Download - Topic 9 Ethics & Values in Leadership
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TOPIC9
Ethics & Values in
Leadership
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INTRODUCTORYCOMMENT
Leaders can use power (as we discussed in topic)
for good or ill, and the leaders personal values
may be one of the most important determinants of
how power is exercised or constrained.
The mere possession of power, of any kind, leads
inevitably to ethical questionsabout how that
power should and should not be used.
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INTRODUCTORYCOMMENT(CONT)
The challenge of leadership becomes complex
when we consider how individuals of different
backgrounds, cultures, and nationalitiesmay
hold quite different valuesyet be thrown into
increasingly closer interaction.
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LEADERSHIPANDDOINGTHERIGHT
THINGS (BENNIS)
Leaders face dilemmas that require
choices between competingsets of
values and priorities (i.e.,satisfying
multiple stakeholders).
Leaders set a moral exampleto
others that becomes the model foran entire group or organization, for
good or bad.
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LEADERSHIPANDDOINGTHERIGHT
THINGS
Leaders should internalize a strong
set of ethics, principles of right
conduct, or a system of moral
values.
Good leaders tend to align the
valuesof their followers with thoseof the organization or movement.
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ETHICSANDSTAKEHOLDERS
Stakeholders: people or groups thathave an interest in the organization. Stakeholders include employees, customers,
shareholders, suppliers and others.
Stakeholders often want different outcomesand leaders must work to satisfy as many aspossible.
Ethics: a set of beliefs about right andwrong. Ethics guide people in dealings with
stakeholders and others, to determineappropriate actions.
Leaders often must choose between theconflicting interest of stakeholders.
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ETHICS
Ethics
Rules and principles that define right and wrong conduct
Ethics are principles of right conduct or a system of
moral values
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ETHICS
It is difficult to know when a decision is
ethical. Here is a good test:
Leader Ethics: If a leader makes a decision
falling within usual standards, is willing topersonally communicate the decision to
stakeholders, believes friends would
approve ,believes it would be okay if it was
a lead story in tomorrows news----- then itis likely an ethical decision.
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ETHICALLEADERSHIP
General Conceptions of Ethical Leadership
Diverse Perspectives on Ethical Leadership Burns
Heifetz
Greenleaf
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ETHICALLEADERSHIP
Personal Integrity and Ethical Leadership
Dilemmas in Evaluating Ethical Leadership Influencing Expectations
Influencing Values and Beliefs
Multiple Stakeholders
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ETHICALORIGINS
Societal Ethics: standards that members of
society use when dealing with each other.
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ETHICALORIGINS
Professional Ethics:values and standards
used by groups of managers in the workplace.
Individual Ethics: values of an individualresulting from their family & upbringing.
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WHATDETERMINESETHICAL
BEHAVIOR?
According to research, the single most
important factor in fostering corporate
behavior of a high ethical standard is the
actions of the leader(s).Unethical business practice is most often
the result of several employees (possibly at
varying levels in the organization) tacitly (if
not explicitly) cooperating with others.
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LEADERBEHAVIOR
Actual leader behavior can be described (in thebroadest of terms ) as fitting into 3 ethical types:
Immoral
Amoral
Moral
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WHYBEHAVEETHICALLY?
Leaders should behave ethically to avoid
harming others.
Unethical leaders run the risk for loss ofreputation.
Unethical behavior might be exposed.
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WHISTLEBLOWER
A whistleblower is an employee who reports real or
perceived wrongdoing under the control of his or
her employer to those who may be able to take
appropriate action.
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ETHICALDECISIONS
A key ethical issue is how to disperseharm and benefits among stakeholders. If a firm is very profitable for two years, who
should receive the profits? Employees,
managers and stockholders all want a share. Should we keep the cash for future slowdowns?
What is the ethical decision?
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ETHICALDECISIONS
Should you withhold payment to suppliers as
long as possible to benefit your firm?
Should you pay maximum or minimum levels
of severance pay to laid off workers?
Should you buy goods from overseas firms
that hire children?
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WHATAREVALUES?Values are constructs representing
generalized behaviors or states ofaffairs that are considered by theindividual to be important.---(simplysaid, representations of our behavior
based on what we see as important).Values play a fairly central role in ones
overall psychological makeupandcan affect behaviorin a variety of
situations.
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WHATAREVALUES?
Individuals in the same work unit
can have considerably different
values.
We can only make inferences
about peoples values based on
their behavior.
How do values develop?
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THERELATIVEIMPORTANCEPEOPLEPLACEON
VALUES(ROKEACH)
Terminal Values Instrumental Values
An exciting life Being courageous
A sense of accomplishment Being helpful
Family security Being honest
Inner harmony Being imaginative
Social recognition Being logical
Friendship Being responsible
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SOMEINFLUENCESONTHEDEVELOPMENT
OFPERSONALVALUES
Personal
Value
System
Family
Media
Technology
Religion
Education
Peers
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FOURGENERATIONSOFWORKERS The pervasive influence of broad forces tend to create
common value systemsamong people growing up ata particular timethat distinguish them from people
who grow up at different times.
Each generation is molded by distinctive experiences
during their critical developmental periods:
The Veterans (pre 1943)
The Baby Boomers (1946-1964)
The Xers (1965-1980s)
The Nexters (1980+)
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GENERATIONALVALUESThe results of a scientific sampling of
over 1,000 people living in the U.S.found little evidence of a generationgap in basic values.
