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Leadership
& Team Management MGMT
623
VU
Lecture
43
ETHICS
IN LEADERSHIP
Ethics
Ethics"
is derived from the Greek
word "ethos," which means
"character". "Character" is defined
as
"the
combination of qualities or features
that distinguishes one person from
another." It is also
defined
as
"the public estimation of the
person -- reputation."
Ethics
are the moral values, beliefs,
and rules that establish the right or
appropriate ways in which one
person
or group should interact,
deal and behave with another person or
group. Organizational ethics
are
a product of societal, professional, and
individual ethics.
Ethics
is the study of morality (right and
wrong) and the choices people make in
their relationships
with
others.
Leaders deal with numerous
ethical issues in organizations
including power, moral
standards,
moral
consistency, moral mistakes etc.
Different approaches have been
suggested for dealing with
these
issues,
such as following universal
moral laws, greatest good
for the greatest number,
having a primary
concern
for others' welfare,
promoting high moral
character in leaders, and
persistently striving to be
just,
prudent, and truthfulness in
one's behavior. Creating an
ethical organizational climate
requires
leaders
to have and present role model
ethical behaviors, and
reward ethical policies and
practices,
punish
unethical behavior,
discuss ethical
assumptions and practices, and
use
charismatic/transformational
leader behaviors in a socially responsible manner.
Many leaders are
turning
to spiritual/religious practices to help
them deal with ethical
issues.
Ethics
is the study of morality (right and
wrong) and the moral choices
people make in their
relationships
with others.
A.
Ethics concerns how we should behave in
the roles that society gives
us.
B.
Leaders are often in roles
that can determine the
well-being of others and they
sometimes
influence
the broader good.
o
Technically
good (effective)
o
Morally
good.
Ethical
values rest on principles stressing the
importance of treating everyone
fairly and equally.
To
make
ethical decisions, an organization
purposefully implants ethical
instrumental values in its
culture.
Ethical
values are a product of societal,
professional, and individual
ethics.
Ethics
o
Is
a derivative of the Greek word
ethos, meaning customs, conduct, or
character
Is
concerned with the kinds of values
and morals an individual or society
ascribes as
desirable
or appropriate
Focuses
on the virtuousness of individuals and their
motives
Ethical
Theory
o
Provides a system of rules or
principles as a guide in making decisions
about what is
right/wrong
and good/bad in a specific
situation
Ethics
& Leadership
o
o
What
leaders do and who leaders
are is determined by the nature of the
leaders'
behavior
and their virtuousness.
o
What
choices leaders make and how
they respond in a particular
circumstance are
informed
and directed by their
ethics.
Ethics
is...
o
Ethics
is the study of morality
o
Central
principles of ethics:
o
Reversibility
Would you want someone
to do this to you?
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o
Universality
Would you want
everyone to do this?
Other
questions
o
Am
I treating others with
respect?
o
Am
I violating the rights of
others?
o
Am
I treating others only as a
means to my own ends?
o
Am
I being honest with others
and with myself?
o
Ethics
is...
Right
vs. Wrong
o
o
Also
known as your
conscience/principles
o
Usually
a spontaneous decision
You
instantly know right from
wrong
o
Brainstorming
exercise
list
of "wrongs"
List
of "rights"
Who
you are when no one is
looking
o
o
If
your mom & dad were watching, would
you still do it?
Ethics
is...
Ethics
vs. Morals
o
Ethics
and morals are NOT always
the same
Morals
= personal view of values
o
i.e.
