Ethical behaviour is the standards that holds leaders for their attitude and via which they contribution to the society. And these standards are applicable to whatever position they hold in businesses and even behind your own doors where only you know what you do. Business those who work ethically have got certain integrity and these business are self-confident, not self-centered.
It is characterised by honesty, fairness and equity in interpersonal and in professional relationship it involves respects the dignity, diversity and rights of individuals and groups of people.
Definitely the use of ethical behaviour in the business environment will pay off in the long run because it involves society where ethics do carries some values. This kind of behaviour psychological empowers the behaviour of society and people are ready to deliver an extraordinary performance for the people performing ethically and whom they trust.
Most of our business prefers that require staff should behave ethically in situations that demand honesty. The positive end results are self-evident as members of the public trust these organisations and are happy with their products and services. Further to this observed behavioural staff attracts executives from other trustworthy companies and organisations that expresses their interest to trade and maintain relationships with these organisations. Ethical conduct and behavioural integrity helps in creating strong ground situations for companies and organisations, which are gradually becoming a mandatory requirement for their long-term survival.
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Business has got certain power and it depends on the business how to use this power responsibly or selfishly. Ethical behaviour makes a person goes in to the depth by considering the implications of what a person is doing and the effect may rise on the whole community and the surrounding habitat. It requires firms to act in ways that stakeholders believe to be both fair and honest with society to which they are involved with. Leaders making ethical decisions take into account: The Impact: Whom does my decision affect or harm? And fairness: Will the decision be considered fair by those affected?
Leaders who act ethically consider the interest and integrity of other parties involved with them and suitable conduct in situations where ethical implications makes these leaders look good in front of these stakeholders and among the general public.
Most of the business controllers believe that acting ethically increases the costs and so reduces profits. But there are businesses, which are operating ethically and had build their strong mage in the market and for this reason society is even ready support these kind of businesses and expect these business to serve them in longer run.
This ethical behaviour do contribute the organisation in term of profit which is usually higher than the firm which are actually not operating ethically and are operating for their own interest. The activities of the corporate business world must show the requirements as per the law, that is quiet unfair by stakeholders which result in bad publicity. Good example for the same is restaurant that pays minimum wage and keep the staff tips to boost profits is basically is not breaking or misuse of the law. It does, however, run the risk of losing the goodwill of customers (bbc.co.uk, 2010).
Ethical behaviour is really becoming vital for all our society because its ultimately contributing to our society and that what our society is looking forward. This ethical behaviour not only contributes back to our society directly or indirectly but also retain the trust of he society. So it's quite obvious that this kind of attitude will definitely contribute to our society in healthier manner and will help businesses to last for longer period.
Ethical behaviour will help businesses to attain better height and is because it does what businesses should actually do and helps them in developing discipline, which will push, the business work practices to a high level and set a high standard. It actually promotes teamwork among workers. And this is because there is great respect placed in elementary issues in the work place. Ethical behaviour also builds confidence that will translate to trust among workers and they are more motivated towards their tasks.
To conclude with practicing ethical behaviour is important for business because it can grow a business, promote teamwork among coworkers, and build confidence and trust in each other.
"With in the business context, businesses are expected to have good ethical values and act socially responsible. The problem is that the ethics of a business is a mixture of individual as employees. It is also equally important that when you go to work somewhere that you feel like you share the value of those you work with. Ethics is not just talking about the right thing. It is doing what is right in every decision that is made"
Based on the above observation discuss the impact on society that ethical leaders can make
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The ethical leader understands the value of active relationship that helps organisation to maintain the standards for all effort they make.Â Good quality relationships built on esteem and trust is not necessarily agreed but because people need each other and are the single most important component of organizational success.Â
The ethical leaders do understand that these relationships develop and grow in the healthy sunlight and a good care of environment leads to good ethical behaviour in the modern society, builds a strong principles and make role model for the society, the leaders do make a clear idea that on acting on path with these laws, living in harmony with these basic principles, human enterprise flourishes and is can sustain for longer period. They understand the truth of our interconnectedness to each other, and that it is through our enthusiasm to serve each other that we liberate our combined energy and potential to benefit the greater good of which we are all a part.
Ethical leadership is important to every person as they comes to work everyday and is totally involved in different activities that can affect various activities of his own. To a team empowering ethical relationships, large and small, formal-informal, project-focused or maintenance-oriented - in every case it depends on supportive relationships among team members.Â And finally, the organization as a whole where communication taking place at various levels and different areas of accountability which needs a bonding agent to make people feel they are making a unique and valuable contribution to the organisation.Â Ethical leadership across all three levels nourishes the relationships that empower human enterprise.
