leadership & organisational values
DESCRIPTION
Changing Leadership roles in BusinessTRANSCRIPT
Challenges of Leadership In A Low trust worldChallenges of Leadership In A Low trust world
©Managing Values 2011
Dr Attracta Lagan
Know your time• In interconnected world anything you do in
private can find its way into the public domain
• What you do impacts on your company as well as your personal reputation
• People listen with their eyes and take their lead from what gets rewarded
• It can no longer be assumed that people know the right thing to do
• If you go along to get along you can slip over the line
• You need to identify your line in the sand as different situations will challenge how you behave
• When making decisions at work the organisation’s values protect integrity
©Managing Values 2011
1.Low trust world where leaders of all institutions distrusted & ethics risen up the business agenda
2.Emergence of a global culture based on consumerism
3.Supranational corporations dwarfing governments & only true global citizens
4.Civil society backlash to global marketplace impacts on domestic economies
5.Rise of NGO (civil society pressures groups) & networked global activism to voice protest & demand new accountabilities
21 Century Social Backdrop
1.Low trust world where leaders of all institutions distrusted & ethics risen up the business agenda
2.Emergence of a global culture based on consumerism
3.Supranational corporations dwarfing governments & only true global citizens
4.Civil society backlash to global marketplace impacts on domestic economies
5.Rise of NGO (civil society pressures groups) & networked global activism to voice protest & demand new accountabilities
21 Century Social Backdrop
5
Agree or Disagree
Employee confidence in the purpose of the organisation Employee confidence in the purpose of the organisation
creates a sense of common mission which lifts standards ever highercreates a sense of common mission which lifts standards ever higher.
Good people will behave in inappropiate ways
I know the range of values based challenges our people face at work
Most employees in my organisation experience it as a fair place to workI begin from a premise that my organisation is judged by how every employees behaves
Leaders set the standard of truth and behaviour for every employee they leadValues led leaders serve the organisation and not themselves
Finger on the cultural pulse?Finger on the cultural pulse?
People want to belong to an organisation that listens
The The IndividualIndividualValues Match
Sense of Meaning
The The OrganisatioOrganisationnBalancing Private interest, Public good
SocietySociety
Sustainability
RISE OF THE CIVIL ECONOMY
Changing Social Expectations & Alignment of expectations
08/04/23 © 2002 KPMG
The World is Changing
Ethical Imperative
Globalisation & Global Commons
Social/Economic Polarisation
Secularisation Society
Sustainability Agenda
Risk Imperative
Failure CorporateGovernance
Rise of NGOs as “Social Vigilance”
Activism Ethical Consumers & Investors
SocietalImperativeLow Trust Society – leaders no longer trusted
Increasing societal despair teen suicide, adult depression
Internet/Global Information-based Economy
Need for New OrganisationalCompetencies
)
Increasing Calls For• Return to core values
Institutional leadership accountabilities social footprint on society
• Quality of life focus vs. standard of living
• Demonstration of ethical practices
Business Ethics @ Workhow good people find themselves doing unethical things
What is right in the corporation is not what is right in a man’s home or in his church. What is right in the corporation is what the guy above you wants from you.That’s what morality is in the corporation Robert Jackall, Moral Mazes
©Managing Values 2011
Business Ethics vs. Individual MoralityBusiness Ethics vs. Individual Morality
Morality refers to how individuals make judgments about right & wrong
Ethics is examining moral standards of a person or a society to decide whether these standards are reasonable / unreasonable, and to apply them to contexts and issues
Who decides what’s ethical?
©Managing Values 2011
Society decides what’s ethical
(CSR) Corporate Social
Responsibility Sustainability
Institutional integrity - do systems
support stated values?
Do people understand values
/codes and when to apply
them?
Is the common good protected?
..
©Managing Values 2011
What does unethical business behaviour look like?
