Topic 9 Ethics & Values in Leadership

8/10/2019 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?

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Topic 9 Ethics & Values in Leadership