Introduction
The purpose of this paper is to examine leadership ethical views in different cultural and organizational setting. The researcher will compare and contrast leadership ethics in different cultural and organizational settings. Finally, the researcher will provide a conclusion.
Leadership Ethical Views in Different Cultural and Organizational Setting
According to Razzano and Nelson (2008) Siemens AG which is a transnational organization headquarters in Munich Germany was charged with bribery by the Security and Exchange Commission. Siemens AG is an electrical-engineering company with interests in everything from bullet trains to medical diagnostics. Siemens is considered one of Europe’s largest technology companies (Nelson, 2008). The company paid millions to government officials to win big contracts for telecommunication equipment (Pacini, Swinger, & Rogers, 2002). Prior to the bribery scandal Siemens had an ethics and compliance program in place however there was a missing link between leadership and the enforcement of the program. In other words, Siemens leadership chose to ignore their established ethics and compliance program which created an unethical environment.
Kellogg Brown and Root (KBR) a subsidiary of Halliburton headquarters in Houston, Texas is an international, technology-based engineering and construction company. The company provides a full spectrum of industry-services to the hydrocarbon, chemical, energy, forest products, and manufacturing industry. KBR is one of the largest United States government contracting companies in Iraq and Afghanistan. Recently employees of KBR have been charged with accepting briberies. In one case an employee award a contract to a subcontract and received ...
... middle of paper ...
...ance-and-Ethics/
Law Journal. (2006). Child labour in Indonesia. Retrieved from http://faizlawjournal.blogspot.
com/2006/12/child-labour-in-indonesia.html
Miller, C. (2008). U.S. target overseas bribery: KBR exec’s plea widen probe. Retrieved from
http://www.propublica.org/article/kbr-exec-plea-widens-probe-909
Pacini, C., Swingen, J., & Rogers, H. (2002). The role of the OECD and EU conventions in
combating bribery of foreign public officials. Journal of Business Ethics, 37(4), 385-405. Retrieved from http://search.proquest.com.libproxy.edmc.edu/docview/197995609? accountid=34899
Razzano, F. & Nelson, T. (2008). The expanding criminalization of transnational bribery: Global
prosecution necessitates global compliance. The International Lawyer, 42(4), 1259-1286. Retrieved from http://search.proquest.com.libproxy.edmc.edu/docview/191685385? accountid=34899
Ethical leadership is hard to define according to research cited by Yukl, (2013). Ethics depends on time, culture, and laws. We can attempt to define ethical leadership by looking at the leader’s behavior, values and how he or she influences followers (Yukl, 2013). Every organization has ethical and moral guidelines stipulated through their policies, rules and regulations. A leader who is honest and trustworthy can be said as an ethical leader. But it depends on how the behavior is reflected in the organization and the employees. Ethical leadership can also be defined as to whether the behaviors violate cultural customs and laws of the society. Personal morals and ethics may be in conflict with managing the organization
Bribery has always been a controversial issue, especially in the business world. Many argue that bribes are a necessary cost of doing business while others view them with distain, claiming that they are antiquated and create an unfair advantage. In the late 90’s, the problem reached a boiling point. Although laws such as the Foreign Corrupt Practices Act made bribery illegal in the United States, it still remained an international issue. Numerous skeptics claimed that violators of the act slipped through loopholes and that the law was not properly enforced. This law only applied to the United States, but bribery had become a worldwide concern. In 1998, the International Anti-Bribery and Fair Competition Act was enacted. The Act became law on November 10, 1998, however; it did not take effect until May 1, 1999.
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.
The study indicated that the influences processes employed by transformational and transactional leaders may be driven by different ethical values that also appear to indirectly impact follower attitudes toward corporate social responsibility. Transformational leadership was strongly associated with leader deontological values, suggesting that such leaders’ strong beliefs in altruism, universal rights, and principles lay the groundwork for enacting the key motivational and inspirational behaviors that drive leadership outcomes in organizations. Transformational leaders’ ability to demonstrate idealized attributes and behaviors, inspirational motivation, intellectual stimulation, and individualized consideration behaviors rest on a strong deontological ethical foundation. A leader’s beliefs in selflessness, treating followers, and teammates as ends and viewing leadership practices as having ethical implication regardless of their consequences in any organization. These views facilitate an authentic demonstration of transformational behaviors in the stakeholder view of corporate social responsibility. Leader teleological ethics was found to predict active transactional leadership behavior, indicating that a leader’s belief in reciprocity norms, the maximization of mutual interests, and judging the ethical content of leadership acts according to their consequences were key to facilitating contingent reward and active performance monitoring
Bribery occurs when money, services, goods, information, or anything else of value is offered with intent to influence a person’s actions, decisions, or opinions of the accuser. Charges can be brought against an individual, whether they offered the bribe or accept it. Bribery and public corruption cases frequently make headlines new stories daily. Bribes can take the forms of gifts or payments of money in exchange for favorable treatment like awards of government contracts (Mince-Didler, n.d.). Government officials tend to gain a huge incentive with bribery while serving their term. Other forms of bribes may include privileges, services, various goods, property and favors. Bribes are always intended to influence or alter the actions of individuals with political and public corruption (Mince-Didler, n.d.).
Turrow, Scott (1985) What’s Wrong with Bribery in Journal of Business Ethics, D. Reidel Publishing Company (Boston), pp. 249-251.