beliefs related to moral
issues such as drinking,
gambling,
o
Can
reflect influence of religion,
culture, family and
friends
Ethics
= how a moral person
should
behave
o
Ethics
go beyond cultural, religious, and
ethnic differences
Ethics
is not about "getting
caught"
o
Even
if you get away with something, it
may still be
unethical
o
Ethics
is not defined by what
happens to you, but by your
thoughts and actions
Ethics
is not about placing
blame
o
Do
not judge other's based on
their personal beliefs
Ethical
behavior is the display of moral
attributes
o
Judgment
o
Behavior
o
Self-discipline
o
Character
However,
what "ethical behavior"
really boils down to in its
simplest form is: Knowing the
difference
between
right and wrong and behaving
accordingly
Character
Traits Reflect
Ethics:
o
Honesty
o
Courage
o
Compassion
o
Even-handedness
(impartiality)
o
Respect
for Others
Some
Common Ethical/Legal
Issue:
o
Conflict
of Interests
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o
Confidentiality
o
Use of
Position for Personal
Gain
o
Personal
Contracts
o
Outside
Employment
o
Personal
Investments
o
Use of
Government Time
o
Behavior
On Duty and Off Duty
o
Discriminatory
Practices
Why
Be Ethical?
What
benefits do you receive by
acting ethically?
o
o
Character
Counts
o
Self-respect
What
benefit does the community
receive?
o
Challenges
to acting ethically:
o
Rationalizations
o
If
it's necessary, it's
ethical
o
If
it's legal, it's
ethical
o
I
was doing it for
you
o
I'm
just fighting fire with
fire
o
It
doesn't hurt anyone
o
Everyone's
doing it
o
It's
okay as long as I don't gain
personally
How
to Be an Ethical Person?
Do
no harm
o
o
Avoid
causing physical, mental, or
emotional harm
Benefit
others
o
o
Offer
assistance and improve the lives of
others, even if it may inconvenience
you
Be
just
o
o
Treat
everyone equally or Follow the
Golden Rule
Be
faithful
o
o
Keep
promises, tell the truth, be
loyal, and maintain respect and
good manners
Respect
autonomy
o
o
Everyone
has the right to decide how
they live their lives, as
long as they do not
interfere with the
welfare
of others
Respects
Others:
Treat
others as ends in themselves
and never as a means to
ends
o
Treat
other people's values and decisions with
respect
o
Allow
others to be themselves with
creative wants and
desires
o
Approach
others with a sense of
unconditional worth and
value individual
differences
o
Leader
behaviors
·
Listens
closely to subordinates
·
Is
empathic
·
Is
tolerant of opposing
viewpoints
Serves
Others:
Follower-centered
- Based on the altruistic
principle of placing followers foremost
in the leader's
plans
o
Beneficence -
Leaders have a duty to help
others pursue their own
legitimate interests
and
goals
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o
Leaders
are stewards of the organization's
vision; in serving others
they: clarify,
nurture,
and
integrate the vision with,
not for, organization
members
o
Leaders
have an ethical responsibility to make
decisions that are beneficial to
their
followers'
welfare
o
Leader
behaviors
·
Mentoring
behaviors
·
Empowerment
behaviors
·
Team
building behaviors
·
citizenship
behaviors
Shows
Justice:
Ethical
leaders are concerned with
issues of fairness; they place issues of
fairness at the
center
of
their decision
making
o
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
Manifests
Honesty:
Honest
leaders are authentic but also
sensitive to the feelings
and attitudes of others
o
They
are not deceptive
o
They
tell the truth with a
balance of openness and candor while
monitoring what is
appropriate
to disclose in a particular
situation
o
Leader
behaviors
·
Don't
promise what you can't
deliver
·
Don't
suppress obligations
·
Don't
evade accountability
·
Don't
accept "survival of the fittest"
pressures
·
Acknowledge
and reward honest behavior in the
organization
Builds
Community:
Concern
for the common good
means leaders cannot impose
their will on others; they
search
for
goals that are compatible with
everyone.
o
Concern
for others - Is the
distinctive feature that delineates
authentic
transformational
leaders
from pseudo-transformational
leaders
o
Transformational
leaders and followers reach
out beyond their own
mutually defined goals
to
the wider community
o
Leader
behaviors
·
Takes
into account the purposes of
everyone in the group
·
Is
attentive to interests of the community
and the culture
·
Does
not force others or ignore
the intentions of others
Leading
with Integrity:
"Management
is doing things right; leadership is
doing the right
things".
