Ethical leadership is now established as a central competence in the exercise of management.

However, its definition remains unclear for many. Respecting the law, not giving in to corruption, embodying certain personal virtues, this is what is legitimately expected of a leader.

But is that enough to identify him as a true ethical leader? And above all, how can ethical values be translated into concrete actions within a company and ensure that they are really applied?

This article aims to Define what ethical leadership really is, to highlight the reasons for its popularity, and to suggest ways to successfully integrate it into your management practices. We will also look at the frequent mistakes that await those who want to develop this type of leadership and what strategies to put in place to avoid them.

One thing is clear right away: there is no universal model of ethical leadership. Each way of exercising power depends on various parameters: the history of the organization, its position in its market, its economic health, but also the personality and training of its leader.

Definition of ethical leadership

Ethical leadership is about placing values like honesty, respect, and benevolence at the heart of its management. He does not consider financial results to be sufficient to demonstrate the success of a business: he integrates criteria such as inclusiveness, diversity and integrity. Concretely, ethical leaders:

• are wondering about the impact of their decisions
• seek to create a climate of trust
• consider the well-being of their teams to be a key factor in collective success.

This ethical management model is based on several principles that guide daily actions and decisions:

• Integrity : it assumes total coherence between what we say and what we do. An honest leader naturally inspires trust because he is honest and transparent, even when it is uncomfortable. This behavior makes the ethical leader a credible model for his teams.
• Fairness : equity places justice at the center of working relationships. It concerns the distribution of resources, the recognition of everyone's investment during missions, and the assurance that no one is treated arbitrarily or in a biased manner. Equity is not blind equality, but taking into account the specificities of each context in order to ensure that everyone receives a fair and appropriate assessment.
• Inclusion : this behavior goes beyond simple tolerance. It aims to create a space where all employees can express themselves and obtain the same quality of listening. This includes promoting diversity, encouraging participation, and creating an environment where everyone can develop their professional potential.
• Social responsibility: it engages the leader to measure the impact of his choices beyond the borders of the company. What footprint do we leave on the environment? How do we contribute to local life? How can you change your practices so that they become sustainable? This approach broadens the role of the leader, who must take responsibility for society.
• Respect for diversity: a company that has adopted ethical leadership does not just accept differences. She values them to really enrich the work environment. This openness fuels innovation and increases the organization's ability to adapt tenfold.

Far from being only declarations of intent, these principles form the basis of management that is profoundly transforming the way in which people lead, make decisions and interact with employees.

Why set up ethical leadership?

The business model, designed only as a profit machine for shareholders, is coming to an end. This vision inherited from Milton Friedman no longer corresponds to contemporary expectations. Today, ethical business is seen more as a space for the creation of varied values, combining economic performance, cultural enrichment and human development. Various publications specializing in the humanities reflect this fundamental trend, including the article by Kanungo RN published in 2001 in the Canadian Journal of Administrative Sciences, entitled “Ethical values of transactional and transformational leaders.”

Faced with this evolution, managers with solid ethical values are becoming essential figures. They establish a caring and inclusive corporate culture, a necessary condition for the sustainability of organizations. HR managers and various studies confirm it: ethical leadership is a key factor in performance, reputation and loyalty.

For the well-being of the actors in the structure

An ethical leader ensures the well-being of all actors in the organization. This attention is reflected in concrete terms: reduction of stress, conditions favorable to professional development. Profits go beyond the walls of the company. When employees return home feeling relaxed and satisfied, their personal quality of life is also improved, creating a virtuous circle that promotes efficiency.

To motivate your teams

When an ethical mission gives human meaning to collective work, it proves to be a real driver of commitment. Various studies show this, such as the Morgan McKinley Global Report Global Workplace Trends : the mission is at the top of the motivating factors for employees, ahead of the team atmosphere or remuneration. It brings people together and inspires pride at all levels.

To aim for excellence

Ethical leadership does not ignore excellence. This is required at each stage of production. It thus concerns both the design phase and the marketing phase of the product or service, including development, production and support. Each link in the chain is concerned with the search for quality. Better still, thanks to ethical leadership, performance is increased tenfold. Indeed, according to a 2015 McKinsey study, the cultural diversity of teams and their cohesion stimulate innovation and enrich decision-making.

