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Benefits of ethical leadership in an organization

Money & Careers
 Ethical leadership in your company helps create a positive work culture. [iStockphoto]

HR professionals must promote and foster fairness and justice for all employees and their organizations by treating others with respect, dignity and compassion.

In order to protect the interests of our organization and our professional integrity, we must avoid all actual, potential, and perceived conflicts of interest.

Ethical leadership is when business leaders demonstrate appropriate conduct - in accordance with recognized principles and values - both inside and outside of the office.

The importance of ethical leadership

Ethical leadership has many benefits, and these have been studied over time by clinical researchers and highlighted in many successful business stories.

Here are some examples of the benefits of ethical leadership:

Improved brand image

Maintaining moral brand practices has become even more important today in a digital, fast world where one image can destroy a brand.

By behaving and acting responsibly, ethical leadership can dramatically improve the brand image to onlookers.

Improved staff morale

Ethical leadership is about leading, inspiring, motivating, and making employees feel accountable for their work.

When this happens, greater business success is achievable because employees are happier to be at work.

Positive workplace culture

If ethical leaders can influence results, then they can equally influence workplace culture.

Walking the walk and talking the talk is where ethical leaders can develop the workplace to inspire and motivate others to follow good ethical behaviour.

Customer loyalty

Customers are moving away from buying a "good product" - they want their purchases to be ethical as well.

A business that can demonstrate good ethical choices and decisions will benefit

Staff loyalty

Ethical leadership is about building trust with your employees and in return getting trust back.

If people feel less threatened and less objectionable to the direction of the business, an increase in staff loyalty is more than achievable.

Improved recruitment

With more people working remotely, hiring the right people who possess both ethical and moral ideas is essential in order to reflect those of the business and the leadership so that the company can receive equal service.

Attracting investment

Potential investment is increased when a business stands for clear ethical and moral practices as they inspire confidence amongst investors generally.

They are creating a generally good impression and a positive brand image in the market.

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