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Leading in a Changing World

Blog 1: Leadership and Ethics

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Introduction
This Blog will uncover the definition of ethics, ethical leadership in term of business perspective in today. It
also shows that how ethical leader and unethical leader has a positive impact significantly on individual and
organization by giving examples.
Ethics:
According to Still in 2017, Ethics has been divided into two categories by the philopsher in Greek (Still, 2017).

Deontological Ethics (Kantianism): Rules, Moral, Values & Virtues (Still, 2017)
Teleological Ethics (Consequentialist): Consequences, Results, Outcomes (Still, 2017)
Teleological Ethics: According to Matten in 2016, the numbers of the stake holders can get benefits is
considering as Ethical and the act is a specific action (Matten & Crane, 2016). It means that the right or wrong
results are measuring by happiness, individual satisfaction (Matten & Crane, 2016). For example, it should be
identified in the first out comes and the stake holder can benefit from profit maximization while organization
tries to move to the different location. So, it can call ethical decision.
Limitations: It really encourages the dangerous cases while people are trying to achieve things anyway.

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Benefits: It can be done well an objective even having to pay an expensive (Sciencedirect 2016).
Deontologist Ethics: It is defined that deontologist ethics is emphasized on personal actions. Without probably
consideration the results, the action should not choose (Matten & Crane, 2016). The successful outcome of a
movement will not define is ethical but act it should be ethical to look as it good (Matten & Crane, 2016). For
example, an accountant in organization highlights the financial issues and corruption. this can have a bad
effect on her work and real life according to deontologist ethics she should tell the truth.
Limitations: That is the things need be done or not done even without regard to results. The actions of people
when caring less to results or effects may lead to dire consequences.
Benefits: It may see as an action that is maintaining moral law.
Ethical Leadership

Ethical Leadership is “the modelling of normatively appropriate conduct, and the use of
communication, reinforcement and decisions to promote such conduct in followers” (Brown
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, p
Leading in a Changing World – tamtit2912

et al., 2005:34).

Ethical leadership focuses on the structures significantly and external behaviors that is a combination to the
belief of leaders’ inherent to put forward the best benefits to stakeholders in organization (Fehr et al., 2015: 8).
Based on the foundations of moral, human, leadership and community (Centre of Ethical Leadership, 2017), Dr.
Bill Grace who created 4V model of ethical leadership. It summarizes vision, value, voice and virtue (Brown,
2007: 141).
Example of Ethical leader: Howard Schultz (Fastcompany, 2018).

Howard Schultz: Ethical & Strategic Leadership

Howard Schultz: Ethical Leadership (Fastcompany 2018).

Howard Schultz is known as one of riches success man and CEO of Starbucks who covered college tuition for
its employees who enroll an online program from Arizona State University, he offered health care and stock
options to raise the motivation of workforce. He said that “values are a big part of both the balance sheet and
the income statements of Starbucks—it’s behind the performance,” (Fastcompany 2018).
Example of Unethical leader: Martin Winterkorn

Volkswagen - a week of leadership drama | FT Bu…

Bu…

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Martin Winterkorn: Unethical Leadership (Fastcompany, 2018).

Martin Winterkorn is known as a former CEO of Volkswagen who tended to run company by alot of antagonism
permanently getting rid of people keeping people on their toes and did foster the concept that to reach the
company goals, it is acceptable to be dishonest (Fastcompany, 2018).
Conclusion
Ethical leadership has a straight impact to companies. As the ethical leaders who people follow and have a
direct relation to employees, they should embrace ethics as an important part of their act in daily. An ethical
leader will not only support to the growth of company but also create a better environment in company and the
betterment of society. The various issues will come to companies if having leaders without ethics such as loss
of profits, a ranging of lawsuits or GOVT fines as inevitable results when the public images of organizations are
adversely affected.
References
Brown, M. E. (2007). Misconceptions of Ethical Leadership: How to Avoid Potential Pitfalls’ Organizational
Dynamics. 36 (2), 140-155. https://elearning.newinti.edu.my/bbcswebdav/pid-2494627-dt-content-rid-
6179272_1/courses/MYI1.INTM05LON.GB1.SEP2017.IICS/MYI1.INTM05LON.FS1.SEP2016.IICS_ImportedContent_20160815022622/
Center of Ethical Leadership, (2017). Concepts and Philosophies. Center of Ethical
Leadership. http://www.ethicalleadership.org/concepts-and-philosophies.html
Fastcompany (2018). The 10 best and worst leaders of 2015. https://www.fastcompany.com/3054777/the-10-
best-and-worst-leaders-of-2015
Fehr, R., Kai Chi, Y. and Dang, C. (2015). Moralized Leadership: The Construction And Consequences Of Ethical
Leader Perceptions. Academy of Management Review 40 (2), 182-209. doi:10.5465/amr.2013.0358.
Crane, A. (2016) Matten, D. (2016) “Business Ethics” Fourth Edition. Oxford, Oxford University Press.
Still, C. (2017). Leadership and Ethics-Instruction Unit One.
https://culcmoodle.coventry.ac.uk/mod/book/view.php?id=225391

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