Navigating Ethical Leadership and How to Strengthen Your Moral Compass
- Brainz Magazine
- 2 days ago
- 10 min read
Written by Nancy Loncle, Workplace Leadership Coach
Nancy Loncle is a former airline professional turned Workplace Leadership Coach, with a soft spot for Mental and Emotional Wellness. She's the founder of The Workplace Leadership Accelerator, an online learning platform, and the author of leadership books: Lead Outwardly Loud, published in 2024, Your Customer's Voice (2022), and Dare The Tides (2019).
Ever wonder if you’d make the right call when the stakes are high? Or would you lean into the easy path that contradicts everything you believe in? In leadership, these ethical dilemmas are a daily reality that can impact your career and your well-being. The pressure to succeed can blur the lines of integrity, making it tempting to cut corners. This article offers practical strategies to overcome those dilemmas, strengthen your moral compass, and make integrity an operational verb in your career (all while keeping your sanity intact!).
The role of ethics in leadership
Ethical leadership calls on you to lead with integrity, fairness, and transparency, all while adhering to moral principles and company values. Ethical leaders make decisions based on what’s right for the common good, not just what’s best for the bottom line. Profits still matter, but an ethical leader also considers employees, customers, and the community in every decision.
Your ethical framework will influence how you handle challenges and treat others, setting the tone for your workplace culture. As an African proverb wisely says, “A wrong step by a leader is a warning to the followers.” All great quotes. Your team takes cues from you.
When you walk the talk, you create a climate where transparency and inclusion thrive, one where everyone feels safe to share their voice.
What does unethical leadership look like?
Unethical leadership has a face, and it isn’t pretty. It often involves leaders putting their own interests and egos above the well-being of others. This toxic style can manifest in subtle ways or in dramatic scandals. Here are a few red flags of unethical leadership:
Dishonesty and manipulation
Engaging in deceitful behaviors – lying to your team, withholding or twisting facts to manipulate outcomes, making promises you don’t intend to keep, or taking credit for others’ work. Dishonesty dilutes trust.
Exploitation and favoritism
Showing bias or giving unfair advantages to certain people (often friends or “favorites”) while exploiting others. Think of promoting a buddy over a more qualified employee, or giving one team all the perks while others get crumbs. This obvious injustice breeds resentment and divisions within your team.
Lack of accountability and blame-shifting
Refusing to take responsibility when things go wrong. These leaders will easily cook up excuses to keep their own names clean. A lack of accountability at the top demotivates employees. After all, why should your team go the extra mile if the leader never owns up to mistakes?
Ultimately, unethical leadership is defined by acting in dishonest, corrupt, or self-serving ways that undermine the integrity of the organization's leadership. Keep in mind, small unethical choices can snowball. A “harmless” white lie today can create a culture that tolerates bigger and badder misdeeds tomorrow.
Ethical dilemmas are inevitable for every leader, from startups to Fortune 500 giants. Why? Leadership is a constant juggling act between competing interests and values. You might have to balance profitability vs. employee well-being, short-term wins vs. long-term sustainability, or organizational success vs. social responsibility. In these moments, you won’t be able to make everyone happy. The greater call is to consistently evaluate your choices and make decisions that align with your core values, your truth, even when it’s hard.
The hidden costs of ethical shortcuts
Taking an unethical shortcut can feel like a quick win, but it often comes with steep hidden costs. Sooner or later, you’ll pay the price for cutting corners. Here are some of the long-term costs of unethical behavior:
Damage to trust and reputation
Once trust is compromised, your credibility starts crumbling. A leader’s reputation can suffer long-term damage, leading to reduced loyalty both internally and externally. Warren Buffett said, “It takes 20 years to build a reputation and five minutes to ruin it.” Corporate Compliance Insights. A single ethical misstep, if exposed, can make clients and stakeholders lose confidence in your leadership. And in the digital age, news travels fast (with screenshots to boot).
Decreased team morale and engagement
Unethical leadership acts like a slow poison in your workplace. When employees see that bad behavior is ignored or rewarded, productivity will drop, and turnover may spike as good people head for the exits. Who wants to give their all in a toxic work environment where integrity doesn’t matter?
