Ethics and Fairness in a Leader’s Decision-Making Process

In an organization that I was consulting with, the CEO, Kalpana (name changed), faced a difficult decision. Two of her senior managers, Ravi and Chandini, were vying for a promotion to lead a critical new project. Ravi had brought in impressive sales numbers recently, while Chandini had consistently mentored her team, improving their overall productivity and morale.

The board was pushing for Ravi—his recent successes seemed to make him the obvious choice. But Kalpana had her doubts. Chandini’s contributions, though less flashy, had built a strong foundation of trust and collaboration across teams. Promoting Ravi might yield short-term results, but Kalpana wondered if it would alienate employees who valued Chandini’s inclusive leadership style.

Kalpana turned to her core values: ethics and fairness. She decided to base her choice on a comprehensive evaluation, considering not just numbers but also the broader impact of each candidate’s leadership.

After gathering feedback from peers; employees, and reviewing both their long-term contributions, she promoted Chandini. Kalpana also met with Ravi to acknowledge his achievements and chart a clear path for his growth.

The decision wasn’t universally popular at first, but it sparked a ripple effect. Chandini’s team thrived under her leadership, and her inclusive culture began influencing other departments. Employees saw that merit, fairness, and collaboration were valued, strengthening their trust in the company.

Months later, Ravi, understood the deontic motivation inherent in Kalpana's decision-making inturn becoming a strong advocate for ethical decision-making in his role, helping drive the company’s values forward.

Role of ethics and fairness in building a climate of trust, openness and high engagement

Ethics and fairness in a leader's decision-making process are key towards building a climate of trust, openness and high engagement in the organization. They guide leaders in making choices that are principled, transparent, and aligned with the organization's values. Here's how they contribute:

1. Building Trust Ethical and fair decisions foster trust among employees, stakeholders, and customers. When leaders act consistently with ethical standards, they reinforce credibility and reliability.
2. Ensuring Long-Term Success Decisions rooted in ethics prioritize sustainability over short-term gains. Ethical considerations help avoid reputational risks, legal issues, and internal conflicts.
3. Encouraging Objectivity Fair decision-making helps leaders remain impartial, ensuring that outcomes are based on merit, facts, and established principles rather than favoritism or personal biases.
4. Navigating Complex Situations Ethical frameworks provide clarity when leaders face morally ambiguous or high-stakes situations. They act as a compass, ensuring choices align with the organization’s mission and values.
5. Modeling Behavior Leaders who prioritize ethics and fairness set an example for their teams, reinforcing the importance of integrity and accountability in everyday actions.

Influence on Organizational Culture and Climate

Ethical and fair leadership has a profound impact on the organization’s culture (shared values and behaviors) and climate (the emotional environment and working atmosphere).

Impact on Culture

1. Promoting Integrity as a Core Value When leaders emphasize fairness, it becomes ingrained in the organization's values, shaping how employees interact and make decisions.
2. Fostering Inclusion and Equity Fairness encourages diversity and equity, ensuring all employees feel valued and have equal opportunities for growth and success.
3. Creating a Purpose-Driven Organization Ethical leadership aligns the organization's actions with broader societal goals, building a culture that attracts and retains purpose-driven employees.

Impact on Climate

1. Enhancing Employee Engagement A fair and ethical workplace leads to higher morale, motivation, and job satisfaction. Employees feel secure and respected, which enhances productivity.
2. Reducing Stress and Conflict When leaders are fair, employees trust that issues will be addressed impartially, minimizing workplace politics, grievances, and conflict.
3. Encouraging Open Communication Ethical climates promote transparency, where employees feel safe voicing concerns or ideas without fear of retaliation.
4. Boosting Organizational Reputation Internally, an ethical climate cultivates pride among employees. Externally, it attracts stakeholders who value responsibility and fairness.

It's a strategic tool in the hands of leadership

Ethics and fairness are not just abstract principles; they are strategic tools that leaders can use to drive sustainable success and create thriving organizations. By embedding these values into decision-making, leaders can influence the behavior of their teams, nurture a positive working environment, and ensure the organization remains resilient in the face of challenges.