Leadership Chapter 6

A leader at the post-conventional level of moral behavior would be concerned with doing the most good for the most people, without regard for whether such behavior brought him or her recognition and fortune. Which of the following examples most likely represents a leader at the post-conventional level of moral behaviour?

A group leader who takes time from writing an important report to coach a group member who needs help at the moment

Dimensions of ethical leadership

-Fairness -Power Sharing -Role Clarification -People Orientation -Integrity -Ethical Guidance -Concern for Sustainability

Ethical leadership behaviors

1. Be honest and trustworthy and have integrity in dealing with others 2. Pay attention to all stakeholders 3. Build community 4. Respect the individual

Factors contributing to ethical differences

1. Leader moral identity 2. Level of greed, gluttony, & avarice 3. Rationalization and implied permission 4. Level of moral development: Pre-conventional; Conventional; Post-conventional; 5. Sense of entitlement 6. Situational influences 7. Person's character 8. Motivated blindness

Ethical behavior and organizational performance

1. high ethics and social responsibility are sometimes related to good financial performance 2. relationship between social responsibility and financial performance may be a virtuous circle 3. corporate social responsibility and corporate financial performance may feed and reinforce each other

Paul Shin Devine

Global Supply Manager at Apple Inc. Accused in 2010 by federal grand jury indictment of receiving more than $1 million in kickbacks from Apple supplier. Charged with wire fraud, money laundering, and unlawful monetary transactions.

Adrian, the owner of a food product export company, must rebuild the image of the company because of unethical practices by some senior employees. These activities resulted in huge layoffs and loss of customers for the company. The trust of shareholders also deteriorated. Which action should Adrian avoid if he wants to make his company ethically and socially responsible?

Impose penalties on whistle-blowers

Guidelines for evaluating the ethics of a decision

Is it right? Is it fair? Who gets hurt? Would you be comfortable if the details of your decision or actions were made public in the media or through email? What would you tell your child, sibling, or young relative to do? How does it smell?

Which statement is true of developing an ethical mind?

It begins with the belief that retaining an ethical compass is essential to the health of an organization.

Sadie hires a new manager. In a couple of weeks, she receives reports that the new manager often plays favorites and does not act in a trustworthy manner. However, since Sadie was the one to hire the new manager, she overlooks these flaws because acknowledging them would reflect that she made a hiring mistake. In this scenario, Sadie's behavior reflects which concept?

Motivated blindness

Francis, a customer service executive, always greets his customers courteously and tries to make them as comfortable as possible. Which ethical leadership behavior is Francis exhibiting?

Respect for an individual

Ethics

The study of moral obligations. The study of separating right from wrong.

Rationalization

The tendency to focus on the intent of the action rather than on the action itself

Motivated blindness

The tendency to see what one wants to see and miss contradictory information

The ethical mind of leaders

The view that helps individuals aspire to good work that matters to their colleagues, their companies, and their societies in general. • Behaving ethically • Establishing an ethical compass • Adhering to ethical values • Reflecting on ethical behavior through self-tests • Asking mentors to comment on ethical behavior • Acting quickly to confront unethical behavior of others

virtuous circle

corporate social performance and corporate financial performance feed and reinforce each other

Deon Anderson

former Boeing procurement officer. indicted by federal grand jury and accused of engaging in bribery and kickback scheme. Accused of leaking nonpublic information to bidders. Faced wire fraud.

Angelo R. Mozilo

former CEO of Countrywide. Played a major role in issuing mortgages to high risk customers, then sold securities based on the mortgages. Paid $67.5 million in penalties.

Bernard L. Maddoff

former CEO of Investment securities company and former chairman of Nasdaq. Convicted of defrauding investors out of about $17 billion

Post-conventional

people are guided by an internalized set of universal principles that may even transcend the laws of a particular society

Conventional level

people learn to conform to the expectations of good behavior as defined by colleagues, family, friends, and society

Creating an ethical organizational culture

1. Providing strategic leadership 2. Creating a pleasant workplace 3. conducting an environment audit 4. Helping build a sustainable environment 5. engaging in social entrepreneurship 6. engaging in Philanthropy 7. working with suppliers to improve working conditions 8. establishing written codes of ethical conduct 9. developing formal mechanisms for dealing with ethical problems 10. accepting whistleblowers 11. providing training in ethics and social responsibility 12. placing company interests over personal interests

Morals

An individual's determination of what is right or wrong. Influenced by a person's values.

Why is ethics at the center of leadership?

Because the goal of a rational leader is to merge the interests of all parties so that everyone benefits and the organization prospers.

Values

Connected to ethics because ethics become the vehicle for converting ethics into actions.

George, a senior manager in a company, appears to be fair and reasonable when deciding on salary increases and bonuses for his employees. He tries to create an impression of being a good leader who cares for his employees. Which level of moral development is shown by George in the given example?

Conventional level

Socially responsible actions

Creating a pleasant workplace, guarding the environment, engage in social entrepreneurship, engaging in philanthropy, and working with suppliers to improve working conditions

Preconventional level

A person is concerned primarily with receiving external rewards and avoiding punishment

Ethical mind

A point of view that helps the individual aspire to good work that matters to their colleagues, companies, and society in general