Ethical leadership development and effective communication

Recently I was reminded of the importance of communication in team building and ethical leadership.  There is absolutely no excuse for verbally bullying staff, especially in the presence of customers and employees.  When one is promoted to manager, the title, new business cards and pay increase do not magically impart the ability to inspire and lead others.  One of the most important components of leadership is communication.  Although many take it for granted, effective communication is both art and science.  Individuals can develop it as a point of differentiation – for example, at sales presentations and interviews.  Organizations can use effective communication as a way of getting the team on the same page and pursuing the same mission.  Lee Iacacco, the former head of Chrysler and author of its turn-around plan in the 1980s said, “The most important thing I learned in school was how to communicate.”

Effective communication is purposeful.  Communication must be clear and understood in order to have its intended effect.  The goal of communication must be carefully considered and planned, even in situations that seem relatively innocuous.  Effective communication is essential for ethical leadership.  According to the Stanford Graduate School of Business, when Anne Mulcahy was appointed CEO of Xerox in 2001 as the company teetered with bankruptcy, she attributed effective communication as the most important element of the turn-around strategy.   "I feel like my title should be Chief Communication Officer, because that's really what I do," she said.  "When I became CEO, I spent the first 90 days on planes traveling to various offices and listening to anyone who had a perspective on what was wrong with the company.  I think if you spend as much time listening as talking, that's time well spent."

Effective communication “sweats the small stuff”.  Ethical leaders care about the fine details of communication.  If the communication does not contain the required information, it can confound the intended recipients of the message.  Every effort must be made to eliminate noise.  In the marketing research data collection business, it was crucial to the success of each project that we saw eye-to-eye with the client on objectives.  If these were not communicated effectively, the project’s end goal would be in jeopardy.   Dr. Gilbert Amelio, former CEO of National Semiconductor stated,

“Developing excellent communication skills is absolutely essential to effective leadership.  The leader must be able to share knowledge and ideas to transmit a sense of urgency and enthusiasm to others.  If a leader can’t get a message across clearly and motivate others to act on it, then having a message doesn’t even matter.”

Effective communication speaks to the heart and mind, providing inspiration.  One of the greatest storytellers in the modern age was Sir Winston Churchill.  He instilled hope in the people of Britain through his emotional and patriotic messages.  Aristotle offers insight into effective communication through his discourse on logos, pathos and ethos. In order for communication to persuade, it must exhibit logos – reason and logic.  Secondly, the communication must resonate with the audience through pathos – an appeal on the emotional level.  Finally, these two elements will not have their intended impact without ethos – the credibility and ethical character of the communicator.  Unfortunately, in this day and age, it is not difficult to achieve the first two.  Doing so without a life of integrity reduces the potency of the communication.  Walking the talk is crucial and there are times when saying nothing at all, but modeling what one believes, is the most profound communication of all.  

Ethical leadership depends on effective communication.  In this technology-laden era of instant messages and social media relationships, a beneficial way to differentiate on both the individual and organizational levels depends on effective communication.  Destination and purpose, focusing on details and touching both the heart and mind are characteristics of effective communication.  Without ethical conduct and integrity, communication – no matter how poetic and logical – loses its effectiveness.  Ethical leaders understand that in order to ask for one’s allegiance, they must touch the heart.   No matter how much knowledge a leader possesses, it is not a substitute for a caring attitude.  Effective communication affords the opportunity to demonstrate compassion everyday.

India's Companies Bill and CSR

The Companies Bill recently passed in the upper house of India’s parliament mandating that the board of directors “shall ensure” 2% of net profits of larger firms be committed to CSR.  India is among the first countries to require CSR spending through legislation.  Although this appears to be a positive development, a key question to ask is whether Corporate Social Responsibility should be an organizational requirement.  Compelling companies to give – even to worthy causes – condones a well-known human character flaw: being forced to complete a task rarely produces the same result as willingly completing the task.

CSR is more than just spending.  CSR is a mindset seeking to benefit stakeholders within the organization’s sphere of influence.  Social responsibility is not borne from the pocket book.  It emerges from a sense of doing what is right for the greater community, creating a sense of purpose for the company.  The drawback to the legalized approach to CSR is that it leads organizations and business leaders to believe that social responsibility is simply a line item in the annual budget.  For CSR to be successfully implemented within an organization, it must be more than just an initiative but a way of doing business.  Simply spending does not capture the heart of CSR.   

Honeybees are a crucial part of the global food chain.  As the number of honeybee colonies dwindles, it affects the worldwide availability of strawberries, pears and raspberries.  Haagen-Dazs has partnered with researchers and donated to honey bee studies to help reverse the honey bee population decline.  The initiative not only helps Haagen-Dazs with the ongoing preservation of fruit for the company’s frozen novelties but other food companies and the environment.  If the company was ordered to create a CSR program, would it have a similar look and feel? 

