Business 303 Sheppard

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Business 303 Sheppard

• Business Society Ethics, Week 3
• The Meaning of Good Corp. Leadership

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BUSINESS ETHICS WEEK 3 MAIN QUESTIONS

• What are some reasons to
  discuss leadership now?
• What impacts taking a moral act?
• What are the basic qualities of leadership.
• Are we to be lead by assuming people are evil
  (Machiavelli) whatre the implications?
• Do Ethical People want to be Leaders?
• What are the signs of failed leadership?
• Whatre some different styles of leadership?
• How does one build an ethical org. culture?

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1. Why Leadership Now?

• Recent events show how leaders can create a poor
  ethical climate to lead to poor decisions.
• Lets blow-up some Sarin Gas.
• B.Cs own Eron Mortgage Fraud.
• Tycos Misappropriations.
• The conspiracy at Enron.
• M.C.I. Fraud.
• Ethical conduct of a corp. its people is often
  only as good as its leaders ethical standards.
• There are a number of forces in organizational
  life that impact taking a moral action.

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2a. Taking a Moral Action

• Rest Components of Moral Action

Young Sheppard J. of Business
Ethics (2007)
Depends on more than just your stage of Moral
development
2b. Impacts on taking a Moral Act 1/4

• Individual Factors (Trevino, 1986)
• Field dependence (Analytic vs. Holistic)
• Locus of control (Internal vs. External)
• Ego strength (Impulse control)

X
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2b. Impacts on taking a Moral Act 2/4

• Jones Moral Intensity
• Magnitude of Consequences
• Social Consensus
• Probability of Effect
• Temporal Immediacy
• Concentration of Effect
• Proximity

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2b. Impacts on taking a Moral Act 2/4

• Organizational Factors
• Situational Variables (that leaders affect)
• Work characteristics
• Organizational culture
• Immediate job context
• Socialization Processes
• Group Dynamics
• Authority (Milgram, 1963)
• Zimbardos Stanford Prison Experiment

(Smith Carroll 84)
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3a. Basic Qualities of Leadership 531, 537

• Self-knowledge.
• Self-control.
• Confidence.
• Magellan 537 vs. Steve Jobs.

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3a. Basic Qualities of Leadership 531, 537
Two Goods

• Morally Good.
• Technically Good.
• Unethical or Stupid 536 (ethical stupid?).
• Buying slaves creating a slave market.
• When child labor becomes illegal.
• Starbucks at the Aquarium.
• Whatll things look like when Im done?

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3c. Ends Means 534
3b. The Ethics / Effectiveness Mix 535

• J J Ethics helps recover Tylenol.
• Bata Shoes environmental ethics.

• He may be an scoundrel but hes our scoundrel.
• That simply means hes an scoundrel.
• Make a deal with the devil, you get burnt.
• You may be the scoundrel.

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3d. Other Ethical Qualities of Leaders

• Charisma. 534
• Consistency. 534
• Effectiveness. 535
• Humility. 537
• Help me do this guys vs. Do it.

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4a. The Machiavellian Temptation 1/2
5a. Machiavelli

• The Role of the Leader, The Prince.
• Ends justify immoral means. 535
• Human beings are basically evil ?

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4a. The Machiavellian Temptation 2/2

• Safer to be feared than loved. 538
• Know how to use both man beast.539
• Love Fear / Push Pull / Carrot stick.
• Cruelty is sometimes necessary. 539
• Folks will forgive taking life before property
• Willingness to deceive (if it will work). 540
• Morality as a matter of image.
• Use of cruel force only as a last resort.
• Deceit as a tool to promote the common good.

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4b. The Machiavellian Firm

• Whats a Machiavellian firm look like?
• How would managers manage?
• Why do employees follow their leader?

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5. Do Ethical People want to be Leaders? 545

• The risk of being ruled by someone worse than
  oneself.
• To lead in order to benefit others, not oneself.
• People should be forced to lead, not seek the job.

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6a. Failed Leadership Signs

• Abuse of privileged access 542
• Abuse of control of resources 542
• Inflated belief in personal ability 543
• Loss of strategic focus 543
• Personal isolation 544
• Lack of intimacy 544
• Emptiness 544

6b. Failed Leadership Products
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6c. Failed Leadership Costs

• Personal gratification becomes more important.
  3, p. 544
• Harm of innocents. 5, p. 546
• Getting caught destroys image and various
  stakeholders. 7, p. 546
• Diversion of needed resources.

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6d. Failed Leadership Prevention 1/4
i. Kantian ethics 1/2

• Categorical imperative. 548
• Unconditional moral law that applies to all.
• 1. Universality
• If it is wrong for you to murder,
  it is wrong for me to murder
• 2. Humanity as an End
• Act in a way that you always treat all humanity,
  never simply as a means, but always at the same
  time as an end.

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6d. Failed Leadership Prevention 2/4
i. Kantian ethics 2/2

• Kingdom of ends principle. 548
• Act in a way that you, through your maxims, are a
  law-making member of a kingdom where all are
  treated not as a means, but always as an end.
• Egalitarian view of humanity. 547
• Respect autonomy of followers. 549
• The Peter Principle
• Empower others to take responsibility.550

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6d. Failed Leadership Prevention 3/4
ii. Kantian ethics of leadership

• Consider interests of all stakeholders equally.
  s 1-3, p. 549
• Avoid sacrificing stakeholders simply based on
  numbers. 549
• Govern by universal rules of justice 5, p. 549
• Seek unanimity if possible. 550
• The required (corporate) culture
• Quakers ? S ? F.A.L.
• Get People to solve their own issues via
  negotiation vs. imposing a solution.

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6d. Failed Leadership Prevention 4/4
iii. Boardroom ethics 546

• Concern for leaders psychological balance. 546
• Implement codes of conduct.
• Check on authority of the CEO good governance /
  oversight.
• Use of ombudspersons.

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7. Other Leadership Styles 1/2
a. Transforming Leadership

• Cause a metamorphosis in form or structure. 552
• Not necessarily Great Man theory.552
• Mobilizing people for participation in processes
  of change. 553
• Encouraging collective identity. 553
• Inspiring followers. 553
• Avoid over-reliance on charisma.553-4

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7. Other Leadership Styles 2/2
b. Servant Leadership

• To serve all, even the least privileged.
• Not leader-first. 555
• How democratic?
• What are the duties of the followers?

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8. Leadership in Strategy Ethics 1/3
Developing an ethical org. culture
Leaders must inspire a vision.
?
- Your daddy built that engine. (576)
Leaders need to entertain a mix of views (to
avoid groupthink).
?
Leaders need to employee a variety of control
devices.
?
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8. Leadership in Strategy Ethics 2/3
Developing an ethical org. culture
Establish transmit specific goals noting the
firms ethical standards.
?
Continuously revise disseminate a code of
conduct, based on inputs from stakeholders.
?
Disseminate a code of conduct to all stakeholders
to inform them of the firms ethical standard /
practices.
?
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8. Leadership in Strategy Ethics 3/3
Developing an ethical org. culture
Develop implement methods / procedures to use
in achieving the firms ethical standards.
?
?
Have explicit rewards to recognize acts of
courage (e.g., using proper procedures to report
wrongdoing).
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