...ETHICAL DECISION MAKING AND ETHICAL LEADERSHIP To improve ethical decision making in business, one must first understand how individuals make ethical decisions in an organizational environment. Too often it is assumed that individuals in organizations make ethical decisions in the same way that they make ethical decisions at home, in their family, or in their personal lives. Within the context of an organizational work group, however, few individuals have the freedom to decide ethical issues independent of organizational pressures. ETHICAL – ISSUE INTENSITY The first step in ethical decision making is to recognize that an ethical issue requires an individual or work group to choose among several actions that various stakeholders inside or outside the firm will ultimately evaluate as right or wrong. Ethical issue intensity, then, can be defined as the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization. it is personal and temporal in character to accommodate values, beliefs, needs, perceptions, the special characteristics of the situation, and the personal pressure prevailing at a particular place and time. Ethical – issue intensity reflects the ethical sensitivity of the individual or work group that faces the ethical decision – making process. Research suggest that individuals are subject to six “spheres of influence” when confronted with ethical choices – the workplace, family, religion, legal system, community...
Words: 3754 - Pages: 16
...AN EXAMINATION OF LEADERSHIP TO DETERMINE A DIRECT CORRELATION BETWEEN LEADERSHIP STYLE AND ETHICAL DECISION MAKING Michael S. Huckaby BBA 4751 Business Ethics Professor Fernando Chavez Leadership is a complex and ever evolving skill-set. Good leaders not only guide behaviors of followers, but lead them and their organization to achieve common objectives. Good leaders have an ability to adapt to any setting so everyone feels empowered to contribute creatively to solving problems. Leaders of various levels of success have been studied throughout history, some good, some bad, but everlasting questions are always at the forefront of studying leadership: What is a good leader? What is the right approach to leadership or style of leadership? Do certain types of leaders produce better results? Are ethical leaders always the best leaders? If a single answer to these questions existed, perhaps society could build the mold of the perfect leader and distribute it throughout the world to solve the greater problems of society. However, this approach is unrealistic, so society is left to explore leadership in an effort to understand what makes a good leader. The primary purpose of this research paper is to critically examine whether a direct correlation exists between leadership style and ethical decision making. To answer this question, the author will examine each leadership style in terms of its definition, its multi-faceted dimensions or characteristics, and the associated...
Words: 3994 - Pages: 16
...Defining ethical leadership. Many scholars have tried to define ethical leadership, and although the definitions differ, researchers believe that ethical leaders shape the moral conduct of their employees (Monahan, 2012). Cumbo (2009) preferred to place emphasis on the leader and defined ethical leadership as making decisions based one's morals and living a virtuous life. Another scholar, Martinez-Saenz (2009), defined moral leadership using five constructs: altruism, egoism, legalism, autonomy, and communitarianism. No construct is proposed to have more value or weight over the other (Martinez-Saenz, 2009). An altruistic leader acts due to selfless motives while an egoistic leader does the right thing for selfish reasons (Martinez-Saenz,...
Words: 1264 - Pages: 6
...Ethical Leadership •What are the components of a comprehensive framework for ethical decision making in business? Ethical Issue Intensity Business Ethics Ethical or Individual Factors Evaluations and Unethical Organizational factors Intentions Behavior Opportunity Ethical-Issue Intensity The first step in ethical decision making is to recognize that an ethical issue requires an individual or work group to choose among several actions that various stakeholders inside or outside the firm will ultimately evaluate as right or wrong. The intensity of an ethical issue relates to its perceived importance to the decision maker. Ethical issue intensity, then, can be defined as the relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization. It is personal and temporal in character to accommodate values, beliefs, needs, perceptions, the special characteristics of the situation, and the personal pressures prevailing at a particular place and time. Senior employees and those with administrative authority contribute significantly to intensity because they typically dictate an organization’s stance on ethical issues. In fact, under current law, managers can be held liable for the unethical and illegal Moral intensity relates to a person’s perception...
