Ethical Leadership

Ethics Vocabulary Obligation Virtue Responsibility Morals Courage Character Integrity Honesty Accountability Ideals Self-Respect

Professionalism

The toughest ethical choices are not between good and evil, but rather between two goods:
Truth versus Loyalty

Individual versus Community Short-term versus Long-term Justice versus Mercy

Do you agree?
It is always wrong to intentionally take an innocent life?

Do you agree?
The right course of action is to weigh the consequences different actions and choose the action that leads to the greatest good for the greatest number?

Two Valid Moral Positions

The first is Kantianism
Kant: Right or wrong regardless of consequences

The second is Utilitarianism

Utilitarianism: Right or wrong depending on consequences

Most people agree with both positions

Dilemma
The hijacked plane with 200 people is approaching a building with 50,000 people, you have been ordered to shoot down the plane

Dilemma
You cannot subscribe to both principles in the case. A true moral dilemma Which position has the greatest weight in the circumstances?

Ethical leadership
Ethical leadership is leadership that is involved in leading in a manner that respects the rights and dignity of others. As leaders are by nature in a position of social power, ethical leadership focuses on how leaders use their social power in the decisions they make, actions they engage in and ways they influence others

Summary of Terms
Ethics: a system or code of morals that provides guidance for living in society Values: Intrinsically valuable or desirable principles or qualities Morals: A set of rules or modes of conduct on which society is based Integrity: Adherence to a moral code in daily decision making, emphasis on honesty and reliability Character: A personality trait of pattern of behavior that denotes moral strength Laws: A set of rules and regulations designed to express the needs of society

Ethics, Morals, and the Law

Classification of Actions:

Morals

Unethical

Principles of right and wrong

A set of moral principles guiding behavior and action
Legal

Ethical

Ethics

Illegal

Laws

Binding codes of conduct; formally recognized and enforced

Unethical but Legal

Ethical but Illegal

Common Professional Values

Integrity Honesty Promise keeping Loyalty Competence

Common Professional Values

Respect for persons Justice Compassion Confidentiality

Role of Leadership
to guide and direct others toward the achievement of a goal

to motivate others and enforce organizational rules and policies

key in influencing the corporate culture and ethical posture of the organization (rewards and punishment)

Role of Motivation...
to focus employees behavior toward goal achievement within the organization

to understand an individuals hierarchy of needs and how they influence motivation and ethical behavior

Factors which helps the leader to attract workers

The workers must know that the leader sincerely leads for them The workers must see that the leader himself lanes to share all the works that the workers do The workers must see that the leader practices what he preaches The leader must be pure in body and mind

The leader must lane the following essential qualities

Evenness or equanimity of mind Capacity to face adverse situation with strength and calmness Ability to make the place of work a place of worship Ability of creating the environment of a corporate family

Key Questions for Leaders as they build the ethical organization

What are my core values and beliefs? What are the core values and beliefs of the organization? Whose values, beliefs and interests are impacted by my actions and decisions?

Who will be harmed or helped by my actions and decisions and those of my organization?
How will my core values and those of my organization be affected or changed by my actions or decisions? How will I and my organization be affected by my actions and decisions?

Do my actions and decisions represent a consistent set of values? From this, how will I approach the creation of an ethical organization?

The Role of Leaders

Develop ethical behavioral influences. Provide sound ethics training Instill strong organizational values Implement plans and strategies to achieve ethical excellence Build an integrity based organization

Provide Sound Ethics Training

Provide rationale for ethical behavior. Help associates make sense of abstract ethical priorities (policies, procedures, ethical performance standards). Provide intellectual weapons to support ethical standards. Enable associates to recognize issues that may result in ethical dilemmas. Sharpen sensitivity and conscientiousness of moral issues and moral solutions. Strengthen moral courage. Improve the moral climate of the organization.

Instill Strong Organizational Values

Strengthens the pursuit of better ways to guide employee decisions and behavior. Increases awareness and sensitivity to ethical differences across cultures.

Coincides with legal and social pressures. Ensures that all organizational participants understand and are in close touch with organizational/ethical values.
Influences the personality, reputation, and image of the organization.

Implement Plans and Strategies to Achieve Ethical Excellence

Set an example.

Identify ethical weaknesses.

Look to introduce and rebuild ethical values. Assess compliance programs.

Get commitment of top managers.

Align ethics with organizational systems. Ensure consistency in implementation.

Monitor and assess. Pursue continuous improvement.

Design an integrity based strategy.

Build an Integrity Based Organization

Starts at the top.leadership!
Set an example of integrity, honesty, and consistent behavior and reinforce it with associates.

Be involved.
Pursue a culture of ethics and raise ethical awareness. Establish a system of rewards tied to organizational values.

