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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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Because many people consider philanthropy to be a completely voluntary or discretionary aspect of corporate social responsibility, failure to be philanthropic is generally not considered as unethical; some may question whether it is a corporate ‘‘responsibility’’ at all. (Brian K. 2005) The caring approach seems much more realistic to use in terms of how people in business actually make decisions, as well as how they should make decisions. Managerial experience and observation of managers leads to conclude that morally and economically effective managers consider possible effects on other individuals, not amorphous groups, unless those groups are very homogeneous in nature. These managers think about themselves as well as others. When faced with conflicts they try to find the actions that fit the particular situation the best, intuitively understanding that each situation is different and deserves full consideration itself, and not some
2.Goodpastor, Kenneth. Nash, Laura. de Bettignies, Henri-Claude. Business Ethics: policies and persons 4th edition. Mcgraw Hill Irwin Publishers. Pages 396-405
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 controller and accounting staff play a significant role in company ethics. Specifically, they manage all accounting transactions and are responsible for reporting earnings. Julie must demonstrate a strong ethical behavior and instill this value in her employees. In addition, senior management needs to lead their employees to build a company based on high morals and strong ethics. Without the appropriate leadership, the company will suffer as witnessed during the business scandals of a few years back. As stated by Sam DiPiazza, CEO of Prices Waterhouse Coopers, “It has become dramatically clear that the foundation of corporate integrity is personal integrity.” (2003)
In order to define ethical leadership I think that one must first define the words ethical and leadership. By doing so it not only makes it possible to define what ethical leadership is, but it helps in shaping your own idea of what it means.
German Philosopher, Immanuel Kant once said, “In law a man is guilty when he violates the rights of others. In ethics he is guilty if he only thinks of doing so” (1800). The word ethics refers to “character” and “conduct” (Northouse, 2015, p. 330). It is deeply “concerned with the virtuousness of individuals and their motives” and “the kinds of values and morals an individual or a society finds desirable or appropriate” (Northouse, 2015, p. 330). Thus, “in regards to leadership, ethics is concerned with what leaders do and who leaders are” (Northouse, 2015, p. 330). Ethics in leadership allows leaders to make decisions regarding what is virtuous or not in a situation. All throughout the history of American government, difficult decisions have been made and the fight for ethics has always been “implicitly or explicitly involved” (Northouse, 2015, p. 330).
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.
The case of Bernard Ebbers has described by Trevino and Brown (2005) showed a lack of moral leadership that resulted in the largest bankruptcy in US history. Researchers further stated that business leaders set the ethical tone in their organizations and with the use of rewards and punishments they can reinforce positive ethical behaviors (Trevino & Brown, 2005). Bernard Ebbers was seen has a strong innovative leader that took the communications industry by storm. He was charismatic and business savvy and within a few years he had grown his company tremendously. The rapid growth and expansion of his business was a concern to some but for most it was just another example of hard work and forward thinking.
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.
Lennick D., & Kiel, F (2005). Moral Intellegence. Enhanching Business Performance and Leadership Success. Pennsylvania. Wharton School Publishing.
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.
...cker, Murphy, and Friedman questioned the legitimacy of connecting anamorphic characteristics, such as moral and social judgment and duties, to an intrinsic body. This is not to say that they promoted immoral conduct by company employees or owners. Rather, they offered a supplemental, more rational way to oversee their behaviors; they did this by laws and the utilization of professional codes of conduct (Murphy, 2009). Business ethics imply the concept of social responsibility through ideas that remain divergent. The moral analysis of business practices and activities come down to business ethics because in business ethics, businesses consider their actions and decisions as well as take into consideration moral principles and values, while questioning whether ethical motives in business actions could make business more responsible, ethical, or any more successful.
Strong Ethics is a Critical Quality of Leadership. Verschoor, Curtis C., Strategic Finance, January, 2006, Vol. 87, Issue 7, P. 19-20.