Words: 1618 - Pages: 7
...business ethics and their relation to leadership, managerial decision making, corporate social responsibility and overall corporate structure. Increased corporate scandals and the discovery of a rise in unethical business practices have thrown the topic of business ethics into the spotlight. Organizations are expected by their stakeholders to implement strong ethics within their corporate structure and culture. This expectation could be accomplished through strong ethical leadership, formal structures and regulations that place emphasis on ethics, and by making a commitment to corporate social responsibility. Using these guidelines will help organizations overcome the various challenges allowing the business to build a strong ethical foundation that will ultimately benefit the company through increased customer and employee satisfaction, which could result in increased profits, organizational sustainability and social status. The review of the literature reveals that there is still plenty of room for exploration on the topic of business ethics and particularly with the topic of ethical leadership. It is recommended that more focus be placed on understanding the influence of strong ethical leadership within an organization and how this influence flows down the organizational structure. Once this flow of influence is understood, exploration is necessary to identify the best procedures for developing and sustaining strong influential leadership ethics within the organizational...
Words: 6417 - Pages: 26
...TABLE OF CONTENTS INTRODUCTION 2 ETHICAL LEADERSHIP 2 CORPORATE CULTURE 3 CULTURE LEARNING 4 CULTURE CHANGE 5 CONCLUSION 6 RECOMMENDATIONS 7 REFERENCES 9 APPENDIX 13 INTRODUCTION Ethical leaders should act ethically all the time, not just in situations where it is expected. Ciulla and Forsyth (as cited in Olivier, 2012, p. 70) suggests that “[t]he good leader, . . . is challenged to be both technically good, i.e. effective at getting the job-at-hand-done and morally good, i.e. responsible for what he or she has done.” Leadership and corporate culture dictate the acceptable ethical standards of an organisation to their followers. Where leaders are identified as “ethical role models”, followers are more likely to imitate this behaviour and conform to similar values and beliefs explicitly delineated by their leaders and organisations (Shin, 2012). However the major challenge encountered by organisational leaders is about gaining the trust and commitment of followers to conform to the ethical standards required to achieve strategic objectives of their organisation (Caldwell, Hayes & Long, 2010). In this report, we define ethical leadership by looking at business ethics and leadership simultaneously. We analyse ethical leadership in the context of culture learning and culture change in ensuring ethical behaviour and Corporate Social Responsibility in organisations. We conclude this report by summarising the findings identified...
Words: 3006 - Pages: 13
...instructed Stein, after several attempts to clear the clogging, to remove the filters altogether to ensure the batch completed before the end of the shift. Removal of the filters meant that the maggots that were contaminating the mix would be allowed to flow into the customer’s end product. There are several key management deficiencies that led to the dilemma faced by Stein and the night crew. First, Burnham’s decision making process and the lack of quality standards are indications that the company’s cultural climate is not focused on producing a quality dairy product. Second, the absence of a formal leadership structure allowed a young crew of unsupervised workers to waste company time and resources which resulted in a poor decision to meet the expectation of completing the production run before the end of the shift. Lastly, the organization’s minimal controls on production to limit waste of resources allowed the night shift to misallocate their production time in lieu of horseplay which resulted in a rush to finish the batch before the end of the shift. Ethical Behavior Kuntz et al. (2012) argue in their study that not only age, but other occupational...
Words: 2003 - Pages: 9
...Introduction of the relationship between leadership and ethics. First, leadership is a process that is not specifically a function of the person in charge. Leadership is a function of individual wills and individual needs, and the result of the dynamics of collective will organized to meet those various needs. Second, leadership is a process of adaption and of evolution; it is a process of dynamic exchange and the interchanges of value. Leadership is deviation from convention. Third, leadership is a process of energy, not structure. In this way, leadership is different from management-managers pursue stability, while leadership is all about change (Barker 2001, p.491). In organizational terms, as in life in general, ethics are beliefs about what is right or wrong, they provide a basis for judging the appropriateness of behavior and they guide people in their dealings with other individuals, groups and organizations, managers are witnessing to those right and wrongs. (Khar, Praveen & Aggarwal,2011; Hansen, 2011). As Wines (2008, p.484) commented: ‘At bedrock, those who profess ethics believe that human beings are autonomous moral actors capable of making meaningful choices’. 6Approaches to ethics tend to fall into one of two philosophical camps: the consequentialist (teleological) and the non-consequentialist (deontological) (Pettit2003; Harper et al, 1996). Consequentialists argue that ethical values are meaningless unless they are actively promoted. For consequentialists...
