Practicing Leadership: Principles and Applications Chapter 2: Ethical Leadership.

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Presentation transcript:

Practicing Leadership: Principles and Applications Chapter 2: Ethical Leadership

“People do not need laws to tell them to act responsibly, while bad people will find a way around the laws.” ◦Plato

What management behaviors do you consider morally repugnant?

Executive Leaders Create Ethical Culture Ethical Culture: a number of formal (e.g., codes and rules) and informal (e.g., behavior norms) systems that work together to support ethical conduct in the organization.  Why be ethical?  Who cares?  Who do we need to protect?

Ethical Leadership Leaders must be moral people as well as “Moral Managers” Moral managers make ethics a priority by visibly modeling: ▫ethical conduct ▫communicating openly and regularly with employees about ethics and values ▫by using the reward system to hold everyone accountable to the standards

Three Forms of Leadership that Fall Short on Ethics: Ethically Neutral Leadership: occurs when there is a leadership vacuum when it comes to ethics. Persons in positions of power of influence neither promote nor actively work against ethical conduct. Hypocritical Leadership: when a person in a position of power talks about the importance of ethics, but then acts in an unethical manner. Unethical Leadership: weak moral persons and weak moral managers—not true “leaders”

A Guide for Ethical Decision Making The Rights Theory ▫The right to the truth about things that impact us. ▫The right to privacy. ▫The right to what has been contractually promised.

A Guide for Ethical Decision Making The Common Good Theory  The good of an individual is inseparable from the good of the larger society. The Fairness Theory  An ethical action treats everyone equally, without showing either favoritism or discrimination against anyone.

A Guide for Ethical Decision Making The Utilitarian Approach  All available alternatives should be evaluated and the choice should be the option that causes the greatest good (or the least harm) to the greatest number of people. The Virtue Ethics Approach  An action is ethical if it builds personal virtuous traits such as honesty, selflessness, and courage.

How to Look at Ethical Issues What it is. Why it is an ethical problem? What are the professional costs and possible penalties for ethical or legal transgressions?

Ethical Issues in Business Human Resources Issues ▫Discrimination ▫Sexual Harassment Customer Issues ▫Confidentiality ▫Product Safety ▫Special Fiduciary Responsibilities Use of Corporate Resources Conflicts of Interest