Ethics at the top: Promoting ethical leadership in business What do Kenneth Lay, Bernard Ebbers, Conrad Black, Dennis Kozlowski, and Scott Thompson have in common? Yes, they were all in high ranking leadership positions, worked for very large companies, and were men. Unfortunately for the companies they worked for, they also lacked any sense of ethical leadership. Ethics are very important in the business world, and managers need to do all they can to hire and retain ethical people.
What is an ethical leader?
Ethical leadership defined Leadership can be a hard thing to describe and define. In the textbook, Business Ethics, it defines it as, “leadership is the ability or authority to guide and direct others toward a goal (Ferrell, 2015).
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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 …show more content…
“Ethical leaders within an organization cannot make every ethical decision by themselves” (Ferrell, 2015). In centralized management, the top people make all of the decisions. There are still however many opportunities for lower level employees to make unethical decisions. Management can promote ethical behavior at every level by being a good example and following its own code of conduct. The ethical environment should also be closely monitored. When someone makes a really great ethical decision, that person should be recognized. By rewarding good behavior, others will naturally want to receive these rewards as
General Motors became a “centralized organization, so decision-making authority is concentrated in the hands of top-level managers, and little authority is delegated to lower levels” (Ferrell et al., 2015, p. 199). Centralized organizations have little upward communication and top-level manager may not be aware of problems and unethical activities. According to Ferrell et al., (2015), it has been noted that “centralized organization may exert influence on their employees because they have a central core of policies and codes of ethical conduct” (p. 201). Conversely, to survive at GM employees praised the CEO intelligence and carried out their orders by keeping a low profile, and never made waves. GM rewarded employees who followed the old traditional ways and those that challenged their thinking lost promotion opportunities or their jobs. However, General Motors experienced conflict between corporate management responsibility and social responsibility. Consequently, General Motors “attempted to implement a new mentality upon its management in a short period of time” (Goussak, Webber, & Ser, 2012, p. 49) by changing the company’s environment, but
Corporate executives like Kenneth Lay and Martha Stewart were taken before the court for poor ethical practices. Leaders of pharmaceutical companies have been found knowing about distribution of unsafe products. Leaders at Coke Cola were found guilty of racial discrimination and leaders of cruise ships fined for dumping waste in the ocean. News reports exposed Wall Street analysts who created phony reports, made profits, and pushing worthless stocks, left citizens questioning if they should invest their money. Leaders of the world’s largest retailer, Wal-Mart, were cited for practices of employee abuses and gender discrimination.
Leadership is the ability that someone has to motivate, guide and empower a group of people, in the particular case the personnel of an organization, in order to achieve specific goals.
According to Business Dictionary.com, leadership is defined as the individuals who are the leaders in an organization, regarded collectively. It also can be define as the activity of leading a group of people or an organization or the ability to do this. Leadership involves the establishing of a clear vision, sharing the vision with other so that they will follow willingly, providing the needed information, knowledge, and methods to realize the vision and coordinating and balancing the conflicts interests of all members and stakeholders.
