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©2007. Do not quote without permission. 512.471.4303.

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Presentation on theme: "©2007. Do not quote without permission. 512.471.4303."— Presentation transcript:

1 ©2007

2 Do not quote without permission

3 ©2007 Ethical Leadership ©2007 Howard T. Prince II, Ph. D. Director Center for Ethical Leadership Center for Ethical Leadership LBJ School of Public Affairs University of Texas at Austin

4 ©2007 The nature of leadership should be of interest to all thinking people. John Gardner John Gardner On Leadership On Leadership

5 ©2007 Ethical Leadership Leaders must be ethical in their own decisions and actions.Leaders must be ethical in their own decisions and actions. Leaders also have a responsibility to influence others to make ethically sound decisions and to behave ethically.Leaders also have a responsibility to influence others to make ethically sound decisions and to behave ethically.

6 ©2007 Ethical Leadership: What Matters Most to Followers? HONESTYHONESTY CompetenceCompetence Forward-Looking VisionForward-Looking Vision InspirationInspiration These four taken together equal CREDIBILITYThese four taken together equal CREDIBILITY

7 ©2007 What is leadership? Leadership is about values. Leadership is about things that matter to us, about taking action to achieve a shared goal.Leadership is about values. Leadership is about things that matter to us, about taking action to achieve a shared goal. Leadership is social influence based on consensual interdependence.Leadership is social influence based on consensual interdependence. If leadership is about leaders and followers acting together to achieve a common goal, then leaders must take the interests and rights of followers and others into account at all times.If leadership is about leaders and followers acting together to achieve a common goal, then leaders must take the interests and rights of followers and others into account at all times. (continued on next slide)(continued on next slide)

8 ©2007 What is leadership? Leadership is foremost a relationship between leaders and followers. The foundation of these relationships is TRUST.Leadership is foremost a relationship between leaders and followers. The foundation of these relationships is TRUST. Without followers there is no such thing as leadership.Without followers there is no such thing as leadership. Leadership is a form of SERVICE to others, a stewardship, a special trust, a duty, a social responsibility.Leadership is a form of SERVICE to others, a stewardship, a special trust, a duty, a social responsibility. Leadership and ethics must be unified.Leadership and ethics must be unified.

9 ©2007 Followers Leader(s) Situation LEADERSHIP How Do Leadership And Ethics Become One?

10 ©2007 ETHICALLEADERSHIP MORALITY Followers Leader(s) Situation ETHICS How Do Leadership And Ethics Become One?

11 ©2007 How Do Leadership And Ethics Become One? What is right and worthwhile? Goals and objectives, purpose and directionWhat is right and worthwhile? Goals and objectives, purpose and direction How should we reach our goals? The ends- means relationshipHow should we reach our goals? The ends- means relationship Leader-Follower Relationships: Trust, respect, dignity, reciprocityLeader-Follower Relationships: Trust, respect, dignity, reciprocity How does the leader get others to behave ethically? The ethical climate: the leader’s influence over the moral choices and actions of othersHow does the leader get others to behave ethically? The ethical climate: the leader’s influence over the moral choices and actions of others

12 ©2007 Leadership and Ethics: Ethical Examples Aaron Feuerstein, President/Owner, Malden Mills IndustriesAaron Feuerstein, President/Owner, Malden Mills Industries Alice Soliwoda, FedEx EmployeeAlice Soliwoda, FedEx Employee “Glory:” Payday“Glory:” Payday

13 ©2007 What do these three examples have in common? IntegrityIntegrity –Recognition of an ethical issue –Something at risk –Courage to act

14 ©2007 Ethical Leadership Failures The Texas TAAS, Austin (AISD) StyleThe Texas TAAS, Austin (AISD) Style The Sorry Side of SearsThe Sorry Side of Sears 152 West Point Cadets Dismissed In Cheating Scandal152 West Point Cadets Dismissed In Cheating Scandal U. S. Soldiers Abuse Detainees in IraqU. S. Soldiers Abuse Detainees in Iraq Enron, Worldcom, ImCloneEnron, Worldcom, ImClone Milosovic, Hitler, Idi Amin, Saddam Hussein, Pol Pot, James Jones, David KoreshMilosovic, Hitler, Idi Amin, Saddam Hussein, Pol Pot, James Jones, David Koresh

15 ©2007 WHY? The first answer is almost always “just a few rotten apples.”

16 ©2007 Why do people behave unethically? They are bad people.They are bad people. They have weak or bad character.They have weak or bad character.

17 ©2007 Rotten apples?

18 ©2007 Case One Corporate Kleptocrats And Evil Megalomaniacs

19 ©2007 Types of Leadership Failures Direct leader misconductDirect leader misconduct –Enron (“Encon”) –Worldcom (“Worldcon”) –ImClone (“Implode”) –Milosovic, Hitler, Idi Amin, Saddam Hussein, Pol Pot, James Jones, David Koresh

20 ©2007 Integrity Among Business Leaders (Business Week, Aug 26, 2002) One of eight executives is at high risk for integrity problems, according to executive search firm, Russell Reynolds (1400 in sample)One of eight executives is at high risk for integrity problems, according to executive search firm, Russell Reynolds (1400 in sample) They don’t believe the rules apply to themThey don’t believe the rules apply to them They show extreme lack of concern for othersThey show extreme lack of concern for others They rarely possess feelings of guiltThey rarely possess feelings of guilt There are enough narcissistic and sociopathic leaders in business to be of concernThere are enough narcissistic and sociopathic leaders in business to be of concern Validity? 60% of comparison group high on such traitsValidity? 60% of comparison group high on such traits Comparison group?Comparison group? Prison inmates!Prison inmates!