Long-term financial and legal risks
Cutting corners might save a buck today, but it will cost a fortune tomorrow. Such practices invite lawsuits, regulatory fines, and broken business relationships, all of which can be financially devastating. Companies around the world lose billions due to misconduct and toxic culture (for example, a lack of respect and poor ethics contribute to massive turnover costs). In severe cases, leaders themselves could face personal fines or criminal charges for fraudulent or illegal actions.
Ethical leadership, on the other hand, is like an insurance policy for your career and mental health. By doing the right thing, you build a legacy you can be proud of. So let’s talk about how to decode your moral compass and steer it true north.
Decoding your moral compass
Ethical decisions can be complex, context-dependent, and sometimes downright confusing; hence, the need to explore the gray areas of integrity and conflicting values beyond just “right vs. wrong.” Here are some ways to fine-tune your inner ethics GPS:
Understand multiple perspectives
Listening to diverse viewpoints, gathering genuine feedback from team members, and putting into consideration the broader impact of your decision on society will help you as a leader to navigate competing values like profit vs. people, innovation vs. tradition, or growth vs. sustainability. The “right” decision can vary depending on whom you ask, so your job is to find a balance that aligns with your core values while addressing key concerns. Aim to build more holistic solutions.
Prioritize long-term principles over short-term gains
In leadership, you’ll face situations where a shortcut could lead to quick success. However, integrity demands thinking beyond the here and now. Imagine having to choose between a decision that maximizes short-term profitability but puts the organisation's reputation on the line, and a decision that may cost you more in the present but ensures trust and sustainability. Ethical leaders play the long game. They know that trust, once broken, is hard (if not impossible) to regain. Prioritizing principle over immediate gain will keep your compass pointing north.
Embrace ethical courage and personal growth
Integrity in leadership means having the courage to face uncomfortable truths that sometimes challenge the status quo. It could be telling your boss or board what they need to hear, not what they want to hear, being willing to admit when you’re wrong, and learning from your mistakes. It’s not about being perfect; it’s about continuously improving. Here, consciously focus on becoming a better version of yourself with each tough call
Ask yourself: What are my core leadership non-negotiables? That’s your personal ethics framework. For example, where do respect and dignity, transparency, and accountability stand in your book?
The framework for tough calls
Even with a strong moral compass, ethical dilemmas can feel like standing at a crossroads in a fog. Consider these frameworks when you’re faced with a tough call:
The STOP method
This acronym reminds you to literally “stop”, think before you act.
S: Scrutinize: Carefully analyze the situation at hand. What’s really going on? Gather facts and avoid jumping to conclusions with half-baked information.
T: Think: Once clear on the facts, take time to reflect on the decision you need to make. Consider the bigger picture, the values at stake, and the outcomes that different choices could produce.
O: Options: Brainstorm multiple ways to address the issue. List out the alternatives and evaluate each for its feasibility, risks, and alignment with your values.
P: Plan: Finally, choose the best option based on your evaluation and map out how to implement it.
The STOP method forces you to slow down and make a deliberate, values-based choice instead of a knee-jerk reaction. (Bonus perk: Taking this pause can also lower your stress in the moment, a win for your mental wellness.)
Stakeholder mapping
When your decision impacts many, a stakeholder analysis can be a lifesaver. Identify the stakeholders, both internal (team members, employees, departments) and external (clients, customers, suppliers, investors, the community). Then map out their levels of power and interest. A classic tool is the power-interest grid: Who has high power, interest, and influence over the outcome? This highlights who you need to manage closely versus where updates only will do project management. The plan is to consider each group’s needs and potential reactions, helping you choose a path that minimizes harm and surprises. It’s not possible to please everyone, but it is possible to make sure everyone feels considered.
The newspaper test (front-page test)
This gut-check tool was popularized by legendary investor Warren Buffett. Imagine that the decision or action you’re about to take becomes a headline story in tomorrow’s newspaper, would you feel proud of your choice, or would you squirm with embarrassment? If the thought of it being public makes you uncomfortable, that’s a red flag that it conflicts with your core values. Buffett’s rule of thumb: if your decision passes the newspaper test, go ahead; if not, reconsider. This exercise forces you to consider the long-term consequences and legacy of your actions.
Frameworks like these help your moral compass become sharper and more reliable, even under pressure.
