MGT 340- Business Ethics, Chapter 11 Ethical Leadership

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Emotional Intelligence

Ability to manage oneself and one's relationships with others effectively

Transactional leader

Creates employee satisfaction through negotiation for desired behaviors or levels of performance

Benefits of Ethical Leadership

Directly impacts the corporate culture of the firm, Enhances ethical behavior patterns when employees are rewarded for their ethical conduct, Leads to employee satisfaction and commitment, Creates strong relationships with external stakeholders, Impacts the long-term market evaluation of the firm

Compliance-Based Approach

Emphasizes obedience to rules and regulations and sets processes in place to ensure compliance

Power Differences

People who feel intimidated by power differences often avoid communication with the leader.

Authentic leader

Practices corporate values daily and forms long-term relationships with stakeholders

RADAR Model

Recognize ethical issues Avoid misconduct whenever possible Discover ethical risk areas Answer stakeholder concerns when an ethical issue comes to light Recover from ethical misconduct by improving upon weaknesses in the ethics program

Transformational leader

Strives to raise employee commitment and fosters trust and motivation

Habits of Strong Ethical Leaders

Strong personal character, doing whats right, proactive, consider all SH, role models, transparent, holistic view

Integrity-Based Approach

Views ethics as an opportunity to implement core values and empowers employees

Leader-Follower Congruence

When leaders and followers share the same vision, ethical expectations, and objectives for the company

Assertiveness

acting in one's own best interest

Collaborating

both assertive and cooperative, seek win-win for all parties

Coaching

builds a positive climate

Coercive

demands obedience, focuses on achievement

Competing

highly assertive, not cooperative

Accommodating

highly cooperative, but non-assertive

Authoritative Authoritative

inspires employees to follow a vision, creates positive performance climate

Workplace Politics

involves gossip, manipulation, playing favorites, and taking credit for another's work.

Employee Empowerment

is essential to create a values-based organizational culture

Ethical Leadership

is the ability to create an ethical culture by motivating employees and enforcing an organization's policies and norms.

Compromising

neither assertive nor cooperative, give up something of value for something of value; the negotiator

Ethical Business Conflicts

occur when views diverge on an ethical issue or conflicts with organizational goals occur.

Democratic

relies on participation and teamwork

Pacesetting

sets extremely high, usually unreachable standards

Leadership and Communication

start conversation, listen more, be personable, comm bad ways, give feedback, be purposeful, ask for feedback, work on blindspots

Avoiding

uncooperative, non-assertive, leads to misconduct

Affiliative

values people and their emotions, relies on friendship and flexibility

Cooperativeness

working toward the best interests of another


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