Why Ethical Thinking Matters (Part 5)

By Linda Fisher Thornton

To celebrate 7 Lenses going into its second printing, this is the fifth post in a special series focused on Why Ethical Thinking Matters. In case you missed them, take a look at Why Ethical Thinking Matters (Part 1),  Why Ethical Thinking Matters (Part 2), Why Ethical Thinking Matters (Part 3) and Why Ethical Thinking Matters (Part 4)I’m hoping the strategies shared in this series will give you a fresh perspective on your plans for developing leaders in 2018.

You may already realize that ethical thinking is important, and if you do, I ask you to spread the word. To help you champion the cause in your organizations and on social media, I have included the business case below.

If you ask a room full of leaders to define ethical thinking, you’ll get dozens of different answers. Leaders struggle with increasing complexity and accelerating change and they may think that they know how to use ethical thinking. The problem is that the ethical thinking they have been using for years isn’t helping them now. Our thinking skills don’t just upgrade themselves as if set on “automatic upgrade.” Leaders have to practice struggling through ethical issues at increasingly higher levels of complexity.

Ethical thinking doesn’t just “happen” by itself in a rapidly changing global environment – the landscape is constantly changing and ethical expectations are increasing

As ethical challenges increase, leadership thinking needs to increase accordingly for leaders to keep up. If we use outdated software to run our most critical systems, they won’t be reliable and our business credibility will break down. The same is true for outdated leadership thinking. 

Ethical Awareness is Increasing

Corruption has long been approached with the implicit attitude that it is a victimless crime. This is now changing fast, as it has become impossible to ignore the links between corruption, poverty, conflict, and human rights violations.

Alison Taylor and James Cohen, The future of business ethics: Hyper-transparency and other global trends, FCPA Blog

Ethical Problems Must Be Handled Fast, In Real Time

“The caliber of the decision maker is decisive—especially when an immediate decision must arise from instinct rather than from discussion.”

Kenneth R. Andrews, Managing Uncertainty: Ethics in Practice, HBR

Developing Leaders Supports Employee Engagement

“The third factor in “irresistible” management is leadership development: Organizations with high levels of employee engagement focus on developing great leaders. They invest heavily in management development and ensure that new leaders are given ample support.”

Josh Bersin, Becoming Irresistable: A New Model For Employee Engagement, Deloitte Insights

A New Leadership Algorithm is Required

“The definition of strong leadership is evolving. Several interviews discuss topics relating to updating the leadership algorithm or leadership mindset to enhance the overall capacity.”

Maureen Metcalf, What Top Leaders And Academics Are Thinking About Leadership In 2017, Forbes.com

Pressure on leaders is increasing to make good choices and ethical brand value is a key part of organizational success. A bad choice captured on video can go viral on social media, causing the value of a company to plummet in hours. Don’t let your most critical brand ambassadors and coaches (your leaders) use outdated ethical thinking. 

Top 100 Leadership Blog

 

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LeadinginContext.com  

©2018 Leading in Context LLC

 

Why Ethical Thinking Matters (Part 1)

By Linda Fisher Thornton

To celebrate 7 Lenses going into its second printing (big news!), this is the first post in a special series focused on Why Ethical Thinking Matters. I’m hoping the strategies shared in this series will give you a fresh perspective on your talent development plans for 2018.

Ethical thinking drives ethical choices and behavior. Marcus Aurelius said “Our life is what our thoughts make it.” According to Buddha, “We are what we think. All that we are arises with our thoughts. With our thoughts, we make the world.” I believe that leadership development efforts must address the values-based thinking behind good leadership, or it will not lead to good leadership. If we just teach people skills, without upgrading their thinking, we are not preparing them for success in the real world.

Evidence Of The Gap: While most companies have stated values, one recent survey found that less than half of them actively lead with those values. According to Salesforce.com, The Impact of Equality and Values Driven Business, “Although 10 out of 18 senior executives surveyed at the 2017 New York Times New Work Summit said that their companies clearly define their values, only 40% of business professionals say their company leads with its values.”

You may already realize that ethical thinking is important, and if you do, I ask you to spread the word. To help you champion the cause in your organizations and on social media, I have included the business case below.

Leaders need to learn how to think WITH values so they can APPLY them to their daily challenges. 

We need to help leaders ramp up their thinking skills to be able to successfully APPLY positive ethical values to increasingly complex situations. If we don’t, they’ll still have to make leadership decisions every day, but those decisions may not align with our organization’s ethical values. They may not meet the ethical expectations of customers, employees and other key stakeholders. And even though they’re in leadership positions, they won’t be ready to teach the organization’s values to their teams. 

Helping leaders learn ethical thinking means they will be able to APPLY ethical values in their daily decisions and actions. That ability brings many positive benefits to the organization, including: 

Improved Positive Outcomes, Reduced Risk

“Ethical leadership has been shown to cause a host of positive outcomes, and to reduce the risk of many negative outcomes. Leadership may therefore be the most important lever in an ethical system designed to support ethical conduct.”

EthicalSystems.org, Leadership

 Competitive Advantage

“Virtuous organizations, like virtuous people, outperform their peers over time. The ethical values guiding the world’s most successful organizations are cheap but powerful sources of competitive advantage.”

SHRM, Shaping an Ethical Workplace Culture

Improved Connection With Customers and Employees

“Business leaders who take the next step to not only define but actually lead with values are better positioned to connect with their customers and employees.”

Salesforce.com, The Impact of Equality and Values Driven Business

Improved Trust, Which Drives High Performance

“Simply put: High ethics creates high trust. High trust creates high performance.”

SHRM, Shaping an Ethical Workplace Culture

Only when leaders learn to think using ethical values will they be able to successfully apply those ethical values to their decisions and action, every day.

Read the next post in the series: Why Ethical Thinking Matters (Part 2)Top 100 Leadership Blog

 

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LeadinginContext.com  

©2018 Leading in Context LLC

 

 

 

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