Ethics and responsibility in leadership
What exactly does responsible leadership mean? Dr. Maxim Egorov¹, interim professor of responsible leadership at Munich Business School, defines it as “the ability to influence employees in a value-oriented and sustainable manner, to promote their motivation, and to empower them to contribute to the success of their organization.” In today's world, however, many employees define “corporate success” more in terms of the meaningfulness of their work than in terms of the financial results achieved.
Date: 5. August 2025
Author: Julia Reimann
Categories: Personality Assessments, Insights, metaLecture
Leadership with a conscience: Ethics as a factor for success
Ethics and a sense of responsibility in leadership ensure long-term corporate success, promote productivity, strengthen the trust and loyalty of employees, customers, and business partners in the long term, and contribute to a positive corporate culture.2When moral principles and ethical standards are violated (see Wirecard, Lehman Brothers, etc.), sometimes society as a whole has to pay the price for bad decisions. Current decisions in the high-tech and AI sectors are so far-reaching that they affect us all and will influence our future forever.
What do ethics and responsibility mean in meta-consulting diagnostics?
Our decision to use Hogan assessments was based on our desire to use the best scientifically based tool for selection and development decisions. The high validity and reliability of the tests, our training courses, and our consistent continuing education offerings on how to use the tool help prevent misinterpretations and wrong decisions. For us, it goes without saying that we handle sensitive data responsibly and for its intended purpose, and that we explain what personality assessments can and cannot do. On the customer side, responsible leadership must make another significant contribution: communicating fairly and transparently about the goal, purpose, and consequences of the assessment significantly increases acceptance among employees, strengthens their trust, and can reduce any initial concerns. Responsible supervisors who set an example motivate employees to behave ethically themselves and promote a positive working atmosphere. This reduces staff turnover and absenteeism, increases employee motivation and loyalty to the company, and even enhances the company’s reputation and credibility.3
Crises and prevention
“Character is revealed in times of crisis,” said Helmut Schmidt. When we are under pressure, our stress profile (HDS) becomes apparent and we sometimes react unconsciously and without thinking too much. If I am aware when and how I tend to lose control, I can take active countermeasures in advance. In addition, knowing more about the values that guide my actions, I can use this compass to align myself with consistent values. Especially in crises and challenging situations, it is all the more important to continually validate your own actions and decisions against guiding principles in order to prevent wrong decisions while remaining true to yourself. Managers who are able to do this usually come across as consistent and trustworthy.
But what are the guidelines for responsible leadership?
Ethical leadership is based on the following principles, among others: integrity, responsibility, respect, fairness, trust, transparency, and sustainability. For managers, this suggests increasing their own credibility through consistent, honest behavior, making decisions based on principles, and communicating decision-making processes transparently.The following options are available for putting these principles into practice:
- Set clear values: become aware of your own values, define ethical standards, exemplify them, and embed them in the corporate culture
- Set an example: lead by example, e.g., take responsibility for mistakes, show moral courage, explicitly link your own actions to values
- Make responsible decisions: evaluate every decision in terms of financial benefit, but also in terms of social and societal as well as ecological consequences
- Create time and space for reflection: consciously create space for yourself to reflect on the needs of individual employees and how they can be supported, but also discuss within the team what cooperation can look like
- Focus on sustainable and continuous development: continuously question the status quo in everyday life, break new ground, realize potential, and promote further development in a targeted manner
Conclusion
Ethics and a sense of responsibility in leadership are not just nice-to-haves, but form the foundation for effective and sustainable corporate development. They enable the optimal realization of entrepreneurial potential and the establishment of a value-oriented corporate culture that is more in line with ecological and social responsibility. With he Hogan Assessments, we have the right tool to actively support organizations in selection as well as development prozesses.
You can find out more in the podcast “Responsible Leadership.”
References:
2 Was ist ethische Führung? Eigenschaften, Merkmale & Beispiele | Thomas.co
3 Ethik und Unternehmensführung: Nachhaltige Entscheidungen
4 Zitate von Helmut Schmidt: „In der Krise beweist sich der Charakter“
5 Eurich, T. (2017). Insight: Why We’re Not as Self-Aware as We Think, and How Seeing Ourselves Clearly Helps Us Succeed at Work and in Life. Crown Currency.
6 Führungsprinzipien: Schlüsselelemente für effektive Führung
7 Die Rolle von Ethik und Verantwortung in der Unternehmensführung
