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Week2LectureSlides.pptxWeek 2: Responsible Leadership
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What is bad leadership, how does it happen, why does it matter? Think of some examples from your own experience.
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ANZ - alleged manipulation of the Australian benchmark interest rates
AMP/ CBA - had a deliberate policy of charging customers fees for services they never received.; charging fees to dead people!
Fuji Xerox in NZ – accounting fraud
Bristol Meyer Squibb – accounting fraud
Siemens – Bribery scandal with Greek Government
Volkswagen - fraud in diesel motors pollution measurements
Toshiba - Overstated profits in 2016/16
7-11 underpaying wages, entitlements in 2016
Facebook – recent privacy issues with Cambridge analytic
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What is Responsible Leadership (RL)?
The limited economic view:
Business has no responsibility beyond that of making profit for its shareholders (Friedman, 1970)
A business leader thus acts responsibly if he or she strives for maximum long-term value to owners through ethical means
The extended stakeholder view:
The needs of all constituencies should be balanced in the decision-making and actions of people in positions of organizational leadership
“Avoid harm” behaviour (proscriptive morality) and “Do good” behavior (prescriptive morality)
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RL & IL Behaviour (Stahl & De Luc, 2014, p 238)
1. Two types, or dimensions, of responsible leader behavior. “Avoid harm” behavior (proscriptive morality) includes decisions and actions taken by managers to avoid harmful consequences for stakeholders and the larger society, such as ensuring product safety, avoiding discrimination in hiring practices, limiting corruption, and avoiding environmental pollution. “Do good” behavior (prescriptive morality) refers to activities aimed at enhancing societal welfare, such as engaging in philanthropy, broadening access to products, designing employee-friendly workplaces, and supporting community development. Table 1 illustrates the two dimensions of responsible leadership, providing examples of socially responsible and irresponsible behavior.
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Antecedents of RL (Stahl & De Luc, 2014, p 239)
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The Roles Model of RL (Maak & Pless, 2006, 107)
As Figure 1 shows, leaders are embedded in a network of stakeholder relations (direct reports, customers, suppliers, peers, family, community etc.). To foster collaboration and to mobilize and align these stakeholders (with different backgrounds, values and sometimes conflicting interests) with respect to a commonly shared vision, leaders need to exercise certain roles: being a steward and as such a custodian of values and resources; a good citizen and thus an active and caring member of communities; a servant to others; as well as a visionary by providing inspiration and perspective with respect to a desirable future. Having strong normative connotations, the roles in the inner circle are key to the self-image and self-understanding of a responsible leader and will thus be discussed in more detail.
Connected to these roles are the more ‘‘operational’’ ones of being the architect of inclusive systems, processes and a moral infrastructure; change agent and transforming leader; coach by supporting followers; and storyteller and meaning enabler, that is the creator and communicator of moral experience and enabler of shared systems of meaning. It should be emphasized again that all these roles are relational, that is, they concern specific responsibilities or activities vis-a`-vis relational processes in the construction of organizational realities.
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RL Roles (Level I)
Steward
A guardian of values, a stronghold to protect personal and professional integrity, and steering a business responsibly and respectfully
Kaitiakitanga - a custodian of social, moral and environmental values and resources
Key Question - “What am I passing on to the next (and future) generations?’’
Citizen
Concerned about civic health as much as business matters; RLs are committed to the common good and will engage in activities to further the wellbeing of society.
An explicit sense of professionalism; a duty of care for the human community at large.
Key Question – “How can I reconcile the idea of an efficiency driven organization with the idea of thriving communities and a good society?”
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RL Roles (Level I)
Visionary
Develop a vision of a desired future and ways and means to get there.
A RL vision would ideally build on an ethically sound notion of balanced values creation that leads to sustainable business; ensuring both economic success and the well-being of nature and society
Key Question - “What kind of world do I want to live in tomorrow?’’
Servant
RL is not about the grandiosity of a leader but about those he or she serves.
Serving others requires on the one hand attentiveness, humility and modesty; on the other hand, it requires a willingness and desire to support others and to care for their interests and needs.
Key Question – “How can I serve others?”
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RL Roles (Level II)
Coach
Supports relational processes and fosters collaborative interaction, open communication and constructive conflict solution, and ensures interactive processes are fair and inclusive
Be aware of and control own and others’ emotions; cope with cultural differences, show respectful behaviour, apply cross-cultural empathy and be able to give (and receive) feedback
Key Question - “What kind of ethical role model am I?”
Architect
Create/cultivate a work environment where diverse people find meaning, respect, recognized and included; where they have fun and feel mobilized and thus enabled to contribute to their highest potential, both in a business and a moral sense.
Make sure that management systems and processes support the effective and ethical achievement and monitoring of the triple-bottom-line and the realization of the shared vision
Key Question – “How can I build a culture of inclusivity?”
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RL Roles (Level II)
Storyteller & Meaning Enabler
Creators of shared systems of meaning, through sensemaking and dialogue; e.g. leading both internal and external stakeholders in sustainable partnerships to an integrative view of business success and the common good
Use stories to illustrate and transport core values, and trigger moral imagination.
Key Question - “What kind of stories am I telling?”
Change Agent
RLs initiate and/or support change towards a value-conscious and sustainable business in a stakeholder society.
RLs are responsible for mobilizing stakeholders, building/sustaining commitment among followers through ongoing sensemaking, reducing complexity and anxiety, and ultimately, keeping momentum in times when change causes insecurity and disorientation
Key Question – “What is the purpose of change?”
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Case Study: Merck River Blindness
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