Executives behaving badly? What HR can do to encourage more ethical leadership

There is a tangible cost to organisations which suffer from a lack of ethical leadership and culture, according to CEO Vanessa Pigrum. Ultimately this can lead to the loss of customer trust and in turn, the loss of market share.

Some leaders fail to recognise that the impact of poor leadership is rarely ever confined within the four walls of the organisation. “If they’re operating in an unethical manner internally, this is almost guaranteed to impact their external image and will eventually impact customer sentiment and loyalty,” said Pigrum.

Equally, poor and unethical leadership results in low morale and growing cynicism among staff – especially millennials. High turnover has a financial impact.

HR can play an important role in the process of improving ethical leadership within organisations. “We need to keep in mind that the role of HR is just as much about strengthening the longevity of the organisation and its public reputation as it is about dealing with immediate needs of staff and management.”

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Inside HR, July 18 2019