by Astrid Davies | 25 Mar 2024 | Diversity of Thought, Leadership Matters, Sustainability
Ethical leadership is not something that, at first appearance, features much in today’s world. Whether that be failing CEOs’ bonuses, or dubious PPE contracts, there is not much that shouts “morals” in our news feeds. However, that’s not the whole picture; it’s just the noisiest. Public hunger for a cleaned-up leadership act in public life is starting to spill over into the business environment. In that context, ethical leadership isn’t just a moral compass; it’s a strategic advantage.
With increasing dissatisfaction over unethical behaviour, consumers are recognising the importance of ethics and values in their purchasing decision-making. That means, in turn, that business leaders are starting to recognise the role of ethics and values in driving profitability and differentiation in the market. Let’s explore how prioritising ethical leadership can positively impact a company’s bottom line and set it apart from the competition.
Ethical leadership has the potential to play a crucial role in enhancing a company’s reputation and attracting customers who align with its values. Consumers today are more socially conscious and ethically minded, preferring to support businesses that prioritise ethical behaviour. And, we have to note here, that is genuine ethical behaviour. There is the issue of “-washing” (e.g. “greenwashing” using climate-aware values as cynical camouflage for the same old exploitative practices dressed up with minimal value-aligned gestures). This has resulted in the global boycotting of certain brands because of the lack of morality. In turn, this shows us that consumers wield a lot of power. On the other hand, by demonstrating a true and transparent commitment to values-based practices, companies can build trust and loyalty among customers. That will drive sales and growth. [The whole issue of whether traditional economic models in pursuit of growth and consumption is viable, is another issue. I would urge you to review Doughnut Economics for this very different perspective.]
Ethical Leadership in the workplace – talent attraction
Ethical, trustworthy behaviour fosters a positive organisational culture too. Cultures like this attract and retain top talent; few employers of choice are unprincipled and exploitative these days. Ethical leaders create environments of trust, transparency, and accountability, leading to higher employee engagement and productivity. Reduced turnover costs further contribute to the company’s bottom line. In this way, ethical leadership is not only morally sound but also financially prudent.
As the next generation of leaders emerges, there’s a growing demand for more ethical and values-based leadership. Employees want to work for companies that align with their values and principles, more than ever before. Millennials and Gen Z leaders are rejecting the profit-driven mindset of previous generations. This means seeking to operate in a way that aligns with their personal values. Businesses that embrace this shift and prioritise ethical leadership will attract top talent and position themselves for long-term success in a changing world.
Ethical Leadership in the workplace – talent retention
In another blog, I have addressed the issue of people leaving bad managers. Ensuring that your company operates according to a clear ethical framework, centring around ethical leadership principles, is a great way to prevent this. A clear leadership behavioural framework sets parameters which make it straightforward to comply, for any manager wanting to do the right thing the right way. Introducing these frameworks is a joyful part of my work. It is incredibly rewarding, to introduce a values-based management approach and see the difference it makes to how people enjoy their own work too.
Furthermore, ethical leadership drives innovation and creativity within organisations. Leaders who operate from an ethical stance are more open to diverse perspectives and innovative solutions. Such solutions will be more inclusive of the diverse talent within an organisation. It is also probable that the solutions will benefit a wider section of the marketplace too. This innovative mindset can lead to the development of new products or services. In turn, this can open up new market opportunities and even offer the company a competitive edge. This competitive edge can also apply to the recruitment market. The best people will want to work for the best companies. They are likely to define “best” as good terms and conditions, for sure, but also leaders who walk the talk and behave in a manner which is appropriate, fair and principled. “Best” will also cover inclusive workplaces, where decision-making is informed by a wide range of viewpoints and where difference is encouraged and welcomed.
Stand out from the crowd
In any competitive marketplace, ethical leadership will serve as a powerful differentiator. Sadly, it is still all too rare for it to be a genuine factor. However, it is becoming clear that companies that prioritise ethics and values do stand out from the crowd, for all the right reasons. By building stronger relationships with customers and stakeholders, such businesses build brand loyalty, turning customers into advocates for their products and even for the change in the world that their ethical stance supports. Companies such as Patagonia exemplify this approach. Consumers are increasingly choosing to support businesses that share their ethical principles. And, increasingly, those ethical principles include pricing. Making ethical buying choices are less and less the preserve of the affluent, as values-based business also includes accessibility.
