Ethical Leadership Final Exam

PROMPT - 1

4/14/2023

Submitted to: Prof. Victoria Kannen

Name – Vedanshi Thakkar

Enrolment Number – 0431013

Program - MBA
Table of Content

Prompt 1 - Create an argument that addresses leadership principles from our course that you

believe will contribute the most to your personal ethical development. Describe actual situations

in which you will use them, how you will use them, and why you believe them to be of value.

1. Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2

2. Values, Leadership, and ethical development - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2

3. Analysis of Leadership principles - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3

 Integrity
 Cooperation
 Veil of Ignorance and Selflessness
 Better Communication

4. Framework for Understanding Decision Making in Professional and Personal Ethical

Development - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7

5. Conclusion - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8

6. Recommendation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9

7. References - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10

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 Introduction

Ethical leadership principles are a set of values and behaviors that guide leaders to make

decisions that are fair, honest, and responsible (Mihelic et al., 2010). These principles are

important in both personal and professional life, as they shape how we interact with others, make

decisions, and contribute to the well-being of our communities and organizations.

In the workplace, ethical leadership principles are essential for creating a culture of trust,

collaboration, and innovation (Viinamäki, 2012). When leaders demonstrate ethical behavior,

they set an example for others to follow, inspiring team members to act with integrity and

contribute to the success of the organization. Ethical leaders also make decisions that are

consistent with the values and goals of the organization, creating a sense of purpose and direction

that motivates team members to work towards shared objectives.

In our personal lives, we are constantly faced with ethical dilemmas that require us to make

decisions that reflect our values and beliefs. Whether it is deciding how to treat others with

respect, how to manage our personal finances, or how to contribute to our communities, ethical

leadership principles provide a framework for making decisions that promote the greater good

and contribute to our own personal growth and well-being.

In today's complex and interconnected world, ethical leadership is more important than ever. As

individuals, we are faced with a wide range of challenges that require ethical decision-making

and a commitment to the greater good. From climate change and social justice to political

polarization and economic inequality, these challenges require leaders who are able to make

decisions that are guided by a sense of responsibility and a commitment to the common good

(Othman & Rahman, 2014)

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 Values, Leadership, and Ethical Development

There is a substantial body of research examining values, leadership, and ethical development.

“A value is a conception, explicit or implicit of the desirable which influences the selection from

available modes, means, and ends of action" (Robbins & Sommerschuh, 2016). “A value is an

enduring belief that a specific mode of conduct or end-state of existence is personally or socially

preferable to an opposite or converse mode of conduct or end-state of existence" (Gouldner,

1975). While definitions differ, there appears to be relationship between values, leadership, and

ethical development (Fritzsche & Oz, 2007) . The objective of leadership is to bring value to

others, and influence is the actual measure of leadership; consequently, a great leader must be

able to change the attitude or behavior of others (Reese, 2010).

The focus of ethical development, commonly referred to as moral development, is on how

values develop, change, and become understood from infancy through maturity (Business ethics

resource center, 2020). As a result, values, leadership, and ethical development can aid people in

making moral decisions in a more effective manner. Individuals can approach ethical decision-

making in a thoughtful and deliberate manner by having a strong sense of personal values.

People can influence and lead others towards ethical behavior by engaging in ethical leadership.

Analysis of Leadership Principles

Integrity:

One leadership principle that I believe will contribute the most to my personal ethical

development is the principle of integrity. Integrity involves being honest, transparent, and ethical

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in all aspects of one's behavior, including decision-making, communication, and interactions

with others.

In actual situations, I plan to use this principle in various ways. For instance, when I encounter a

situation where I need to make a decision, I will consider all available information and assess the

potential impact of my decision on all stakeholders. If the decision is not aligned with my

personal and organizational values, I will not make it, even if it appears to be the most profitable

or popular choice. In this way, I will demonstrate my commitment to ethical behavior and inspire

others to do the same.

Moreover, when communicating with others, I will be honest, transparent, and respectful. If I do

not have the information needed to answer a question, I will admit it and seek out the

information as soon as possible. I will also be open to feedback, criticism, and suggestions, even

if they may be uncomfortable or challenging.

