1. Leadership Chapter 14 – Leadership Ethics

2. The Smartest Guys in the Room (2004) McLean and Elkind The tale of Enron is a story of human weakness, of hubris and greed and rampant self-delusion; of ambition run amok; of a grand experiment in the deregulated world; of a business model that didn’t’ work; and of smart people who believed their next gamble could cover up their last disaster—and who couldn’t admit they were wrong”.

3. Can we do better? We Applaud Athletic Perfection! ◦Seek to train/execute a skill to its highest level We Pursue Academic Excellence! ◦Engage in the rigorous pursuit of truth & knowledge (“higher learning”). Yet settle for Moral Mediocrity! ◦Homogenize & diminish ethical virtue to a broad road, where all paths lead to Rome.

4. What Underpins Our Ethics?

5. Physical Meta Physical Ethical World Views Closed Worldview SystemOpen Worldview System AtheisticAgnosticTheistic

6. Ethics, Religion and Philosophy A Closed System 1.Science Rules 2.Human Determination is Authority 3.Nothing from Outside Earthly Paradigm Matters Implications for 1.Source of Authority 2.Decision Making 3.Moral Behavior Atheistic View

7. Ethics, Religion and Philosophy An Open System 1.Allows for phenomena outside the physical world 2.This influence partially or completely determined moral standards Implications for 1.Source of Authority 2.Decision Making 3.Moral Behavior Theistic View Deistic Influence

8. Leadership Ethics Description Ethics ◦Is a derivative of the Greek word ethos, meaning customs, conduct, or character ◦Is concerned with the kinds of values and morals an individual or society ascribes as desirable or appropriate ◦Focuses on the virtuousness of individuals and their motives Ethical Theory ◦Provides a system of rules or principles as a guide in making decisions about what is right/wrong and good/bad in a specific situation ◦Provides a basis for understanding what it means to be a morally decent human being Definition & Theory

9. Leadership Ethics Description Has to do with what leaders do and who leaders are It is concerned with the nature of the leaders’ behavior and their virtuousness In any decision-making situation, ethical issues are either implicitly or explicitly involved What choices leaders make and how they respond in a particular circumstance are informed and directed by their ethics Ethics & Leadership

10. Ethical Theories Two Broad Domains: Theories about leaders’ conduct and about leaders’ character

11. Ethical Theories Teleological Theories: focus on consequences of leaders’ actions, results Three different approaches to making decisions regarding moral conduct - ◦Ethical egoism (create greatest good for the leader)  Closely related to transactional leadership theories  Example: leader takes a political stand on an issue for no other reason than to get re-elected CONDUCT

12. Ethical Theories Teleological Theories, cont’d. Three different approaches to making decisions regarding moral conduct - ◦Utilitarianism (create greatest good for greatest number)  Example: leader distributes scarce resources so as to maximize benefit to everyone, while hurting the fewest; preventive healthcare vs. catastrophic illnesses ◦Altruism (show concern for best interests of others)  Authentic transformational leadership is based on altruistic principles ◦ Example: the work of Mother Theresa, who gave her entire life to help the poor CONDUCT

13. Ethical Theories Deontological Theories: duty driven, for example, relates not only to consequences but also to whether action itself is good ◦Focuses on the actions of the leader and his/her moral obligation and responsibilities to do the right thing  Example: telling the truth, keeping promises, being fair CONDUCT

14. Ethical Theories Virtue-based Theories: about leader’s character ◦Focus on who people are as people  Rather than tell people what to do, tell people what to be  Help people become more virtuous through training and development  Virtues present within person’s disposition, and practice makes good values habitual ◦ Examples: courage, honesty, fairness, justice, integrity, humility CHARACTER

15. Centrality of Ethics to Leadership Influence dimension of leadership requires the leader to have an impact on the lives of followers Power and control differences create enormous ethical responsibility for leader’s Respect for persons – sensitive to followers’ own interests, and needs Leaders help to establish and reinforce organizational values – an ethical climate

16. Principles of Ethical Leadership  Ethics - is central to leadership because of: – The process of influence – The need to engage followers to accomplish mutual goals – The impact leaders have on establishing the organization’s values