LEADERSHIP BRIEFING PAPER
Leadership Briefing Paper
After spending your entire working life in one giant corporation that went down overnight; investing most of your retirement in stock options that plummet to zero; you are suddenly jobless and your retirement money is gone. Yet, perhaps even more threatening; our skilled and managerial jobs are steadily going abroad, due to poor corporate ethics. The crisis of poor ethics has jeopardized public trust, caused an erosion of organizational cultures, created human suffering, caused unemployment, and profit losses. Poor ethics
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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. Questions emerged in the news whether leaders of the tobacco industry had prior knowledge of a link between the use of tobacco and lung cancer. Thomas, Schermerhorn, and Dienhart (2004) found that the 12 months after the crisis of Enron in 2001, 13 of the largest corporate bankruptcies in U.S. history were filed; each had been involved in unethical business practices. The television show, 60 Minutes, ran features on scholastic diploma mills and schools that reported placement of graduates, which turned out to be false …show more content…
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. Their organizational initiatives are often self-serving; however, the emerging workforce isn’t motivated by selfish managers. This selfish behavior often turns into unethical conduct.
Unethical dealings in the workplace are always wrong. It is crucial to promote ethical behavior. Everyone must understand that once caught, unethical behavior is not just a problem for those directly involved, it is everyone’s problem. More importantly, ethical behavior is everyone’s challenge. That is the bottom
Organizational transformation happens when leaders are able to impact the culture in a positive manner, and he or she can lead an organization through changes, all while remaining encouraging and ethical. Northouse (2013) defines leadership as a process whereby an individual influences a group of individuals to achieve a common goal. Leadership ethics is about who leaders are, their character, what they do, and their actions and behaviors (Ethical Leadership, 2016). This case study is about leaders at a Texas plant, and how their leadership style, communication, and ethics affected the organization.
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.
Are businesses in corporate America making it harder for the American public to trust them with all the recent scandals going on? Corruptions are everywhere and especially in businesses, but are these legal or are they ethical problems corporate America has? Bruce Frohnen, Leo Clarke, and Jeffrey L. Seglin believe it may just be a little bit of both. Frohnen and Clarke represent their belief that the scandals in corporate America are ethical problems. On the other hand, Jeffrey L. Seglin argues that the problems in American businesses are a combination of ethical and legal problems. The ideas of ethical problems in corporate America are illustrated differently in both Frohnen and Clarke’s essay and Seglin’s essay.
Many organizations have been destroyed or heavily damaged financially and took a hit in terms of reputation, for example, Enron. The word Ethics is derived from a Greek word called Ethos, meaning “The character or values particular to a specific person, people, culture or movement” (The American Heritage Dictionary, 2007, p. 295). Ethics has always played and will continue to play a huge role within the corporate world. Ethics is one of the important topics that are debated at lengths without reaching a conclusion, since there isn’t a right or wrong answer. It’s basically depends on how each individual perceives a particular situation. Over the past few years we have seen very poor unethical business practices by companies like Enron, which has affected many stakeholders. Poor unethical practices affect the society in many ways; employees lose their job, investors lose their money, and the country’s economy gets affected. This leads to people start losing confidence in the economy and the organizations that are being run by the so-called “educated” top executives that had one goal in their minds, personal gain. When Enron entered the scene in the mid-1980s, it was little more than a stodgy energy distribution system. Ten years later, it was a multi-billion dollar corporation, considered the poster child of the “new economy” for its willingness to use technology and the Internet in managing energy. Fifteen years later, the company is filing for bankruptcy on the heels of a massive financial collapse, likely the largest in corporate America’s history. As this paper is being written, the scope of Enron collapse is still being researched, poked and prodded. It will take years to determine what, exactly; the impact of the demise of this energy giant will be both on the industry and the
Ethical leadership is a term that has become very commonplace today. It is a concept that many have come to see as important as leaders do have a very big role to play when it comes to driving teams in the right direction. Choices and decisions made by leaders/managers impact the team heavily. Leaders must have high ethical standards to be able to manage and work effectively. Ethical leadership is the core of a great organization; a leader bears the greatest responsibility in the overall direction of an organization and that applies to ethics as well. An ethical leader must first and foremost be ethical; the five principles of an ethical leader should inform all levels of an organization to create an ethical culture for all parties. Maintaining ethical standards can make or break an organization and that depends greatly on the leadership that is practiced. Working at Sigmund Cohn, I have seen how ethics take priority over anything. Production will be stopped until certain questions are answered.
Recently, leadership, specifically ethical leadership, in the spotlight and are of primary concern. Every component of leadership and its characteristics are being scrutinized and dissected. The scarcity of "respect, honesty, integrity, and trust at the management level of any organization is disastrous for any business (Lakshmi, 2014, 66). In the case of Patagonia, due to its ethical leadership and moral corporate governance any issues that may arise from legal disobedience, or unethical behavior will be dealt with objectively, fairly, and swiftly.
Ethical leadership is of great significance to the prosperity of an organization. Ethical leaders usually motivate their employees to work hard. In that regard, ethical leadership requires a cocktail of ethical values ranging from rationality to independent and critical thinking. Most organizations nowadays have ethical leaders responsible for the good relationship among the members. Ethical leaders are usually more concerned about the welfare of other people rather than other motives. My focus on ethical leaders will be on corporate leaders, specifically chief executive officers. My leader of choice is Mike Duke, the chief executive officer of Wal-Mart retailers, which is one of the largest retailers in the United States. For its prosperity,
Great leadership is not achieved over night, and it is not something that one achieves and stops. Great leaders spend entire lives building and growing their leadership skills. It is not likely that a leader will one day wake up with all of the vision, influence, knowledge, respect, and momentum necessary to be great; these take time to develop. “It is the capacity to develop and improve their skills that distinguishes leaders from their followers.”
In the aftermath of Enron, Washington Mutual Bank, TYCO, and World Comm these companies went against the grain of what good ethical behavior is and what their respective company’s code of ethics were. The criminal justice system has made it clear that it will not allow companies and their executives to get away with the misuse of public trust by allowing them to make themselves rich at the expense of the employee. Where these crimes are both ethically and morally wrong, the CEO’s of major corporations are being punished by a ...
The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil
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.
Leadership is not always in the hands of members and it continually meet with dilemmas and difficulties.
Transformational leader is considered ethical in nature. Transformational leader helps followers, understand their followers ‘problems and give them solutions to tackle problems. Followers get personally attached with their leaders and do in the same manner as the leader wants. Transformational leader is may a source of employees’ satisfaction and commitment.
Many people associate leadership with a specific job title or form of power within an organization. However, through personal experience, I have concluded that leadership can come in many forms and position as well as from multiple sources of roles and job titles both with and without power. Based on the definition of leadership, anyone can be considered a leader as long as they have the ability to influence people to achieve a particular result or goal which benefits the organization or group as a whole. Individuals with a secure sense of self and understanding, acceptance of diversity within an organization tend to be the strongest leaders that not only make others want to follow, but they also encourage other leaders to gravitate to their