Source: A. B. Carroll, "The Pyramid of Corporate Social Responsibility: Toward the Moral

Management of Organizational Stakeholders," Business Horizons (July-August

1991): 39-48.

CSR becomes less impactful when it’s a legal requirement.  Archie Carroll’s CSR pyramid is a helpful visual reminder of the different levels of Corporate Social Responsibility.  The pyramid, from bottom to top, is economic, legal, ethical and philanthropic.  A company must be economically viable before it can be a good corporate citizen.  In other words, a company must be engaged in a profitable business activity.  This is the foundation for all other levels.  After this, a company must hold to the legal requirements of business including but not limited to paying taxes, providing employees with a safe working environment and obeying all laws.  The economic and legal aspects of CSR (the bottom two layers of the pyramid) are required by society while the ethical aspect is expected and the philanthropic desired.  Legalizing CSR knocks the ethical component down a rung to a legal issue.  Some companies may be happy to tick a box by giving to a CSR initiative satisfying corporate obligations, but it could hinder germane progress in the social arena.  Social progress requires buy-in from management and the workforce alike, transforming the organization and making a positive impact on the community: It is certainly not an easy task.  The mandated CSR law will make it easier to spend without passion for the cause or purpose.  Will consumers be more sceptical of company efforts to be good corporate citizens when CSR is required?   

The Indian government is attempting to implement good corporate citizenship through legislation.  Only time will tell whether the new Companies Bill will truly benefit the mainstream Indian population.  While the intent of the law may be noble, it could have the opposite effect - companies donating to CSR activities out of obligation and behaving like scoundrels nonetheless.      

The decision to pursue ethical leadership development

A journey of 10,000 miles begins with one single step.  The saying may be a truism, but in reality, need not be a daunting prospect.  A purposeful journey requires two things: destination and desire.  After a decision is made to pursue ethical leadership development what should one do?  The first steps on the road to ethical leadership development include learning, leading by example and dreaming big to improve the lives of others.

Decide to learn today.   Ethical leaders are lifelong learners.  They are passionate about new developments in their industry and how these changes can positively impact their business.  No matter how well you know your discipline, there are always new things to learn and trends to observe.  Management guru Peter Drucker directs us to “identity the future that has already happened.”  The only way to accomplish this is by adopting a continuous learning approach.  For example, in Canada the baby boomers are approaching retirement which will not only create job vacancies but vast potential opportunities for delivering solutions to this market segment.  As advances in health care increase life expectancy, it is not uncommon for individuals to work until 65 and still have 20 years of living ahead.  Learning the values, beliefs and attitudes of this demographic group can open doors to fulfill unmet needs in the marketplace.

Decide to lead by example today.  “I serve with honor on and off the battlefield…I lead by example in all situations” is the Navy SEAL creed.  One of the most powerful statements any leader can make is leading by example.  Navy SEAL combat veteran and internet marketing professional, Brent Gleeson states that people will only truly follow leaders they trust.  Imagine a situation requiring more trust from your team than a combat unit on the front line.  One of the main reasons the Navy SEALs are successful is because each soldier is trained to earn trust no matter age or rank.  An organization with the same attitude can truly outperform.  Each time an ethical leader promises and follows through, a deposit is made in the trust account of team members.  A long-term disposition to lead by example fosters an environment of loyalty and respect.  Although I didn’t necessarily enjoy performing every job function at our marketing research company, I learned the value of never asking an employee to do something I wouldn’t do myself.  The message communicates that the leader is willing to get his hands dirty and support the team for a common purpose.

Decide to dream big today.  The ethical leader is responsible for championing a shared vision benefiting others.  If one is to create a dream, it might as well be big.  In many parts of the world today, access to education is restricted.  Malala Yousufzai, the Pakistani girl fighting for the right to learn, was violently targeted by the Taliban because she supports education for girls.  She miraculously survived the attack and continues to advocate against extremism.  No one would have blamed Malala or her family had she disappeared from the public eye after her recovery from hospital.  Malala’s actions demonstrate what it means to chase a dream that will ultimately benefit others. 

Ethical leadership development can be your reality today.  The lifelong journey begins with taking deliberate steps each day to improve self and community.  The decision to become an ethical leader begins now.  Deliberately decide to adopt an attitude of learning.  No matter what your profession, decide to become an expert in your field by learning of the new developments in your industry and the competitive landscape.  Deliberately decide to lead by example.  Ensure your words and actions match.  You may not notice, but people are watching and it won’t take them long to figure out if you’re “walking the talk”.  Finally, deliberately decide to dream big.  Most of us won’t be speaking to the UN about improving access to education for girls, but we can still make a difference in the lives of our families and communities by adopting a big dream.  No matter where you are in life today, you can decide to take the first step on the path to becoming an ethical leader.