Leadership
The Psychology of Influence: Ethical Leadership Practices in Organisational Contexts
In a complex and interconnected world, the art of persuasion has become essential in guiding organisations toward ethical and effective leadership. Ethical influence, when grounded in principles of integrity and respect, enables leaders to foster trust, drive organisational cohesion, and navigate challenges with resilience. Research explores how ethical leadership practices influence decision-making, foster trust, and enhance organisational cohesion, offering a roadmap for navigating the nuances of influence within professional environments.
Foundations of Ethical Influence in Leadership
Ethical leadership rests on the bedrock of fairness, integrity, and respect for others. Kauppila et al. (2021) highlight servant leadership as a model that prioritises moral authority over positional power, emphasising the need for leaders to serve their teams. Their findings reveal that ethical leaders inspire trust and cooperation, creating cultures of accountability and mutual respect. This relational approach fosters employee engagement and commitment, as ethical values become embedded in the organisational ethos.
Jena (2018) expands on these principles, identifying workplace persuasion as a multidimensional construct that incorporates reciprocation, social proof, and authority to align employees with organisational goals. By adopting transparent and value-driven communication strategies, leaders can ensure alignment between ethical practices and organisational objectives.
"Ethical leaders elevate the hopes of their employees, transforming self-concepts and personal standards into higher stages of goals and needs" (Shafique et al., 2019).
Liou and Daly (2019) present a networked leadership framework that highlights the role of peer influence in shaping ethical norms. Their research underscores the importance of collaborative decision-making, where leadership is distributed across networks rather than centralised in individuals. This collective approach reinforces the integration of ethical practices within organisational systems.
Transparency and Trust as Pillars of Influence
Trust forms the cornerstone of ethical influence. Rocha and van Praag (2020) argue that transparent communication and decision-making processes enhance trust and loyalty, empowering employees to take ownership of their roles. Their analysis demonstrates that transparency mitigates skepticism and reinforces perceptions of organisational fairness.
Schwepker and Dimitriou (2021) further explore the relationship between trust and performance, showing that ethical leadership reduces job stress while improving employee well-being and productivity. By fostering an environment of trust, leaders can align team efforts with organisational goals while maintaining employee satisfaction and engagement.
"Leadership plays a pivotal role in influencing expected organisational outcomes, serving as a means to balance productivity and employee well-being" (Schwepker & Dimitriou, 2021).
Transparency also facilitates accountability. By openly sharing the rationale behind decisions and maintaining consistency in ethical standards, leaders reinforce credibility and strengthen organisational culture. Rocha and van Praag (2020) illustrate how these practices contribute to long-term loyalty and shared vision.
Ethical Nudging and Decision-Making Dynamics
Ruehle (2023) introduces digital nudging as a tool for ethical leadership, where subtle cues guide employee behaviour toward desirable outcomes without compromising autonomy. Nudges, such as reminders or prompts embedded in digital systems, help leaders balance managerial control with individual freedom. This approach provides a framework for ethical influence that respects employee agency while promoting organisational objectives.
The application of ethical nudging addresses dilemmas in decision-making by aligning individual behaviours with organisational values. Leaders can design decision-making environments that subtly guide actions while preserving autonomy. For example, Ruehle (2023) highlights how digital nudges have been instrumental in fostering sustainable workplace practices without coercive measures, demonstrating their versatility in various organisational contexts.
Ethical Leadership and Innovation
Shafique et al. (2019) examine the impact of ethical leadership on creativity and organisational innovation. Their findings reveal that ethical leaders enhance knowledge-sharing and psychological empowerment, fostering environments conducive to innovation. Leaders who prioritise ethical norms encourage employees to challenge the status quo, resulting in more adaptive and innovative solutions to organisational challenges.
"Ethical leaders not only inspire creativity but also create a culture where employees feel empowered to take risks and explore new ideas" (Shafique et al., 2019).
By facilitating a balance between risk-taking and accountability, ethical leaders provide the structural and psychological safety necessary for innovation to thrive. This approach cultivates a workplace environment where novel ideas are encouraged, tested, and implemented effectively, reinforcing both individual and organisational growth.
Case Studies of Ethical Leadership in Action
Liou and Daly (2019) provide a compelling case study of districtwide educational reform in California, where networked leadership strategies enabled systemic change. Their research illustrates how collaborative decision-making and peer influence can align diverse stakeholders, creating a unified vision for ethical leadership.
Rocha and van Praag (2020) showcase the role of female entrepreneurs in addressing gender disparities in entrepreneurship. Their study highlights how ethical leadership, grounded in transparency and trust, inspires career advancement and fosters equitable workplace practices. By integrating these ethical principles into their leadership models, female entrepreneurs have successfully bridged gaps in representation and influence within the entrepreneurial landscape.
Schwepker and Dimitriou (2021) demonstrate the effectiveness of ethical leadership in the hospitality industry, particularly in high-pressure environments. Their findings reveal that ethical leadership reduces job stress, enhances team morale, and improves service quality, providing a tangible example of ethical influence driving organisational success.
Ethical Influence: A Framework for Leaders
Ethical leadership is not a static concept but a dynamic process that evolves with organisational needs. Leaders must integrate key dimensions of influence into their practices, including fostering trust through transparency, leveraging ethical nudges, and empowering employees to innovate. Each of these dimensions reinforces the other, creating a holistic approach to leadership that aligns personal integrity with organisational success.
Transparency emerges as a foundational pillar, enabling leaders to build trust and accountability. Simultaneously, tools like digital nudges provide leaders with innovative ways to guide employee behaviour without undermining autonomy. Finally, the emphasis on psychological safety and knowledge-sharing ensures that creativity and adaptability remain central to organisational processes.
Toward a Vision of Ethical Influence
The psychology of influence provides a robust framework for ethical leadership in organisational contexts. By prioritising transparency, leveraging innovative tools, and fostering collaborative and innovative cultures, leaders can navigate complex challenges with integrity. As the demands of leadership evolve, the principles of ethical influence will continue to shape how organisations thrive in a dynamic and interconnected world.
References
Kauppila, O.-P., Ehrnrooth, M., Mäkelä, K., Smale, A., & Sumelius, J. (2021). Serving to help and helping to serve: Using servant leadership to influence beyond supervisory relationships. Journal of Management.
Jena, L. K. (2018). Workplace persuasion: Conceptual model, development, and validation. Global Business Review, 21 (1), 1-19.
Liou, Y.-H., & Daly, A. J. (2019). The networked leader: Understanding peer influence in a system-wide leadership team. School Leadership & Management.
Rocha, V., & van Praag, M. (2020). Mind the gap: The role of gender in entrepreneurial career choice and social influence by founders. Strategic Management Journal, 41, 841--866.
Ruehle, R. C. (2023). The moral permissibility of digital nudging in the workplace: Reconciling justification and legitimation. Business Ethics Quarterly, 33 (3), 502-531.
Schwepker, C. H., & Dimitriou, C. K. (2021). Using ethical leadership to reduce job stress and improve performance quality in the hospitality industry. International Journal of Hospitality Management, 94, 102860.
Shafique, I., Ahmad, B., & Kalyar, M. N. (2019). How ethical leadership influences creativity and organizational innovation. European Journal of Innovation Management, 23 (1), 114-133.