Peter F. Drucker
"Leadership
always comes down to a
question of character".
Warren Bennis
Key
Questions
o
What
is ethical leadership?
o
How do
I lead with
integrity?
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o
What
can I do to strengthen the ethical
culture of my organization?
Ethical
issues
Power
o
The
basis for a leader's
influence on followers
o
The
more power a leader has, the more likely
that followers will comply
with the
leader's
wishes
o
The
greater a leader's power, the greater the
potential for abuse
o
Corrupting
influences of power
o
Power
may become desired as an end in itself
and be sought at any cost
o
Power
differences may cause
followers to give the leader false
positive feedback and
create
an elevated sense of self-worth on the
leader
o
The
leader may devalue followers'
worth and to avoid regular contact
with followers
or
mistreat them
o
A
leader's failure to acknowledge the
ethical limits of power
causes a loss of credibility
and
trust
and does devastating damage to the leader
and his constituency
Moral
standards for a leader's
behavior
o
Should
leaders be held to a higher
moral standard?
o
o
we
would probably have a shortage of
leaders
o
we
would most likely become
disillusioned with them when
they were unable to meet
the
higher standards
Should
leaders be held to the same
standards as everyone else, and be
expected live up to
o
those
standards.
Moral
consistency
o
o
If
leaders' behavior does not
match their stated values,
they will lose the trust of
their
followers
and colleagues
o
a
leader's moral inconsistencies are open
to public scrutiny
o
Leaders
who do not behave consistently
with their stated ethical
values risk being labeled
hypocrites.
The
relationship between ethics and
effectiveness
o
Leaders
sometimes achieve worthwhile goals using
questionable tactics.
o
Existence
of a double standard when
judging some leaders.
o
o
Judging
a leader as "good" involves complex
assessments of the leader's achievements
and
the
means used to reach those
achievements.
o
Leaders
also make moral
mistakes that
cause unfortunate consequences,
although their
intentions
were ethical.
Approaches
to Ethical Behavior
o
Categorical
Imperative -- obligation ethics. Specifies
that individuals should
always do what is
right,
regardless of the consequences
o
Utilitarianism,
-- consequential ethics or ethics of
responsibility. Ethical decisions must be
based
on
their consequences.
o
This
approach maintains that we should behave
so as to create the greatest good
for the
greatest
number of people
o
Identifying
all the relevant consequences of a
decision can be difficult,
especially when
leaders
represent diverse groups or when
their decisions have far reaching
effects
o
Altruism
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o
Altruistic
leaders are concerned for
the welfare of others and their actions
are designed to
help
others even if it results in a cost to
themselves
o
Confucius
equated altruism with the
golden rule "do unto
others as you would have
them
do
unto you"
o
Virtue
ethics. The central idea of
virtue ethics is that
leaders and other individuals
who have high
moral
character are most likely to
make wise ethical choices in
their behavior and decision
making.
o
virtues
are "deep-rooted dispositions, habits,
skills, or traits of character
that incline
persons
to perceive, feel and act in
ethically right and sensitive
ways"
o
Advocates
of virtue ethics tend to describe the
character traits and
qualities of the ideal
leader
as an ethical role
model.
o
Moral
Learning.
Involves
gradual changes in beliefs,
attitudes, values and habits obtained
through
prolonged
effort by a leader to behave in a just,
prudent and truthful manner. Moral
learning is a
process
of human development
o
a
positive process that causes
leaders to want to create
benefits for people
o
causes
leaders to make decisions and
act in accordance with their
conscience
o
Moral
learning focuses on an ethic of
excellence
o
teaches
leaders to strive for a
higher good and to take the
"most ethical" approach, even if it
is
costly in terms of the leader's personal
preferences, income, career, or the
welfare of
other
stakeholders
o
Elements
of moral learning
o
Leaders
must first become sensitive to
ethical problems.
o
Leaders
must also become competent in
making moral judgments
o
Leaders
must be motivated to behave ethically
and to make ethical
decisions
o
Leaders
must be willing to take
moral action
o
Sources
of moral learning
o
role
models
o
hardships
o
a
value driven mission
Ethics
Management Tools
o
Exemplary
leadership
o
Ethics
training
o
Codes
& Oaths
o
Audits
Ethical
Leaders
o
Are
ethical role models
o
Sustain an
ethical climate that creates
trust
o
Promote the
ethical development of their
subordinates
o
Ethics
Training
o
Types
Compliance
training
Values
training
o
Effectiveness
o
Codes
o
Implement
codes of conduct.