Values are the result of educationand experience.
Once established, it is relativelydifficult to changea leaders values.
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HOWVALUESIMPACTLEADERSHIP
Values are a primary determinant in what dataare
reviewed by leaders and how they defineproblems.
Values often influenceleaders perceptionsofindividual and organizational successes as well asthe manner in which these successes are
achieved. Values help leaders chooseright from wrong, and
between ethical and unethical behavior.
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HOWVALUESIMPACTLEADERSHIP Leaders tend to likefollowers with similar
valuesand dislikethose with dissimilarvalues.
It is important for leaders to surroundthemselves with followers who possessdivergent values.
Leaders are motivated to actin waysconsistentwith their values, and they typicallyspend most of their time engaged in activitiesthat are consistentwith their values.
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KOHLBERG
6 Stages of Moral Development
Organized into 3 Higher Order Levels:
Pre-conventional: values based on self-interest
Conventional: values based on gaining approval of
others
Post-conventional: values based on universal, abstract
principles
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DEVELOPMENTALLEVELSOFMORAL
REASONING
Preconventional - the level in which apersons criteria for moral behavior are basedprimarily on self-interest
Conventional - the level the criteria for moralbehavior are based primarily on gainingothers approval
Postconventional - the level in which the
criteria are based on universal, abstractprinciples that may even transcend the laws ofa particular society
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STAGESOFMORALREASONING
Preconventional Level
Stage 1: Bad behavior is that which is punished.
Stage 2: Good behavior is that which is concretely rewarded.
Conventional Level Stage 3: Good behavior is that which is approved by others;
bad behavior is that which is disapproved by others.
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STAGESOFMORALREASONINGCONTINUED
Conventional Level Stage 4: Good behavior conforms to standards set by
social institutions; transgressions lead to feelings of guilt or
dishonor.
Postconventional Stage 5: Good behavior conforms to community standards
set through democratic participation; concern with
maintaining self-respect and the respect of equals
Stage 6: Good behavior is a matter of individualconscience based on responsibly chosen commitments to
ethical principles.
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LEADERSHIPANDORG. VALUES Organizational valuesrepresent the principles
by which employees are to get work done and treatother employees, customers, and vendors.
The top leaderships collective valuesplay asignificant role in determining organizationalvalues and culture.
Research has shown that employeeswith valuessimilarto the orgare more satisfiedand likely tostay; those with dissimilar values are likely toleave.
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LEADERSHIPANDORG.VALUES It is vital for a leader to set a
personal exampleof values-based leadership to make sure
that clear values guide
everyones behavior in the
organization.Its important that
people know what you
stand for. Its equally
important that they
know what you wontstand for.
~Mary
Waldrop
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LEADERSHIPANDORG.VALUES
If there is indifference or
hypocrisy toward values at the
highest levels, then it is fairly
unlikely that principled
behavior will be considered
important by others throughout
the organization.
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PRINCIPLE-CENTERED
LEADERSHIP
( COVEY)The principle-centered approach
postulates a fundamentalinterdependence between the unique
roles of each level: Personal
Interpersonal
Managerial
Organizational
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EMPIRICALSTUDIESONVALUESANDTHE
ETHICALDIMENSIONSOFLEADERSHIP.
People with strong value systems tend to behave
more ethically, unless situations are highly
competitive and unsupervised or there is no formalethics policy governing behavior. Leaders with a
strong sense of values and moral reasoning will be
more effective.
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PERCEPTIONSOFUNETHICALBUSINESS
PRACTICESPercent of people expressing belief business would...
48%
38% 37%
62%
42%44%
Harm the
environment
Endanger
public health
Sell unsafe
products
Knowingly sell
inferior
products
Deliberately
charge inflated
prices
Risk employee
health and
safety
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HOWGOODPEOPLEJUSTIFYDOINGBAD
THINGS
Moral justification
Euphemistic labeling
Advantageous comparison
Displacement of responsibility
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HOWGOODPEOPLEJUSTIFYDOING
BAD
THINGS
,CONTINUED
Diffusion of responsibility
Disregard or distortion of consequences
DehumanizationAttribution of blame
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IMPLICATIONSFORLEADERSHIP
PRACTITIONERS
Leadership practitioners should
expect to face a variety of
challengesto their own system of
ethics, values, or attitudes during
their careers.
Interacting with individuals and
groups holding divergent and
conflicting values is inevitable.
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IMPLICATIONSFORLEADERSHIP
PRACTITIONERS
Leaders in particular have a
responsibility notto let their own
personal values interferewith
professional leader-subordinate
relationships.
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QUESTIONSFORTHOUGHT
What ethical principles do I value most? How well
have I done in upholding them? What can I do to
improve?
What ethics are explicitly valued in my
organization? How can I be more effective in
reinforcing them?
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QUESTIONSFORTHOUGHT(CONT.)
Have I experienced a situation at work whenI knew the right action to take but felt Ishould or could not take it because it wouldnot be accepted or valued?
When I come to work each day, do I feel Ihave to put aside ethics or values that areimportant to me in order to get along and besuccessful? If so, what are these ethics orvalues, and what makes you think you haveto put them aside?
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QUESTIONSFORTHOUGHT(CONT.)
How can I better support ethical behavior among
my colleagues, team members, and others in my
organization? Are there significant differences
between my own ethics and those of my
colleagues?