With the current setting of international connections in the business world, good leadership management is an essential aspect of the prosperity of corporations. Since the leadership is accountable for the efficient running of the business, they must be morally sound people who can lead the organization in a reputable manner. Leadership mostly refers to an individual’s ability to manage their team, strong communication, strategic planning, and other functional management that can improve an organization’s productivity. One must understand the principles of good leadership abilities, which will benefit the analysis of strong leadership attributes and the application of leadership concepts and frameworks to become a good leader (Zaim et al., 2020, p.50). The most important character attributes that go into creating great leadership management in social enterprises are people’s integrity, integrity, dependability, and moral codes. Organizational managers who practice ethical and responsible leadership uphold a shared sense of purpose which is widely socially accepted as a solid foundation for the greater good. Social enterprise organizations require ethical and responsible leadership since they motivate others in the working environment to act morally for the benefit of all. For an individual to be a responsible leader, they constantly emphasize upholding organizational goals by shaping business rules in alignment with the management framework. They also collaborate with others and treat all staff equally, exemplifying ethical leadership-specific responsibilities.
The Growth of Ethical Leadership
Because of its capacity to cheer people up and eliminate corporate crises, ethical concerns, and problems, ethical and responsible leadership is becoming more and more acceptable in social enterprise organizations. Leaders who uphold moral principles and act responsibly inspire and motivate people immensely, making it easier for workers to have a sense of ease and satisfaction at work, enhancing their productivity. This strategy improves business partner and customer interactions, enhances profitability, and fosters long-term profitability since it helps build a good business reputation and attracts many investors into the business operations (Khan et al., 2022, p.11055). Responsible and ethical leadership promotes employee productivity by providing a conducive working environment.
Because the primary objective of responsible and ethical leaders is to make profits while respecting civilizations, cultures, and consumers, social enterprise organizations run by this type of manager are respected and cherished in the community. Also, ethical and responsible leadership in the organization helps create a healthy and beneficial relationship with stakeholders and investors, promoting financial strength. The impact of ethical leaders on the field is also significant because they reduce the danger of crises brought on by internal pressures by ensuring that all issues and challenges are addressed. For this reason, ethical and responsible leadership has grown more popular in social enterprise organizations since they ensure the common good of the business, staff, and community at the same time.
Traits of an Ethical Leader
In a business, ethical and responsible leaders play a crucial role in directing and supervising subordinates. They all share several characteristics that make them effective in the competitive world and distinctive. Their first quality would be that they consistently act ethically. The majority of ethical leaders cultivate their reputations over time. They must ensure that their professional practices are consistent and obvious to others if they want to earn the public’s trust (Javed et al., 2020, p.220). Knowing one’s self and ideals is the second quality of authentic leadership. A strong ethical leader knows their values and convictions and seeks to make them known to everyone else. They also take positions and firmly join dialogues. The third characteristic of ethics and responsibility is their constant willingness to accept blame for their people’s faults and other failings. Holding oneself responsible, taking leadership, and influencing the institution’s current and future through remarks, acts, and achievements were characteristics of ethical leaders. Since they must engage in numerous conversations and choices, impartiality is another quality of an ethical leader. When making decisions, they should act ethically by prioritizing long-term benefits over those that will benefit the firm, stakeholders, community, and employees more quickly.
Leadership Theories
Many theories explain how different types of leadership emerge, including the Great Man, Trait, Behavioral, Contingency, and Situational Theories. These theories have varying viewpoints on how leadership is developed and how the leaders are supposed to conduct themselves. The Great Man theory contends that particular individuals are conceived with the abilities that distinguish them aside from others, and these potentials are what lead to them adopting roles of leadership and accountability in society and various organizations. This argument is widely viewed as a declaration of belief rather than a theory (Smart, 2020, p.36). An individual in leadership is a superman who incapacitates all impediments to achieve determination for his supporters. On the other hand, according to the trait theory of leadership, individuals are defined by a set of intrinsic or inborn traits. These traits could include personality physiognomies, physical appearances, level of intelligence traits, and many more.
The behavioral leadership idea focuses on how leaders function and holds that these other executives can acquire these characteristics. According to the fashionable notion, effective elites can be formed by teachable behavior instead of instinct.
According to the contingency theory of leadership, good leadership depends on the circumstances. In essence, it relies on whether a person’s effective leadership is appropriate for the circumstance. This notion holds that a person can be a good leader in one situation and a bad leader in another.
According to the situational leadership theory, managers should employ several leadership philosophies based on the context and the level of group member advancement. Because it adapts to the organization’s strength and produces a win-win scenario for the whole company, it is an effective leadership style. Situational leadership is the best form of leadership when dealing with social enterprises because it helps to fit and meet the needs of people whenever a need arises. This type of leadership will help the manager adapt to changes in the working environment and ensure efficiency at all times.
Generally speaking, this ethical leadership theory emphasizes accountability and defines leaders as competent to work, understand, comprehend, and uphold the organization’s main ideas and values. A leader must be able to serve all parties equally, including consumers, vendors, staff, and investors (Tilley, 2022, p.122). Adopting corporate ethical results in fewer challenges and issues relating to the loyalty of consumers, workers, and the general public. An organization will gain a positive reputation and retain personnel when an Executive acts ethically.