Ethics
- Where to Start? A Code of
Ethics
Types
of Codes of Ethics:
o
Two
Basic Types
o
Compliance
Based
o
Integrity
Based
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Qualities
of Leadership
o
Two
Goods
o
Morally
Good.
o
Technically
Good.
o
Self-knowledge.
o
Self-control.
o
Confidence.
o
Charisma.
o
Consistency.
o
Effectiveness.
o
Humility.
Leadership
is a process whereby an individual
inspires a group to achieve a common goal by the
power
of
their integrity and
wisdom.
Becoming
a Wise and Ethical
Leader
o
Read,
Read, and Read
o
Think
broadly and deeply about
ethics
o
Set an
appropriate ethical
example
o
Make
serving others (not your
career) your top
priority
o
Lead
from trust and respect, not
power & authority
o
Delegation
and shared responsibility
o
Listen
to and facilitate others
o
Find a
mentor and be a mentor
o
Bottom
Line
o
Are
your people growing as
effective leaders
themselves?
Creating
an Ethical Climate
The
ethical climate of an organization is the
shared perceptions among
organizational
o
members
of the organization's policies, practices
and procedures regarding
ethical
behavior.
Specific
actions by leaders also contribute to
this ethical climate.
o
Role
modeling
o
Emphasize
visible behaviors and include
demonstrations of how to implement
specific
values.
Directive
behavior
o
clearly
specify ethical policies and
practices through organizational
codes of ethics,
continuing
education and training on ethical
issues,
implement
internal ethics committees to respond to
employees' concerns and
questions
insure
regular coverage of ethical issues in the
company communications
Contingent
reward and punishment
behaviors
o
reward
individuals and groups who accomplish goals by
acting in ways that
are
consistent
with organizational values
identify
and reward organizational citizenship
behaviors
o
altruistic
behavior going out of
their way to help other
employees
o
conscientiousness
doing a better job than
expected
o
courtesy
giving advance notice of
upcoming projects
o
civic
virtue regular attendance
and active participation in
meetings
o
sportsmanship
not complaining and not
making mountains out of
mole
hills
discipline
employees who fail to adhere to company
values
o
Participative
leader behavior
o
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ethical
leaders provide forums for
dialogue and discussion of
ethical assumptions
and
practices in the organization
o
understanding
different ethical approaches helps
people assess their
own
and
others' behavior, and knowingly
select ethical courses of
action
o
discussing
sound ethical actions or decisions can
also provide useful
reference
points for organizational
members
o
involving
followers in discussions of real
ethical incidents in the
organization
encourages everyone to examine
organizational responses and
processes
and makes ethical
assumptions and approaches clearer
to
everyone
involved
The
number one rule - which is
commonly echoed in all
management courses - is:
"Lead by example."
To
create an ethical team/organization
every member need to make
sure the compliance of
ethical
behavior
but main responsibility rest
on leader to exhibit ethics and also make
sure that others do
the
same.
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Table of Contents:
- INTRODUCTION, ORGANIZATION THE STAGE FOR LEADERSHIP:Challenges, Value creation
- FOCUSING ON PEOPLE: THE KEY TO SUCCESS:People in the Process, Developing and Sustaining A World-class Workforce
- LEADERSHIP:Characteristics of Successful Leader, Why Study Leadership?
- LEADERSHIP (CONTD.):Characteristics of Leaders Who Fail, Why Leaders Fail?
