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Lecture 43
ETHICS IN LEADERSHIP
Ethics
Ethicsā is derived from the Greek word āethos,ā which means ācharacterā. āCharacterā is defined as āthe combination of qualities or features that distinguishes one person from another.ā It is also defined as āthe public estimation of the person ā reputation.ā
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 othersā welfare, promoting high moral character in leaders, and persistently striving to be just, prudent, and truthfulness in oneās 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.
o Ethics
- 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
o Ethical Theory
- 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
o Ethics & Leadership o What leaders do and who leaders are is determined by the nature of the leadersā 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 isā¦ o Ethics is the study of morality o Central principles of ethics: o Reversibility ā Would you want someone to do this to you?
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o Universality ā Would you want everyone to do this?
o 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?
Ethics isā¦
o Right vs. Wrong o Also known as your conscience/principles o Usually a spontaneous decision Ā You instantly know right from wrong o Brainstorming exercise Ā list of āwrongsā Ā List of ārightsā o Who you are when no one is looking o If your mom & dad were watching, would you still do it?
Ethics isā¦
o Ethics vs. Morals
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 āgetting caughtā 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 otherās based on their personal beliefs
Ethical behavior is the display of moral attributes o Judgment o Behavior o Self-discipline o Character
However, what āethical behaviorā 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 docsity.com
o Leaders are stewards of the organizationās 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 followersā 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
- Donāt promise what you canāt deliver
- Donāt suppress obligations
- Donāt evade accountability
- Donāt accept āsurvival of the fittestā 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:
āManagement is doing things right; leadership is doing the right thingsā.
āLeadership always comes down to a question of characterā.
- Warren Bennis Key Questions o What is ethical leadership?
o How do I lead with integrity? docsity.com
o What can I do to strengthen the ethical culture of my organization?
Ethical issues
Power
o The basis for a leaderās influence on followers
o The more power a leader has, the more likely that followers will comply with the
leaderās wishes
o T he greater a leaderās 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 followersā worth and to avoid regular contact with followers
or mistreat them
o A leaderās 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
o Moral standards for a leaderās behavior
o Should leaders be held to a higher moral standard?
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
o Should leaders be held to the same standards as everyone else, and be expected live up to those standards.
o Moral consistency
o If leadersā behavior does not match their stated values, they will lose the trust of their
followers and colleagues
o a leaderās moral inconsistencies are open to public scrutiny
o Leaders who do not behave consistently with their stated ethical values risk being labeled
hypocrites.
o 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 Judging a leader as āgoodā involves complex assessments of the leaderās 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 docsity.com
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
o The ethical climate of an organization is the shared perceptions among organizational members of the organizationās policies, practices and procedures regarding ethical behavior. o Specific actions by leaders also contribute to this ethical climate. o Role modeling Ā Emphasize visible behaviors and include demonstrations of how to implement specific values.
o Directive behavior Ā clearly specify ethical policies and practices through organizational codes of ethics, continuing education and training on ethical issues, Ā implement internal ethics committees to respond to employeesā concerns and questions Ā insure regular coverage of ethical issues in the company communications o Contingent reward and punishment behaviors Ā reward individuals and groups who accomplish goals by acting in ways that are consistent with organizational values
Ā identify and reward organizational citizenship behaviors o altruistic behavior ā going out of their way to help other employees o conscientiousness ādoing a better job than expected o courtesy āgiving advance notice of upcoming projects o civic virtue āregular attendance and active participation in meetings o sportsmanship ānot complaining and not making mountains out of mole hills
o discipline employees who fail to adhere to company values o Participative leader behavior
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Ā 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 othersā 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: āLead by example.ā 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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