Impact of ethical leadership on teams and organizations

Ethical leadership directly influences the results of an organization. Indeed, businesses that adopt this approach enjoy a better reputation, attract profiles that share the same values and have higher retention rates. The working environment is healthier, the motivation of employees is increasing, and trust is becoming a real asset, both with customers and partners.

A real strategic advantage

Structures that have chosen ethical leadership benefit from a solid competitive advantage. They more easily recruit promising talent, cope better with periods of crisis and generate positive effects at several levels: economic, social and environmental. By placing people at the heart of their strategy, these organizations transform ethics into a lever for sustainable success.

Ethical leadership: ten mistakes to avoid and how to avoid them

Leading ethically is a project that requires lucidity and vigilance on a daily basis. Even the most well-meaning leaders can fall into some pitfalls. Here are ten common mistakes and concrete ways to avoid them.

1. Prioritizing performance at the expense of integrity

One of the most common excesses is to think that the results excuse everything. However, genuine ethical leadership rejects this compromise. It seeks excellence without trampling on the integrity or dignity of individuals.

2. Claiming values that remain at the stage of theories

Nothing erodes trust more quickly than a mismatch between words and actions. When a leader applies rules to others that he himself does not respect, he destroys his credibility. Hence the importance of exemplarity and coherence between announcements and actions. These are not bonuses: they are among the essential characteristics of ethical leadership.

3. Ignoring ethical dilemmas

Sweeping uncomfortable questions under the carpet by saying “it's not that bad” or “we have no choice” prevents collective thinking. This posture opens the door to progressive drifts, those that occur through small successive sprains.

4. Neglecting the human impact of decisions

You can be technically excellent and ethically disastrous. A manager who forgets to consider the well-being of his teams, the consequences of certain decisions or the vulnerable people among his stakeholders is missing the point.

5. Tolerate harmful behaviors

To turn a blind eye to acts of theft, harassment or discriminatory practices under the pretext that a person is efficient is to send a clear message: our organization condones this type of behavior. Indeed, what a leader tolerates ends up becoming the norm, whether they like it or not.

6. Monopolizing power

Ethical leadership is based on shared responsibility. Over-centralizing decisions creates a lack of checks and balances and establishes a culture of silence where fear replaces collaboration.

7. Lack of clarity

Being transparent does not mean giving everything away, but explaining decisions honestly. Playing with vagueness, manipulating information or hiding certain elements destroys trust, a relationship that is so fragile and takes so long to rebuild.

8. Discouraging critical voices

An ethical leader welcomes contradiction and protects those who raise issues and raise the alarm. Conversely, sanctioning or not following up on a major red flag sends a very negative signal to the entire organization.

9. Believing ethics is innate

Nobody is “naturally ethical.” Ethics is gradually acquired through training, introspection and collective exchanges. Believing it to be innate prevents progress.

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10. Wait for the crisis to act

Making the decision to intervene only when a scandal breaks out or burn-out is widespread reveals reactive leadership, not preventive. Ethics is played out beforehand, in the attention paid to the first signals and to the small discrepancies which, if ignored, can lead to serious excesses.

How to develop ethical leadership on a daily basis

Going from traditional to ethical leadership cannot be decreed. This requires time, a real process of reflection and a desire to progress. Here are several ways to achieve this.

1. Clarifying and embodying your values

Start by defining a few non-negotiable values. But above all, embody them on a daily basis. Teams observe your actions much more than your words. A manager who concretely demonstrates his integrity and his desire for transparency naturally inspires his employees to do the same.

2. Opt for transparent communication

Share relevant information regularly. Explain your choices and why. Give everyone a chance to express themselves. This way of doing things creates a climate of trust where people feel listened to and respected.

3. Establishing a climate of trust

For an environment to be ethical, it must be safe. A healthy environment is based on the ability to speak freely, even when you disagree. Welcome comments with kindness, protect those who report dysfunctions. Creating a safe environment is one of the primary reasons for ethical leadership.

