ethical leadership sv

8/2/2019 Ethical Leadership Sv

1/23

Ethical Leadership


2/23

Presentations1:30 Class

Feb. 23rd Teams 1, 4, 10, 15, 17, 19, 20

3:30 Class Feb. 23rd Teams 2, 3, 6, 7, 9, 12

1

Strongly

Disagree

2

Disagree

3

Neither Agree

Nor Disagree

4

Agree

5

Strongly Agree

This team provided good background information about their focal

individual or organization

1 2 3 4 5

This team provided a clear, detailed presentation of their focal

ethical dilemma

1 2 3 4 5

This team drew in theories and ideas from the course in a thoughtful

and appropriate way

1 2 3 4 5

This team had good stage presence 1 2 3 4 5

This team used powerpoint and/or other media well 1 2 3 4 5


3/23

A process model of ethical action

____________________

Awareness of

the moralproblem

Ability toidentifycourses of

action

____________________

Ability to

select theappropriatecourse ofaction

____________________

Gaining

commitmentto moralaction

____________________

Persisting in a

moral task Overcoming

obstacles andfatigue


4/23

__________

__________ Awareness ofthe moralproblem

Ability to

identifycourses ofaction

__________

__________ Ability toselect theappropriatecourse of

action

__________

__________ Gainingcommitmentto moralaction

__________

__________ Persisting in amoral task

Overcomingobstacles and

fatigue

____________. Do I

have knowledge of

and experience withthe issue at hand?

____________. Do I

have a consistent set

of guiding moralprinciples?

____________. Do I

feel a sense of

responsibility to themoral issue at hand?

____________. Do I

have the strength of

will to fulfill mymoral obligations?


5/23

What does it take to be an

ethical leader?


6/23

Leadership is the art of gettingsomeone else to do something

you want done because he wantsto do it


7/23

What is leadership?A _________that includes ____________ the task

objectives and strategies of an organization, influencing

people in the organization to implement the strategiesand achieve the objectives and influencing the culture

of the organization (Yukl & Van Fleet, 2002)


8/23

What is ethical leadership?_________________________________________________

through personal actions and interpersonal relationships, and

the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making


9/23

What is ethical leadership?

Care about employees

Respect people

Mentor employees

Honest and trustworthy

Receptive and good listeners

Courageous and strong

Provide guidance

Use rewards and punishments

Dont tolerate lapses

Hold people accountable

Care about the greater good

Interviews with executives and ethics officers

show common themes

Ethical leaders


10/23

What is ethical leadership? Listens to what employees have to say

Disciplines employees who violate ethical standards

Conducts his/her personal life in an ethical manner

Has the best interests of employees in mind

Makes fair and balanced decisions

Can be trusted

Discusses business ethics or values with employees

Sets an example of how to do things the right way in terms of ethics

Defines success not just by results but also the way that they areobtained

When making decisions, asks what is the right thing to do?


11/23

What types of people are ethical leaders?DEMOGRAPHICS

Age

Gender

PERSONALITY

Agreeableness (kind, trusting, altruistic, warm, honest)

Extraversion (outgoing, talkative, assertive, status-seeking) Openness (imaginative, curious, amenable to new ideas)

Conscientiousness (thorough, organized, hardworking)

Neuroticism (anxious, unstable, stressed, impulsive)


12/23

How does ethical leadership match up with other

leadership styles? Transactional leadership focuses on short-term resource

exchange

Transformational leadership focuses on transcending short-term goals to emphasize the higher order needs of the

organization

Servant leadership focuses on employee growth and well-being


13/23

Ethical leaders are moral people andmoral

managersMoral People

Values. Honesty, integrity,kindness

Behaviors. Care,

compassion, fairness,

charity

Moral Managers

Communication. Ethical valuesare prominently conveyed

Role modeling. Ethical behavior

is made visible

Rewards and Discipline. People

are held accountable for theirethical action


14/23

MORAL PERSON?

YES NO

MORAL

MANAGER?

YES

NO


15/23


16/23

James Burke Former CEO of Johnson & Johnson

Known for personal integrity

Revised corporate credo In 1982, seven people in the Chicago area were killed from

cyanide laced Tylenol

Company recalled 31 million bottles nationwide

Established hotline

Communicated with media

Pioneered tamper-resistant packaging

By the mid 1980s, pre-crisis market share was regained


17/23


18/23

Al Dunlap former CEO at Sunbeam

Known for emotional abuse, being condescending, belligerent,

and disrespectful. Became physically violent when upset,throwing papers, banging his hands on the desk, etc.

Demanded employees make numbers at all costs, and provided

large bonuses as rewards

Fired in 1998

Settled a civil suit with the SEC for $500,000, and agreed to

never be officer or director of another company

Fraud traced back to the 1970s, throughout his career


19/23

Jim Bakker Praise the Lord (PTL) ministry, a religious

broadcasting empire

10 million homes and 2,000 employees at its peak Encouraged followers to buy lifetime memberships at a hotel

next to a USA Christian theme park

Sold over 66,000 memberships, with room for only 25,000

Spent the money on operating expenses. The hotels were never

completed

Spent eight years in prison

Encouraged ethical action Engaged in deceptive financial practices, conflicts of interest,

lied to donors, etc


20/23

Lord John Browne former CEO of BP

$200 million beyond petroleum campaign

Texas City plant exploded, killing 15 workers Two oil spills occurred in Alaska

All three accidents traced to cost cutting measures

Greenpeace awarded Browne Best Impression of anEnvironmentalist award in 2005

Resigned in 2007 after a scandal in his personal life


21/23

Sandy Weill former CEO of Citigroup

Said that the company is too big to micromanage. Created a

decentralized management structure Accused of helping Enron hide debt, peddling worthless

WorldCom debt, Japan operations shut down for transgressions

(money laundering, among other infractions)

Described by Fortune magazine as Tone Deaf on ethical issues


22/23

Five barriers to ethical leadership Ill-conceived goals

Motivated blindness

Indirect blindness The slippery slope

Overvaluing outcomes


23/23

What are the consequences of ethical leadership? Ethical leaders build ethical cultures

Followers are more satisfied with ethical leaders

Ethical leaders encourage ethical behavior Ethical leaders promote extra effort

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