Words: 10596 - Pages: 43
...examine leadership behaviours especially Ethical Leadership as it impacts the third sector organizations’ performance. This chapter is comprised of reviewed literature regarding leadership, ethical leadership and the third sector organisations. Specifically, this chapter will be broken down into (a) Leadership (b) leadership behaviours (c) ethical leadership in the Third Sector (d) Organisation Performance (e) the impact of ethical Leadership in the third sector’s performance. 2.1 LEADERSHIP Leadership is one of the world’s oldest preoccupation. The understanding of leadership has figured strongly in the quest for knowledge (Bass 1990). Purposeful stories have been told through the generations about leaders’ competencies, ambitions, and shortcomings; leaders’ rights and privileges; and the leaders’ duties and obligations. A review of relevant literature has uncovered many different definitions of leadership. Leadership remains one of the most relevant aspects of organizational context (Nwokocha 2011). For more than five decades ago, the term leadership has been a researchable topic. Mostly, the research work focuses on issues of quality of leadership, ability of a leader, or leadership effectiveness, or leadership styles (Daft 2008, Bass 1990, Erez et al 2001 & Yukl 2006) Stogdill (1974, p. 259) stated that “ there are almost as many definitions of leadership as there are persons who have attempted to define the concept” and Yukl (2006) highlighted that leadership is a...
Words: 10651 - Pages: 43
...Technology is ever- evolving and constantly progressing. Understandably, managers have taken a progressive approach to managing by emphasizing on teamwork and cooperation. (Nickels, McHugh, & McHugh, Chapter 7, 2010). The innovation of Steve Job’s influential leadership has had a substantial impact on the fate of the organization and lives of followers of Apple Inc. At Apple Inc., business is slated to be conducted ethically, honestly and also claims to comply with all laws and regulations. There are many methods for evaluating and defining Steve Job’s style of ethical leadership in comparison to others. The Williams Institute Ethics Awareness Inventory Assessment defines one style of ethical leadership as Equity. Beliefs that there are no absolute standards of right and wrong are common with leaders that exhibit an Equity ethical leadership style. How does the management style used at Apple Inc. parallel with that of Equity? Apple has instituted policies not only for Apple employees but anyone doing business with Apple. There are codes of conduct for suppliers of products and conditions are written out for the price of doing business with Apple. “The code of conduct requires suppliers to provide safe and healthy working conditions, to use fair hiring practices, to treat their workers with dignity and respect, and to adhere to environmentally responsible practices in manufacturing. To that end, the code includes standards in areas of Labor and Human Rights, Health and...
Words: 1016 - Pages: 5
...Running Header: ETHICAL LEADERSHIP 1 Ethical Leadership Kendra D. Nord PHL 3354- Management Ethics The College of St. Scholastica May 6th, 2016 ETHICAL LEADERSHIP 2 Introduction Our society depends on the abilities of our leaders and how well they can do their jobs. To me, a leader is someone that many people look to for direction, guidance, and inspiration. It is important for our leaders to have the aptitude to make difficult decisions, to know and do what is right for the people. A higher authority is crucial for supervising and regulating others as well as being an example of a hard and dedicated worker. Ciulla (2004) believes ethics is the heart of leadership and a good leader is ethical and effective. In this paper I analyze the importance of personal ethics in leadership and how ethics produce effective leaders. The traits’ I believe an effective leader has is; character, competence, compassion, courage, and to be open to change. Throughout this paper the reader will develop an understanding of what is personally required to become an ethical and effective leader. Ethical Leader Traits Leadership is a relationship between people. Therefore, the ability to ethically influence others is a major determination of effective leadership (Waggoner, 2010). Strong Personal Character is possibly the most important characteristic of a leader. A person’s true character is who they...
