chapter 11

Has a direct impact on the corporate culture of the firm -Communicate and monitor an organization's values, ensuring that employees are familiar with the company's purpose and beliefs -Provide cultural motivations for ethical behavior, such as reward systems for ethical conduct -Can lead to higher employee satisfaction and employee commitment -Creates strong relationships with external stakeholders -Positive association between ethical commitment of employees and a firm's valuation on the stock market

Benefits forEthical Leadership

- Competing conflict management style: Highly assertive, not very cooperative, believe in winning at any cost, and measure success by how much the other side loses -Avoiding conflict management style: Not effective because they avoid conflict at any cost even if it leads to misconduct, are uncooperative, and are non-assertive -Accommodating conflict management style: Highly cooperative, non-assertive, and give in to the other side even if it means sacrificing their own interests and values

Conflict Management Styles

Categorize conflict management into five styles: competing, avoiding, accommodating, collaborating, and compromising Based on two dimensions: -Assertiveness is acting in one's own best interests -Cooperativeness means working toward the best interests of the other person

Conflict Management Styles

Compromising conflict management style: In between the assertiveness and cooperativeness dimensions, believe best approach to resolving conflicts is for each side to give something up in order to gain something of value Collaborating conflict management style: Most advantageous, leaders are cooperative and assertive, and leaders collaborate with others to find a creative way to obtain a beneficial solution

Conflict Management Styles

In many situations the actions of co-workers profoundly impacts the ethical decisions of employees Many CEOs articulate the firm's core values but fail to exhibit ethical leadership A leader must have followers' respect and also provide a standard of conduct Defininga EthicalLeadershipFailure to demonstrate effective leadership qualities at the top creates the perception that managers either do not care about the company's ethics program or they feel they are above ethics and compliance requirements

Defining Ethical Leadership

Leadership is the ability or authority to guide and direct others toward a goal -Ethical leadership creates an ethical culture -Have the power to motivate others and enforce the organization's norms, policies, and viewpoints -Positive relationship with the organizational citizenship of employees and a negative relationship with deviance or misconduct

Defining Ethical Leadership

Employee empowerment is an essential component of a values-based organizational culture Encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts Ethical leadership training for both managers and employees is helpful Important in creating employee-centered ethical leadership

Ethical LeadersEmpower Employees

Nonverbal communication is communication expressed through actions, body language, expressions, or other forms of communication not written or oral Nonverbal cues are deemed more reliable that what he or she states verbally Listening involves paying attention to both verbal and nonverbal behavior Without listening, communication becomes ineffective Good listening skills tend to establish credibility and trustworthiness with employees

Ethical LeadershipCommunication Skills

Organizational communication is separated into four categories: Interpersonal communication is the most well-known form of communication and occurs when two or more people interact with one another Often difficult to communicate to a superior Ethical leader must work to reassure employees by balancing the interests of all relevant stakeholders

Ethical LeadershipCommunication Skills

Small group communication is growing in organizations Can increase collaboration and generate a variety of difficult perspectives and opinions on a particular issue Groupthink occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree Group polarization refers to the fact that a group is more likely to move toward a more extreme position than the group members might have done individually

Ethical LeadershipCommunication Skills

Compliance-based approach emphasizes obedience to rules and regulations and sets processes in place to ensure compliance Integrity-based approach views ethics as an opportunity to implement core values -Take responsibility for the firm's ethical culture and hold employees accountable for practicing ethical behaviors and core practices

Ethical Leadership and Organizational Culture

Unethical leaders are usually ego-centric and often do whatever it takes to achieve the organization's objectives and their own Apathetic leaders are not necessarily unethical, but they care little for ethics within the company -Does not listen to employees and does not communicate well Ethical leaders include ethics at every operational level and stage of the decision making process

Ethical Leadership and Organizational Culture

One of the most observable ways of communicating ethical values to employees is through codes of ethics and training in how to act in different situations -Codes of ethics provide important guidelines for employees on how to act in different situations Leader-follower communication connects followers with those in the company who are most familiar with the firm's ethical values

Ethics Programsand Communication

Most companies recognize the need for organizational leaders to provide feedback to employees Informal methods like simple conversation or through more formal systems such as employee performance evaluations Need for organizational leaders to get feedback from their employees Employee feedback can be generated in many different ways, including interviews, anonymous surveys, ethical audits and websites

Feedback

Leader-follower congruence occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company Leader-exchange theory claims that leaders form unique relationships with followers through social interactions Important for ethical leaders to frequently communicate and interact with employees

Leader-Follower Relationships in Communication

The most effective ethical leaders possess the ability to manage themselves and their relationships with others effectively, a skill known as emotional intelligence -Coercive leader -Authoritative leader -Affiliative leader -Democratic leader -Pacesetting leader -Coaching leader

Leadership Styles InfluenceEthical Decisions

Transactional leaders attempt to create employee satisfaction through negotiating, or "bartering," for desired behaviors or levels of performance Transformational leaders strive to raise employees' level of commitment and foster trust and motivation Authentic leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders

Leadership Styles InfluenceEthical Decisions

Ethical conflicts occur when there are two or more positions on an ethical decision Will not be brought to management's attention without effective mechanisms for transparent communication Employees themselves should be trained to handle conflict situations

Managing Ethical Conflict

Ethical leaders can mitigate power differences through frequent communication with workers Organizational politics is often perceived as trying to achieve one's own ends even if it means harming others in the organization -Gossip, manipulation, playing favorites, and taking credit for another's work There is a difference between having a high degree of office politics and having good political skills Political skills can be used to promote organizational goals and help rather than hinder other employees

Power Differences andWorkplace Politics

Ethical leadership skills develop through years of training, experience, and learning other best-practices of leadership Leadership qualities differ for each situation -Ethical leaders must model organizational values -Place what is best for the organization over their own interests -Train and develop employees throughout their careers -Establish reporting mechanisms -Understand employee values and perceptions -Recognize the limits of organizational rules and values

Requirements forEthical Leadership

Strong ethical leaders are those passionate about the organization and act in the organization's best interests Ethical leadership is highly unlikely without strong personal character Ethical leaders do not wait for ethical problems to arise Ethical leaders must model the organization's values

Requirements forEthical Leadership

1.Ethical leaders have strong personal character. 2.Ethical leaders have a passion to do right. 3.Ethical leaders are proactive. 4.Ethical leaders consider all stakeholders' interests. 5.Ethical leaders are role models for the organization's values. 6.Ethical leaders are transparent and actively involved in decision making. 7.Ethical leaders take a holistic view of the firm's ethical culture.

Seven Habits of Strong Ethical Leaders

When ethical misconduct or issues arise, the leader should have plans in place to answer stakeholder concerns and recover from misconduct The acronym RADAR is used to describe an ethical leader's duty to: -Recognize ethical issues -Avoid misconduct whenever possible -Detect ethical risk areas -Answer stakeholder concerns when an ethical issue comes to light -Recover from a misconduct disaster by improving upon weaknesses in the ethics program

The RADAR Model