Currently, leadership is generally understood as a person with insight and wisdom of guidance, which expected to be efficient in management responsibilities like planning organizing, and monitoring performance (Kandola, 2004, p. 144). In addition, making ethical decision is important to individuals who value and take seriously institutional...
With so many constant changes today with different generations, legal and political circumstances and ever-changing and improving technology sources, organizations have new and recurring issues arising every single day. The reasons for these issues vary widely and develop because of so many different situations. The outcome of the situation depends on many factors including the issue at hand, the management style and the ethics of the organization to simply name a few. These outcomes can certainly make or break an organization if not handled appropriately. The issue I have found to be the most significant is leadership. Within leadership, there is the opportunity for many issues in itself.
Placed in proper perspective, had Enron considered doing the right thing because it was the right thing to do, regardless of outcome, the company may still be in business today (Gilbert, 2012, p. 57). Obviously, in hindsight, doing the right thing may have changed the culture to one more conducive to moral values, which in turn, may have resulted in earlier reports of financial shortcomings. In reality, the company may have prevented its own demise with honest forthcoming reports that could have prevented market panic; thus, preventing the downward spiral that enviable destroyed the company. Point of fact, Enron openly espoused its affection for ethical policies but, in fact, it did not practice ethical behavior. Truly, had the company followed any ethical approach, it may have staved off its preordained destiny. A culture that rewards breaking rules is destine for failure. Though an ethical program may appear to be the solution; however, a moral culture is truly the key to winning the battle of ethics. Moreover, others have suggested that ethical programs may stifle creativity and thus prevent the free exercise of one’s values and moral judgment (Stansbury & Barry, 2007, p. 239). While a program by itself will never be successfully, leadership from the top is instrumental to victory; managers must be known for possessing core values such as honesty and integrity (Nel, Nel, & du Plessis, 2011, p. 59). Albeit, despite the best policies, the proclivities of most subordinates will always drift towards follow the examples of leadership (Mayer, Kuenzi, & Greenbaum, 2010, p. 13). Thus, like the saying goes, an ounce of example is worth a thousand words! The prevention of such needless tragedy lies not in policy or programs but rather in leadership by example. If society truly demands moral behavior within its institutions, then it must expect the same standard from its leaders. Society must demand
The rich get richer, within a secret society where only trust is accepted. An eighty billion dollar arms deal between BAE (British Aerospace), Prince Bandar of Saudi Arabia who represented the Saudi Air force and the U.K, stir controversy because of “Black money” or secret payments. The question is, when too much political power reigns how can they be prosecuted; it seems that the Saudi government was allowed to be corrupt because of their political power and ties to terrorism. The UK allowed and paid for services because they were able to create more jobs and selfishly gain political power. We state that corruption is allowed because of the grand scheme of world politicians to create alliances which give them ultimate power, where normal rules of integrity and character don’t pertain to them.
House et al. (2007) discovers that leadership and Organisational culture are closely linked together as leaders influence the culture of their organisations. Researches talk about a range of leadership definitions but it is not easy to define. (E.g. Western, 2008; Yukl, 2010). However, Cohen (2009) critically analyses definitions from Dracker (1996), Eisenhower (1969), Northouse (2004) and finally summarised the definition of leadership constitutes five elements. First of all, ask question to set direction, which means effective leaders need to listen to followers’ voice respectfully and then share the common goals and ideas with them. In addition, leaders need to seek insights and allocate resources optimally; act ethically; allow their employees to work in a conformable and most effective way. This essay will explain different leadership styles and how they influence the organisations with examples of organisations and leaders with main focus on well-known entrepreneur: Sir Alan Sugar. He grows from nothing to incredible success (£ 730 million), is a legend in the UK business history; his reality TV show “The Apprentice”, a great entertainment for recruitment appeals to the public without reasons. However, he as a person is controversial amongst people, probably due to his leadership style as bullying or harassment (destructive). There are four schools of leadership styles: Trait, behavioural, contingency and transformational. Nevertheless, in the case of Alan Sugar, trait and transactional styles match him which will be illustrated following in detail.
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. .
Bribery is wrong, and it would be almost instinctive to point at the benefits of impartially functioning public servants and incorrupt corporations to our democratic society as justification. However, in this imperfect world where bribery is rife in varying degrees, is it possible to express this notion convincingly? Certainly 'because the UK Bribery Act says so' is far less persuasive to a council planning office in Shanghai than in London, and indeed in compliance with section 7 of the Bribery Act 2010 which relates to commercial offences, it is essential that this question is engaged with on a corporate scale and without assertion through dogma. Accordingly, this essay will argue that elements wrong with bribery are inclusive of both moral and economic considerations. Moreover, in conjunction with international mandates, advent of aggressive legislation such as that of the UK Bribery Act 2010 is representative of global efforts to eliminate bribery. Hence, it follows that bribery can never be considered a normal part of business because it is economically unsustainable in the long term.
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.
“Ethics can be defined as moral principles that govern or influence a person’s behaviour and values are the context in which an organisation or society’s norms are established and justified” (buzz text book).Ethics are the guidelines helping us tell the difference between the is wrong and right. Most people are encouraged by ethics to normally do the right things. Ethics and values are based on individual beliefs and standards in society that one if from, they vary from person to person. Leadership is the authority and capability for one to lead people in an organization in order to achieve goals. They are the main role players in all the organizations and are crucial to their success. Ethics in a business means taking the precise way’