...Organizational Design & Business Ethics: A Literature Review Abstract A review of the current literature regarding business ethics was conducted analyzing scholarly peer-reviewed articles about 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...
Words: 6417 - Pages: 26
...organizational performance can be enhanced through ethical leadership. An ethical corporate culture has been associated with trust, commitment to quality, customer satisfaction, employee commitment, and financial performance. There is an opportunity for managers to take a proactive approach to incorporating ethical concerns into strategic planning. In addition, there has been public policy support for top management to be responsible for organizational ethics. Academic researchers can assist by investigating the relationship between ethical leadership and organizational performance variables. The Role of Ethical Leadership in Organizational Performance There is increasing support that it is good business for an organization to be ethical and that ethical cultures emerge from strong leadership. The rewards to organizations supporting ethical cultures include increased efficiency in daily operations and decision making, employee commitment, product quality improvements, customer loyalty, and improved financial performance (Ferrell, Maignan, and Loe 1999). Three different approaches are used by companies to implement ethics initiatives. Through compliance an organization can use internal controls to gain ethical conformity. Organizations may use ethics in public relations to enhance their reputation and gain extra media attention. A third, more committed approach involves using a value-based philosophy that incorporates the first two philosophies...
Words: 6120 - Pages: 25
...Ethical Leadership R. Edward Freeman Lisa Stewart Featuring a Thought Leader Commentary™ with Steve Odland, Chairman and CEO, Office Depot, Inc. © 2006, Business Roundtable Institute for Corporate Ethics www.corporate-ethics.org Distribution Policy: Bridge Papers™ may only be displayed or distributed in electronic or print format for non-commercial educational use on a royaltyfree basis. Any royalty-free use of Bridge Papers™ must use the complete document. No partial use or derivative works of Bridge Papers™ may be made without the prior written consent of the Business Roundtable Institute for Corporate Ethics. A PDF version of this document can be found on the Institute Web site at: http://www.corporate-ethics.org/pdf/ethical_leadership.pdf Bridge PaPers™ Uniting best thinking with leading business practice. ContEnts Foreword .................................................................................................... 2 What is ethical Leadership ...................................................................... 2 Becoming an ethical Leader ..................................................................... 8 developing ethical Leaders ...................................................................... 9 Thought Leader Commentary™ with steve Odland ............................. 10 about the authors ................................................................................... 13 ForEworD what Is EthICaL LEaDErshIp? The...
Words: 6276 - Pages: 26
...Ethical Leadership R. Edward Freeman Lisa Stewart Featuring a Thought Leader Commentary™ with Steve Odland, Chairman and CEO, Office Depot, Inc. © 2006, Business Roundtable Institute for Corporate Ethics www.corporate-ethics.org Distribution Policy: Bridge Papers™ may only be displayed or distributed in electronic or print format for non-commercial educational use on a royaltyfree basis. Any royalty-free use of Bridge Papers™ must use the complete document. No partial use or derivative works of Bridge Papers™ may be made without the prior written consent of the Business Roundtable Institute for Corporate Ethics. A PDF version of this document can be found on the Institute Web site at: http://www.corporate-ethics.org/pdf/ethical_leadership.pdf Bridge PaPers™ Uniting best thinking with leading business practice. ContEnts Foreword ....................................................................................................2 What is ethical Leadership ......................................................................2 Becoming an ethical Leader .....................................................................8 developing ethical Leaders ......................................................................9 Thought Leader Commentary™ with steve Odland .............................10 about the authors ...................................................................................13 ForEworD The Business Roundtable Institute for Corporate Ethics is an...
Words: 6355 - Pages: 26
...Abstract This paper discusses the importance of ethics in the business and the importance of developing ethical leaders. It can be said that in many companies, there are leaders who have not taken ethics seriously. However, it can also be said that many companies have excellent programs and procedures in place to create an open and trusting environment. Developing ethical leaders is key in the success of any company and the success of fellow employees. Many companies have created leadership programs that embrace the importance of ethics in the business environment also it can be said that everyone has good qualities that just need to be enhanced and brought out. These leadership programs are an excellent way to be able to define ethical leaders. Developing Ethical Leaders In developing ethical leadership it is key to understand ethics. Many leaders believe that ethical leadership is a matter of leaders having good character or having the right values. Ethical leadership is far more elaborate than just these few areas. Ethical leadership doesn't only take into account the leader, but also the stakeholders at hand. (Freeman, 2007) Embrace Values of the Organization Ethical leaders embrace the purpose and values that a company has set forth. Far too often leaders speak what is right but fail to do what is right. Ethics is doing the right thing when no one is watching. It's making sure that the company values are being maintained at all times and never been compromised. When times...
