Stumbled upon this and every word spoke to me regarding our current situation. I know it’s not easy to do, but please raise your hand when you see processes and decisions that are designed to benefit the bank and unethically disadvantage the customer. Yes: We deserve to make money for the services we provide, but honestly and transparently. Particularly because we are in the business of safeguarding people’s money.
We have seen what a lack of integrity in business can do. Push our leaders to do it differently this time. It will pay dividends many times over with satisfied customers and employees, growth and sustainable profits, and an improved performance overall.
WHY MORAL LEADERSHIP MATTERS
Most employees believe moral leadership leads to better business results, but few believe senior leaders consistently demonstrate those qualities.
That’s according to the findings of a new report, “The State of Moral Leadership in Business 2019,” conducted by ethics and compliance advisory firm LRN. Among 1,105 U.S. employees surveyed from a cross-sector of industries, 87 percent of respondents said the need for moral leadership in business is more urgent today than ever before.
“Across industries, roles, gender, and tenures, respondents were equally emphatic about their desire for managers and executives to lead with the company’s deeper purpose, inspire and elevate people, uphold moral values, and actively engage in questions of right and wrong,” LRN said.
Yet, just 7 percent of survey respondents said their managers consistently exhibit the behaviors of moral leadership. More than half (59 percent) said their managers exhibit few or none of the behaviors of moral leadership—and it’s these managers who are “ten times more likely to treat people unfairly, eight times more likely to hoard information, and five times more likely to prioritize short-term results over the long-term mission,” according to the survey data.
It used to be that a carrot-and-stick approach to authority was enough. Not anymore, said LRN CEO and Founder Dov Seidman. “Only moral authority can build trust, inspire colleagues, create meaning, or help people imagine a different and better future—in other words, enabling them to do the next right things,” he said.
The findings also revealed that employees believe moral leadership will lead to better results for their companies, with 72 percent of employees saying their companies would be better at taking on their biggest challenges if led with moral authority. Additionally, 94 percent of respondents said they regard managers and executives who lead with moral authority—rather than relying solely on the formal authority of their roles—as effective at achieving business goals.
On the flip side, 82 percent of respondents said their companies face greater risks when they fail to consider the moral and ethical implications of what they do. This sentiment increases to 92 percent among respondents at companies with at least $10 billion in revenue in heavily regulated industries—such as finance and pharmaceuticals.