Ethical Leadership

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 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 . Do I feel a sense of responsibility to the moral issue at hand? ____________.____________. Do I have knowledge of and experience with the issue at hand? ____________. Do I have a consistent set of guiding moral principles? ____________.

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” .

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 leadership? A _________that includes ____________ the task objectives and strategies of an organization.

and decision-making . and the promotion of such conduct to followers through twoway communication. reinforcement.What is ethical leadership? _________________________________________________ through personal actions and interpersonal relationships.

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 Don’t 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?” .

talkative. curious. stressed. amenable to new ideas) • Conscientiousness (thorough. assertive. altruistic. unstable. organized. warm. trusting.What types of people are ethical leaders? DEMOGRAPHICS • Age • Gender PERSONALITY • Agreeableness (kind. impulsive) . honest) • Extraversion (outgoing. hardworking) • Neuroticism (anxious. status-seeking) • Openness (imaginative.

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



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.James Burke – Former CEO of Johnson & Johnson • Known for personal integrity • Revised corporate credo • In 1982. pre-crisis market share was regained .


000. banging his hands on the desk. etc. belligerent. and disrespectful. being condescending. and agreed to never be officer or director of another company • Fraud traced back to the 1970s.Al Dunlap – former CEO at Sunbeam • Known for emotional abuse. • Demanded employees make numbers at all costs. throwing papers. Became physically violent when upset. throughout his career . and provided large bonuses as rewards • Fired in 1998 • Settled a civil suit with the SEC for $500.

conflicts of interest.000 employees at its peak • Encouraged followers to buy lifetime memberships at a hotel next to a USA Christian theme park • Sold over 66. lied to donors. The hotels were never completed • Spent eight years in prison • Encouraged ethical action • Engaged in deceptive financial practices. a religious broadcasting empire • 10 million homes and 2.000 memberships. etc . with room for only 25.000 • Spent the money on operating expenses.Jim Bakker – Praise the Lord (PTL) ministry.

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 .

among other infractions) • Described by Fortune magazine as “Tone Deaf” on ethical issues . Created a decentralized management structure • Accused of helping Enron hide debt. peddling worthless WorldCom debt. Japan operations shut down for transgressions (money laundering.Sandy Weill – former CEO of Citigroup • Said that the company is “too big to micromanage”.

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 .

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