In South Africa, a nation grappling with the enduring legacy of apartheid, pervasive corruption, and profound socio-economic inequality, the imperative for ethical leadership and role models has never been more pressing. A fundamental aspect of ethical leadership involves not only adherence to ethical principles but also the transformative impact of leaders and role models who inspire and motivate through their integrity and commitment to shared values. However, the presence of ethical exemplars remains an uncommon phenomenon in organisations. This scarcity perpetuates organisational cultures where personal gain often outweighs collective well-being, eroding trust in institutions, weakening accountability, and fostering widespread disillusionment.

Weak governance structures and inadequate regulatory frameworks further contribute to an environment where unethical behaviour can thrive unchecked. Additionally, pressures to meet short-term financial targets and competitive demands frequently compromise ethical standards, exacerbating the issue. Amidst these challenges, recent elections have sparked newfound hope and optimism, signalling an opportunity for renewed commitment to ethical leadership and ethical role models across all sectors of society.

Specifically, for business organisations in all sectors of the economy, the electoral shift should underscore a growing demand for transparency, accountability, and ethical governance, echoing broader societal calls for responsible business practices. Without ethical role models, businesses and institutions risk repeated cycles of misconduct that undermine credibility and hinder national goals of reconciliation, inclusivity, and sustainable development.

Ethical leaders, in formal leadership roles, tend to promote ethical behaviour through policy, decision-making, and organisational culture. Ethical standards are established to ensure accountability, fostering environments where ethical conduct is valued and followed by all stakeholders. Senior leadership bears the responsibility of setting the ethical tone within the organisation. As Dr. Reuel Khoza aptly states, “leaders must recognise that they are mirrors in which their followers see themselves, and they must strive to be reflection-worthy” (Attuned Leadership: African Humanism as Compass). Transparent and ethical leadership ensures that ethical conduct becomes the cornerstone of the organisation, sharply contrasting with environments where corruption is tolerated.

However, ethical role models often operate informally within organisations. They may not hold senior positions or wield significant authority, yet their influence is profound. These individuals consistently uphold ethical principles in their daily interactions, fostering a supportive and inclusive environment within their teams and organisations. Despite their critical role, ethical role models are frequently overlooked or underappreciated in organisational contexts.

The predominant focus tends to be on identifying and penalising wrongdoing rather than celebrating and amplifying the examples set by those who consistently uphold ethical standards. This imbalance can undermine efforts to develop a robust ethical culture within organisations. Recognising and acknowledging ethical role models is essential not only for morale and motivation but also for reinforcing the organisation’s commitment to ethical behaviour, the foundation of its operations and reputation.

Ethical role models play a vital role shaping behaviour or influencing the organisation’s ethical culture which is described by Rossouw and van Vuuren in their book Business Ethics (6th Revised ed., 2010) as “the way we do things around here even when no one is watching”. Thus, ethical exemplars in business exhibit critical characteristics such as integrity, responsible decision-making, and empathy.

By consistently reflecting their integrity by aligning their actions with ethical principles and considering the broader consequences of their decisions, they set precedents for ethical behaviour within their communities and organisations. This cultivates trust, respect, and a commitment to ethical conduct. They also prioritise long-term ethical principles over short-term gains, such as disclosing potential environmental risks despite profit pressures.

Ethical decision-making is a key characteristic of ethical role models, guiding them to make choices rooted in principles of morality and integrity. They carefully consider the impact of their actions on stakeholders, society, and the environment, aiming for outcomes that are not only beneficial in the short term but also sustainable in the long run. They openly communicate and justify their decision-making rationale and willingly accept responsibility for their choices.

Empathy involves being attuned to the emotions and circumstances of those around them, whether colleagues, employees, customers, or stakeholders. Ethical role models demonstrate empathy by actively listening to others, considering their viewpoints, and responding with sensitivity and understanding. Empathy enables them to make decisions based on the well-being and interests of all stakeholders, and not merely owners and shareholders.

Regarding the development of a mature ethical culture in organisations, there is often scepticism about the abstract nature of culture or the question of where to start. However, the actions that build ethical cultures are tangible and within the control of leaders and managers. Senior leadership, in particular, plays a pivotal role in setting the ethical tone within their organisations.

A well-known former CEO of a very large organisation succinctly summarised the essence of ethical culture in three key actions: who you hire, who you fire and who you promote. These decisions and actions send powerful signals to employees and external stakeholders about the organisation’s commitment to ethical conduct. Leaders can enhance organisational ethical cultures by focusing on tangible actions. Using a green light versus a red-light analogy, green signals are sent when decisions are made that contribute positively to building an ethical culture and stakeholder trust. Conversely, red signals are sent when decisions and actions are perceived negatively by stakeholders, undermining the formation of an ethical culture. Ethical role models also allocate resources, particularly financial capital, in ways that prioritise ethical practices and sustainability. When Joe Biden was running for the US presidency a few years ago, he aptly captured the essence of resource allocation by saying, “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.”

In conclusion, ethical leadership and role models are indispensable in navigating the complexities of today’s business environment, particularly in South Africa. By demonstrating unwavering commitment to ethical conduct, organisations can foster trust, enhance their reputation, and contribute meaningfully to societal progress. Upholding ethical principles is not just a moral imperative but also a strategic advantage that positions organisations as catalysts for positive change.

About the author: Lizette Hattingh is a Senior Associate Ethics Subject Matter Expert at The Ethics Institute