Ethical Leadership Ethies and morals relate to ight'and "wrong" conduct. While they re sometimes used interchangeably, ‘hey ae ciferent ethics refer to rues provided by an extmal cure, e.9, codes of conduct in workplaces (r principles in religions, Morals refer to an individual's own principles regarting right and wrong, hy Eos Moral What are they? “The nls of conduct recognized | Principles or habits wih respect in respect to a particular class of to right or wrong conduct. While human actions ora particular | morals also prescribe dos and group or culture. don'ts, morality is ultimately a personal compass of right and ‘wrong, ‘Where do they come from? From the society maint [rom the inside of onese ‘Why do we doit? —T Because the sociey says to doit | Because we tink ti the right thing to do ‘Acceptability They are governed by my Morality works above and beyond professional and social guidelines | cultural norms and operate wihin a particular place and time Flexbiliy Depends on changesinthe | Nore consistent and do not thinking of the society, when that | change unless the beliefs change ‘changes so do the ethics applicable to the issue Principles of Ethical Leadership ‘Aristotle was the fst person to tak about ethical leadership. These principles provide a foundation for the development of sound ethical leadership: respect, service, justice, honesty, and community. Ethical leaders Respect Others Ethical leaders never use followers to gain personal benefits for themselves. They respect followers as fellow human beings who deserve respect. So, they take into account the needs of the followers and the goals the followers want to reach. Ethical leaders respect followers’ wants and desires. Therefore, they will tty to align the followers’ needs with that ofthe goals and objectives of the organization. Ethical leaders try to understand the followers’ belies, alltudes and values, and respects them as worthy human beings. Ethical Leaders Serve Others ‘A numberof ethical theories emphasize @ concern for the interests of others (ethical altruism), The service principle cleaty is an example of altuism. Leaders who serve are alustc: they place their followers’ 1altruistic servige behavior can be observed in activities welfare foremost in their plans. In the workplace, such as mentoring, empowerment behaviors, team building, and citizenship behaviors. Ethical Leaders Are Just eit atop priority to treat al of lustice. They mak ieaders place issues of faimess at the center Ethical leaders are concemed about issues of faimess and j their subordinates in an equal manner. Justice demands that k of their decision making. As a rule, no one should receive special treatment or special et when his or her pariular situation demands i. Wen individuals are treated differently, the g diferent treatment must be clear and reasonable, and must be based on moral values. They use Principles of Distributive justice ‘An equal share or opportunity (Example: Geting an equal opportunity fo be promoted toa higher post or receive benefits) Treating people according to their contribution (hardworking person deserves to be treated better than cone would treat a poor employee). Having favourites would be ethically incorect. This would very important in the case of appraising the performance of employees. Ethical Leaders Are Honest ‘When we were children, gronnups often told us we must ‘never tell ale.” To be good meant we must be truthful For leaders the lesson is the same: To be a good leader, one must be honest. ‘The importance of being honest can be understood more clearly when we consider the opposite of honesty Dishonesty is form of lying, a way of misrepresenting really. Dishonesty may bring with it many objectionable outcomes; foremost among those outcomes is the dstust it creates. When leaders are not honest, others come to see them as undependable and unreliable. People lose faith in what leaders say ‘and stand for, and their respect for leaders is diminished. As a resut, the leader's impact is compromised because others no longer trust and believe in the leader. But being honest isnot just about felng the ruth thas to do with being open with others and representing realty as fully and completely as possible. This is not an easy task, however, because there are times when telling the complete truth can be destructive or counterproductive. The challenge for leaders is to strke a balance between being open and candid while monitoring yhat is eporopriate to disclose in a particular situation. Many times, there are organizational constraints that prevent leaders from disclosing ~ information to followers. It