Words: 1261 - Pages: 6
...A Review of the Literature Concerning Ethical Leadership in Organizations Kelly Monahan Regent University The following article explores the literature regarding the topic of ethical leadership. Thirty-eight articles were identified that are written by authors who focused on four main topics. These topics are the definition of ethical leadership, the personal integrity and morality of a leader, how a leader ethically influences followers, and current challenges facing ethical leaders. These four topics are explored in further detail within the literature review. Overall, it is found that ethical leadership is complex and a relatively newer field of study. Yet, common themes include the need for establishing trust and gaining ethical knowledge by way of study and application. Also, major organizational failures, such as Enron, have ignited an interest within the field. Possible further research is recommended at the end of this review. T his article examines the literature regarding the topic of ethical leadership within organizations. The literature review was conducted by utilizing databases such as scholar.google.com, the Library of Congress database, Academic Search Complete, EBSCOhost Discovery, and OmniFile Full-Text Mega. Additional resources were secured at Barnes and Nobles bookstore. A list of keywords used during the search is ethical leadership, ethics, morality, virtues, values, morals, and management. Thirty-eight articles were ultimately selected due to their...
Words: 4697 - Pages: 19
...The Importance of Ethics Moraima Carballo The Art Of Leadership Debra Hayes 02/09/2015 Abstract Ethics is the heart of leadership, as reflected in the title of the 1998 leadership classic by Joanne B. Ciulla. During this research you will find out several information about ethics in a world place leader most understands the concept of ethics.Ethics is not just a subject that is studied in the classroom; it is a fundamental factor in every business relationship. Ethics are standards by which one should act based on values. Values are core beliefs such as duty, honor, and integrity that motivate attitudes and actions. Ethical principles are values that relate to what is right and wrong and thus take precedence over non-ethical values when making ethical can be applied beyond the classroom and put them in the workplace. As a result this research will demonstrate how a leader would not be able to succeed in a workplace even in his or her personal life without knowing the concept of ethical and leadership and putting it as a ritual in a world place. The Importance of Ethics In todays day world ethics has become a difficult subject. There are many reasons why ethics in a workplace has been a common problem todays day. To begin with in the world of work ethics have to be interrelated with quality respect loyalty, and what is right and wrong. An understanding of ethics begins with an analysis of values, both individual and organizational. Effective managers...
Words: 779 - Pages: 4
...Leadership: Trustworthiness and Ethical Stewardship Northcentral University The problem to be investigated is the on-going debate of the ethical duties of leadership in business. The more focused questions and issues are: What is the ethical leader? What is the obligation of that leader? How does a leader create “buy-in” and trust within an organization? And Is a value-based system needed to create a successful business? James Carlopio described a leader in a recent article: ‘‘Today’s leaders must resist the powerful temptation of self-interest and must be motivated by broader values and principles ‘based on a morally established duty owed and a fiduciary obligation.” James Carlopio further explained that this ‘‘ethical stewardship’’ approach to leadership was essential if leaders expected to earn the trust of others (Carlopio, 2002, pp. 71–74). I strongly feel that leadership in any organization has a duty and are obligated to demonstrate the appropriate ethical stewardship in and outside of the business setting. Company stakeholders want to ensure that the organization is value-based. Stakeholders trust that every decision made is sound, ethical, and displays the company’s morals, values and mission. It is the duty of leadership to create an environment that cultivates all of the above. Lastly, leadership should be held accountable for unethical ventures and the message that it sends to its stakeholders...
Words: 1479 - Pages: 6
...11/26/03 5:38 PM Page 302 CHAPTER 13 Ethics and Leadership Effectiveness Joanne B. Ciulla T he moral triumphs and failures of leaders carry a greater weight and volume than those of nonleaders (Ciulla, 2003b). In leadership we see morality magnified, and that is why the study of ethics is fundamental to our understanding of leadership. The study of ethics is about human relationships. It is about what we should do and what we should be like as human beings, as members of a group or society, and in the different roles that we play in life. It is about right and wrong and good and evil. Leadership is a particular type of human relationship. Some hallmarks of this relationship are power and/or influence, vision, obligation, and responsibility. By understanding the ethics of this relationship, we gain a better understanding of leadership, because some of the central issues in ethics are also the central issues of leadership. They include the personal challenges of authenticity, self-interest, and self-discipline, and moral obligations related to justice, duty, competence, and the greatest good. Some of the most perceptive work on leadership and ethics comes from old texts and is out there waiting to be rediscovered and reapplied. History is filled with wisdom and case studies on the morality of leaders and leadership. Ancient scholars from the East and West offer insights that enable us to understand leadership and Author’s Note: A special thanks goes...
