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Week5ORG30002-WorkshopR-file.pdf

5/04/2020

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ORG30002 -Leadership Practice and Skills

Topic: Moral Leadership

Prepared by: Dr. Diana Rajendran

Ethics and Leadership

What are your views on the following?

▪ Ethics lies at the heart of leadership

▪ Leadership is a neutral concept that can involve objectives and strategies that are independent of ethical considerations

▪ Stakeholders in the same organisation are likely to have quite different objectives and notions of what is ethical

▪ Decisions are as simple as choosing between entirely ethical and entirely unethical alternatives

▪ Leaders are expected to set a moral example to others that becomes the model for an entire group or organisation

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Buddhist Ethics

▪ Buddhist ethics (based on the Four Noble Truths of the

Buddha)

- Key assumptions to understand the

Buddhist view:

o Annica (impermanence)

o Dukkha (suffering/difficulties)

o Anatta (no self)

o Karma (action and reaction)

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Ethics, Morals and Values

▪ Ethics

▪ The study of moral obligations

▪ The study of separating right from wrong

▪ Ethics are the standards of right and wrong that influence

behavior

▪ Morals

▪ An individual’s determination of what is right or wrong

▪ Influenced by a person’s values

▪ Values

▪ Connected to ethics because ethics become the vehicle

for converting ethics into action

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Moral Leadership

today

▪ The ethical climate in business

▪ Setting the ethical tone by leaders

▪ Acting like a moral leader

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Factors Contributing

to Ethical Differences

▪ Leader Moral Identity

▪ Level of Greed & Materialism

▪ Rationalization and Implied Permission

▪ Level of Moral Development

▪ Pre-conventional

▪ Conventional

▪ Post-conventional

▪ Sense of Entitlement

▪ Situational and contextual influences

▪ Person’s Character

▪ Motivated Blindness

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Robert Kegan - In over our heads: the mental demands of modern life (Harvard University Press, 1995)

▪ Is flexible – in thinking and communicating. Shows adaptability in problem solving and is an agile

learner. Able to understand and respond to dynamic and complex problems.

▪ Is self-aware and has digested their own experience. Understands their own values (and their own

weaknesses).

▪ Is socially aware and has a strong sense of social responsibility. Understands others’ values and how

they affect their behaviour and emotions in different situations, especially in conflicts and choices.

▪ Has a broad range of mental models for analyzing problems.

▪ Is an exceptionally good listener. Can hear between the words: what’s not being said; what important

point is being distorted by anger or distress? They can recognize when they don’t understand

something.

▪ Has an independent mind.

▪ Copes with disappointments and makes tough decisions under pressure and in conditions of

uncertainty.

▪ Explains issues clearly; can persuade and support others by explaining how to follow a path of action.

Uses appropriate language, stories and examples.

▪ Can think systemically and strategically. Anticipates second order effects, feedback and impact of

history; looks into the future across multiple horizons; stands outside issues and is mindful.

▪ Has an ability to engage is inter-systems thinking. Has the ability to make systems of thought the

objective of their own thinking and is able to create new systems and approaches. Most ethical

paradoxes – like efficiency versus ethics – are set up by two different systems of reasoning colliding.

Ethical leadership requires the ability to see a new way of relating these systems.

Source: Wood(2009) Ethical Leadership Framework.

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Personal attributes of an ethical

leader

Ethical Leadership Behaviors

Ethics is at the center of leadership because the goal

of a rational leader is to merge the interests of all

parties so that everyone benefits and the

organization prospers

▪ Be Honest and Trustworthy and Have Integrity in

Dealing with Others

▪ Pay Attention to All Stakeholders

▪ Build Community

▪ Respect the Individual

▪ Accomplish Silent Victories

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Creating an Ethical

Organizational Culture

▪ Providing Strategic Leadership

▪ Creating a Pleasant Workforce

▪ Conducting an Environmental Audit

▪ Helping Build a Sustainable Environment

▪ Engaging in Philanthropy

▪ Working with Suppliers to Improve Working Conditions

▪ Establishing Written Codes of Ethical Conduct

▪ Developing Formal Mechanisms for Dealing with Ethical

Problems

▪ Accepting Whistleblowers

▪ Providing Training in Ethics and Social Responsibility

▪ Placing Company Interests over Personal Interests

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Fostering an Ethical Work Environment

▪ Some of the tools available include:

▪ Code of Ethics.

▪ Must be supported by the corporate culture.

▪ Ethics Committees.

▪ An ethics ombudsperson is a single person entrusted with the

responsibility of acting as the organization’s conscience.

▪ Training and Education.

▪ Aligns member behaviors with the organization’s values.

▪ Disclosure Mechanisms.

▪ Whistle blowing is employee disclosure of illegal or unethical

practices on the part of the organization.