Behaviours that are not necessarily illegal but generally considered unethical include:
Withholding information, cone of silence, distortion of facts
Racisim,Sexisim,Bullying and exploitation other humans Unmanaged conflicts of interests; self interest priority Anything liable to endanger common good Lack of compassion and humanity
So, the law alone is not a basis for ethical decision-making
©Managing Values 2011
Ethical challenges at work 2009 & 2010 workplace research
• Rise of amoral generation of managers• Codes of Ethics frighten rather than inspire• Employees experience disconnect between values
and organisational culture• 1 in 4 silent when they see unethical behaviour• 1 in 5 professionals feel compromised at work• Senior mangers most likely to have encountered
ethical issues in the last 12 months• Employees report unethical acts to their managers not
hotlines; managers unskilled to respond• The younger the employee the more likely they say
their organisations behave unethically
©Managing Values 2011
Bad Apples, Bad Barrell?
Organisational levelLack ethical leadership
do as I say, not as I do styles
Unprofessional & Amoral managers
Diffusion responsibility
Competing Values
Pressure to conform
Compliance Priority
Blame cultures emerge
Personal level
Group Commitment
Disengagement
Self interest
Ignorance
Poor interpersonal skills
Lack of consequences
Sense of entitlement
Disengagement
©Managing Values 2011
How we rationalise behaving unethically
I can get away with it I can be a different person at work I’m only doing what I’m toldThe end justifies the means If it’s not illegal, it’s OKOthers gaming the system too It’s not my problem It’s pressure of work - not me
©Managing Values 2011
Context & The Agentic Shift
• Milgram’s research suggests individuals abdicate personal decision making & come to see themselves as agents of the company way of doing things
• Zimbardo Stamford experiment suggests situational factors are more influential than personal values or rationality. Both guards & prisoners behaved in ways consistent with the context but strongly inconsistent with their usual dispositions
• Social psychology teaches us that many people are likely to commit seriously unethical acts in contexts that share powerful & distinctive features as typically takes place in large workplaces including
Depersonalization; De-individualisation Cultural/group dynamics Disengagement
©Managing Values 2011
Business Ethics @ Workhow good people find themselves doing unethical things
Entangled handsPersonal gain pursued at expense what’s good for the organisationMisuse time, information, funds, authority
Many HandsOrganizational fiefdoms – counterproductive competition
Conflicted HandsOne stakeholder group gets priority over othersEither or mentality
©Managing Values 2011
Why is ethics so difficult?Ethics involves learning what is right or
wrong and then doing the right thing even when the ‘right thing’ may not be popular
©Managing Values 2011
The worst of times?
Intentionally amoral managers: – Success priority value– End justifies means– Law obstacle to go around – Business & ethics exist in separate spheres– Sense of entitlement
Unintentionally amoral managers:– Well-intentioned, but morally casual or unaware– Business seen as ethically neutral - don’t canvass the ethical
dimension of decision making/actions (safety, equity, justice)– Expediency driven
©Managing Values 2011
Stakeholder DimensionStakeholder Dimension
Time DimensionTime Dimension
Context DimensionContext Dimension
Individual PerceptionIndividual Perception
©Managing Values 2011
Defining moment are critical
Our sense of who we are, (or who we want to be) & what we do are interlinked. We need to be able to answer the question:
1. Are we defined by our actions? Or
2. Is it because of who we are that we do
or don’t do certain things?
©Managing Values 2011
Co-designing the futureHow are you doing?
I recognise that what I do at work impacts others and my choice is between impacting positively or negatively
I am aware that my workplace habits are shaping the person I become
I know my line in the sand and how to defend it
I know how to raise issues of concern safely I know the ethical challenges my people might
face at work I seek feedback to ensure I role model our
values I know the organisation is better because I am
in it
©Managing Values 2011
Courage is part of the new storyCourage is part of the new storyDo well and Do Good Jeff Swartz CEO Timberland
Create a better everyday life for the many people Ikea
Do no evil Google Founders
We’ve found a new way to win in the marketplace…one that doesn’t come at the expense of our grandchildren or the earth but at the expense of the inefficient competitor INTERFACE CEO
Inspire and implement solutions to the environmental crisis Patagonia
To bring inspiration and innovation to every athlete in the world Nike
Bringing the best to everyone we touch Ester Lauder
To give people the power to share and make the world more open and connected Facebook
To experience the joy of advancing and applying technology for the benefit of the public Sony
©Managing Values 2011