We can find ethical leadership only in organisation, which are operating ethically. An ethical organization is one where people working together in an environment of mutual respect, where they grow personally, contribute to a common good, feel fulfilled, and share in the personal, emotional and financial rewards of a job well done.Â And these people had shared understanding that success depends on assemblage of relationships, both internal and external, which is not only influenced by the organization's control, but involves various other factors as well.
This term 'ethical' is only applicable when organisation treats people well, knowing that satisfied and happy employees will share that emotional contentment in positive interactions with customers and clients.Â And in the same fashion ethical leadership in the organization will maintain positive relationships with its service providers and suppliers thereby reaping the benefit of their good will and service in return.Â
With community and society these organization operating on ethical principles and will have a strong reputation as a good corporate citizen, promoting its social responsibility and representing a willingness to carry on its activities as per societal regulatory requirements.Â And by doing so organization mostly enjoys the prospects of continuing economical accomplishment where its products and services are well received and its reputation prompts its goodwill, which translates into ongoing support in the community and in the marketplace.
Many business practitioners' and thinkers consider that ethical leadership is basically a matter of leaders having good character. By having the right values or being a person of strong character, the ethical leader can set the example for others and endure any temptations that may take place along the way.
In this 21st century when businesses are operating globally they certainly do carry some social responsibility and it's one of the best example of ethical behaviour. And this enhances the complete society that not only involves individual as employees but every character of the society. Whatever the conditions we cannot expect organisation to work on those ventures, which doesn't have potential pay off and neglects society if this happens these business will be hard to recognise as businesses in the longer run. Although it's believed that companies are social responsibility when they not only operates for themselves but also for the others and creates new and better future opportunities besides their own businesses. And certainly there are chances that doing this might not benefit all organisations. In actual terms these business should focus on these activities in such a way that it should support their own business and the society as well. For example this activities range from the activities that helps society giving them much greener environment, offering natural occurring products, recycling products that may be dangerous, promoting recycling and offering free service is also prove to be disadvantaged.
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In business we had numerous ethical tight spots of which some of them are more obvious while some of them are more difficult to understand. We do expect business to operate in a very structural way that involves following their actives legally ethically and within certain social standards. Working with social norms we mean that society is there to observe you work and mark business if something doesn't support it.
When we talk about ethical values, social culture do plays a major role as we all are aware that we are in the world where going through different social norms as per there cultures so its again important to take care for the culture as well. And this fact involves businesses more with money and to find profitable ventures only. Therefore, social norms should govern what is appropriate to compensate individuals as well as to charge customers. Profit expectations shouldn't guide businesses to cut corners in dishonourable way or to pretend something, which is actually not there.
There are numerous of factors that are involved on which these social leaders may get involved with the society for example they support society, what they do for society, how well do they respond the society, how close in what manner they are getting closer to the society? So all these things are really important for us to understand before we confirm any thing for these ethical leaders. There are chances that these different ethical leaders might take a situation in their own ways they way they are actually involved with society and what they want to contribute to this society.
Good ethical values are can help organisations to maintain the societal culture and its support the overall organisational activities. Ethical leaders should support people those who want to get involved with the society and help the to work on various social problems. Ethical leaders should allow workers to communicate problems without hesitation. They should allow employees to share any ethical concerns with authority above them when there are ambiguities about the right thing to do. These ethical leaders need to take care for implementing ethical conduct so as to make sure that unethical conduct can't occur. They should have the ability to safeguard resources as an important function of internal controls and to support organisation both internally and externally.
Ethical leaders should focus on organizational success rather than on personal ego, be able to articulate and represent the purpose and values of the organization of which they are involved in. They should work closely with people and develop them to support society. They need create a living conversation about ethics, values and the creation of value for stakeholders. These leaders make known their values and their ethics and moralize them in their leadership style and actions. And this involves communicating complete and correct information.
Ethical leaders do influences society both in positive and in negative ways their work and behaviour is really important to the society. They are the one those who can contribute to the society directly and indirectly. Their job is not only to think about their own organisation but for the effect that their decision will make to the society. In a nutshell their role and decision are really vital for the organisation and society and they should work in proactive ways so that they should contribute both ethically.
Ethical leaders not only involve themselves with the process but they even try to involve stakeholders that could give them the chance to understand the requirements of each and every sector.
Griffin, Ricky W. (1993). Management, 4th Edition. Geneva: Houghton Mifflin.
bbc.co.uk. (2010). What is ethical behaviour?. Available: http://www.bbc.co.uk/schools/gcsebitesize/business/environment/acompetitivemarketrev1.shtml.
Berghofer, D and Schwartz, G. (NA). Ethical Leadership: Right to Relationships and personal emotional behaviour and Bottom Line The Gold Standard for Success. Available: http://www.ethicalleadership.com/BusinessArticle.htm. Last accessed: 15/November/2010.