SOLUTIONSPRO__DUE Saturday, November 1, 2014 @ 8pm est.

What's the benefit of studying this topic?

Since the 1990s there's been a ground swell on ethical thought, policy and actions which make economic interests more humane and attentive to sustaining our planet. This topic enables you to explore current ideas and expand your goals for ethical management.

Readings:

· Northouse Ch 16 examines ethics for leading. Attention to ethical management deepens understanding about the role for transformative leadership, a popular model in which actions are highly influential and therefore demand additional ethical consideration (The transformational model for leading is discussed in Northouse Ch 9--you may find it helpful to review).

· Sohlein, Ethics Assessment (see eReserve Reading link)

· Lecture 9 (below)

Review:

· Power Point provides additional insight about differences in morals and why ethical dilemmas/problems occur, as well as the ongoing balance needed between global and local perspectives for ethics. (Scroll down to locate power point).

· Select 1 or more video clips to add ideas. (See last section of this web page).

Module 9 Ethics for Leading a Diverse Work Group

Introduction: The Current Situation

During the past decade, whistle-blowing by US workers rose to approximately 700 official complaints per year–this was a 40% increase when compared to the 1990s. The statistic reflects awareness on the part of workers that their employers are believed to be involved in wrong-doing. While you may think this number is very low, understand that filing a complaint with the US Office of Special Counsel requires disclosure and professional risk.

At the same time, a 2008 Financial Times report of top business schools suggests there is a 5x increase on the part of graduate students to learn about business ethics.

In addition, initiatives continue to develop for framing and providing global corporate governance, such as the 2003 UN Norms for Transnational Corporations. The UN Global Compact, a forum with 6500 members, has a mission for fostering better understanding of multinational business and the world's people, who are both workers and consumers.

However, a bottom-line remains. Most leaders, if asked, will say they have "high or strong ethics" while media reports of leaders who seem to stumble over their ethics. There are compelling ethical dilemmas (a reflection of societal interests) in recent movies such as Wal-Mart: the High Cost of Low Price, or The Corporation, or Supersize Me, among others. With a current global system in which 2.8 billion people are living on less than $2 a day, there is urgency to understanding what's needed for more appropriate business ethics.

Key questions: As you consider your professional responsibility for being an ethical manager, which of these questions can you easily answer?

· What specific behaviors are required of you in being ethical as a leader?

· What situations often push or pull people into grey areas of ethics?

· How should people, especially you, interact when encountering an ambiguous or difficult decision?

· What do you do with the powerful cultural values surrounding accepted or normal business practices? This is often communicated with a shrug of shoulders and saying "It's just the way of doing business."

At-a-glance definition:

Ethics: The kinds of activities and communication (written and other) concerned with values and morals individuals and groups consider desirable, appropriate and virtuous.

The World Today: What Globalization Offers Business Ethics

Institutions and companies can no longer view their organizations as independent of other groups. Their work is a part of a highly interconnected, linked, tied and otherwise connected web of business, government, schools/universities and not for profit organizations (religious, political, and health care). Due to extended supply chains and locations of operations in many sites, not to mention partnership and alliance commitments, business units are often tenuously tied to their headquarters management. While environmentalists have been advocating systems thinking for decades, the business management community must understand the interconnectivity of business groups as sets of systems. With the understanding of system impact, taking the right action for the longer term gains leverage or influence. Ethics is "the right" thing to do, in part because societies and people are tracking industry activities now more than ever.

Since 1989, leadership researchers have recognized the growing value of being flexible or nimble on the part of organizational leaders as they take advantage of rapid change (Vaill 1989). And more recently, with a new awareness of risk and financial management, consideration will be at play for exactly what is the appropriate size and flexibility within business units. Adaptation must be appropriate and ethical frameworks offer additional resources in the context of financial strategy.

