Leaders make business decisions that impact the lives of many

Due to the delicacy of the situation, I am going to ensure confidentiality of the company and the situation, but I will vaguely describe the situation and all the necessary aspects to apply it to decision-making theories. As I was growing up, I worked for a small business as a part time job. Though it is small, the business was highly connected with people and businesses throughout the town. While I was working there, my boss made a decision that was not ethically sound. In a small town, rumors began to fly and the word was quickly spread about the leader, his/her business and all those associated with any of it. Business began to decrease and the company began to struggle. Many people took their business elsewhere as they refused to work with someone who does not agree with their ethical standards. This potentially had a positive impact on other businesses in the same market as their customers increased. On the other hand, this leader also has a family and those who are associated with them who were negatively impacted by this one decision. Though those in association with him/her were not at fault, they too began to lose credibility and respect. 

Ethical leadership is linked to various categories of exceptional leadership. This is predominately based on the perceptions and attitude of their followers, or, in this case, customers as well (Treviño, Brown & Hartman, 2003, pg. 7). Organizational climate and culture was also impacted within this decision as employees began to find other jobs. The ethical behavior of the leader has a drastic impact on how others perceive that person and their effectiveness as a leader. With perceptions arising from various factors, it can be difficult to hold a leadership role. At times, ethical decisions are just as important, if not more important than day-to-day business decisions. These decision-making processes can positively or negatively influence how others perceive the leader both internally and externally (Kalshoven & Den Hartog ,2009). This situation occurred many years ago but still has a lasting impact on the leader, his/her family, the organization and those within the community. The company has failed, and the family is struggling to get back on their feet as their credibility has diminished. Many times, leaders or potential leaders do not fully understand the possible consequences of their decisions. Furthermore, they do not understand the impact a decision may have on those around you. This further emphasizes the need to consider stakeholders in the decision-making process. 

As a leader, both within an organization and within the community, it is crucial to not simply think of oneself and the impact a decision will have on you alone. Considering all possible outcomes is a crucial aspect of the process and needs to be taken seriously. Unethical decisions are likely impulse decisions, while they should be the decisions that are thought about more critically before a decision is made. 

References:

Kalshoven, K., & Den Hartog, K. N. (2009). Ethical Leader Behavior and Leader Effectiveness: The

Role of Prototypicality and Trust. International Journal of Leadership Studies,5(2), 102-120. Retrieved July 12, 2018, from https://www.regent.edu/acad/global/publications/ijls/new/vol5iss2/IJLS_vol5_iss1_kalshoven_ethical_leadership.pdf (Links to an external site.)Links to an external site..

Treviño, L. K., Brown, M., & Hartman, L. P. (2003). A Qualitative Investigation of Perceived

Executive Ethical Leadership: Perceptions from Inside and Outside the Executive Suite. Human Relations,56(1), 5-37. doi:10.1177/0018726703056001448

What Differences in Decision-Making Approaches Might Occur Among Leadership Styles?

(2017). Retrieved July 15, 2018, from http://smallbusiness.chron.com/differences-decisionmaking-approaches-might-occur-among-leadership-styles-74048.html