The five key qualities of ethical business leadership

The word “ethical” gets thrown around a lot these days, and most of it can seem like lip service. But the truth is, ethical business leadership is directly linked to a company’s long-term success. Why? One major reason is that ethical leaders show a strong personal commitment to creating a positive company culture.

Despite the outdated stereotype that you must be hard-nosed and ruthless to succeed in business, it’s ethical leaders that actually tend to run more profitable companies. There’s a positive correlation between companies with an uplifting culture, and their employee’s productivity and job performance. Ethical leaders also inspire their team members by taking a strong stand on the issues that matter most to them, instilling a sense of purpose into the fabric of the company culture.

For example, the online trading industry is not known for being the most ethical — with new research revealing that 59% of Australians believe that trading brokers have ‘no’ or ‘limited’ ethical standards. As the director and co-founder of a trading startup that’s grown to an international trading platform, I believe there are five key qualities all business leaders should aspire to — regardless of their industry. 

The qualities of an ethical leader

1. Create unity, not division

   When everyone feels united in striving towards a common goal for the business, rather than competing, the team can function efficiently and the workflow is far more productive. Having a human touch enables you to get on the team’s level and create an environment where everyone feels equally valued and has the same opportunities for success.

2. Always be transparent

   Transparency is the key to successful business leadership. If you have nothing to hide and are proud of how you conduct your work, then use that to share the details with your clients and industry through innovative approaches.

3. Work on your communication skills

   In the early days, most start-ups only have a very small team comprised of a handful of dedicated and hardworking people. The pace moves very fast, with everyone often working on overdrive. Having open lines of communication is essential to keep tabs on workflow and the general vibe of your team. This is where active and efficient communication in the team becomes important to ensure that projects stay on track and there’s no misunderstandings.

4. Self-awareness

   It is essential to have a good understanding of your own strengths and weaknesses as a leader. Self-awareness helps leaders make ethical decisions, and understanding your strengths in both industry skills and knowledge, as well as personal characteristics, allows you to better perform your responsibilities as a leader within your organisation.

5. A trilogy

   A business leader needs three complementary values — fairness, integrity and honesty — otherwise they won’t get them back in return. If you conduct your business with transparency and integrity at all times, then these qualities will be returned to you tenfold in appreciation from your clients, business partners, employees and stakeholders. Building an ethos and reputation around these core values is a solid base from which any business can grow.

The 21st century is fast-paced and competitive, and sometimes it can seem like the only thing companies care about is the bottom line; however, in these challenging times, ethical leadership is essential now more than ever.

While some might think there a choice to be made between being profitable and behaving ethically, being an ethical leader is a necessary factor in a businesses’ sustainability and long-term success.