In conclusion, integrity is a vital leadership principle that will contribute to my personal ethical

development. By using it in actual situations, I can demonstrate my commitment to ethical

behavior, foster a culture of trust and collaboration, and prevent ethical violations and conflicts

of interest.

Cooperation:

Cooperation involves working collaboratively with others towards a common goal. Cooperation

promotes ethical behavior, collaboration, and continuous learning and improvement. Cooperation

helps to create a culture of teamwork and mutual respect. By demonstrating these principles, I

can contribute to my personal ethical development, inspire others to do the same, and create a

positive impact on the organization and society as a whole.

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In actual situations, I plan to use cooperation by seeking out opportunities to work

collaboratively with others, whether it is within my own team or across different departments. I

will actively listen to the perspectives and ideas of others, seek to understand their needs and

concerns, and work together to find solutions that benefit everyone. By doing so, I can build

strong relationships based on mutual trust and respect, foster teamwork, and create a positive and

productive work environment between stakeholders.

While it may be fascinating to know that, the picture of a pervasive struggle between stakeholder

interests is vividly portrayed by including assumptions from agency theory about the motivation

and disposition of stakeholders, specifically that they are self-interested and clever (Harrison et

al., 2010). Contrarily, one of the underlying theories is that organizations perform more

effectively when they perceive stakeholder interests as merged, or at least primarily intersecting,

than businesses that view them as largely conflicting. This idea is frequently found in the

stakeholder literature as well as the literature on inter-firm networks by (Harrison & Wicks,

2013); (Freeman, 1994); (Dyer & Singh, 1998); (Freeman et al., 2007).

Ignorance and Selflessness:

The leadership principle of Ignorance and selflessness is a powerful tool for personal ethical

development which involves considering the potential impact of our actions on others, without

knowledge of our own position or identity. This principle can help us make more ethical

decisions by forcing us to take a more objective and impartial perspective.

For example, suppose I am tasked with making a hiring decision for a new team member. By

using the Veil of Ignorance, I will consider the potential impact of this decision on all team

members, without taking into account their individual job titles or positions. I will consider

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questions like, "How would this decision impact the team dynamic?", "What unique perspectives

and experiences could this new team member bring to the table?", rather than looking for

questions like "What potential biases or assumptions could I be making in this decision?" By

doing so, I can make a more informed and ethical hiring decision that reflects the values of the

organization and promotes a positive and inclusive workplace culture.

According to a recent study by (Huang, D. Greene, Bazerman, 2019), people who make moral

choices in ignorance actually produce more value. With limited resources, individuals are more

liable to safeguard additional lives since they distribute them in less self-interested ways. The

participants of the research were asked if it was morally acceptable to deprive oxygen from one

hospital patient in order to perform procedures on nine natural disaster victims who were

arriving. When it was unclear which of the 10 persons they might be, they were much more

inclined to concur that it was.

Thus, being unaware of the potential benefits (or drawbacks) of a choice prevents us from being

influenced by our position in the universe.

Communication

Communication is of the most significant importance for forming one's ethical standards.

Building trust, fostering understanding, and encouraging accountability are all communication

aspects beyond simply delivering information. Effective communication is a critical component

of ethical decision-making to guarantee that all parties are informed of the choice, comprehend

the justifications for it, and have the opportunity to offer feedback (Mercader et al., 2021).

For example, in personal interactions, effective communication can also assist me in establishing

boundaries and expressing your wants and expectations. It may avoid misunderstandings,

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encourage respect for one another, and sustain moral relationships by being up-front and clear

about boundaries.

When disputes emerge, effective communication can assist in expressing thoughts and opinions

while actively listening to others (Lewis, 2015). I can resolve disputes consistent with my ethical

principles and personal beliefs by reaching a compromise.

Framework for Understanding Decision Making in Professional and Personal

Ethical Development

This framework provides a step-by-step approach to ethical decision-making in both personal

and professional life. The framework begins with identifying the ethical issue at hand, gathering

relevant information, evaluating different options, making a decision based on values and

principles, taking action, and reflecting on the decision-making process(Sharma & Bhal, 2003).

