Ethical Leadership

Presentations
1:30 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 1 1 1 1 1 2 2 2 2 2

5 Strongly Agree 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

This team provided good background information about their focal individual or organization This team provided a clear, detailed presentation of their focal ethical dilemma This team drew in theories and ideas from the course in a thoughtful and appropriate way This team had good stage presence This team used powerpoint and/or other media well

A process model of ethical action

__________ __________
Awareness of the moral problem Ability to identify courses of action

__________ __________
Ability to select the appropriate course of action

__________ __________
Gaining commitment to moral action

__________ __________
Persisting in a moral task Overcoming obstacles and fatigue

____________. Do I have knowledge of and experience with the issue at hand?

____________. Do I have a consistent set of guiding moral principles?

____________. Do I feel a sense of responsibility to the moral issue at hand?

____________. Do I have the strength of will to fulfill my moral obligations?

__________ __________
Awareness of the moral problem Ability to identify courses of action

__________ __________
Ability to select the appropriate course of action

__________ __________
Gaining commitment to moral action

__________ __________
Persisting in a moral task Overcoming obstacles and fatigue

What does it take to be an ethical leader?

Leadership is the art of getting someone else to do something you want done because he wants to do it

What is leadership?
A _________that includes ____________ the task objectives and strategies of an organization, influencing people in the organization to implement the strategies and achieve the objectives and influencing the culture of the organization (Yukl & Van Fleet, 2002)

What is ethical leadership?

_________________________________________________ through personal actions and interpersonal relationships, and the promotion of such conduct to followers through twoway communication, reinforcement, and decision-making

What is ethical leadership?

Interviews with executives and ethics officers show common themes Ethical leaders 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

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

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)

How does ethical leadership match up with other leadership styles?

Transactional leadership focuses on short-term resource exchange Transformational leadership focuses on transcending shortterm goals to emphasize the higher order needs of the organization Servant leadership focuses on employee growth and well-being

Ethical leaders are moral people and moral managers

Moral People Values. Honesty, integrity, kindness Behaviors. Care, compassion, fairness, charity Moral Managers Communication. Ethical values are prominently conveyed Role modeling. Ethical behavior is made visible Rewards and Discipline. People are held accountable for their ethical action

MORAL PERSON? YES YES MORAL MANAGER? NO NO

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

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

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

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 an Environmentalist award in 2005 Resigned in 2007 after a scandal in his personal life

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

Five barriers to ethical leadership

Ill-conceived goals Motivated blindness Indirect blindness The slippery slope Overvaluing outcomes

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