2.2 Literature review
2.2.6 Significance of professional code of ethics
Nel et al. (2008) assert that, when customers have a positive image of an organisation, customers become attracted to the product and services of the organisation and stay loyal to the organisation. Nel et al. (2008) argue that leaders who are principle-centred make better decisions and always act in accordance with universally accepted values which include integrity, transparency, consistency and inclusivity. In a similar vein, Van den Akker, Heres, Lasthuizen and Six (2009) posit that ethical leaders positively influence followers’ moral behaviour by facilitating communication about ethics and values. Likewise, Winston (2007) asserts that codes of ethics reflect the attempt of professional association and individual organisation to document and communicate principles to guide the work of those in the field.
This often occurs in response to documented difficulties and the complexities associated with competing principles. Nzimakwe (2014) maintains that ubuntu principles which encompass the sharing of responsibility and challenges, participatory decision-making and leadership are used as the point of departure in assessing a range of leadership issues.
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Meanwhile, Bhatti (2007) argues that the leader has to ensure that there is compatibility between the values he or she cherishes and the values shared by the followers. The values cherished by him/her and those who follow need to be ethically correct and practicable.
Friedman (2008) argues in the same line that effective ethical leaders take responsibility for recognising and acknowledging as well as respecting the value of all aspects of life. Werner (2011) and Bello (2012) posit that ethical leadership starts at the top. Therefore, the senior leadership of the organisation is responsible for ethics in the institute and should be exemplar of ethical conduct. In addition, the need to create ethical organisation and the fact that an ethical culture starts with those who are in the helm, need to be emphasised. The senior leadership remains charged with the responsibility to provide support in establishment of an ethical culture in the organisation. Werner (2011) asserts that leaders need to understand that ethical conduct in organisation is influenced by various factors, because persons who join organisations come with their unique values and beliefs. Therefore, leaders of organisations need to ensure that employees understand that their ethical conduct is a core value and that every employee is expected to model ethical conduct at all times, irrespective of their positions. Most importantly, the leader aligns the interest of different people in gaining support for common goals.
Therefore, Werner (2011) avers that when organisation leaders engage in team building activities they need to prioritise issues of fairness, human development, respect for others, openness and freedom of choice for the members. Werner (2011) further posits that team building has to be aligned with humanistic principles and be underpinned by ethical concern for the members. Meanwhile, Bhatti (2007) contends that the leader has to ensure compatibility since problems emerge when there is a clash amongst the ethically justifiable values.
Moreover, he claims that such problems need to be resolved by preferring values based on their comparative objectivity, propriety, usefulness, practicability and validation. Punch (1996) argues that ethical leadership begins with leaders and that true ethical leadership is a matter of how to be rather than how to do it. Further, the author argues that it is character rather than competency that creates the substance of a role model of any institute. Similarly, Friedman (2008) corroborates the aforesaid argument as he states that acting with integrity satisfies the craving for the sense of connection, for coherence in desperate parts of life, and for the peace of mind that stems from conforming to a consistent code. Bello (2012) simplifies that latter assertion by arguing that leaders should engage in behaviour that benefit others and desist from the behaviour that can cause harm to others. Hansen (2011) and Bello (2012) maintain that ethical leaders are honest, caring, and sensitive to the interest of all the employees and are
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principled individuals who make fair decisions without fear or favour. Moreover, they frequently communicate with their followers about ethics. Ethical leaders ensure that they set clear ethical standards, rewards and punishment to see that the ethical standards they set are observed. In the same light, Gucel, Tokmak, and Turgut (2012) contend that ethical leaders do not just talk about ethics; instead they demonstrate it through their conduct and ensure that unethical behaviour displayed by their subordinates is punished. They practise what they preach and are pro-active role models for ethical conduct.
Similarly, Andrew (2015) argues that ethical leaders should be good role models who motivate subordinates to follow their example. Most importantly, ethical leaders are good role models and they are honest and principled leaders who always want to do the right things and who behave themselves in an ethical manner. They need to make fair and balanced decisions and approach work from a means perspective rather than an ends perspective. Andrew (2015) further asserts that ethical leaders communicate and enforce clear ethical standards amongst those they lead and are always available to give support. Andrew (2015) contends that ethical leaders are caring and listen. Moreover, ethical leaders are trusted by their followers.
Furthermore, Friedman (2008) maintains that being a leader means inspiring committed action that engages people into taking intelligent steps in the direction that the leader has chosen, in order to attain something that has essential meaning for the relevant stakeholders to succeed.
In support of the foregoing, Werner (2011) asserts that the leaders of organisations play a vital role in establishing, maintaining and changing culture, therefore, top leadership starts the drive for ethics in the organisation and shows its on-going support by participating in ethics training sessions, including ethics as a regular element in their speeches and presentations and acting in an exemplary manner.
Moreover, Sama and Shoaf (2007) contend that organisational culture is the context within which leadership operates to allocate resources, set goals and perform tasks. It is a shared belief system that guides members’ behaviour and one which the leader often takes a role in building, particularly transformational leaders. Senior leaders in organisations demonstrate the kind of behaviour that is perceived to be acceptable and praiseworthy in the organisation by serving as role models and by encouraging and reinforcing ethical behaviour in others (Nel et al., 2008;
Werner, 2011). Kim and Brymer (2011) point out that leaders in every organisation need to be the primary influential models of ethical guidance for every member of the organisation. They
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further assert that followers learn organisationally acceptable standards by observing their superiors’ ethical actions.
2.2.7 New patterns of behaviour can be acquired through experience or direct observation