In conclusion, ethical leadership isn’t just the right thing to do; it’s also a wise business strategy. By prioritising ethics and values, companies have the opportunity to steal a march on their less-principled competition. They enhance their reputation, attract customers and talent, differentiate themselves in the market, and ultimately drive profitability. The business world is waking up to the public attitude for a more moral marketplace. Those who adapt first, by embracing ethical leadership, will be those who thrive in tomorrow’s market.
by Astrid Davies | 23 Mar 2023 | Diversity of Thought, Leadership Matters
These days, “values” are everything in business. Or at least that is what we are told. The way forward is to be a “purpose-driven business”. It’s all about how much we love to do what we do and how much we convey that to our customers, so they love us more. When your values align with your customers’, that’s when the magic happens.
Or so we’re told.
I run an ethical business. I pride myself on my values being at the core of every single thing I do in my business. In truth, I am probably rather smug about this. It’s the right way to be, after all … isn’t it?
So, imagine my surprise when one of my social media channels was followed by a membership organisation which chooses to feature controversial free-market libertarian thinking (which is different from my personal value and belief systems).
What does this say about “values”?
“Each to their own” you are probably thinking. Or, more bluntly, “Get over yourself”. Either or both is true. However, I was surprised because my feed is pretty transparent on how my values manifest. For example, I do not hide my opposition to continuous and remorseless depletion of natural resources at a global scale. I am also pretty clear that I oppose corruption in public office at the local, national or again global level in any and all forms. While neither of these is inextricably linked to free-market ideology, sadly at least in the Global North there is often a strong intersect. This is regrettable and not part of the ideology, but it does co-incide with the implementation of the ideology and those related to it.
Now, where does this leave me? Confused, is where. The membership organisation is a slick operation, with great imagery and branding, a focus on smart venues and a comfortable lifestyle, inspired by brilliant minds and inspiring huge commercial success. Who wouldn’t be pleased – even a tiny bit – that such a glossy organisation has chosen to follow a company which is, quite purposefully, anything but. There must be something which is hitting home in my messaging and content.
On the other hand, however, I was dismayed that my messaging and content might have been so unclear that an organisation fostering views very different from my own – and in many ways opposite to my own – should consider me a membership target. What was the message that I was putting out ?
Wait a minute …
Let’s be real for a moment. They probably looked up #leadership and followed every account that appeared on the search. It is highly unlikely that I was singled out in any way at all (“Get over yourself” is winning here, isn’t it?!). So, does that make it all OK? I don’t now have to worry?
Not exactly. There is still something very unsettling for me about being followed by any membership organisation. It makes me feel as if I trigger a “fresh meat” response in such outfits. And that is an uncomfortable place for me to be. It takes me out of my comfort zone of content provider and into the domain of the predatory social media hunter-organisations. This is somewhere that I don’t want to be, because it doesn’t really fit with my value systems. My values centre around integrity. It’s clear that such organisations don’t act with integrity. Or is it?
Operating with a value system is a brilliant starting point. Operating with a value system which focuses on doing the right thing, for the right reasons, sounds great. It is, however, full of judgementalism and, again, smugness. I would argue, therefore, that a value system alone is not helpful, because it leads us into unwelcome territory – a divisive “Us Vs Them” mindset. “We” are doing things “right” (whatever that means to individuals – the “each to their own” argument again). Whereas “they” are doing things “wrong” according to our judgements. Our judgements will be based on myriad components, but upbringing and learned behaviour, aspiration and, yes, values, will all feature.
“Values-based” – what does this mean to you?
So the next time you describe your organisation as “values-based” or “purpose-driven”, maybe review the language you use. What judgements does that imply? To what extent are you putting yourself above others, in a fit of judgemental self-righteousness? How else could you communicate your values, without them sounding like a shopping list of marketing-speak?
I for one will be reviewing how I describe my company and our work. It is so important, when working in the leadership space, to avoid taking a particular stance which opposes that of your client.
If we work on the neuroscience presupposition that everyone acts with positive intentions, we MUST believe that others’ values are as valid as our own. The role of anyone in leadership is to enable our teams to do the best they can. Sometimes that may involve uncomfortable discussions, where our personal value systems may not align with those of our clients. It is then that we have to understand our own values. It is up to us to decide whether the mis-alignment is tolerable or intolerable. If it is intolerable, we must continue to behave toward our clients in line with our own values, as well as keeping firmly within professional ethical boundaries. Authenticity is not an excuse for poor behaviour.
I will be considering this as part of reviewing my company during 2023. I intend to report back in some form. If this has raised some issues for you, I would be very happy to discuss them. Perhaps we can share experiences and use our shared perspectives to inform both of our organisations. What would you do in my shoes? Please get in touch and let me know.