Technology and information sharing, particularly through mobile devices, especially smart phones, are creating a wider, more immediate and much more participatory context for equity, fairness and justice. People from developing countries now can readily see what they are missing. In this context, the need for trust and trustworthy relationships is essential for survival because there is a much wider range of citizens, customers and workers as stakeholders who will make judgments on what, from whom, and when to buy.

Another way to "see" the emerging, wider role for business ethics is to take a look at the work of a global network, Corporation 2020 (if you are interested, see the section at the end of this web page). This group seeks to focus on redesign, in which there are various integrations of disparate corporation streams for coherent, sustainable, global visions of both economic and social-benefit interests.

Corporation 2020's Principles for More Ethical Business in a Global Economic Setting:

The purpose of a corporation is to harness private interests to serve the public interests.

· Corporations shall accrue fair returns for shareholders, but not at the expense of the legitimate interests of other stakeholders (people–who are customers, consumers and clients).

· Corporations shall operate sustainably without compromising the ability of future generations (your children, your grandchildren).

· Corporations shall distribute their wealth equitably among those who contribute to its creation (this principle aids in constraining the desire of upper level management to award salaries and bonuses unfairly).

· Corporations shall govern themselves in a manner that is transparent, ethical and accountable.

· Corporations shall not infringe on people's right to govern themselves, nor infringe on universal human rights (Corporation 2020, 2012).

Key principles of ethical leadership: What a manager applies as he or she leads:

Northouse offers a list of these responsibilities:

· Ethical leaders respect others.

· Ethical leaders serve others.

· Ethical leaders are just.

· Ethical leaders are honest.

· Ethical leaders build community.

As you examine these principles take into consideration that ethics is not just about what you do as a person but how you respond from the position of your leadership status. This leadership status is not only for the CEO or top person in the organization, but includes you as a manager. The problem is that most people chose to believe that it is someone else's responsibility. To apply ethical reasoning means going beyond conventional stages of reasoning and to apply and communicate deeper levels of critical thinking (Torbert, 2004).

Tools and Critical Thinking Approaches for 21st Century Ethical Leading: Increase Participation and Use Holistic Methodologies:

There's no doubt, you and your colleagues face significant challenges for leadership and ethics. With the financial crisis of 2008-09, the media stories illustrated many of the issues–not enough monitoring, being extremely competitive, seizing profit-making strategies because they were possible. Future leaders will need to have character not necessarily common among today's CEOs. But exactly how do you problem solve around ethical dilemmas, particularly those which may also address diversity and multi-ethnicities?

· Using Commitment in More Thoughtful Ways

In the earlier module exploring change and its management, the topic of resistance was outlined. Robert Kegan, (2001-present) psychologist and researcher offers ideas about competing commitments, likely to be at play when you manage a multi-ethnic group of people. He recognizes that the job of every manager is to work with a common problem: What to do when a worker doesn't want to change? Instead of using power to direct or coerce, Kegan suggests that a manager turn resistance into discovery. Helping people overcome limitations to be successful aligns with performance goals. To lead through resistance, you begin with thoughtful conversations with the person(s) resisting the change, new plan, redesign, etc. People are asked to talk about what's important from their perspective and what they are currently committed to doing. Then, with immunity from coercion around the new plan, people are asked to talk about what's standing in the way of what they consider to be more important. This interaction creates a learning environment. The ideas shared can then be negotiated. The act of asking about other priorities/commitments diminishes coercion from positional power and it makes respect visible.

· Asking for Information Using an Appreciative Inquiry Approach

This is a tool for gathering information by paying attention to what is positive. The appreciative model was developed by David Cooperrider and others (2002). The method, for instance, asks people to consider situations, examples and anecdotes in which they perceived the setting and management to be innovative, affirming and hopeful. These anecdotes are collected carefully. They are reviewed then by those who must carry out new plans or changed initiatives. Through the review people identify core elements important to the upcoming change, and they incorporate the elements into what's needed for change. At each step of the Appreciative Inquiry process, there's attention to listening and being open. This commitment establishes a generative setting. Appreciative Inquiry suggest options for being ethical due to additional, valued information from many people is integrated into the plan for problem solving, planning and decision making. Ethical behavior derives from the views of many being activity engaged. Because Appreciative Inquiry supports deeper attention through rounds of observation and conversation, it can be especially insightful when working with less familiar expectations or values of multi-cultures.

