Discussion

Background

The study of ethics is about an individual's ability to act on their moral beliefs of "right and wrong." Therefore ethics play a large role in human relationships or relationships between individuals. Leadership is a particular type of human relationship. Some hallmarks of leadership and human relationships are power, influence, vision, obligation and responsibility. By understanding the ethics of these relationships, we gain a better understanding of leadership; mainly because some of the central issues in ethics are also central issues in leadership.

Leaders are often responsible for setting and enforcing a company's ethical standard. As week 1 discussed, dilemmas can arise with making ethical decisions as our decisions are not always black and white.

The text includes many good examples of how, on the positive side, great leaders have established good ethical cultures in their organizations and, on the other side, affected a decline in the cultural health of the organization.

Let's take a look at a real-life example of a leader who helped maintain a positive ethical culture within their organization. Gregg Steinhafel became the CEO of Target in 2008, a year many would argue the American economy took a turn for the worse. However, despite sinking sales figures, Steinhafel chose to continue the retailer's practice of donating 5% of the company’s earnings to charity-even in a difficult economy. He also had the opportunity to demonstrate his ethical standing thanks to an in-house dispute over a controversial donation to an anti-gay politician. Steinhafel protected the shareholders by winning the in-house dispute over the controversial donation, but in the end still shook hands with the person filing the in-house complaint. And to prove Target's commitment to gay rights, he also approved an increase in donations to gay rights groups to more than half a million dollars in 2011 (MBA, 2016).

While not all leaders will employ the same ethical standards Steinhafel did from 2008-2011, you can see how the old adage "do as I say, and not as I do" does not always apply.

Nick Eply on Mindwise (Video: 11:41)

https://www.youtube.com/watch?v=8Wf6ynbKkIM

In a radio interview, Nick Eply talks about understanding the human mind, particularly the minds of others, which is no doubt vital in leading others.

Adam Grant: Fostering Ethical Conduct (Video: 1:01)

https://www.youtube.com/watch?v=j9oALjYLtO4

Adam Grant discusses one way leaders can foster ethical conduct.

Three Ways of Cultivating a More Ethical Climate in Organizations (Video: 1:35)

https://www.youtube.com/watch?v=Ml91mQkEw7o

Barry Schwartz gives his advice on how leaders can better cultivate an ethical climate in their organization.

Simon Sinek: Why Leaders Eat Last (Video: 49:50)

https://www.youtube.com/watch?v=ReRcHdeUG9Y

Simon Sinek discusses how leaders can harness human biology to benefit their organizations and themselves. Consider how the topics discussed could be applied to developing an ethical organization.

Ethical Breakdowns-website

https://hbr.org/2011/04/ethical-breakdowns

Document regarding how leadership helps foster an ethical culture

file:///C:/Users/Owner/Downloads/ETH233-Week%202%20Additional%20Resources%20(1).pdf

Prompt

In a posting of at least 150 words, with one IWG reference, (your text is fine) choose a real example of both a good leader that has established a healthy ethical culture in his or her organization and a bad leader that has created an unhealthy cultural environment in his or her organization. Using terminology from our text, describe how each culture has been created. Finally, discuss ways in which bad leadership can be systematically prevented.

Be sure to complete each of the following steps:

1. Identify and describe a real-life example of a leader who has established a good ethical culture and provide an argument for why their organization has a good ethical culture.

2. Identify and describe a real-life example of a leader who has ruined the ethical culture of an organization and provide an argument for why that leader is responsible for their company's ethical decline.

3. Provide an example of how a Formal Cultural System” is used to prevent the damaging effects of bad leadership.

Reply Requirements

Per the Due Dates and Participation Requirements for this course, you must submit 1 main post of 150+ words, 1 IWG citation, and reference.