Prof Scofied
Malotaibi
class_4_-_leadership.pptEstablishing an Effective Ethical System
The Role of the Ethical Leader
The Role of Organizational Culture
What you see
Adapted from Brian Bacon, 2004
What you don’t see
Beneath the Surface
Habits, attitudes,
traditions
Feelings
Fears
Values
Beliefs
Enron, Arthur Anderson, and their Canadian Cousins are just the “tip of the iceberg”
“Far more massive and dangerous is the legal corruption taking place below the surface – behaviour that, while technically allowable, corrupts our leadership, our organizations, our society and ourselves as human beings.”
Mintzberg et al., 2002
Beyond Selfishness
Leadership can move the currents, can move the culture.
Establishing an Effective Ethical System
The Role of the Ethical Leader
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What makes a
good leader?
What makes an ethical leader?
Think of a leader in your life…
What Makes a Good Leader?
“The wicked leader is he who the people despise. The good leader is he who the people revere. The great leader is he who the people say, “we did it ourselves.”
Lao Tsu
What makes a good leader?
“You do not lead by hitting someone over the head – that’s assault not leadership”.
Dwight Eisenhower
Types of Leadership
- Transactional Leadership – emphasis on contract, control
- Neo-charismatic/transformational leadership – shared leadership, servant leadership, others
Is there a dark side to strong values-based leadership?
What makes an ethical leader?
“Integrity is the most important quality of a leader in business. It is essential that all constituents – the public, employees and investors – be able to trust the leader of a company.”
James E. Burke
Former CEO & Chair, Johnson & Johnson
Role-modeling & Leadership
“Example is not the main thing in influencing others. It is the only thing.”
Albert Schweitzer,
missionary surgeon,
Nobel Peace Prize Laureate
How do leaders instil ethical values into an organizational culture?
Ethical Leadership
- Making ethical values visible
- Discussing stakeholder impact
- Rewarding and disciplining ethical/unethical behaviour
How a Manager Communicates Support of Ethics Initiatives
- Acknowledging an employee who has recognized and addressed an ethical dilemma created by making a correct ethical decision but missing a financial target in doing so
- Promoting ethically aware and responsible managers
- Surveying employees regularly to see how they feel about policies, supervision, and so forth
- Succession planning
Establishing Systems to Monitor, Audit, and Enforce Ethical Standards
- External auditing and review of company activities to develop benchmarks of compliance
- Internal system for employees to report misconduct (ethics hot lines)
- Training, role playing
- Questionnaires to survey employees’ ethical perceptions
- Reprimands, transferals, suspensions, firings for deviating
Establishing Systems to Monitor, Audit, and Enforce Ethical Standards
- Public recognition, bonuses, raises for complying with company policies and standards
- Policies, rules, and standards must be worked into compliance system
- Making code of ethics part of corporate culture and not merely window dressing
- Including ethical compliance in employee performance appraisals
- Incentives, info systems, performance measures (avoid “rewarding A, while hoping for B” e.g., stock options, quotas, billing)
Codes of Ethics
- Clear and user-friendly
- Code fatigue vs code vague
- Employee disconnect
- Bottom-up vs top-down
- Compliance-based vs integrity-based
- Codes of misconduct
What is the difference between a compliance-based approach and an integrity-based approach to organizational culture?
Compliance Integrity
| Ethos | limits, boundaries, | principles, standards |
| Objectives | follow law | responsible conduct |
| Leadership | lawyers | mgrs, with assistance |
| Methods | rules & penalties, codes of misconduct | ethics integrated in systems, code is principles-based |
| Behavioral Assumptions | Deter selfish acts | other drivers of our nature |
Quotes of the Day – The Leadership Potential in All of Us
“Leader and followers are both following the invisible leader – the common purpose.”
Mary Parker Follett
“Somebody has to do something and it’s just incredibly pathetic that it has to be us.”
Jerry Garcia, The Grateful Dead
“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”
Margaret Mead
