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Ethical Leadership in Organizations
Ethics and leadership in business
Ethics in organizations and leadership
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A firms character is about brand, behavior, ethics, and reputation. Aflac Incorporated is a brand that is known for good character and being ethical. "And not only so, but we glory in tribulations also: knowing that tribulation worketh patience; and patience, experience; and experience, hope: and hope maketh not ashamed; because the love of God is shed abroad in our hearts by the Holy Ghost which is given unto us" (Romans 5:3-5, King James Version). In this verse, tribulation refers to character. According to Adams (2015), Forbes ranked Aflac 5th out of 800 companies that applied to be considered for companies with the best character and reputation. For organizations, having good character means not taking short-cuts to achieve competitive advantage or financial gain by unethical means. Roman 5:3-5 lets Christian business leaders know that there may be difficult times, but endurance will result in the company achieving character, by doing …show more content…
66). Klimoski shared that Aristotle referred to "people of character" as "virtuous people" because they had "the capacity for good moral judgments" (p. 66). In business environments, it is advantageous for firms to be known for good character and for having leaders that make good moral decisions based on outstanding virtues. According to Alzola (2008), some business leaders give in to "situational pressures" which result in these decision makers losing their "moral compass," resulting in bad business decisions that are unethical and not of good character. These types of leaders are willing to do whatever it takes to achieve competitive advantage and financial gain, even if these gains are short lived, due to unethical decisions coming to light. Leaders must keep in mind that firms that are known for having good character, will success in the long-term, and all stakeholders will benefit well into the
The world seems to look at business as the root and means of many forms of evil, even Christians. It is easier to see the lies and deceit behind many business deals and even successful business than it is integrity and honesty within the realms of business. Why is it that the business world seems so tainted by sin? These are the issues that Wayne Grudem addresses in his book, Bussines for the Glory of God: The Bible`s Teaching on the Moral Goodness of Business. Grudem specifically develops arguments for why 11 specific aspects of business are actually fundamentally designed to glorify God rather than cause evil. Grudem doesn’t only want believers to see these Biblical truths but also nonbelievers. His hope is that the business world be the one in which we see the world transformed by the Gospel. He hopes that each individual can and will take heed of the Biblical truths regarding business and hold fast to them, overcoming sin and temptation, in order to bring glory to the God who created it all. Two of the specific aspects he addresses are employment and borrowing and lending. Grudem develops an argument for each of these aspects as to why they are fundamentally good and why and how they each provide individually many opportunities for glorifying God. Grudem effectively fleshes out how employment is a biblical principle starting with Jesus words himself, “The laborer deserves his wages.” (Luke 10:7) Grudem uses
According to Aristotle, integrity can be defined as the “particular quality men acquire by constantly acting in a particular way”. It is the sense of honesty and rectitude, towards our moral and ethical principles. We’ve discussed at length how compromising integrity can damage our reputation, how people decide to act against integrity for personal benefits, and ultimately cause irreparable damage among followers. So is it really worth compromising integrity for a big paycheck? Is losing reputation worth the money? Throughout the essay, numerous examples of compromised integrity will be discussed focusing on the Aristotelian view of Leadership. The philosopher’s Seven Virtues will ultimately allow us to understand and reach to a conclusion regarding such doubts.
To apply this system of moral values effectively, one must understand the structural levels at which ethical dilemmas occur, who is involved in the dilemmas, and how a particular decision will affect them. In addition, one must consider how to formulate possible courses of action. Failing in any of these three areas may lead to an ineffective decision, resulting in more pain than cure.” Ken Blanchard states, “Many leaders don’t operate ethically because they don’t understand leadership; these executives may have MBA’s from Ivey League schools or have attended leadership training; they may routinely read the best-selling management books, however, they don’t understand what it means to be a leader.” They don’t model a way of ethical behaviors.
Being ethical or not? Always doing the right thing? These are all questions and thoughts, which arise in a business on a daily basis. However, I personally feel that the answer lies within us. If we choose when to be ethical, and when not to be, does it actually make us a good person? Albert Carr discusses some of key aspects of his theory in the article “If Business Bluffing
Businesses must make decisions every day and many times in a split second. Rushed decisions can result in poor decisions. Other times, businesses simply make poor decisions due to low or absent moral standards. For example, Bernie Madoff defrauded thousands of people through his investment firm. The moral standards in the Madoff example were severely lacking. Business ethics in a Christian worldview come from the moral standards found in the Bible (Kim, Fisher, & McCalman, 2009). Each business decision is an opportunity to choose between wrong and right. In the business scenario presented for the week, the Grimes company has the opportunity to evaluate the legal and ethical considerations of the presented business decision. A business with a Christian worldview will have an alternate course of action when compared to a strictly legal worldview.
In the final two chapters of Every Good Endeavor, Timothy Keller ends his book by discussing the new aims of our work. They are found in the gospel, that power alone should motivate our work. In chapter 11, Keller begins by discussing our ethics and morals, and how the gospel should impact the way view and act in our workplace. Corruption can be found in many aspects of culture and the world. We should not disadvantage others to advantage ourselves. It might make good business sense to operate virtuously, but there are times when it will not. A Christian way of thinking will ultimately result in changing our thoughts on human value. This helps us face very confusing, moral dilemmas. We are forced to ask whether or not we want power, wealth
In conclusion, when an organization has leaders who act morally and ethically, in actions, and decision making, the result will directly impact the leaders and the company’s reputation positively.
Ethical behavior is behavior that a person considers to be appropriate. A person’s moral principals are shaped from birth, and developed overtime throughout the person’s life. There are many factors that can influence what a person believes whats is right, or what is wrong. Some factors are a person’s family, religious beliefs, culture, and experiences. In business it is of great importance for an employee to understand how to act ethically to prevent a company from being sued, and receiving criticism from the public while bringing in profits for the company. (Mallor, Barnes, Bowers, & Langvardt, 2010) Business ethics is when ethical behavior is applied in an business environment, or by a business. There are many situations that can arise in which a person is experiencing an ethical dilemma. They have to choose between standing by their own personal ethical standards or to comply with their companies ethical standards. In some instances some have to choose whether to serve their own personal interests, or the interest of the company. In this essay I will be examining the financial events surrounding Bernie Madoff, and the events surrounding Enron.
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
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.
Furthermore, this principle underscores the ability of the leader’s power to engage employees, as opposed to leading through the authority of the leader. Moreover, organizational objectives are achieved when leaders build connections with all stakeholders as they serve, motivate and inspire when nurturing service and values among the workforce. When “Servant Leadership” is authentic, the tangible outcomes are prevalent as the creative, innovative potential of the follower’s increases, resulting in maximized productivity, performance and loyalty (Leadership & Organization Development Journal, 2017). The most significant act of “Servant Leadership” is demonstrated in Mark 10:45 “For the Son of Man came not to be served but to serve, and to give his life as a ransom for many” (ESV) and it’s this verse that underscores servant leadership in” Philippians 2:4 that states “Let each of you look not only to his own interest, but also for the interest of others”
To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact.
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.
Socrates (469-399 BC) declared, “The greatest way to live with honor in this world is to be what we pretend to be.” A Christian business is the epitome of integrity. This means “we are who we say we
Business nowadays encounter with a lot of moral challenges in today’s global economy. Everyone is thriving to be more successful than their competitors, to make their next profits, to keep their job, to earn a big bonus, or to compete effectively. There exists temptation to bend lines, omit information, and do whatever it takes to get ahead of their competition. Many business employees and executives succumb. Sadly, the theme becomes...