How to apply ethics to leadership and to be certain that you are doing the right thing

“Ethics is concerned with the kind of values and morals an individual or society finds desirable or appropriate”.  So says Peter Northouse[i].  Our values and morals are internalized into our character as what we believe to be right or wrong.  They are expressed externally as our conduct, in terms of right and wrong.

Regarding ethical character, Stephen Covey wrote in “Principle Centered Leadership” that there are three traits of character that are essential to greatness: integrity, maturity and abundance mentality[ii].  I only considered one of these in my first post about leadership, along with four other, different traits.  However, I think Covey’s three traits are specifically relevant to a conversation about ethical leadership.

• Integrity – This is the trait of honesty in our words and trustworthiness in our actions.  Honesty and trustworthiness define ethical action.
• Maturity – Covey defines maturity as the balance of courage and consideration, the courage to take action while you are mindful of the impact of that action on the people around you.  Ethical choices are sometimes difficult, they definitely require courage and you need to consider the impact on other people.
• Abundance Mentality – To have the wealth mind-set, which is to be aware of blessings, assets and opportunities, is to operate from a position of strength.  The opposite, scarcity mentality, is controlled by fear and greed.  If you fear rejection, excommunication or losing your job, it’s too easy to start trading away your integrity to stay in the in-crowd or keep your job.

When you have a strong balance of these traits you have three pillars to support for ethical conduct.  This is most easily expressed as the Golden Rule: do to others what you’d have them do to you.  Treat people the way you want to be treated.  That is a good place to start to divine the difference between right and wrong.

If I would feel cheated by getting financial advice that would cause me to lose money on an investment then I can assume that others would too.  So, by giving bad advice, which makes my employers hefty fees but treats the client like an opponent to be defeated by any means necessary, then I would be acting unethically.

Sometimes it is not as clear and obvious as that, unfortunately.  Too often people cling to their careers and trade integrity for the security of a good salary (scarcity thinking).  To speak out against dishonest bosses invites retaliation, probably with the full force of the resources of the corporate legal department.  If you get to that point your choices are simple: walk away, role over and risk going to jail for them one day, or face a vicious legal battle when you blow the whistle.

When you get to the point that you are in a terrible ethical dilemma you may find that it could all have been avoided by making better decisions “upstream”.  And there may have been some warning signs of the trouble to come.  Pay attention now for warning signs and filter them through the eyes of integrity, maturity and abundance.  Stop and think how they would affect you if you were on the receiving end.

Making a difficult choice to turn away from trouble or to speak out is leadership.  It will give strength to those around you to stand up and follow you.  It may take a lifetime before you get the recognition you deserve.  But in this age of information and tight social connections the truth will probably come out.  Just ask the ghost of Joe Paterno.