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ch05.pptETHICAL LEADERSHIP AND CULTURE
BA 354
COLLEGE OF BUSINESS
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WHAT IS LEADERSHIP?
Take a moment to write down a definition of leadership.
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Leadership isn’t about titles
Influence as a result of what others think of you
Leadership
Influence as a result of your job title
“Because I am your boss, that’s why!”
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WHAT IS CULTURE?
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Organizational Culture
- The shared beliefs, values and assumptions that exist in an organization.
- Represents a true “way of life” for organizational members.
- Tends to be fairly stable over time.
- Involves matters internal or external to the organization.
- Impacts on both organizational performance and member satisfaction.
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What is ethical culture?
- Ethical culture is a slice of the overall organizational culture that deals with morals, values, and ethics.
- Some organizations have highly unethical cultures while others are highly ethical. Most organizations fall somewhere in between.
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The Culture at Apple
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What are the dangers of valuing secrecy?
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Microsoft vs. Netscape
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How is the Bill Gates portrayed in this video different than the way we perceive of Bill Gates today?
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How Organizational Cultures Form
Organizational Structure
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How Employees Learn Culture
Informal mechanisms
- Stories and myths
- Role models and heroes
- Rituals
- Material Symbols
- Language
Identify one of the above mechanisms that you have seen in an organization (university, business, church, etc.) that served as a way to teach the culture of the organization.
Organizational Structure
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How Employees Learn (Ethical) Culture
Formal mechanisms
- Selection-Interview questions, personality tests.
- Values and Mission Statements-do they live them?
- Policies and Codes-are they taught and followed?
- Orientation and Training Programs-Is ethics part of it?
- Performance Management Systems-Alignment is key
- Organizational Structure-bureaucracy, responsibility, reporting
- Decision making processes-numbers only, burden of proof
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ETHICAL LEADERSHIP:
THE GOOD, THE BAD, AND THE UGLY.
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THE GOOD…
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What do you think of what Aaron Feuerstein did?
What would you think of it if you were a shareholder of his company?
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THE BAD…
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How did this happen at BP?
Discuss evidence for the disconnect between BPs reputation and their actions prior to the spill.
Why did this disconnect exist?
What can organizations do to make their values an important part of the organization?
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Concluding thoughts on BP?
Tradeoff mentality: Ethics OR Financial Performance
-Numerous empirical studies have shown they have a POSITIVE relationship.
Long-term versus short-term thinking: Compromised safety in the future to save a few $ now.
-Updating of the safety devices would have cost $150k. Instead they are spending 10s of billions to clean up the mess.
Image above authenticity: Winning awards for “being green” was more important than actually doing it.
-In 2005 Greenpeace awarded the CEO Lord John Browne with ‘best impersonation of an environmentalist” award. He was asked to resign in 2007.
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THE UGLY…
“CHAINSAW” AL DUNLAP, FORMER CEO OF SUNBEAM
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In Conclusion……
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“Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without the first, you really want them to be dumb and lazy.”
-Warren Buffett
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Part 4 of your Personal Ethical Action Plan
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Give Voice to Value Part 4
- Write a self-story that allows you to align what you think is right with who you already think you are.
- Your self-story should be broad enough that it could be used in a variety of situations where your morality or ethics are challenged.
One of two forms:
- a description of a particularly vivid past experience that cemented within you a firm desire to follow your values or
- a description of the source of your values that helps explain why they are so important to you.
