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Seminar 4 required us to debate on the following title “This Business School believes that ethical leadership is impossible in a shareholder focused economy” through the view of four characters.
Mike, a non-consequentialist deontologist in the 5th stage of Kohlberg’s (SoCMD) (Figure 1.) argued that ethical behaviour of corporations should be set in a top-bottom structure and that ethical leadership should be reflected in this manner through respecting the governance code and corporate ethics. Alfaraft AB has the duty to impose the code of conduct persistently on their employees and maintain it as it is visible to the general public. The corporation talks about ethical structure but it does not act accordingly, it is there more as a necessity and for marketing use. He argues that the company should not manipulate employees for its own purposes as Alfaraft AB did to Anna by turning her from an utilitarian to an egoism adherent whom craves for bonuses which ultimately, as part of management, she espouses her “get-rich-quick” message to her subordinates. In his view, an ethical leader should encourage employees to respect norms imposed throughout the corporation in a transparent manner by the top levels of the corporation. Ultimately, he considers that Alfaraft AB does not believe that ethical leadership is possible, hence, his participation in the protest against the company.
Jan, the consequentialist utilitarian in the 6th stage of Kohlberg’s SoCMD (Figure 1.) argues that ethical leadership is possible in a shareholder focused economy by demonstrating through her company’s success that rewards its local shareholders while doing business ethically and furthermore, through dedicating employee working hours to charitable causes...
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...le from: doi: I 10.1007/s11356-013-1528-x [Accessed: 8 Nov 2013];
Vassilikopoulou, A., Siomkos, G., Chatzipanagiotou, K. and Pantouvakis, A. 2009. Product-harm crisis management: Time heals all wounds?. Journal of Retailing and Consumer Services, 16 (3), pp. 174—180;
Werhane, P. 1998. Moral imagination and management decision-making. p. 76 New York: Oxford University Press;
Wilson, J. 2013. Gabriel Resources threatens action against Romania over gold mine. Financial Times, [online] September 9th. Available at: http://www.ft.com/cms/s/0/695287f4-1960-11e3-83b9-00144feab7de.html#axzz2kq0ZYzzX [Accessed: 16 Nov 2013];
Zaharia, I. 2010. Business Ethics in Third World Countries. A Romanian Representative Case: Roşia Montană. BRAND. Broad Research in Accounting, Negotiation, and Distribution, 1 (1), p. 1-7 Available from: doi: ISSN 2067-8177 [Accessed: 8 Nov 2013].
Leaders who treat their employees with fairness, honesty, and provide frequent, accurate information are seen as more effective. According to Robbins and Judge (2014), “trust is a primary attribute associated with leadership and followers who trust a leader are confident their rights and interest will not be abused” (p.193). The old General Motor Corporation had eleven different CEO’s from 1923 until 2009 each with their own unique leadership style, which directed employees toward the organization goals. Unfortunately, many of the top level managers under the CEO’s had the tendency of filtering out information that did not match up with their pre-conceived notions about a particular issue and they lacked upward communication. One consumer goal of General Motors was to build trust in the company so people would be repeat customers, but building trust between employees and establishing an ethical culture was not a top priority of the organization. Goal directed leadership alone is important, but differs from a structure of leadership based on ethics. It is important to note, that effective leadership may not be the same as leadership founded on ethical principles. Business competence must exist, along with personal leadership accountability in ethical decisions. Within the General Motors organization, ethics and leadership did not interconnect; there were misalignment between the
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the only important value is the bottom line, most executives merely give lip service to living and operating their corporations ethically.
Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2009). Business ethics: Ethical decision making and cases (7th ed.). South-Western College Pub;
The case study of Jacob Franklin, aged 25, offers an analysis of how unethical decisions can damage a company and the repercussions that these decisions cause. Jacob was aware of the unethical situations happening around him, but he was new and unexperienced to the business and it seems that at some point, his hands were tight and he did not have much control to change them. On the other hand, he had plenty of opportunities to make ethical decisions.
Ferrell, O.C. "Business Ethics." Ethical Decision Making and Cases. Michele Rhoades, Joanne Dauksewicz. Mason: South-Western Cengage Learning, 2011. Print.
Practices of Leadership contribute to managing sustainability (ethics and corporate social responsibility) in the post-bureaucratic era.