Make ethics and integrity a core value, and a core competency.

Create faith in the integrity of common purpose. Inspire! Empower! Build trust!

Value ownership and entrepreneurship.

Respect individual creativity. Understand socio-emotional behavior. Develop emotional intelligence

Principles of Ethical Leadership

Principles of Ethical Leadership

Ethics - is central to leadership because of:

The process of influence The need to engage followers to accomplish mutual goals The impact leaders have on establishing the organizations values

Principles of Ethical Leadership

Treating others as ends (their own goals) rather than as means (to leaders personal goals) Respects Others
Leader behaviors:

Leader shall:
Treat other peoples values and decisions with respect Allow others to be themselves with creative wants and desires Approach others with a sense of unconditional worth and value individual differences

- Listens closely to subordinates - Is empathic

- Is tolerant of opposing viewpoints

Principles of Ethical Leadership

Follower-centered - Based on the altruistic principle of placing followers foremost in the leaders plans Serves Others Leaders have -

A duty to help others pursue their own legitimate interests and goals To be stewards of the organizations Leader behaviors vision; in serving others they: Mentoring behaviors clarify, nurture, and integrate the vision with, not for, organization Empowerment behaviors members Team building behaviors An ethical responsibility to make Citizenship behaviors decisions that are beneficial to their followers welfare

Principles of Ethical Leadership

Ethical leaders are concerned with issues of fairness and justice; they place issues of fairness at the center of their decision making
Leaders shall

Shows Justice

adhere to principles of distributive justice Leader behaviors

All subordinates are treated in an equal manner In special treatment/special consideration situations, grounds for differential treatment are clear, reasonable, and based on sound moral values

Principles of Ethical Leadership

Principles of Ethical Leadership

Honest leaders are authentic but also sensitive to the feelings and attitudes of others Manifests Honesty Leader behaviors
Dont promise what you cant deliver Dont suppress obligations Dont evade accountability

Leaders:

Are not deceptive Tell the truth with a balance of openness and candor while monitoring what is appropriate to disclose in a particular situation

Dont accept survival of the fittest pressures

Acknowledge and reward honest behavior in the organization

Principles of Ethical Leadership

Concern for common good means leaders cannot impose their will on others; they search for goals that are compatible with everyone. Builds Community
Leader behaviors

Ethical Leaders & Followers

take into account purposes of everyone in the group, and reach out beyond their own mutually defined goals to wider community

Takes into account purposes of everyone in the group Is attentive to interests of the community and culture Does not force others or ignore intentions of others

Why practice ethical leadership?

Ethical leadership models initiates ethical behavior to the organization and the community. Ethical leadership builds trust. Ethical leadership brings credibility and respect, both for you and for the organization. Ethical leadership can lead to collaboration. Ethical leadership creates a good climate within the organization. Ethical leadership is simply the right way to go. Ethical leadership affords self-respect.

Specific components of ethical leadership:

Put the good of the organization and the general good before your own interests and ego. Encourage the discussion of ethics in general and of the ethical choices involved in specific situations and decisions as an ongoing feature of the organizational culture. Institutionalize ways for people to question your authority. Dont take yourself too seriously. Consider the consequences to others of your decisions, and look for ways to minimize harm. Treat everyone with fairness, honesty, and respect all the time. Treat other organizations in the same way you treat other people with fairness, honesty, and respect.

Specific components of ethical leadership (cont.):

Collaborate inside and outside the organization. Communicate. Work to become increasingly culturally and interpersonally competent. Take cultural sensitivity and cultural competence seriously. Work to be inclusive. Take your leadership responsibility seriously, and be accountable for fulfilling it. Constantly strive to increase your competence. Dont outstay your usefulness. Never stop reexamining your ethics and your leadership.

How Does the Ethical Leadership Perspective Work?

Strengths Criticisms Application

Strengths
Provides a body of timely research on ethical issues
Provides direction on how to think about ethical leadership and how to practice it

Suggests that leadership is not an amoral phenomenon and that ethics should be considered as integral to the broader domain of leadership
Highlights principles and virtues that are important in ethical leadership development

Criticisms
Lacks a strong body of traditional research findings to substantiate the theoretical foundations Relies heavily on writings of just a few individuals that are primarily descriptive and anecdotal in nature, and are strongly influenced by personal opinion and a particular worldview

Application
Can be applied to individuals at all levels of organization and in all walks of life Because leadership has a moral dimension, being a leader demands awareness on our part of the way our ethics defines our leadership Managers and leaders can use information on ethics to understand themselves and strengthen their own leadership Leaders can use ethical principles as benchmarks for their own behavior Leaders can learn that leader-follower relationship is central to ethical leadership