- MANAGERS VS LEADERS:Characteristics, Effective Leadership, Respect for Diversity
- FOLLOWER-SHIP:Importance of Followers, Follower-ship Style
- LEADERSHIP PROCESS:Strategies for Cultivating Exemplary Followers, Important Traits of Leaders
- LEADERSHIP PROCESS (CONTD.):Qualities of Leaders, Self-Confidence, Integrity
- LEADERSHIP THEORIES/ APPROACHES:Personal Characteristics of Leaders, Managerial Grid
- CONTINGENCY THEORIES OF LEADERSHIP:The Fiedler Model, Situational Leadership Theory, Path-Goal Theory
- TRANSACTIONAL, CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP:Visionary Leadership
- THE LEADER AS AN INDIVIDUAL:Personality, Situation, Heredity, Environment
- ATTITUDE-PERSONALITY:Job Satisfaction, Work Situation, Self - Monitoring
- BIG FIVE MODEL, MYERS BRIGGS TYPE INDICATOR (MBTI):Sub-Categories Defined, Information Gathering
- SITUATIONAL FACTORS:Social and psychological climate, Culture of the organization
- BECOMING A LEADER! WHAT DOES IT MEAN & HOW DO YOU GET IT?:Mission Statement, Leading oneself
- BECOMING A LEADER:Elements of Leadership, CONCEPT OF POWER,
- UNDERSTANDING POWER:Sources of Power, Responses to the Use of Power, Managing Political Behavior
- LEADERSHIP POWER & INFLUENCE:Positional Power, Being an Effective Leader
- LEADERSHIP AND EMPOWERMENT:Power sharing and Empowerment, Share Information
- MOTIVATION:Guidelines for Delegating, Human Resource Approach
- MOTIVATION AT WORK, MOTIVATION AND LEADERSHIP:What Factors Diminish Motivation in the Workplace
- LEADERSHIP COMMUNICATION:Communication & the Four Management Functions
- REVIEW-1:Organizational Performance, That is the Role of Management?, Leaders Vs Managers
- GROUP & TEAM CONCEPT:Groups versus Teams, Deciding When to Use a Team
- TEAM DYNAMICS:Stages of Group Development, Problem-Solving Teams, Benefits of Teams
- BUILDING THE TEAM:Leadership success requires, Strategies for Team Building
- A TEAM-BASED ORGANIZATION:Basic Steps, Span of Control, Categories of Decisions
- DECISION MAKING:Categories of Decisions, The Decision-Making Process
- TEAM DECISION MAKING:Team Problem Solving Techniques, Concept of QC
- EFFECTIVE TEAM COMMUNICATION:Team/Group Communications
- CONFLICT IN TEAM:Sources of Conflict, Scarcity of Resources, Dysfunctional Outcomes
- TRAINING/LEARNING OF TEAM:Training Methods, Phases of Learning Cycles
- LEARNING ORGANIZATION:A Litmus Test, Work Relations
- REWARDING & RECOGNIZING TEAMWORK:Compensating Teams, Individual or Team Rewards?
- MANAGING/LEADING VIRTUAL TEAMS:Communications in Virtual Organizations, Virtual Leadership
- EFFECTIVE TEAM MEETINGS:Better Meetings, Meeting Roles, Meeting Room Facilities
- LEADING TEAM:Team Leadership Structures, Leadership Demands and Duties, Leadership Direction
- REVIEW-II:Types of Teams, Characteristics of High Performance Teams, Sources of Conflict
- STRATEGIC LEADERSHIP:Strategic Management, Determining Strategic Direction, Developing Human Capital:
- LEADING CHANGE:Dynamics of Change, Change Models, Unfreeze
- CREATIVE LEADERSHIP:Awaken Your Senses, How Might These Definitions Be Integrated
- ETHICS IN LEADERSHIP:Character Traits Reflect Ethics, Manifests Honesty
- LOOKING AT THE FUTURE: WHAT COMES NEXT:Benefits of Teams, Ethical Leadership,
- TEAMWORK: LEARNING FROM NATURE:Social Behavior, Termites, Learning from Nature