Photo by Walls.io on Unsplash
by Astrid Davies | 21 Oct 2022 | Diversity of Thought, Leadership Matters, Sustainability
As I write this, the UK is in the throws of a political maelstrom. Our ruling administration is a minority Government. It has been pursuing an ideological agenda so extreme it has prompted economic crises, the like of which we have not seen in decades. The leaders we need are not the ones we have. And that is not me making a political point. My evidence comes from the international money markets, the Financial Times, the Economist and even “the Leader of the Free World” commenting in recent days.
It is difficult for all concerned. A new Prime Minister who had to cope with the death of not only the monarch, but a living legend who had become the longest (and many would say, most skilled) monarch in history. This robbed an inexperienced leader of a crucial advisor and nurturing “boss”. This new Prime Minister was in post having been voted for by allegedly only 0.12% of the UK population. That is hardly a mandate for change. And yet she took the opportunity to introduce sweeping economic reform against the advice of many experts. The result? She is out of the post within the month. A chaotic display. Not only difficult for her, but also for the UK Government – and those of the principalities too.
The leaders EVERYBODY needed
To be clear, it has been hardest for those affected by the proposed cuts. For example, those on low incomes, receiving inflation-affected benefits. Also, those unable to afford increasing fuel bills, due to the UK’s reliance on insecure and expensive foreign gas, coal and oil rather than investing in renewables which could yield so many benefits for the economy and for the environment. Certainly small businesses will find rising costs price them out of the market unless they trim their margins to near-pointless levels. The industries already struggling to bounce back after covid’s worst impact will find it particularly hard. Everyone except those part of Government’s small cabal of ideologues at the heart of the changes worried that the impact would be potentially devastating. Not only that, but devastating for perhaps millions of people.
And yet. And yet she pursued her path of choice. Was it leadership, sticking to her inspired vision? Was it leadership, demonstrating strength and determination? Or was it simply hubris?
Leadership and Lemmings
In fact, the ultimate cause of the resignation of the Prime Minister was a fundamental failure of leadership: a lack of trust. She lost the trust of the voting public, shown in a poor poll showing in opinion polls. She also lost the trust of the ruling party because of the chaos of “the mini-budget that wasn’t” and all the subsequent humiliating U-turns. Not only that, but the pursuit of personal ideology over party loyalty and centuries of tradition cost the support of the Party faithful within Parliament. In addition, there had been a complete failure to woo and listen to the key parts of the UK community normally stalwart in their loyalty to the Party, the business sector.
The leadership that was needed, was not in evidence. Instead, there was much defiance. She introduced repair measures only grudgingly when it was clear support was waning by the minute. What could have looked like strong leadership to some, now looked like weakness, to all. And none of it looked like leadership. Rather than leading her party to victory, it looked and felt (according to back bench MPs) that she was leading them over a cliff to their electoral doom. One MP actually likened them to lemmings.
The leaders we need
Now that there is to be yet another new Prime Minister in the UK , we need to look at we need from the new candidates:
- First, they need to understand that leadership is not a position, but it is a process, based on trust which has to be earned.
- Next, they need to understand voters elect them deliver against promises. They need to keep those promises.
- Thirdly, they need to remember that their leadership decisions affect the WHOLE country, not simply a small cabal of the rich and privileged few. And actually this really does matter; it is cheaper to empower people to work than to spend millions cracking down on perceived benefit fraud. Now is an excellent time to remember the Victorian and Edwardian philanthropists, who saw it as their moral duty to help those less fortunate than themselves. The Cadburys and the Rowntrees are two ready examples whose influence lasts through the generations to this day. In other words, leadership for the many, not the few.
- Further, they need to listen. This key leadership skill appears to have been forgotten in recent years. And that goes for politicians from across the political spectrum. Notice what is going on for the country – all of the country. Flex ideology to fit the needs, not the demands. Listening and responsiveness are key to leadership.
- Lastly (in this list, but we could go on … and on) it is important that the new leader/s restore confidence. They need to build confidence in their own political party. They need to build confidence in the UK economy and its ability to deliver on the world stage. Additionally, they need to build confidence in the electorate that politicians can be trusted. See 1) above.
Leadership can only exist when there are people willing to be led. The demise of the recent Prime Minister shows us that, when people are no longer willing to be led, whatever you think you’re doing, it isn’t leadership!
After leading high performing teams for over 30 years, I have seen the good, the bad and the downright ugly in terms of “leadership”. It has to be said that this term has often been used euphemistically. I now consult in this space specifically to encourage my clients to pursue an ethical policy from the initial starting point of “First, do no harm“.
If you have found this blog of interest and would like to explore how I might be able to help improve the leadership success of your senior leaders, please get in touch and let’s talk.
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