Incorporating ethics into everyday decisions in the business world can greatly reduce the scandalous behavior that has as of late has run ramped. Obviously, we have seen the results and consequences of business conducted absent any moral or ethical boundaries. When decisions are made without the consultation of ethics there is no direction from the moral compass and surely consequences will follow. Choices contemplated by managers may often seem difficult, but assessing the options against ethics can assist the manager in making the best decision.
Svensson, Goran & Wood, Greg 2007, ‘A Model of Business Ethics’, Journal of Business Ethics, vol. 77, pp. 303-322.
The behaviors addressed in this article are essential in the aspect of ethical decision making in management area.
According to Northhouse (2010), ethics originate from the Greek word ethos which interprets customs, conduct or character. Hence, ethics tend to be apprehensive with the kinds of values and morals that individual or society finds fascinating or appropriate. Furthermore, ethics also tend to be apprehensive with the virtuousness of individuals and their motives (p.378). Similarly, Yukl (2010), states that the definition of ethics includes “values, traits and behaviours” (p.330). Mckerrow also suggested that, ethics emerge from the recognition that fundamental needs are the same for everyone so that what is good and right must also be the same for everyone at all times.
Ethical leaders focus on the organisations overall success rather than on individual self-image (Burke & Cooper 2009, p.194). It’s not about the individual person, its about something greater (Burke & Cooper 2009, p.194). Ethical leaders are reassuring and inspiring so that devotees benefit from a sense of individual ability that lets them to be autonomous (Mobley, Wang & Li
Visionary and ethical leadership are at the forefront of organizational success. The visionary leader can see where they want to be and blaze a trail to the finish line. Ethical leaders lead by knowing and doing what is right. The purpose of this essay is to showcase Andrew Carnegie’s visionary leadership while examining his struggle with ethical leadership. Andrew Carnegie was a Scottish immigrant who moved to New York in 1848 (Luke, n.d.). He worked his way up the ladder from a poor immigrant to a pivotal figure in history. This essay begins examining the visionary leadership characteristics of Carnegie. It showcases his vision, the path he took and the results of his dedication. Furthermore, several examples of Carnegies visionary leadership is tied into the SNCOA course fourteen curriculum. The next section focuses on Mr. Carnegies ethical leadership challenges. The section overviews the areas in which ethics were not considered. In addition, examples and comparisons of the absence are taken into account. The final section correlates the visionary leadership and lack of ethical leadership as it relates to my personal experience. Furthermore, this section reveals the impact and changes to my leadership style. We begin the essay with a look into Andrew Carnegie’s visionary leadership.
The important of leadership and ethics issues are two concepts that are interrelated linked with an organizational environment. Ultimately, all stakeholders of an organization want their leaders and organizations to be ethically sound. Bazerman & Tenbrunsel, (2011). Having exercise the power and influence given to leaders over their followers, ethics practice will be critical to the process of leadership. Northouse, (2013). Ciulla (2004) argued that to achieve “good leadership,” leaders must be morally sound and as such, “ethics lies at the heart of leadership studies” (p. 18). Similarly, followers expect their leaders to be honest and ethical (Northouse, 2013). Honesty
Ethical leadership is having an understanding of who you are, what your core values are, having the courage to live them all, in your personal life as well as your work life. Ethical leadership involves leading in a manner that respects the rights and dignity of others. Ethical decision making and leadership are the basis of ethical organizations. Leadership is a relationship between leaders and followers. The foundation of this relationship is trust. The leaders themselves must be ethical in their decisions and actions in order to influence others to behave accordingly. Ethical leadership is to know one’s core values and having the courage to live them through one’s life. Ethics and leaders go hand in hand; ethics is the heart of leadership.
Good, strong, ethical people can have an immeasurable impact on a company as well. “Ethical leadership creates an ethical culture. Top managers provide a blueprint for a firm’s corporate culture. If these leaders fail to express desired ethical behaviors and goals, a corporate culture evolves on its own to reflect the values and norms of the company” (Ferrell, 2015). “Leadership has a significant impact on ethical decision making because leaders have the power to motivate others and enforce the organization’s norms, policies, and viewpoints” (Ferrell, 2015). Often employees will look to management and top leadership for clues as to what is acceptable and what is not. It is not only important to have good role models in those top positions, but to have a culture where they can fully express their ethical