· Setting Up Attention to Gathering Data from Informal Reflection and Discussion/Actions in Action Inquiry

Ethics and culture have common ground. In today's hyper-busy work, neither topic is discussed fully to make certain people who should be participating in a decision hold meaning about what is right, especially when considering what is culturally inclusive. The tool of Action Inquiry, developed by Bill Torbert, and colleagues (1992-present) emphasizes an environment in which interactions, including overlooked exchanges, can offer insight, highly useful to strategy. A distinguishing characteristic of Action Inquiry is an emphasis on self-reflection directly tied to action. Simple techniques, such as journaling or recording conversations immediately after a meeting, support a more systematic approach to asking yourself "What's important?" Then, you as a manager can tap your insights for future action as the inquiry adds deep reflection while the action (problem or plan) evolves. This attentive and inclusive method is especially useful to ethical ambiguities (grey areas) and uncertainties. The method forces you as a manager to pause and think. It is also a method which can accommodate a range of viewpoints to align differing cultural values.

· Adding Teamwork and Testing for Inclusion and Ethics Skill building, with a Collaborative Inquiry

First written about in the 1970s (Heron and Reason), collaborative inquiry can be especially useful when needing to include a diverse range of experiences, observations and cultural values, while also aspiring to be ethical. But much of the research on this approach is non-US-based. More recently interest increased in US academic and foundation sectors (Bray, 2000; Ford Foundation 2005). A Collaborative Inquiry begins with a small group of people discussing, and then constructing a compelling question which captures the more intrinsic motivations of the members. The focus on the question is important because it is the glue that keeps the group's members moving forward. Each person wants the answers! In order to have a fruitful dialogue, the group must be diverse or have a wide range of ideas, which helps people using the method to recognize a range of culturally-driven view points. The conversations which create the inquiry question build relationship for teamwork ahead. As the work progresses, a collaborative inquiry includes rounds of examining, or being a devil's advocate to test/assure truthfulness of strategies, plans and actions the team members has used to answer their compelling question. The rounds of devil's advocacy expand the team's skill for applying ethics in and for action.

Each of these methodologies encourages participation and offers motivation for a wider range of thinking for you as a manager. What would it take to adventure into one of the methods described? Can you imagine making a proposal to your company or nonprofit? What would motivate your boss to consider such a project? A common ingredient is participation that includes technical, emotional and social intelligence. Each of the methods is enriched when the groups are diverse. Because the methods generate lots of insights not often harvested, diversity of cultural values becomes much more accessible. Each method encourages being open and curious about ideas tested through practical experiences by people who want more relevant solutions.

Research Trends:

The recent surge of studies and published articles is noteworthy. More than 7000 articles, both peer-reviewed and popular sources, address issues of ethics, 2005-12. Within the field of peer-review more scholarly articles, the research can be categorized into 3 areas. These categories provide a basis for searching publications for ideas and information (Business Source Premier Data Base, 2012).

Business ethics includes cases, concepts of leadership/manager and more individualistic ethics, as well as legal and compliance topics

Corporate Social Responsibility addresses philanthropic actions, community responsibility and venture philanthropic investing/partnership strategies, as well as various associations of corporations, each promoting governing policies, principles and practices

Sustainable Business/Sustainability supports studies of local-global or multinational operations and their ethics, the role for ethical inclusion of developing economies, social entrepreneurship, and/or ecological or environmental ideas and ethical strategy integration.

Next Steps:

Review power point slide presentation (below) and assigned reading (course text books). Also view 1 or more video clip. Post your contribution to our current discussion.