A leader is described as a person who guides others and has authority and influence over others. They work to influence others into meeting certain goals. There is no right or wrong definition of a leader and there is no recipe that ensures effective leadership. Successful leaders have a good balance of vision, influence, and power. Leaders gain their authority from their ability to influence others to get the work done; because of this, anyone has the potential to be a leader. (Finkelman. 2012, p15)
I discovered how sticking to one’s morals should be the topmost priority for everyone involved in business, whether personal or professional. Regardless of what the consequences may be, the intensity of the problem, and the complexities it may bring, sacrificing one’s integrity should never be an option, as integrity goes hand-in-hand with the morals of an individual (Duggan & Woodhouse, 2011). They further go on to say that having individuals take part in building a code of ethics that supports employee integrity, they will act ethically. Also, I believe that companies should place more emphasis on the moral behavior of their employees, and clear-cut policies should be set regarding such ethical situations. Furthermore, I realized how serving justice while making decisions really helps in the long run, and that opting to go for the ideal rather than they deserved is not always the best option, and could hurt a company in more than one
There are lots of definitions and interpretations for the term LEADERSHIP. One is “A relationship through which one person influences the behaviour or actions of other people” (Mullins, L.J. 2002, Management and Organisational Behaviour, 6th Edition, FT Publishing, p904). Another popular definition would be, “the process of influencing an organization or groups within an organization in its efforts towards achieving a goal” (Johnson, Scholes & Whittington, 2005, Exploring Corporate Strategy, 7th Edition, FT Prentice Hall, p.519)
A definition of leadership from the Management Study Guide (MSG) says that leadership is a process by which an executive can direct, guide and influence the behaviour and work of others towards accomplishment of specific goals in a given situation. (Brown,A. 2014)
Organizations are constantly tested with various moral and ethical problems and dilemmas. Organizational leaders are the key to establishing an ethical climate in the workplace. By understanding and improving their own moral reasoning, and the biases that affect moral judgment, they enable themselves to make better decisions. This has a catalytic effect that positively increases organizational climate, ultimately improving all organizational behavior.
There's no one to blame but there are a million or so of us to take responsibility, to fix it from within, and that is the hallmark of a nation and a people. That's leadership, management, tradition and spirituality. Granted, the solutions don't come easy. I know that from my personal experience, just as we know that it's the willingness to struggle towards the ideal that elevates us as individuals, communities and societies. Therefore, leadership plays a very important role in our lives. The ethics of leadership rests upon three pillars: (1) the moral character of the leader; (2) the ethical legitimacy of the values embedded in the leaders vision, articulation, and program which followers either embrace or reject; and (3) the morality of the processes of social ethical choice and action that leaders and followers engage in and collectively pursue. Such ethical characteristics of leadership have been widely acknowledged (Wren, 1998). Transformational leaders set examples to be emulated by their followers. And as suggested by Stevens et al., (1998) and demonstrated by Conger & Kanungo (1998) when leaders are more morally mature, those they lead display higher moral reasoning. But not all leadership fits the same pattern and ethical analysis shifts with varying leadership modalities. In the societies of the western world the subject of responsibility is increasing in importance. (Moran, 1996) Issues of responsibility arise in small social units as well as in global societal structures. Responsibility establishes a connection between person and society. Mothers and fathers who care for their children or a person who warns his colleague about taking up business with a questionable partner are examples of responsibility within small so...
Leadership is the ability of an individual to influence, motivate and inspire others (Gill, 2006). It is therefore defined as a process whereby a leader influences a group of individuals to achieve a common goal (Northouse, 2013). A leader has to make a decision for something to happen and provide his followers with clear direction (Rost et al, 1991). It will evoke feelings of challenge, excitement and involvement for the followers to proceed with the task (Gill, 2006).
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
According to Shockley and Zalabak (2009) "Leadership is a process of guiding individuals, groups, and entire organization in establishing goals and sustaining action to support goals.Leadership is like mapping out where you need to go to win". A Leader is a person who has a strong personality and who has an ability to manage people and work. He is also the person who is able to direct people .Usually a leaders has a lot of attributes that
Ethical leadership organizational ethics and socially responsibility are inseparable (Johnson). Leadership is not a inherited gift or family heritage; it is not a degree from an ivy league graduate school. Becoming a leader is an intentional process of growth that must be lived out experientially (Mullane). Ethical leaders demonstrate three distinctive characteristics, knowledge, action and character. Leaders have to have the ability to say “yes” or even “no” to a never ending series of challenges. A leader needs to be able to define their values, character and leadership style. When accepting the role of leadership you become encumbered by ethical issues and concerns. .
Many people believe that leadership is simply being the first, biggest or most powerful. Leadership in organizations has a different and more meaningful definition. A leader is someone who sets direction in an effort or task and influences or motivates people to follow that direction. The power point presentation explains leadership is the influence that particular individuals exert on the goal achievement of others in an organizational context.