Identifying Ethical
Issues

Individual Factors
Determines Influences
Ethical or Decision Reflect and
Unethical making and Learn
Organizational behavior overall conduct
Factors

Social Factors

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Identify the ethical issue: The first step in making ethical decisions is to identify the ethical

issue by considering individual, organizational, and social factors. This may involve considering

the values and principles at stake, as well as the potential impact on different stakeholders.

Determine Behavior: It is crucial to assess the justification for addressing the ethical problem.

This may involve weighing the potential risks and benefits of each option, as well as considering

the values and principles that are most important in the situation(Mladenovic et al., 2019).

Make a decision: This should be based on the best available information and the values and

principles that a person holds in his/her personal and professional must be taken into

consideration in order to make a decision.

Take action: After understanding the problem and making a decision, it is important to take

action and implement the chosen course of action. This may involve communicating with people

and addressing any concerns or questions that arise.

Reflect and learn: Finally, it is important to reflect on the decision-making process and learn

from the experience. This may involve considering what went well and what could be improved

for future ethical decision-making.

Conclusion

It's interesting to notice that when faced with outside influences and competing agendas, it can be

difficult to maintain ethical behavior and decision-making in business as well as in life. People

must place a strong emphasis on ethical behavior and judgment in their own lives, even in the

face of difficulties and external pressures. These principles help individuals to act in a manner

that is fair, just, and respectful towards others.

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In conclusion, the leadership principles of the Veil of Ignorance, communication, cooperation,

and integrity are essential for personal ethical development. I will apply these principles in my

personal and professional life by using the Veil of Ignorance to consider the needs of all parties’

involved, effective communication to convey my message clearly, cooperation to encourage

teamwork and collaboration, and integrity to guide my actions and decisions.

Recommendations
While individuals must prioritize ethical leadership principles in their personal lives to cultivate

substantial, trusting relationships and a sense of integrity and accountability, many people

struggle to act by their values and principles in their personal lives, resulting in a lack of

integrity, accountability, and trust in personal relationships.

1. Take time to reflect on personal values and goals, and identify areas where ethical leadership

principles and values must be taken into consideration.

2. Practice open and honest communication with loved ones, and prioritize transparency and

accountability in personal and professional relationships.

3. Seek feedback from trusted individuals on personal behavior and actions, and be open to

constructive criticism and opportunities for growth.

4. Consistently uphold ethical leadership principles in personal and professional settings, to build

a strong sense of integrity and trust with others.

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 References

1. Business ethics resource centre. (2020). Ethical Development & Maturity. Business Ethics

Resource Center. https://www.businessethicsresourcecenter.org/ethical-decision-making/

ethical-development-maturity/

2. Dyer, J. H., & Singh, H. (1998). The Relational View: Cooperative Strategy and Sources of

Interorganizational Competitive Advantage. The Academy of Management Review, 23(4),

660–679. https://doi.org/10.2307/259056

3. Fritzsche, D. J., & Oz, E. (2007). Personal Values’ Influence on the Ethical Dimension of

Decision Making. Journal of Business Ethics, 75(4), 335–343.

4. Freeman, R. E., Harrison, J. S., & Wicks, A. C. (2007). Managing for Stakeholders:

Survival, Reputation, and Success. Yale University Press.

https://www.jstor.org/stable/j.ctt1npxrg

5. Freeman, R. E. (1994). The Politics of Stakeholder Theory: Some Future Directions1.

Business Ethics Quarterly, 4(4), 409–421. https://doi.org/10.2307/3857340

6. Gouldner, H. (1975). THE NATURE OF HUMAN VALUES. By Milton Rokeach. New

York: Free Press, 1973. 438 pp. $13.95. Social Forces, 53(4), 659–660.

https://doi.org/10.1093/sf/53.4.659

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Stakeholder Utility Functions, and Competitive Advantage. Strategic Management Journal,

31(1), 58–74.

8. Harrison, J. S., & Wicks, A. C. (2013). Stakeholder Theory, Value, and Firm Performance.

Business Ethics Quarterly, 23(1), 97–124.

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9. Huang, D. Greene, Bazerman. (2019, October). Veil-of-ignorance reasoning favors the

greater good. https://doi.org/10.1073/pnas.1910125116

10. Lewis. (2015, September 10). 10 Basics of Ethical Communication. RYSEC.

https://www.rysec.org/10-basics-of-ethical-communication/

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