Context

Vice-President of India in his address at  the  6th Convocation Ceremony of the Indian Institute of Management (IIM) Bodh Gaya talked about the importance of ethical leadership.

What is Ethical Leadership?

• It refers to a leadership style that is characterized by a commitment to moral values, principles, and ethical behavior in decision making.
  • Ethical leaders prioritize honesty, integrity, and fairness in their decision-making and actions, setting a positive example for their team or organization.

Why is Ethical Leadership Important?

• Conscience shaper: To foster trust, respect, and a sense of fairness among team members or followers. 
• Positive workplace culture: To create a positive organizational culture and enhance the reputation of leaders and organizations.
• Right decisions: It contributes to better decision-making and overall ethical behavior within an organization.
• Improved staff morale: Ethical leadership is about leading, inspiring, motivating, and making the employees feel accountable for their work.

Principles of Ethical Leadership

• Fairness and Justice: To  treat all individuals with equal respect and honor regardless of their background, position, or status without any favoritism or discrimination.
  • Example: Nelson Mandela brought reconciliation among the blacks and whites despite the decades of animosity.
• Accountability: Ethical leaders take responsibility for their actions and the outcomes of their decisions. When leaders hold themselves accountable, it creates an environment where everyone in the organization feels responsible for their actions. 
  • Example: Mahatma Gandhi taking accountability of the chauri- chaura violence.
• Transparency: It reduces suspicions and promotes ethical behavior as every decision is openly communicated with the team members and stakeholders fostering trust.
  • Example:  Mr. E sreedharan completed delhi Metro project before completion deadline with no corruption charges.

• Honesty and Integrity: It is the cornerstone of ethical leadership meaning  being truthful, keeping promises, and admitting mistakes when they occur. Integrity builds trust, and trust is fundamental to ethical decision-making.
• Empathy: Ethical leadership is also about being empathetic and considering the impact of their decisions on all stakeholders ensures that decisions are not made in isolation but with a broader perspective.
  • Example: A civil servant from Kozhikode affectionately called Collector Bro started a ‘compassionate Keralam’ campaign to feed hungry, clean ponds etc.
• Courage: Ethical leadership is about  displaying courage in decision-making whereby one is not  afraid to stand up for what is right, even in the face of adversity. Ethical courage is vital in situations where unethical behaviour or practices need to be addressed.
  • Example: Malala Yousafzai standing up for girls right for education against death threats by taliban
• Respectful and Dignified treatment: A moral leader  will respect his juniors opinions, choices, and morals and will not treat them as a means to achieve his goal.
  • Example: Tata group helping their employees and guest with all the medical and financial help who were a victim of the 26/11 attacks.
• Continuous Learning and Improvement:  Ethical leaders are open to feedback and self-reflection, seeking active opportunities to enhance their learning.  They understand that ethics is an ongoing journey, not a destination.
• Vision and Values Alignment: Ethical leaders  consistently uphold the principles and values they espouse and ensure that their decisions align with the organization’s vision and values. 

Challenges with Ethical Leadership

• Goal v/s Means: Leaders often face pressure to prioritize short-term results over ethical considerations, leading to unethical behaviour such as cutting corners or compromising values to meet targets.
• Ethical Dilemmas: To encounter situations where ethical principles conflict with stakeholder interests, making it challenging to make decisions that satisfy everyone.
  • Example: Right to environment v/s Right to Livelihood 
• Organizational Culture: In organizations where unethical behavior is tolerated or overlooked, leaders may struggle to maintain ethical standards and foster a culture of integrity.
  • Example: Often honest public servants gets transferred or demoted because of the corrupt system they are trying to bring a change in ( eg: IAS officer Ashok Khemka)
• Lack of Awareness or Training: Some leaders may lack awareness of ethical issues or the skills needed to address them effectively.
• Resistance to Change: Implementing ethical practices may face resistance from individuals or groups accustomed to a business as usual approach.