Words: 1703 - Pages: 7
...Leadership, Ethics and Corporate Governance In order to identify the definition of a leader, one must first define an accurate representation of the meaning of leadership. There are many ways to define leadership. For example, Webster’s dictionary defines leadership as, “1. The office, position or function of a leader, and 2. The quality of character and personality giving a person’s ability to gain confidence of, and lead others,” While this definition presents an accurate meaning of the word leadership, it greatly lacks the detail in truly defining the meaning of leadership. “There are many ways to define leadership. In fact, there are almost as many different definitions of leadership as they are people have tried to define it" (Stogdill, 1974, p. 7). The definition of leadership has evolved over the years, for example in the early 1900s, leadership was defined as, “the ability to impress the will of the leader of those who lead and induce obedience, respect, loyalty, and cooperation” (Moore, 1927). Today, leadership scholars agree that there is not a single common definition for leadership (Rost, 1991). The process of leadership is the interaction conducted between the leader and the followers whereby the leader influences a group of followers to achieve a common goal. Leadership and management are not synonymous. In numerous ways, leadership is a process similar to management. Both leadership and management involve influence, working with people, and effective goal accomplishments...
Words: 2304 - Pages: 10
...Business Ethics in Leadership Corey C Calhoun Sr. Liberty University 05/03/2016 Business Ethics in Leadership Recent corporate scandals, such as Enron, Parlamat, and WorldCom, have generated significant attention in the field of business ethics. Whereas the interest in this subject pre-dates these scandals, they have undoubtedly raised the profile of ethical concerns in business among scholars, practitioners, and governments (Knights & O’Leary, 2006). Additionally, there is a growing concern on what role leadership plays in perpetuating ethical values in an organization. Consequently, scholars are concerned with discerning leadership qualities that would ensure moral and effective practices in a company. What is the relationship between leadership and ethics? One of the key questions (or in some cases assumptions) in the literature on leadership is regarding the nature of the relationship between leadership and ethics. The definition question in leadership studies is not really about the question ‘‘What is leadership?’’ It is about the question ‘‘What is good leadership?’’ By good, I mean morally good and effective. This is why I think it is fair to say that ethics lies at the heart of leadership studies. Leaders worthy of the name, whether they are university presidents or senators, corporation executives or newspaper editors, school superintendents or governors, contribute to the continuing definition and articulation of the most cherished...
Words: 2478 - Pages: 10
...Leadership, Ethics, and Scandal Leadership and ethics are two topics that are a part of the training for all military leaders, both officers and enlisted and across all branches of service. Leadership can be defined in any number of ways. Kouzes and Posner quote Genentech executive Alan Keith as saying “Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen” (Kouzes & Posner, 2007, p. 16). Keith’s idea of what defines leadership is one of the better definitions in print today. Ethics are defined as the moral principles that dictate a person’s or a group’s behavior. By using the ideas and writings of Terry Price (2008) and Craig Johnson (2012) a concept of what ethical leadership can be obtained. Ethical leadership is knowing what your core values are and having the courage to live them in all parts of your life in service of the common good; whether it is in private or in public (Price, 2008/ Johnson, 2012). Over the past few years the Army has seen its share of scandals involving a number of top leaders. A few of the more notable reports involved former four-star General William “Kip” Ward, one-star Brigadier General Jeffrey A. Sinclair, former Colonel James H. Johnson III, and former CIA Director and retired Army four-star General David H. Petraeus (Briggs, 2012, Nov. 15). Army four-star general William “Kip” Ward, the first officer to open the new Africa Command in 2008, came under scrutiny for allegations...
Words: 3485 - Pages: 14
...Organizational behavior is a non-performance related set of practices which when implemented in organizations lend good credibility to the organization for its ethics.(Campbell) Ethics involves moral issues and choices and deal with right and wrong behavior.(Luthans) Businesses need people who have strong moral leadership skills and who are guided by clearly defined business ethics. Ethical standards have an important role not only in business decisions but also in a person’s everyday life. If a person is making unethical decisions others tend to not want to follow that person and the level of respect and trust are diminished, which can lead to a shift in employee organizational behavior. Even though there is not a published set of ethics to follow the Institute of Management Accountants (IMA) has a code of ethical principles that include honesty, fairness, objectivity, and responsibility. The following responsibilities are standards in which all members should comply: Competence, Confidentiality, Integrity, Objectivity, and Resolution of Ethical Conflict. An effective leader should maintain a high level of confidence, integrity, and credibility by upholding his/her ethical responsibilities to the shareholders, customers, employees, and society. In order to be an effective leader one must foster positive relationships at all levels. One can achieve this by being honest and disclosing fully any and all information pertaining to the subject matter, and not being afraid to ask...
Words: 3798 - Pages: 16