integrity.
A compass for decision-making
Ethical leadership is not only vital when it comes to avoiding unethical corporate practices, but also when ensuring key business decisions align with company values. This is especially useful as workplaces are navigating new waves of change — and training the next generation of leaders and employees.
Having a strong approach to ethical leadership post-pandemic will help teams:
Proceed with clarity in uncharted areas
With businesses navigating new digital challenges it is especially important to have defined leadership ethics and values in place.
Avenade’s 2021 Global Digital Ethics Survey, which included respondents from Canada, notes that leaders are grappling with new ethical questions, such as how they can best take advantage of the efficiencies that AI technology provides without risking bias and inequality. They are also looking at how to personalize the customer experience without violating privacy and how to empower employees with inclusive technology.
The survey notes that respondents with “a defined set of corporate values” were more likely to say their firm addresses digital ethics comprehensively.
Although one-third of leaders see digital ethics as a tech issue, organizations also need strong support from company leadership in order to guide employees in other departments to address questions around ethics in technology.
Increase productivity and strengthen training
An ethical approach to leading your team not only helps employees make decisions with confidence, but it improves efficiency and productivity overall.
As a Brock University study that surveyed more than 170 white-collar employees and their supervisors found, the presence of more ethical supervisors helped employees build optimism, resilience and confidence, leading to a more motivated workforce.
An ethical leadership strategy also made sure leaders and their workforce were pursuing similar goals, which worked to enhance employee performance.
To further drive employee productivity and performance, the study suggested organizations be sure to include ethics in their leadership development, recruiting and promotion initiatives.
Although businesses invest significantly in leadership training and development, this has not yet delivered long-term change when it comes to developing leadership skills and habits and creating ethical leaders, Shannon Brown and Michael Chikeleze write in The Journal of Leadership Education.
Incorporating an ethical leadership component – and awareness of an organization’s morals and values – into the “assess, challenge, and support (ACS) model of leadership development”, they suggest, could work to strengthen the transfer of ethical training.
Ensuring employees and future leaders have the tools they need to navigate challenging ethical questions starts with a top-down approach to values and integrity. By developing clear policies and instituting training, you may be well on your way to creating a culture of efficient ethical decision-making.