Building a culture of integrity
No leader is an island. Your ultimate goal is to create an environment where ethics are a collective habit. Building a culture of integrity amplifies your impact; your whole team (and by extension your organization) will be rowing in the same honest direction. Here’s how to make that happen:
Lead by example
Culture flows from the top. Your everyday actions and choices set the tone more loudly than any company mission statement on the wall. If you want a culture of integrity, be seen practicing integrity. Remember, the fish rots from the head if a leader is unethical, that rot will spread. Conversely, when you do the right thing (especially when it’s difficult), you send a powerful message that ethical behavior is expected and celebrated. “Do as I say, not as I do” does not work.
Empower your team to speak up
This involves creating safe spaces where your teams feel supported in voicing their concerns, raising real ethical issues, and challenging decisions without fear of retribution or punishment. Practice active listening, show empathy, respond genuinely, and constructively to feedback. When people know they won’t face retaliation for speaking up, you prevent the echo chamber of silence that lets unethical practices fester. On the flip side, when employees fear retaliation, they keep quiet, and that fear can stifle innovation and adaptability. Clarify that dissent is valued as a catalyst for improvement, not a career-ender.
Invest in ethical training
Think of this as a workout for your team’s integrity muscles. It’s a way to prepare your people to handle dilemmas before they escalate. Effective ethics training has been shown to dramatically reduce misconduct and boost moral judgment. One report even found that employees in organizations with strong ethics programs were 272% more likely to report misconduct when they see it, according to the Compliance Training Group. Those are huge wins. Training can include workshops on your company’s code of conduct, role-playing challenging situations, or bringing in speakers to talk about industry ethics. The key is to make it engaging, ongoing, and applicable to everyday work.
Strengthening your ethical muscle
For flight safety, you’ll hear: “Secure your own oxygen mask before assisting others.” The same goes for leadership ethics and mental wellness. You can’t pour from an empty cup or lead others down an ethical path if you’re submerged in moral uncertainty yourself.
Strengthening your “ethical muscle” is as much about personal wellness as it is about leadership. Consider these practices to keep yourself grounded and resilient:
Regular reflection through journaling
Journaling is a powerful way to hit the pause button and reflect on your day, decisions, and dilemmas. Set aside even 10-15 minutes to jot down thoughts about ethical challenges you faced, or times you felt proud of sticking to your values. Ask yourself in writing: “What ethical challenges did I encounter today? How did I handle them? Did I uphold my core values in those moments?” This kind of mindful reflection sharpens your moral intuition over time. It brings to light any little compromises you might be slipping into and highlights areas for growth. Plus, it’s a great stress reliever, think of it as venting to a trusted notebook.
Seek diverse perspectives to avoid the “echo chamber”
Ethically, it’s dangerous to surround yourself with people who only ever agree with you. Seek out perspectives from people who aren’t in your immediate circle. This could mean mentoring with a leader in another industry, joining a mastermind group, or even just asking a trusted colleague, “Hey, what do you think about this issue? Am I missing something here?” The goal is to challenge your own assumptions and spot your blind spots. Diverse perspectives act like a compass correction, they ensure you’re not accidentally drifting due to groupthink. Yes-men and yes-women might stroke your ego, but they won’t save you from an ethical blunder. Someone willing to give honest feedback will help you see the nuances and potential impacts of your decisions on all stakeholders. Embrace the uncomfortable conversation as your leadership will be stronger for it.
Conclusion
Ethical leadership is a marathon, not a sprint. It requires an ongoing commitment to align your decisions with your core values, the patience to build trust over time, and the courage to sometimes take the harder road for the right reasons. Keep in mind that your safety comes first: your legacy as a leader is only as strong as your mental and emotional wellness during the journey.
If you're currently in, or aspiring to step into, a leadership role and would like to settle in without the usual stress and anxiety, I’m here to help. Leading doesn’t have to be lonely or overwhelming. Book a call with me and let’s accelerate and cement your journey. Your moral compass is your superpower.
Read more from Nancy Loncle
Nancy Loncle, Workplace Leadership Coach
Nancy Loncle is a workplace leadership coach, dedicated to helping women working in high-pressure, ultra-competitive jobs transition and settle into leadership roles with ease. After being thrust into a senior position early in her career, Nancy faced the overwhelming challenges of leadership without the mental and emotional tools to thrive, a struggle that nearly cost her everything. This experience ignited in her a passion to create a practical formula for women to lead without losing themselves, so that they can experience career fulfillment, recognition, and balance in their personal and professional lives.
