The Difference Between Values Based and Ethical Leadership

Leaders have a huge impact on the success of their organisation, and the decisions they make can have far-reaching implications. In recent years, there has been an increasing focus on values based and ethical leadership – two approaches that are becoming increasingly important in order to create a successful business environment. Both of these approaches can help organisations achieve greater success as they foster trust, loyalty, and collaboration among team members. By understanding the differences between values based and ethical leadership, leaders will be equipped to make informed choices that will ultimately benefit both themselves and their employees.

In this article, we explore:

• The Difference Between Values Based and Ethical Leadership
• The Need for Ethical Leadership
• How Organisations can Build Ethical Leadership

The Difference Between Values Based and Ethical Leadership

Values based leadership is a type of management style that seeks to instil core values into the workplace and encourage employees to align their behaviour and decisions with those values. It focuses on creating a culture where people make decisions based on principles, rather than personal gain or career advancement.

Ethical leadership is a form of management that seeks to promote ethical behaviour and decision making in the workplace. This style of leadership emphasises fairness, trustworthiness, respect for individuals’ rights, and the importance of social responsibility. It is closely linked to values based leadership in that it encourages people to make decisions in line with their core values. However, ethical leadership goes further by explicitly addressing the need for a less subjective view of ethics. An important element of ethical leadership is the understanding that decisions should be made in a way that takes into account the needs of all stakeholders — from shareholders to customers and employees.

How can Organisations Build Ethical Leadership?

Here’s how you can build ethical leadership in your organisation:

Start With Values

To build an ethical leadership culture, organisations should start by creating a shared set of values that all team members are held to. Refer to them often and make them a part of the way the business runs, especially when making decisions that affect everyone. Your employees and clients will be more likely to trust and respect the organisation if they see these values upheld consistently.

Emotional Intelligence Matters Most

Organisations should also focus on developing leaders who demonstrate emotional intelligence, which can help promote ethical leadership. Leaders with strong emotional intelligence are better able to empathise with different points of view and consider the impact of their decisions on others. They understand that trust must be earned and maintained, and are better equipped to build relationships with employees and foster an environment of collaboration. By investing in leadership training programs, organisations can ensure that their ethical leadership culture is upheld throughout the organisation.

Role Model the Change

The quote “Be the change you wish to see in the world” is often attributed to Mahatma Gandhi, one of the most influential figures in India’s struggle for independence and a renowned advocate for nonviolent resistance. Although Gandhi may not have used these exact words, the phrase encapsulates his philosophy and approach to social and political transformation (what he actually said is shown below). The sentiment is the same – you can’t expect others to change if you don’t.

Gandhi said,

Gandhi believed that individuals have the power to initiate change by embodying the principles and values they wish to see in the world. He emphasised personal responsibility and the need for individuals to align their actions with their ideals. Gandhi’s approach to social change was rooted in the belief that true transformation begins within oneself and radiates outward to influence others and society at large.

It is a call to action, urging individuals to take responsibility for creating positive change in their own lives and communities. It reminds us that change begins with our own actions and attitudes and that by living our values, we can inspire and influence others to do the same. This quote has become a powerful mantra for personal growth, social activism, and leadership, resonating with people seeking to make a difference in the world.

Where to From Here?

Values based leadership and ethical leadership are two distinct but closely related concepts. Values based leadership focuses on creating a culture where people make decisions based on principles, while ethical leadership emphasises fairness and social responsibility. By understanding the differences between the two and leveraging the ways in which they are connected, organisations can create an ethical leadership culture that will inspire employee engagement, trust and collaboration. This ultimately leads to greater success for the organisation as a whole.

If you want to learn more about ethical leadership and how The Leadership Sphere can help you to develop your leadership skills, contact us today. We offer a range of services, including executive coaching, team development, and leadership development training. We can help you to create a more positive work environment and to develop the skills you need to be a successful leader.