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Fairwords Weekly: The Impact of Ethical Leadership

June 23, 2022

“Employees are likely to emulate the personal traits and behaviors of ethical leaders, extending fair and honest treatment to others in the same manner they receive it from ethical leaders.”

— Kuk-Kyoung Moon and Robert Christensen, Research Authors, Journal of Public Administration Research and Theory

An ethical leader strives to balance the needs of their team, organization, stakeholders, and the greater society. With this balance in mind, they attempt to make the right decisions and set policies. Ethics in leadership means enabling people to do the right thing rather than preventing people from doing wrong. Doing so has many benefits to an organization. Solid morals and ethics trickle down to the rest of the organization resulting in positive workplace culture and happy, productive employees. This week we explore ethical leadership, why it is essential, and its impact on an organization. 

​​Study Finds Ethical Leaders Mitigate Discrimination Issues in the Workplace

According to a new study, the negative workplace dynamics that can surface in racially diverse workgroups can be mitigated when the organization has an ethical leader. Ethical leaders lead in a way that reduces conflict, including discrimination claims. Additionally, they introduce a buffering effect that can reduce relational tensions and intergroup prejudice. In companies where ethical leadership was present, the research showed a positive correlation between racial diversity and the emotional attachment to the organization and a negative correlation with race-based employment discrimination. The study also suggests that ethical leaders may counteract diversity-related conflict by effectively balancing employees’ need for belonging with their need to feel that they make unique contributions. 

​​Ethical Leadership In A Complex World

We face social problems like climate change, food and water insecurity, economic inequality, racial injustice, and increasing geopolitical strife daily—all of which have been accelerated by a global pandemic. Our world is complex, and these issues are multifaceted and interrelated. For organizations to move forward with clear intent and purpose, leaders need a strong foundation in ethical leadership. Because we live in a time of profound disruption, leaders must utilize a strong ethical framework to ensure they make the best decisions: for themselves, their employees, their organizations, and their stakeholders. This ethical leadership framework guide teaches how to lead and make decisions at work in today’s complex world.

​​The Real-World Impact of Workplace Ethics

The pandemic forced many ethical considerations to the forefront of HR—and continues to do so today with high transmission rates and the introduction of new variants. Whether confronting issues related to vaccinations, masking, returning to the office, employee retention, or mental health, making decisions based on ethics has become more critical than ever for many HR professionals. Moreover, the pandemic has raised the stakes for prioritizing ethical thinking and discussions. Using COVID as a case study, learn four considerations to keep in mind as you prepare to address your next ethical dilemma in the workplace. 

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