21 ©2007 Rotten apples? Or rotten barrel?

22 ©2007 What other factors might affect whether people behave unethically? CompetitionCompetition Pressure to perform from leaders or othersPressure to perform from leaders or others Over emphasis on measuring performance quantitativelyOver emphasis on measuring performance quantitatively Experience of high levels of unmanaged stress (e.g., due to uncertainty, ambiguity, poor information, or rapid change)Experience of high levels of unmanaged stress (e.g., due to uncertainty, ambiguity, poor information, or rapid change) Economic dependenceEconomic dependence OpportunityOpportunity Think they can get away with itThink they can get away with it Hard to detect violations or complianceHard to detect violations or compliance Don’t know the standards or expectationsDon’t know the standards or expectations May perceive that leaders are not always ethicalMay perceive that leaders are not always ethical Individual values not aligned with organizational or community valuesIndividual values not aligned with organizational or community values Feel as though they are mistreated, not valued, or not respected by leadersFeel as though they are mistreated, not valued, or not respected by leaders Something in the setting unleashes otherwise controllable impulses or negative traitsSomething in the setting unleashes otherwise controllable impulses or negative traits

23 ©2007 Case Two Weak or Unethical Climates

24 ©2007 Types of Leadership Failures Direct leader misconductDirect leader misconduct –Enron (“Encon”) –Worldcom (“Worldcon”) –ImClone (“Implode”) –Milosovic, Hitler, Idi Amin, Saddam Hussein, Pol Pot, James Jones, David Koresh Leaders allow to develop or create an environment that influences others to engage in misconductLeaders allow to develop or create an environment that influences others to engage in misconduct –The Texas TAAS, Austin (AISD) Style –The Sorry Side of Sears –152 West Point Cadets Dismissed In Cheating Scandal –U. S. Soldiers Abuse Detainees in Iraq

25 ©2007 How big is the problem? The Cheating Culture David Callahan

26 ©2007 Academic Ethics (Center for Academic Integrity, June 2005) On most college campuses, 70% of students admit to some cheating.On most college campuses, 70% of students admit to some cheating. Longitudinal comparisons show significant increases in serious test/examination cheating.Longitudinal comparisons show significant increases in serious test/examination cheating. Internet plagiarism is a growing concern on all campuses.Internet plagiarism is a growing concern on all campuses. Cheating is also a significant problem in high school: 60-70% admit cheating, 50% plagiarize using the Internet.Cheating is also a significant problem in high school: 60-70% admit cheating, 50% plagiarize using the Internet. Faculty are reluctant to take action against suspected cheaters.Faculty are reluctant to take action against suspected cheaters. Academic honor codes effectively reduce cheating.Academic honor codes effectively reduce cheating.

27 ©2007 Other Examples of the Cheating Culture PhysiciansPhysicians PsychologistsPsychologists Law FirmsLaw Firms SportsSports

28 ©2007 The Ethical Responsibilities of The Leader The distinguishing mark of leadership and executive responsibility is influencing the moral behavior of others. Chester Barnard Chester Barnard The Functions of the Executive, 1938 The Functions of the Executive, 1938

29 ©2007 George Orwell : Most people wish to be good, but not all of the time!

30 ©2007 How then can we lead others to behave more ethically?

31 ©2007 What other factors might affect whether people behave unethically? CompetitionCompetition Pressure to perform from leaders or othersPressure to perform from leaders or others Over emphasis on measuring performance quantitativelyOver emphasis on measuring performance quantitatively Experience of high levels of unmanaged stress (e.g., due to uncertainty, ambiguity, poor information, or rapid change)Experience of high levels of unmanaged stress (e.g., due to uncertainty, ambiguity, poor information, or rapid change) Economic dependenceEconomic dependence OpportunityOpportunity Think they can get away with itThink they can get away with it Hard to detect violations or complianceHard to detect violations or compliance Don’t know the standards or expectationsDon’t know the standards or expectations May perceive that leaders are not always ethicalMay perceive that leaders are not always ethical Individual values not aligned with organizational or community valuesIndividual values not aligned with organizational or community values Feel as though they are mistreated, not valued, or not respected by leadersFeel as though they are mistreated, not valued, or not respected by leaders Something in the setting unleashes otherwise controllable impulses or negative traitsSomething in the setting unleashes otherwise controllable impulses or negative traits

32 ©2007 The Ethical Climate: Influencing The Actions of Others The example of leadersThe example of leaders Gain support and commitment from everyone to shared values, influence moral development of othersGain support and commitment from everyone to shared values, influence moral development of others The quality of leader-follower relationshipsThe quality of leader-follower relationships Set expectations, clear guidelines, normsSet expectations, clear guidelines, norms Manage competition and stressManage competition and stress Reward ethical behaviorReward ethical behavior Punish unethical behaviorPunish unethical behavior Neutralize potentially harmful contextual forcesNeutralize potentially harmful contextual forces

33 ©2007 Paul O’Neill, Secretary of the Treasury, July 9, 2002 “Our system depends on the integrity of people who are given large responsibility and authority with an expectation that they can be trusted… At the end of the day we are very dependent on the integrity of the people that we give trust.”

34 ©2007 Ethical Leadership The urgent problems of our day…are here because of human failures, individual failures, one person at a time, one action at a time. Robert Greenleaf Servant Leadership

35 ©2007 The Challenge How then do we get people to serve as leaders who are able to figure out what is right and then have the courage and competence to act on behalf of all the stakeholders?

36 ©2007 One Answer To The Cheating Culture Debbie’s Story

37 ©2007 Ethical Leadership Always do right. This will gratify some people and astonish the rest! Mark Twain

38 ©2007 Thank you for your attention. Questions?


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