ig important for leaders to berauthenti, but itis also essential that they be sensitive to the attitudes and feelings of others, Honest leadership involves a wide set of behaviors. For leaders in organizations, being honest also means: ‘¢ "Do not promise what you can't deliver” © "Donot misrepresent cover up behind lies" © "Donotevade accountability”mthion Leaders BanitConitnity Ethical leaders help devel f responsibly has bosoee” {Community hin which they operate. So, n today’s word corporal social Trobetant issue, Many large companies conduct programs to support the enn Example John Keels~ support programs which hep university undergraduates acquire soft : _ © Social Responsibility (CSR) refers to operating a business in a manner that accounts for sides Tar eréonmental impact created bythe business. CSR means a commiment lo developing PoTcles thal ntegrte responsible practices iio dalybushess operafen, and fo reporing on progress made toward implementing these practices Habits of ethical leaders Ethical Leaders Have Strong Personal Character * Ethical Leaders Have a Passion to Do Right * Ethical Leaders Are Proactive * Ethical Leaders Consider Stakeholders’ Interests * Ethical Leaders Are Role Models forthe Organization's Values * Ethical Leaders Are Transparent and Actively Involved in Organizational Decision Making * Ethical Leaders Are Competent Managers Who Take a Holistic View of the Firm's Ethical Culture TABLE 14-1 Sugzested Criteria for Evaluating Ethical Leadership Criterion Eihicat Leadership Unetbicat Leatership Use of leader powerand Serves followers and *+ Satisfies personal needs influence the organization and career objectives Handling diverse interests Attempis to balance + Favors coalition partners. ofthe miltiplestakeholders and integrate them ‘who offer the mast benefits Developmentofa vision Devdlopsavision hased on * Attempts tossll a personal for the organization follower input about their vision as the only way for needs values and ideas the organization to sucazed Integity of leader behavior _* Actsin a way that is + Doss what is expedient to consistent with espoused attain persanalabjectives vals Risk taking in leader + Awilling w tke personal # Avoids necessary decisions decisions and actions risks und actions io aceom= or actions that involve plish mission orachicve personal rik to the leader the vision Communicationofrelevany + Mfakesacomplcte and * Usesdeception and information operations timely disclosure of distortion to bias folkowe information about events pereeplions about prodblems problems andactions and progress Response to criticism and + Encouragescritieal * Discourages and suppresses dlscent hy followers evaluation to find better any criticism or dissent solutions Development of follower _¢ Usescoaching, mentoring, * Deemphasizex development skillsandsselfconfidence and training to develop tokkeep followers weak and followers dependent on the leaderWhy do leaders not behave ethically? : Competition Pressure to perform from superiors Over emphasis on measuring performance quantitatively Experience of high levels of unmanaged stress (e.g., due to uncertainty, information, or rapid change) Economic dependence Opporturity Think they can get away with it Don't know the standards or expectations May perceive that leaders are not always ethical Individual values not aligned with organizational or community values Feel as though they are mistreated, na valued, or not respected by leaders ambiguity, poor Case study The pain killer, Tylenol was the most successful over-the-counter product in the United States with over ‘one hundred milion users. Tylenol was responsible for 19 percent of Johnson & Johnson's corporate profits during the frst 3 quarters of 1982. Tylenol accounted for 13 percent of Johnson & Johnson's year-to-year sales growth and 33 percent ofthe company’s year-to-year profit growth. Tylenol was the absolute leader in the painkiller eld accounting fora 37 percent marketshare In 1982, for reasons not known, some bad people replaced Tylenol Extra-Strength capsules with cyanide laced capsules, resealed the packages, and deposited them.on the shelves of at least a half-dozen or 50 Pharmacies, and food stores in the Chicago area. The poison capsules were purchased, and seven unsuspecting people died a honble death : Itis not known what containers contain cyanide-mixed capsules what containers don't have cyanide. If the ‘company slops seing Tylenol it wil lose money ina big way. Discussion question ‘Assume that you are the Chief executive Offcer of Johnson & Johnsgn. What would you do, considering the concept of ethical leadership?