4. React quickly in the event of a drift

Don't wait for problems to get bigger. Intervene early, even if the signals seem minor. Be fair: neither status nor performance should make any excesses acceptable. Document situations and deal with them fairly.

5. Sharing power and empowering

Delegating is not enough. Teams should also be encouraged to make decisions, while ensuring that they are consistent with the values of the organization. This accountability develops the commitment and autonomy of employees and prevents too much power from relying on one person.

6. Managing conflicts ethically

When faced with conflict, take the time to really listen. Try to understand what is at stake for each. Prioritize exchange rather than power relationships. The objective is not to impose a solution, but to reach a fair and equitable outcome for all parties, knowing that according to a study by the Harvard Business School, companies headed by leaders who have developed an ethical culture see their rate of internal conflicts decrease by 30%.

7. Regularly assess your practices

Ask for the opinion of your employees, for example through discussion times or short questionnaires. Their feedback helps identify what's not working or what's out of your sight. This continuous assessment makes it possible to adjust the course before problems occur.

8. Continuously training

Set up training sessions around concrete situations, ethical dilemmas and real life cases. Promote collective thinking rather than the mechanical application of rules. Ethics is developed daily through actions, not through declarations of intent.

These practices, if activated on a daily basis, are gradually becoming the new operating standards of the company with all the benefits that this implies. Here are a few that you can discover in case studies.

Ethical leadership examples and case studies

In an increasingly complex economic world, a conviction is gradually emerging: leading with integrity is no longer an alternative, it is a necessity. Leaders who put ethics at the heart of their decisions are not only looking to “do the right thing”; they are also laying the foundations for more stable and efficient businesses.

Observation of concrete paths shows it: when an organization goes through a storm or seeks to transform, it is often the values and consistency of its leaders that allow it to stay the course and move forward. Let's see how this happens in practice.

Everyday management ethics

Before talking about major transformations, let's start with the essentials: daily actions. An ethical leader is first and foremost someone who applies the same rules of the game to all members of his team. Who takes the time to really listen. Who does what he says and says what he does.

Ethical leadership and business success

Some companies have taken the bold step of placing responsibility at the heart of their business model. And it works.

Take the case study of Ørsted, this Danish company that has made a radical shift towards renewable energies. Since 2006, it has divided its pollution emissions dramatically. At the same time, the value of the company on the stock market increased sixfold over ten years. It's hard to find a clearer demonstration that acting ethically can go hand in hand with very good financial performance.

In a completely different universe, that of fashion where ecological scandals and bankruptcies are multiplying, the Patagonia case study shows that the brand has cleverly chosen its path. Indeed, the brand decided not to content itself with selling mountain clothing.

It offers another way of consuming: recycled materials, repair rather than replacement, transparency on its practices.

Results? In 2020, its online sales jumped by 50%. In this way, customers show that they support brands that truly embody their beliefs.

Faced with the crisis: transparency versus opacity

Nothing reveals the strength of leadership better than how it reacts to adversity. When an error occurs, when a problem occurs, there are two opposing attitudes. Some seek to minimize, to divert attention. Others, ethical leaders, take responsibility, explain clearly what happened, and take action. They assume, explain and act.

The 737 Max accidents highlighted this difference. Dennis Muilenburg, then CEO of Boeing, took a defensive posture. Instead of quickly recognizing the system failures involved in the crashes, the company tried to reassure at all costs, to minimize the extent of the problem. This denial strategy has had the opposite effect: trust has collapsed with authorities, airlines and the general public.

Meanwhile, Airbus, under the leadership of Guillaume Faury, strengthened its reputation by focusing on two pillars: security and transparency. Without being directly affected by the crisis, Airbus was able to reassure its customers and respond to a growing demand for orders by reaffirming its reliability standards. Honest communication, commitments kept: the result was translated into market shares gained and a consolidated leadership position.

The conclusion is simple. Faced with a problem, communicating openly, proposing concrete solutions and fair compensations does not only solve the immediate crisis. It is also a sustainable way to restore, and sometimes even strengthen, trust.

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