Moral and Courageous Leadership

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Moral and Courageous Leadership
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Issues

• What is ethics?
• What is ethical leadership?
• What are some moral dilemmas we will face in the
  work world?
• How will we resolve these dilemmas?
• What leadership and organizational practices can
  help us in these matters?

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Ethical Challenges That Students Report

• Describe a situation in which you were faced with
  an ethical dilemma.
• What was your decision and behavior?
• Are you satisfied with the way you made this
  decision?
• See results from Providence MBA students (2004)

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Ethical Approaches

• Utilitarianism or Consequence-based ethics
• Proponents John Stuart Mill and Jeremy Bentham
• The greatest good for the greatest number of
  people
• The end justifies the means
• Moral consequences moral behavior
• Theory of duties/obligations/rights
• Proponent Immanuel Kant
• Acts should be based on upholding certain
  principles
• Preserving individual rights and human dignity is
  foremost
• Kants categorical imperative or the Golden
  Rule
• Act only on that maxim by which you can at the
  same time will that it should become a universal
  law

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Ethical Approaches

• Theory of justice or fairness
• Proponent John Rawls
• Act with fairness and equity towards everyone
• Equal basic liberties should accrue to all
• Inequalities that do exist should benefit the
  least advantaged members of society
• Due process or procedural justice
• Ethics of care
• Proponent Carol Gilligan
• Consideration is given to preserving caring
  relationships
• Specific relationships given more particularistic
  treatment (parents, friends, family, etc.)

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Ex. 6.4 Three Levels of Personal Moral Development
Most adults are here
Level 3 Post-conventional Follows internalized
universal principles of justice and right.
Balances concern for self with concern for others
and the common good. Acts in an independent and
ethical manner regardless of expectations of
others.
Level 2 Conventional Lives up to expectations
of others. Fulfills duties and obligations of
social system. Upholds laws.
Level 1 Pre-conventional Follows rules to
avoid punishment. Acts in own interest. Blind
obedience to authority for its own sake.
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What Typical Moral Dilemmas Do Managers Face?

• Failing to act when one observes unethical
  behavior
• Carrying out decisions/orders that you clearly
  believe are wrong
• Acting unethically because everyone else is
  doing it
• Falsifying data to meet deadlines, quality
  standards, avoid extra work, etc.
• Reducing safety and quality standards for
  products sold in other countries with less strict
  laws

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What Typical Moral Dilemmas Do Managers Face?

• Making phone calls, surfing the internet, playing
  computer games, doing personal business on
  company time
• Lying about being sick or late
• Stealing office supplies for personal use
• Padding expense accounts or stealing monetary
  resources from the company
• Harassment of other employees, including e-mail
• Failure to walk the talk or the say-do gap

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The Defining Moment

• What is the defining moment according to
  Badaracco?
• Who am I? (Issue of moral person)
• Who are we as a group? (Issue of moral
  leadership)
• Who is the company? (Issue of moral and
  responsible company)
• Resolving these issues often take soul searching,
  courage, and imagination

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Why Do Managers Bend the Rules?

• 111 executives were surveyed regarding reasons
  for breaking company rules
• Three common themes emerged
• 1. Performance-based judgment calls
• 2. Faulty rules
• 3. Abiding by socially-embedded norms

From Veiga, J.F., Golden, T.D., Dechant, K.
2004. Why managers bend company rules. Academy
of Management Executive, vol. 18, no.2, pp.
84-89.
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Five Business Ethics Myths

• Myth 1 Its easy to be ethical
• Myth 2 Unethical behavior in business in simply
  the result of bad apples.
• Myth 3 Ethics can be managed through formal
  ethics codes and programs
• Myth 4 Ethical leadership is mostly about
  leader integrity
• Myth 5 People are less ethical than they used
  to be

From Trevino, L.K. Brown, M.E. 2004.
Managing to be ethical Debunking five business
ethics myths. Academy of Management Executive,
vol. 18, no.2, pp. 69-81.
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Can We Promote Ethical Decision Making and
Behavior Among Managers?

• What obligation do business schools and MBA
  programs in particular have to promote ethical
  managerial behavior?
• What do you think of trying to assess students on
  honesty, integrity and ethics as an admission
  standard?
• What can companies do to promote ethical behavior?

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Student Ideas for Promoting Ethical Behavior

• Manager must set example of ethical behavior
  expected
• Give incentives, awards, bonuses, and other
  rewards for ethical behavior
• Provide punishments, reprimands, and terminations
  for unethical behavior
• Clearly let employees know about the consequences
  of engaging in unethical behavior

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Student Ideas for Promoting Ethical Behavior

• Have open discussion with employees about what is
  considered ethical behavior and expectations for
  appropriate behavior
• Communicate to employees regarding the importance
  of ethics in the workplace
• Provide verbal praise and recognition for
  engaging in ethical behavior
• Promote ethical employees

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Student Ideas for Promoting Ethical Behavior

• Have clear ethical standards and procedures
• Provide socialization, orientation, and training
  programs around ethical issues
• Provide employee handbooks specifying ethical and
  unethical behaviors
• Encourage open communications and feedback from
  employees on ethical issues that they see
  occurring in the workplace
• Provide a feedback mechanism for employees to
  report ethical violations they observe