Wednesday,

Sept. 4th

ETHICAL
LEADERSHIP
Learning outcomes: You should be able to…..

• Define the concept of Ethics.

• Understand how personality traits and
attitudes, moral development and the situation
affect ethical behavior.
• Define the 3 levels of Moral Development.
• Detect how people justify unethical behavior.
• Identify the attributes of an Ethical Leader.
Discussion Questions #s 1 & 2
What ARE «Ethics»??
Does it «pay» to be ethical??
 What are «Ethics»?
• «Ethics» are the standards of
right and wrong that
influence behavior.
• Business codes of ethics exist
to constrain everyday
business conduct.
• Government laws and
regulations are supposed to
help keep businesses honest.
• Nevertheless laws and codes
of ethics cannot keep
everyone honest.
 Does it «pay» to be ethical?
• Being ethical «pays»…… but
sometimes in the long run.
• Sometimes people «get away»
with unethical acts they profit
from .
• But, more often they are
Peru eventually discovered and
punished:
– By the law
– By the customers and public
• Examples:
– Worldcom
– Enron
– Arthur Anderson
Personality Traits and Attitudes Affect Ethical
Behavior
• Power may be used for personal gain……
• ……unless it is «socialized power»--- used for the
good of others, the group or organization.
• «Agreeableness», the desire to be liked, may move a
leader to go along with unethical actions of others.
• A «high self concept» will guide a leader to do what
he or she thinks is right ……
• and not follow the group’s unethical behavior.
• An external locus of control could steer a leader to
blame circumstances or others for his or her
unethical behavior.
«MORAL DEVELOPMENT»…understanding right
from wrong and choosing to do the right thing.
Level 1 Choosing right or wrong behavior
based on self interest only---
Pre - Conventional reward or punishment. No «code
of ethics».
Level 2
Choosing to live up to the
Conventional standards expected by others. But
others may do right…. or wrong
Level 3
Defining and choosing moral
principles regardless of what
Post-Conventional others think and regardless of the
consequences.
 «Whistleblowing»
The decision of an
employee to inform
officials within the
organization or the public
about an ethics violation.
Leaders should make sure
that «whistleblowers» are
protected from
retaliation…. harrassment
losing their jobs
Unfortunately, many times
they don’t.
«Whistleblowing» is «Post-conventional»
behavior.
 Discussion Questions #3 & 4
Have you ever heard a person try to justify
unethical behavior?
How did they try to do it? What did they say?
How people justify unethical behavior
• Moral Justification • Reinterpreting immoral
behavior in terms of a
higher purpose.
• Example: Terrorists
• Displacement of • To blame one’s
Responsibility unethical behavior on
others.
• Example: «I only
followed orders».
• Diffusion of responsibility
• Advantageous comparison
• Disregard or distortion of
consequences
• When a group uses
unethical behavior and no
one person is responsible.
• Example: «We all take
bribes in this business».
• When one compares
oneself to others who are
worse.
• Example: «OK. We cause
pollution, but our
competidors pollute
more.»
• Minimizing the harm caused
by the unethical behavior.
• Example: «If I change the
numbers on the report, no
one will notice or be hurt by
it.»
• Attribution of Blame • Claiming that the unethical
behavior was caused by
someone else’s behavior
• Example: «You made me
very angry so I had to hit
you».
• Using «cosmetic» words or
• Euphemistic Labeling phrases to make unethical
behavior sound acceptable.
• Examples:
– «pre owned» = used
– «enhanced interrogation»
= torture
– «adjustment of data» =
falsification of information
Parameters for Deciding if Behavior is Ethical
1. Ask yourself : Would I like it or accept
it if someone did this to me?
2.
4 questions:
Is it the truth?
The 4
Is it fair to all?
Way Test
Will it build good will and better relationships?
Will it benefit all?
Ask: Am I
Create a win –
proud to tell
win situation
relevant
for all parties
stakeholders
concerned:
my decision?
stake holders.
3. Stakeholder approach to Ethics
 Being an Ethical Leader
requires courage to do
the right thing….

• to go against the «status quo»

• at the risk of loss and
rejection
• in spite of fear.
Focus on a higher purpose.
Do not fear failure.
If there are no others………
Set a good example.
look for another place to work!
Draw strength from others.
Video: What do people in
organizations think about
ethical leadership?

https://www.youtube.com/watch?v=icJZxLoX1
4U
 Conclusions
• Ethics refers to our understanding of right and wrong.
• Ethics is important in Leadership.
• Traits, Attitudes and Level of Moral Development
influence Ethical (or non ethical) behavior.
• There are many ways in which people may try to justify
unethical behavior
• Leaders should aspire to be at the highest level of Moral
development…. Post Conventional…
• …….and do the the right thing in spite of the bad
consequences this may have for them in the short term.
• This takes courage!