With the business landscape growing more complex each year, the decisions made by leaders now carry a considerable weight. These decisions not only affect the success of the business but also impact both internal and external stakeholders.
From reviewing core company values to contemplating the short- and long-term consequences, making decisions from an ethical standpoint can help ease decision-making processes while also maintaining trust, loyalty and business success. To help leaders balance ethics with business needs, 20 Forbes Business Council members offer additional ethical considerations all leaders should keep in mind when making big decisions for their company.
1. Doing The Right Thing
When making big decisions, one ethical consideration leaders should keep in mind is doing the right thing. It’s simple; determine if it is right for the company, employees, customers, partners and the community. If so, we proceed with integrity. LocaliQ emphasizes the importance of operating with honesty. This ensures we maintain trustworthiness and keep the confidence of the stakeholders we deeply value. – Chris Cho, LocaliQ
2. Core Values
The best decisions taken are those rooted in your core values. As a leader, decision making is part of your calling and it’s never easy. However, allowing ethical considerations to guide you makes each decision more effective. These considerations give you the leverage to do what is right by the business, team and business audience without compromising your values and standards. – Jennifer Orode, Ingenium Concepts Limited
3. The Impact On Stakeholders
Leaders must take a holistic approach, considering the impact of decisions on all stakeholders, including employees, customers, communities and the environment. When ethical choices align with values, it fosters trust and accountability. By prioritizing integrity and well-being, leaders balance profit with positive outcomes, cultivating sustainable success and demonstrating a commitment to responsible practices. – Donna Mitchell, Mitchell Universal Network LLC
4. Transparency
Leaders should prioritize transparency, ensuring that decisions are made with honesty and open communication. Transparency builds trust with employees, stakeholders and customers, fostering loyalty and mitigating potential backlash. When big decisions are approached ethically and openly, leaders uphold their integrity and strengthen the organization’s reputation and long-term success. – Mick Hunt, Mick Unplugged
5. Trust
Trust is the basis of ethical leadership. Traditionally, the focus is on a leader’s vision and strategy. While this can drive results, it often leaves others with the impression that the company’s future is in the hands of one person—the leader. Leaders set the tone for the culture and establish behavioral norms. If leaders develop trust within the organization, employees feel valued and remain motivated. – LaRae Quy, Mental Toughness Center
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6. Input Diversity
Is there diverse representation in your team of decision makers? The decisions made reflect the people making the decision, so representation matters. As Ruth Bader Ginsburg once said, “Women belong in all places where decisions are being made.” – Mala Ramakrishnan, Progressive Ventures
7. Gut Instincts
As executives, you should trust your gut when it comes to healthcare ethics. While there are wonderful healthcare ethics guidelines, courses and educational programs, they are not necessary if you simply trust your professional judgment and exercise good decision making to protect patients and healthcare workers alike. If it feels wrong, chances are it is wrong. Trust your gut! – Dr. Hudson Garrett, Jr., Community Health Associates, LLC
8. Dearth Of Evidence
Determine whether the decision is based on assumptions or data. Companies and leaders who rely on conjectures and outdated stereotypes miss out catastrophically. For example, at the Latino Donor Collaborative, we work to provide executive leaders with data-driven reports about the U.S. Latino population. This ensures important decisions about Latino audiences can be well-informed and based on facts, not opinions or misconceptions. – Ana Valdez, Latino Donor Collaborative
9. Positive And Negative Outcomes
Leaders must be aware that a major decision not only impacts their success but also the job security of their employees, production partners and, most importantly, the customers. Always strive to evaluate both the most positive and most negative outcomes to make a well-considered decision. – Tom Cattarius, Arktisquelle®
10. Unspoken Messages Across Cultural Contexts
Consider the unspoken messages your decisions send across cultural contexts. While an action might be ethically sound in your primary market, it could tell a different story elsewhere. I’ve seen seemingly neutral choices create trust barriers in global teams. Leaders must examine their decisions through multiple cultural lenses because, in today’s interconnected world, local choices echo globally. – Ioana Dragomir, Tulipr
11. Long-Term Consequences
As leaders, we must consider the long-term impact of our decisions on stakeholders, including employees, customers and the environment. Ethical decisions should align with company values and prioritize transparency, fairness and sustainability. This builds trust, safeguards the company’s reputation and ensures actions support both business success and societal well-being. – Anna Anisin, Data Science Salon
12. Fairness And Transparency
Ensure decisions are made with fairness and transparency in mind, as well as consideration for the impact on all stakeholders. This builds trust and loyalty among employees, clients and partners, creating an environment where people feel valued and respected. Transparency also strengthens relationships, as individuals are more likely to contribute their best efforts when they feel heard and supported. – Adam Povlitz, Anago Cleaning Systems
13. Mutual Success
Leaders should prioritize mutual success, ensuring decisions benefit all stakeholders. By involving others in shaping outcomes, leaders foster trust, engagement and alignment because people support what they help create. This collaborative, holistic and intentional approach builds loyalty and positions the business to thrive in all conditions. – David Kirubi, The Evergreen Company
14. Balancing Profitability And Stakeholders’ Well-Being
Leaders must balance profitability with the well-being of employees and external stakeholders. Prioritizing short-term gains over people’s welfare can erode trust, morale and long-term sustainability. By aligning decisions with core values and considering their broader impact, leaders uphold integrity while fostering loyalty and a strong reputation, which are all key drivers for lasting success. – Omomene Odike, U-Connect Human Resources LTD
15. Relevant Data
I believe leaders should base decisions on data, not just gut feelings or past experiences. While intuition and experience can guide us, data is essential for making informed choices. Also, collaborating with others and gathering diverse perspectives helps avoid emotional bias, ensuring decisions made align with the company’s goals and values. – Al Sefati, Clarity Digital, LLC
16. Accountability
One essential ethical consideration for leaders when making significant decisions is the principle of accountability. Being accountable means taking responsibility for the outcomes of decisions. Accountability promotes trust and integrity within an organization. When leaders demonstrate accountability, they set the standard for ethical behavior and encourage their team members to act similarly. – Lauren Thew, Bluestone Group
17. Legality
A key ethical consideration for all leaders is to not only consider the ethics of the decision but also the legality of it. There’s a great saying that “Just because it’s legal doesn’t mean it’s ethical.” We have many examples here in Australia right now with listed company founders and boards having made significant decisions that were probably legal but are clearly not ethical. – Jaqui Lane, The Book Adviser
18. Unintended Consequences
Doing good doesn’t always mean living well. A choice that appears positive may carry unintended consequences. For instance, you may implement an initiative that benefits people or the planet, but the supply chain behind it may not truly be sustainable. Short-term gains shouldn’t compromise long-term integrity. By examining the full scope of consequences, today’s leaders can create meaningful, enduring change. – Henry McIntosh, Twenty One Twelve Marketing
19. Your Roots
Don’t forget your roots. Every decision—whether financial, strategic or operational—can have far-reaching ramifications. It’s imperative to stay aligned with your company values and not stray too far. When done right, you can build trust and ensure long-term sustainability and a good reputation. If you forget these roots, you may find yourself at a company you, your employees and your clients no longer recognize. – Sam Nelson, Downstreet Digital
20. The Bigger Picture
Always think about the bigger picture, not just short-term wins. It’s about how your decisions affect your team, customers and the community in the long run. Sure, a cheaper option might save you money now, but if it goes against your values, it could cost you trust and reputation later. Staying true to your core values is important, even if it means letting go of some clients. – Goro Gupta, Ethical Property Investments
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