Ethics are important in business and the leader has important role in ethical decision making. A success leader is who has the courage to build his or her company to meet the needs of all the stakeholders, and who recognizes the importance of the service to society. The common theme for the leader play in ethical decision making is trust, fairness, and transparency.
First, trust is based on ethical behavior of firm to form a strong base of any long-term business. Thus, leaders must act what they believe based on their strong value of religion, education, and family.
Secondly, ethics refer to the fairness for making any decision or adjustment. Therefore, leaders should consider would their decision be fair for everyone affected by it before any action taken.
Finally, it is important in such a way that is easy for others to see what actions are performed. Leader with well transparency would be happy to make the decision in public, especially to the people affected by it.
Making the ethical decision is the duty of ethical leaders to instill these principles and face its sequential challenges. Business leaders must energize employees at all levels, utilizing a comprehensive set of methods to promote and recognize ethical actions.
What must be in place for ethical decision making to occur in a business?
In business, ethics is an essential configuration of leadership. The leader needs to make ethical decision when the business operators make competitive, strategic and tactical decisions that affect both stockholders and stakeholders such as downsizing and outsourcing.
According to “How leader can be ethical role models” article, 79 percent of teens surveyed said they felt prepared to make ethical decisions when they enter the workforce. However, 38 percent said it is sometimes necessary to cheat, steal, lie or behave violently to succeed.
Many leaders are now torn between company...