Business Ethics and Ethical Leadership

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1. 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... ... middle of paper ... ...le from: doi: I 10.1007/s11356-013-1528-x [Accessed: 8 Nov 2013]; Vassilikopoulou, A., Siomkos, G., Chatzipanagiotou, K. and Pantouvakis, A. 2009. Product-harm crisis management: Time heals all wounds?. Journal of Retailing and Consumer Services, 16 (3), pp. 174—180; Werhane, P. 1998. Moral imagination and management decision-making. p. 76 New York: Oxford University Press; Wilson, J. 2013. Gabriel Resources threatens action against Romania over gold mine. Financial Times, [online] September 9th. Available at: [Accessed: 16 Nov 2013]; Zaharia, I. 2010. Business Ethics in Third World Countries. A Romanian Representative Case: Roşia Montană. BRAND. Broad Research in Accounting, Negotiation, and Distribution, 1 (1), p. 1-7 Available from: doi: ISSN 2067-8177 [Accessed: 8 Nov 2013].
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