The period of the turn of the century in many American businesses such as Enron, WorldCom, Tyco, AIG, Lehman Brothers, Bear Stearns, and Arthur Anderson, were driven by unworthy values like self-indulgence, greed and corruption that drove the business into unethical territories. The challenge for leadership scholars was to understand how leader ethical values were connected to certain behavioral styles that generate ethically responsible attitudes and behavior in organizations. Change leadership models for example, transformational leadership, have dictated the study of organizational leadership for over 30 years. Research has demonstrated the powerful effects of transformational leadership at the individual, group, and organization-levels …show more content…
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
...selbein and Cohen, “organizations that take the time to teach leadership are far ahead of the competition. By becoming familiar with the transformational leadership approach and combining the four I's, managers can become effective leaders in the business world.” (1999, p. 263). Transformational leadership can be applied in one-on-one or group situations. Using this approach, the manager (leader) and the associates (followers) are “transformed” to enhance job performance and help the organization be more productive and successful. All of these leaders have the attributes mentioned here. History will decide the greater impact they had on society as it is being written every day. Therefore, the qualities of transformational leadership make the essence of transformational management and the key to successful management of transformational organizational changes.
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
This model has been used over decades in research to chime in on the importance of knowing the behavior of leader’s and their effect on those who work for them. According to Brymer and Gray (2006), effective transformational leadership ensures a supportive culture and does not require boundaries and guidance. The concept of transformational leadership was created to bring together leaders and those who work for them, which in turn impact those in whom they serve because their personality is viewed in a positive
Transformational leaders should help make a proactive change toward ensuring high ethics within the area they lead. It is up to organizational leaders to create ethical workplace cultures.
Meeting the ethical challenges of leadership casting light or shadow is authored by Craig E. Johnson. This book takes an interdisciplinary approach to leadership and ethics. The first part of this book looks at the topic of the shadow side of leadership. This explores the abuse of power and privilege, mismanagement, and inconsistency in her leadership. Part two, looking inward examines the role of character development and the nature of evil, forgiveness, and spirituality. Part three looks at the ethical decision-making processes and provides theories and tactics. Part four looks at ways leaders can disseminate information in a variety of situations. The book teaches new terminology, key principles, decision-making formats, and important elements of ethical contexts.
Practices of Leadership contribute to managing sustainability (ethics and corporate social responsibility) in the post-bureaucratic era.
According to Yoder-Wise (2015), a leader can be defined as, “an individual who works with others to develop a clear vision of the preferred future and to make that vision happen” (p 35). As employees, we often have our own ideal of a good leader, which may be influenced by experiences and perception of workplace norms. While one’s opinion of an effective leader may vary, there are several recognized leadership theories. The following will focus on the transformational leadership approach.
...Interactive effects of transformational leadership with moral and authoritarian leadership behaviors. Journal of Business Ethics, 116, 629-640. DOI: 10.1007/s10551-012-1486-0
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.
Many leadership researchers and scholars have stated that leaders do not exist without followers. Leadership has been described as the process of influencing, in which a person can enlist the support of others to accomplish a task or goal (Nye, 2010 and Oc & Bashshur, 2013). A leader is one whom others agree to follow, but a follower must be willing to be led. In developing leaderships styles and theories, the traits and behavior of the leaders were considered by Bass (2008). Bass described these styles as transactional and transformational leadership (2008). For the purposes of this short essay, I will discuss two leadership styles, the types of followers, and the autocratic style being used by this organization’s new VP.
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.
In many circumstances, employees’ behaviors are likely to follow their leader. Enron’s leadership has been extremely influential due to exemplified charismatic. For example, Heffrey Skilling and Kenneth Lay, CFO and one of executive member in Enron, greatly encourage employees to follow their lead. Their incompetence accounting profession directly affects lover level of employees. Eventually, those manipulating accounting activities affect company collapse. Once leadership has done unethical professional accounting behaviors, unethical acts become accepted. Employees have many reasons for remaining quiet. While Enron still have ethical internal rules, when leadership in Enron did not abide and did not provide corresponding example of employees to follow (Prentice 2003, p. 417). Which eventually make Enron’s become one of the largest corporate scandal frauds.
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. .
Certainly, an army would not be able to battle in the war without a commander who in charges of the whole strategy. Correspondingly, any organisations cannot function without leaders. Leader is the most substantial element of successful organizations. Becoming outstanding leaders, leadership skill is vital in order to drive the organizations forward. Several leadership principles are extensively used these days. Burns (1978) identified two types of leadership comprise of transactional and transformational leadership. Hence, leaders should be capable to indicate which theory should be applied in accordance with organization’s culture and objectives. This essay aims to evaluate the resemblances and the differences between transactional and transformational leadership as well as the feasibility to utilize a mixture of them by giving the definitions and examples followed by the supporting researches and studies.
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.