LeadershipLeadership

Chapter 14 – Leadership Ethics

The Smartest Guys in the Room (2004)McLean and Elkind The tale of Enron is a story of human

weakness, of hubris and greed and rampant self-delusion; of ambition run amok; of a grand experiment in the deregulated world; of a business model that didn’t’ work; and of smart people who believed their next gamble could cover up their last disaster—and who couldn’t admit they were wrong”.

Can we do better?Can we do better?We Applaud Athletic Perfection!

◦Seek to train/execute a skill to its highest level

We Pursue Academic Excellence!◦Engage in the rigorous pursuit of truth &

knowledge (“higher learning”).

Yet settle for Moral Mediocrity!◦Homogenize & diminish ethical virtue to a

broad road, where all paths lead to Rome.

What Underpins Our Ethics?What Underpins Our Ethics?

Physical Physical Physical

Meta Physical Meta Physical

Ethical World ViewsClosed Worldview System Open Worldview System

Atheistic Agnostic Theistic

Ethics, Religion and PhilosophyEthics, Religion and Philosophy

A Closed System1.Science Rules2.Human Determination is Authority3.Nothing from Outside Earthly Paradigm Matters

Implications for1.Source of Authority2.Decision Making 3.Moral Behavior

Atheistic View

Ethics, Religion and PhilosophyEthics, Religion and Philosophy

An Open System1.Allows for phenomena outside the physical world2.This influence partially or completely determined moral standards

Implications for1.Source of Authority2.Decision Making 3.Moral Behavior

Theistic View

Deistic Influence

Leadership Ethics DescriptionLeadership Ethics Description

Ethics ◦ Is a derivative of the Greek word ethos, meaning

customs, conduct, or character◦ Is concerned with the kinds of values and morals an

individual or society ascribes as desirable or appropriate

◦ Focuses on the virtuousness of individuals and their motives

Ethical Theory◦ Provides a system of rules or principles as a guide in

making decisions about what is right/wrong and good/bad in a specific situation

◦ Provides a basis for understanding what it means to be a morally decent human being

Definition & TheoryDefinition & Theory

Leadership Ethics DescriptionLeadership Ethics Description

Has to do with what leaders do and who leaders are

It is concerned with the nature of the leaders’ behavior and their virtuousness

In any decision-making situation, ethical issues are either implicitly or explicitly involved

What choices leaders make and how they respond in a particular circumstance are informed and directed by their ethics

Ethics & LeadershipEthics & Leadership

Ethical TheoriesEthical Theories

Two Broad Domains: Theories about leaders’ conduct and about leaders’ character

Ethical TheoriesEthical Theories

Teleological Theories: focus on consequences of leaders’ actions, results

Three different approaches to making decisions regarding moral conduct -

◦Ethical egoism (create greatest good for the leader) Closely related to transactional leadership theories Example: leader takes a political stand on an issue

for no other reason than to get re-elected

CONDUCTCONDUCT

Ethical TheoriesEthical Theories

Teleological Theories, cont’d. Three different approaches to making decisions regarding

moral conduct -

◦Utilitarianism (create greatest good for greatest number) Example: leader distributes scarce resources so as to

maximize benefit to everyone, while hurting the fewest; preventive healthcare vs. catastrophic illnesses

◦Altruism (show concern for best interests of others) Authentic transformational leadership is based on

altruistic principles◦Example: the work of Mother Theresa, who gave her entire

life to help the poor

CONDUCTCONDUCT

Ethical TheoriesEthical Theories

Deontological Theories: duty driven, for example, relates not only to consequences but also to whether action itself is good

◦Focuses on the actions of the leader and his/her moral obligation and responsibilities to do the right thing Example: telling the truth, keeping promises,

being fair

CONDUCTCONDUCT

Ethical TheoriesEthical Theories

Virtue-based Theories: about leader’s character ◦Focus on who people are as people

Rather than tell people what to do, tell people what to be

Help people become more virtuous through training and development

Virtues present within person’s disposition, and practice makes good values habitual◦Examples: courage, honesty, fairness, justice,

integrity, humility

CHARACTERCHARACTER

Centrality of Ethics to LeadershipCentrality of Ethics to Leadership

Influence dimension of leadership requires the leader to have an impact on the lives of followers

Power and control differences create enormous ethical responsibility for leader’s

Respect for persons – sensitive to followers’ own interests, and needs

Leaders help to establish and reinforce organizational values – an ethical climate

Principles of Ethical LeadershipPrinciples of Ethical Leadership

Ethics - is central to leadership because of:– The process of influence– The need to engage followers to accomplish mutual goals – The impact leaders have on establishing the organization’s values