Global Leadership
akashaseeja
MGMT5006GLWk6EthicsandLeadership.pptxMGMT5006 Global Leadership Week 6: Ethics & Leadership
Students can pick up a Unit Outline and a number card on the way into class
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Overview
Looking back to Week 5
What is ethical leadership?
What types of ethical dilemmas do global leaders encounter?
As global leaders, how can we react to ethical challenges?
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Looking back to Week 5 Global Mindset
Last week we considered:
“what is a global mindset?”
“why is it important to global leadership?”
“how do we develop this mindset?”
We recognised that a global mindset:
Is an orientation or a way of interacting with the world;
“a way of being, rather than a set of skills”
Involves seeing beyond the confines of your own culture;
Is critical to successful global leadership.
Questions for discussion (open)
Questions for discussion are:
1. What does the world in which I have to function as a leader look like?
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Linking to Week 6 Ethics & Leadership
This week, we consider the links between global leadership and ethics, asking:
What is ethical leadership?
What types of ethical dilemmas do global leaders encounter?
As global leaders, how can be best react to ethical challenges?
Week 6 Ethics & Leadership
Thinking about Ethics & Leadership - in the Global Business Context -
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What is ethical leadership?
Reactions to ethical challenges?
Global ethical challenges?
Ethics & Leadership
What is ethical leadership?
“Ethical leadership abides by core values and standards acceptable both
to the institution and society” (Wood et al, 2016)
Leadership that emphasises morals and ethical standards
In the context of organisational leadership, ethics is often linked to:
Corporate social responsibility (CSR)
Triple bottom line reporting (economic, social and environmental value)
The idea that organisations have a broader responsibility to the society in which they are a part of
Leaders are expected to take an active role as citizens in society and contribute beyond economic return
Ethics & Leadership
Leaders are expected to take an active role as
citizens in society and contribute beyond economic return
Organisational leaders are responsible for establishing
and maintaining the ethical values and culture of their organisation (Puffer & McCarthy 2008)
Leaders are also responsible for dealing with ethical dilemmas or ethical breaches within their organisations
Ethics & Leadership Across cultures
Our understanding of global leadership suggests that ethical leadership is recognized across cultures but it is contextual
What is considered ethical in a home country
is not necessarily considered ethical elsewhere,
and vice versa
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Ethics & Leadership Across cultures
Global Leadership attributes / competencies can indicate ethical leadership
These vary in degree of endorsement depending on context
Ethical leadership might be viewed similarly, but enacted differently depending on where you are from / where you are working
Four Leadership Attributes reflecting Ethical Leadership (GLOBE study; Resick et al 2006)
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character/integrity
altruism
collective motivation
encouragement
Ethics & Leadership The Global Context
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How are ethical leadership and global leadership linked?
Global leaders have broader responsibilities as global citizens
Global leaders encounter a wide range of social, political and environmental issues
Global leaders face more demanding and complex ethical challenges than domestic leaders
Ethical challenges of the global business context
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What are some features of the global context that impact ethics?
Wider-ranging diversity
A need for knowledge that spans functions and nations
Greater number of stakeholders to understand and consider
Boundary spanning across org and national boundaries
Increased ambiguity surrounding decisions and outcomes
Ethical dilemmas relating to globalisation
Ethical dilemmas
An ethical dilemma is:
A point of decision
Choice between competing sets of principles or standards
May be encountered in working relationships with:
Superiors / employees
Customers / suppliers
Competitors
Regulators
Global Leadership Ethical situations / decision points (Pedigo & Marshall 2001)
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Bribery / corruption
Breach of contract
Human rights issues
Diversity issues
Sustainability issues
Confidentiality
Cross-industry vs Industry-specific issues
Pricing
Misrepresentation
Environmental issues
Piracy
Influences on ethical situations (Muethel 2013)
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Individual
Personal ethical code
Organisational
Stakeholder influence
External
Stakeholder influence
Context
Local norms - if others are doing it...
Does the company value ethical behaviour?
Location - "out of sight, out of mind"
Code of conduct
Dealing with ethical situations (Pedigo & Marshall 2001)
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Ethical relativism
Right or wrong depends on the host culture
No culture’s beliefs or values are better than the other
Moral imperialism
Apply my own ethical values wherever I am in the world
Universalism
There are a global set of ethical standards that transcend boundaries
Relationship building
Establishing mutual trust, building relationships with overseas counterparts
Dealing with ethical situations (Muethel 2013)
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Dealing with an ethical breach -Ethical turnarounds -
What is an ethical turnaround?
For developed economies: a leadership process needed after loss of credibility or legitimacy in the eyes of stakeholders
Often associated with unethical and illegal behaviours of top management
For developing economies: leadership process when seeking legitimacy in the broader global business context
Moving beyond local norms to an accepted global standard
Often accompanied by other major changes in organisations: financial, strategic
Requires transformational leadership
Transformational Leadership & Ethical Turnarounds
Idealised Influence
Gaining trust
Establishing a culture of trust within the organization, between organisation and stakeholders
Inspirational Motivation
Establishing and communicating an organizational vision
Provide ethical direction for business transformation
Intellectual Stimulation
Expecting and supporting creativity and challenge to the status quo
Transformational leaders as role models, “living up to their words”
Includes the expected and required behavior in ethical terms
Allows recovery from damaged culture
Individualized Consideration
Support and development of organisational members aids in developing a positive corporate culture or rebuilding a damaged culture
Supporting employees during organizational changes or transition
What do you think?
Have you encountered an ethical dilemma in the business context?
How did you react?
What did your organisation do?
