In complete sentences please explain these 1 Is it important

In complete sentences please explain these: 1. Is it important that leaders demonstrate strong ethical capacity? If this is not important, why not? If it is important, whose responsibility is it to ensure that leaders uphold ethical standards within an organization? 2. What should happen when a leader fails to uphold these standards? 3. What might an organization do to ensure that its leaders maintain consistent ethical standards? Some things I know that a leader should do and be is that a leader must be authentic, must be trustworthy and inspire trust. Leaders must have integrity and courage. They are to live by a code of Ethics.

Solution

I would like to answer this question basis my 10 years of experience in the corporate sector.

1. It is extremely important that not only do leaders demonstrate strong ethical capacity but also need to ensure that those who report to them as well as their immediate environment i.e: their colleagues, bosses, immediate managers need to follow and adhere to the laid down ethical standards of the organisation as well as ensure 100% compliance as well as accountability towards ones actions. It is their job to ensure that this is strictly followed. However, there are certain vulnerable departments in an organisation like the sales department, finance department who come across situations where there is a very thin line that separates an action as an ethical and a non-ethical action. In such cases, there needs to be a clearly laid down policy or the legal department or the compliance department needs to be consulted to prior to committing to any such deeds or actions.

2. If a leader is found to have failed to uphold these standrads then strict action must be taken against such an individual. If this is not done then other employees will see no motivation in adhering to the policies and procedures of the company and that may cost the company a huge sum if the individual is found guilty in the court of law while dealing as a representative of the company. The CEO of the company has a very important role to play in such cases and must ensure that such individuals are taken to task publically. For eg: Wrongly opening fraud accounts for customers to increase sales and achieve revenue targets.

3. I think that it is very important that all Managers need to sign an agreement when they take up managerial roles that it is their duty to ensure that they will follow all laid down rules and regulations and policies and procedures that govern the ethical standards of the organisation. They will be responsible for the actions of their subordinates which will be limited to all areas wherein they are supposed to be kept in the loop and that which can be proved legally. For eg: For all new accounts that are opened, the Managers signature is a must. In such a case if the subordinate is responsible for a fraud, then the Manager needs to be held accountable as he was invloved in the account opening process. Every organisation needs to have a strong compliance and a legal team and it should be a practise of employees to consult these departments in case of doubt.

Personal value and upbringing also play an important and critical role however I am of the opinion that the ode of Conduct and the Ethical Policy and Procedures of organisations must cover these points in depth.

A leader according to me must have the following traits and exhibit these values:

1. A leader must be sensible and should have the ability to distinguish between a right and a wrong action and mist guide their suborinates at every step to understand the difference between the two/

2. A leader must be a listener to understand the motives of their subordinates and read between the line to decipher the value system of individuals.

3. Must be completely aware and must live the ethical standards of the organisation at all times.