Authentic Leadership

Personality profile of the authentic leader

▪ Holds themselves to a higher standard.

▪ Has an self-examining quality.

▪ Driven by a strong value system.

▪ Character provides a moral compass.

▪ Courage allows them to speak out to right wrongs, admit and own

up to mistakes.

How authentic leaders influence follower behavior and attitudes

▪ Emphasize transparency.

▪ Increase follower organizational citizenship.

▪ Increase job satisfaction and retention.

▪ Followers know what is expected.

▪ There are high levels of identification with the leader.

Individual and contextual

influences on Ethical Leadership

[source: Brown & Treviino:2006: 596]

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Authentic Leadership?

▪ Authentic leadership incorporates transformational leadership and

ethical leadership (Avolio et al. 2004)

▪ Authentic leaders demonstrate high consistency between values

and behaviours (Michie & Gooty 2005)

▪ Being true to yourself (George 2003)

▪ Authentic leaders have “a passion for their purpose, practice their

values consistently, and lead with their hearts as well as their heads

… establish long-term, meaningful relationships … have self-

discipline … get results” (George et al. 2007)

▪ Authentic leaders are self-aware and possess an awareness of

others … include the team virtues of ethics, trust and respect for

others (Lloyd-Walker & Walker 2011)

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Leading with Courage

▪ Courage is the mental and moral strength to engage in,

persevere through, and withstand danger, difficulty, or fear

▪ Courage is accepting responsibility and pushing beyond the comfort zone

▪ Courage often means nonconformity

▪ Courage means asking for what you want and saying what you think?

Finding Personal Courage to Exhibit Moral Leadership?

▪ Acting like a moral leader requires personal courage

▪ Believing in higher purpose

▪ Drawing on strength from others

▪ Harness frustration and anger

▪ Courageous leaders do not act recklessly

▪ Courageous leaders remind people of value driven leadership

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Spiritual leadership/Value based

leadership

o Values and spirituality are increasingly used in the

workplaces of today

o Spirituality focuses on how leaders and followers tap

into their basic values to transform organisations by

creating a vision based on deeply held values

related to making a difference, and implementing a

caring and altruistic culture that supports that

vision(Fry, 2003)

o For example, ‘Integrity’ is an important value – see

also Steven Covey’s Principle- centered leadership

(1991)

o Research evidences indicate that attention to moral

issues leads to moral behaviour (Reynolds, 2008),

and ethical leadership creates a trickle down effect

in organisations (Mayer et al, 2008, also see

Nahavandi, 2012)

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Case Study: Sugarloaf Reservoir, Yarra Valley

AU$750m

➢ Authentic leadership effective for:

▪ complex projects involving multiple stakeholders

▪ projects with an ethical impact

▪ on environmental sustainability

▪ on society

▪ https://v isitya rravalley.c om.a u/sugarloa f-reservoir-park

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Cynefin Framework

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Similarities with and differences between Ethical, Spiritual, Authentic and

Transformational theories of leadership (Brown & Traviino, 2006:598)

Similarities with Ethical Leadership Differences from Ethical Leadership

Authentic - Concern for others (Altruism) - Ethical decision-making - Integrity

- Role Modelling

- Ethical leaders emphasize moral management (more transactional) and “other” awareness

- Ethical Decision Making

- Authentic leaders emphasize authenticity and self- awareness

Spiritual - Concern for others (Altruism) - Integrity - Role Modelling

- Ethical leaders emphasize moral management - Spiritual leaders emphasize visioning, hope/faith; work

as vocation

Transformational - Concern for others (Altruism) - Ethical decision-making - Integrity

- Role Modelling

- Ethical leaders emphasize ethical standards, and moral management

- Transformational leaders emphasize vision, values, and

intellectual stimulation

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Challenges Confronting

Emerging Leaders

▪ What is the purpose of my leadership? Do I really want to devote my talents to

business?

▪ How can I find a job where I can make a real difference?

▪ Do I have to check my values at the office door?

▪ Is it possible to have a meaningful career and a successful family life? Is it worth it to

work so hard?

▪ How can I stay true to my values when there are so many pressures to compromise?

▪ How do I balance the conflicting needs of my customers and my employees with the

requirement to make the bottom-line numbers?

▪ Can I develop close relationships with my subordinates and still achieve my objectives?

▪ Do I have a responsibility to our society, for the environment, for global sustainability,

for gap between rich and poor? What can I do [intergenerational collaboration]?

[Source: Bennis W., 2003, Authentic Leadership: Rediscovering the Secrets to Creating

Value, p.6]

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Reflections:

Key principles of ethical/moral leadership include having honesty and

integrity, paying attention to all stakeholders, building community, and respecting every individual with respect, fairness and dignity

Do you believe everyone has the same capability to become a servant

leader; or are some leaders by their nature more inclined to be servant leaders than others?