Words: 13956 - Pages: 56
...11/26/03 5:38 PM Page 302 CHAPTER 13 Ethics and Leadership Effectiveness Joanne B. Ciulla T he moral triumphs and failures of leaders carry a greater weight and volume than those of nonleaders (Ciulla, 2003b). In leadership we see morality magnified, and that is why the study of ethics is fundamental to our understanding of leadership. The study of ethics is about human relationships. It is about what we should do and what we should be like as human beings, as members of a group or society, and in the different roles that we play in life. It is about right and wrong and good and evil. Leadership is a particular type of human relationship. Some hallmarks of this relationship are power and/or influence, vision, obligation, and responsibility. By understanding the ethics of this relationship, we gain a better understanding of leadership, because some of the central issues in ethics are also the central issues of leadership. They include the personal challenges of authenticity, self-interest, and self-discipline, and moral obligations related to justice, duty, competence, and the greatest good. Some of the most perceptive work on leadership and ethics comes from old texts and is out there waiting to be rediscovered and reapplied. History is filled with wisdom and case studies on the morality of leaders and leadership. Ancient scholars from the East and West offer insights that enable us to understand leadership and Author’s Note: A special thanks goes...
Words: 13956 - Pages: 56
...Ethics in Leadership Ethics, as defined by Richard daft, is “the code of principles and values that governs the behavior of a person or group with respect to what is right or wrong” (Daft, 2011, p.445). Ethics play the most important role in any business, and are the key to its success. Every company expects a standard pattern of behavior from their employees on some common grounds. In order to define ethics in leadership, we must first define leadership. Leadership is defined as “an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes” (Daft, 2011, p.5). A dynamic leader operates with a high sense of ethics, integrity, and possesses high moral standards. True leaders have an appreciation for learning, take risks, and understand the importance of change and when it is necessary. Leadership, in a sense, is never a finished product, but rather, it is an ongoing process that continuously needs refinement. Leaders are aware of what they value and recognize the importance of ethical behavior. “Leaders come in all shapes and sizes but all good leaders possess leadership style and actions that exhibit both their values and their ethics” (Daft, 2011, p.6). Since we have defined leadership as the “influence relationship among leaders and followers, ethical leadership is about leaders trying to influence people to act in an ethical manner” (Daft, 2011, p.5). Some believe that ethical leadership is only a...
Words: 496 - Pages: 2
...Values and Servant Leadership I have personally experienced a huge organizational change in the last couple of years. I believe that unethical behavior occurs at all organizational levels. In my organization, senior executives tend to have significantly more positive perceptions of ethics in the organization than do lower-level employees. I have witnessed everyday ethical lapses such as fudging a report, personal use of company equipment, stealing company funds or property, bullying, and lying about being sick. I believe that Servant leadership plays a significant role in changing organizational culture. Servant-leadership focuses on increased service to others rather than to oneself. Because the focus of servant-leadership is serving others over self-interest, servant-leaders are less likely to engage in self-serving behaviors that hurt others (Kreitner & Kinicki, 2013). Servant leadership has since 1970 described an entirely different approach to leadership than that derived from a mechanistic and bureaucratic view of organizations wherein workers are thought of as mere cogs in a machine (Hughes, Ginnett & Curphy, 2012). Ten characteristics of the Servant-leader are (a) listening, (b) empathy, (c) healing, (d) awareness, (e)persuasion, (f) conceptualization, (g) foresight, (h) stewardship, (i) commitment to other’s growth, (j) building community (Hughes, Ginnett & Curphy, 2012). The concept of a servant leader is not such a modern notion, but can be found in the biblical...
Words: 854 - Pages: 4
...A Discussion of Leadership and Ethics Grand Canyon University LDR 800 October 13, 2010 Leadership and Ethics 2 Abstract Recognizing the importance of ethical behavior in leadership requires leaders that understand its value. Leaders must have the ability to choose the ethical values that are most important to their organization. Generally speaking ethical behavior gains significance and becomes relevant when people must enforce the laws upon themselves because of the environmental or organizational setting of their workplace; consequently, in the everyday routine of those in an organizational setting, workers are exposed to many different situations and environments that require varying codes of ethics (Wyne, 2010). Leaders are expected to not only enforce those ethical codes of behavior but to live daily by those codes in an effort to gain the trust of those working with and for them. As a result, an organization that is strong in ethical standards is formed. Educational leadership is widely recognized as complex and challenging (Woods, 2009). Building teams that are motivated to exercise ethical behavior takes the fortitude and dedication of leaders whose leadership abilities expand merely talking about implementation of these standards but open the door to action in ethical and moral awareness. The intent and discussion in this paper involves a look into leadership and its connection with ethical models...
Words: 1388 - Pages: 6
...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
...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