Ethical Leadership Alliance with HR Strategy and Compliance
The primary goal of the human resource departments is to find people-centric solutions to problems employees’ problems in the organization. An ethical and responsible leader in social entrepreneurship ought to be able to deal with some urgent problems that could endanger the company. The ethical person must create a proper and convincing plan emphasizing employee engagement, organizational culture and environment, long-term planning, and hiring practices. They must be able to examine the business’s personnel and ensure that the approach they devise can preserve a high level of employee engagement. An ethical and responsible leader will formulate a strategy that will have a lasting impact on the business and be consistent with its core objective, values, and vision (Prieto et al.,2018). The rules that ethical and responsible leaders implement in the social organization should comply with all labor laws and state and federal legislation. These regulations cover sexual misconduct, non-discrimination, safety and health, overtime payoff, and occupational categorization. Ethical leaders need to ensure that all worker’s rights are taken into account and that they can handle problems and make the appropriate judgments. To uphold local and national laws on workplace culture and the treatment of employees, authentic leaders in a social company should ensure their HR strategy and compliance produce a secure and positive workplace culture.
Models for leadership and occupational growth assist moral leaders in acquiring new abilities that advance their career advancement and enhance their employability. Authentic leaders follow the plan or course to understand how to operate their teams while staying loyal to who they are. Through the unity of their objectives, leaders can guide their employees through any organizational transformation and enable the implementation of an organizational plan. Leaders can enhance their abilities in areas like decision-making and project management framework with the aid of leadership skills. Dispute resolution or problem-solving, which entails resolving conflicts at work, are the key themes of interest during leadership development. Concerns about dealing with change, its effects, and the chances it presents are the second growth topic (Hechanova et al.,2018, p.917). The leadership of productive meetings, staff motivation, planning and scheduling, and ability to work under pressure are different areas of importance. The emergence, growth, and good leadership aspects comprise the three stages of professional leadership development. The leadership in the three stages can deal with these challenges and choose the best course of action for their company with the assistance of leadership skills. Styles of professional and personal development assist managers in acquiring the knowledge and attitude that will enhance their effectiveness inside the company. In social entrepreneurship, understanding how to create change in society, fairly hire employees, and offer effective mentoring depend on personal and effective leadership models.
Through careful consideration of the ecosystem and the effects of business actions, corporate social responsibility (CSR) guarantees that an organization contributes positively to society. For the benefit of their consumers and the community, ethical leaders need to ensure their businesses are more sustainable, employing carbon offsets and renewable energy sources. Leaders implementing CSR initiatives improve staff turnover by raising staff morale. Leaders can apply Sustainability practices in a social enterprise through environmental programs, volunteer work, charitable endeavors, and moral employment practices (Saha et al., 2020, p.417). Leaders who uphold ethics should ensure they are interested in engaging with the community through CSR initiatives.
The capacity to see issues from a historical and ethnic viewpoint is known as having an international dimension. The difficulties and nine concerns that face a corporation should be viewed from a global study by ethical executives. Global perspectives help leaders effectively interact and relate to those around them by strengthening their listening and reasoning skills (King & Schramme, 2019). A global mentality and an open mind are qualities that authentic leaders should possess. Authentic leaders will deal with individuals from various backgrounds in a social company; therefore, intercultural abilities are crucial to their success. Since cultures, values, and the dignity of every individual are respected, and global viewpoints also eliminate prejudices like discrimination and prejudice in a company.
Conclusion
An organization’s growth benefits from a responsible and ethical managerial leadership system, which considers the leadership team’s skills and personality attributes. A strong personality feature is the most important component of every leadership management system. Individual elements of self-improvement aid in formulating effective solutions, self-awareness aids in analyzing challenging situations, and behavioral features are also improved. Ethical and responsible leadership is marked by a set of principles and standards acknowledged by society and the majority as a solid foundation for the greater good. Any company needs good leadership behavior because ethical leaders encourage people around them to behave responsibly for the common good. Ethical Leading is essential for reputation and credibility, according to leaders. Integrity, duty, justice, tolerance, openness, and truthfulness are some widely acknowledged characteristics and qualities that constitute authentic conduct. Related and continuous words and behaviors demonstrate integrity. Justice occurs when team members treat each team member fairly and equally. In contrast, accountability is taking control, embracing the authority that comes with it, and consistently reacting to and being engaged in difficult circumstances. Communication is the foundation of leader behavior, and leaders who are transparent with their customers, team members, and workers are also receptive to criticism.
References
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Khan, M., Mahmood, A. and Shoaib, M., 2022. Role of Ethical Leadership in Improving Employee Outcomes through the Work Environment, Work-Life Quality and ICT Skills: A Setting of China-Pakistan Economic Corridor. Sustainability, 14(17), p.11055. https://www.mdpi.com/2071-1050/14/17/11055
King, I.W. and Schramme, A. eds., 2019. Cultural governance in a global context: an international perspective on art organizations. Springer.
Prieto, L.C., Mathur-Helm, B. and Dawson, K.N., 2018. The ethic of care: an HR strategy to address obesity in the workplace. Human Resource Management InternationalDigest.
Saha, R., Cerchione, R., Singh, R., & Dahiya, R. (2020). Effect of ethical leadership and corporate social responsibility on firm performance: A systematic review. Corporate Social Responsibility and Environmental Management, 27(2), 409-429. https://onlinelibrary.wiley.com/doi/abs/10.1002/csr.1824
Smart, JJC, 2020. Utilitarianism and its applications. In New directions in Ethics (pp. 24-41). Routledge.
Tilley, J.J., 2022. Does Psychological Egoism Entail Ethical Egoism?. The Review of Metaphysics, 76(1), pp.115-133, https://muse.jhu.edu/article/863264/summary
Zaim, H., Demir, A. and Budur, T., 2021. Ethical leadership, effectiveness and team performance: An Islamic perspective. Middle East Journal of Management, 8(1), pp.42-66.
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