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Organizational culture and ethical values
Leadership approaches and theories
Leadership approaches and theories
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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. Having an ethical climate is important because it directly reflects the ethical behavior of organizational leaders. Consequently, it can be viewed as an extension of organizational culture, which ultimately dictates organizational behavior (Boundless, 2014). Therefore, if an organization …show more content…
This manifests in a leaders tendency to overrate themselves and their work. People typically view themselves on a higher level than their peers, which can have them overlooking their own short comings. Also, people are more inclined to take credit for success and blame external factors for failures. Lastly, there are conflicts of interest. Hughes et al. (2014) cite that “we may be conscious of potential conflicts of interest, but even then, though, we misjudge our own ability to discount the extent to which the conflict actually biases our perception of the situation in our own favor” (p. 149). All of these are biases impact moral reasoning. When leaders allow these biases to impact their behavior and decision making, it results in an unhealthy organizational culture and unethical climate. Conversely, when leaders fully understand these biases and continually work towards improving their moral reasoning, they can positively affect organizational culture and create an ethical climate, which ultimately influencing all organizational …show more content…
Trimming fat and reducing management layers is inevitable. However, boosting shareholder wealth by stepping on the stakeholders is immoral and unethical. While it is hard to say definitively what the right answer here was, we can examine some of Kidder’s principles of resolving ethical dilemmas to evaluate the decisions made. For example, ends-based thinking, which refers to doing what is best for the masses, was clearly not accounted for in this decision making process. Shareholders and senior management seemed to be the benefactors in CSC’s example. Furthermore, the care-based thinking principle also seems to have been neglected in this decision making process. I would find it difficult to imagine that senior leaders contemplated their proposed behaviors as if they were the object rather than the agent, and consulted their feelings before determining that 40% of the workforce must fall into the category of not meeting expectations (Hughes et al., 2014). Overall, CSC’s decisions were clearly not entirely moral or
The ethical code of an organization illustrates the importance of being honest, acting with integrity, and showing fairness in decision making (Bethel, 2015). Ultimately, “laws regulating business conduct are passed because some stakeholders believe they cannot be trusted to do what is right” (Ferrell, Fraedrich, & Ferrell, 2015, p. 95). In the last couple of years, culture has become the initiator for compliance, which means from the top down there has to be a commitment to act in a way that represents the company’s core values (Verschoor, 2015).
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.
According to Ferrell (2004), “Organizations create ethical or unethical corporate cultures based on leadership and the commitment to values that stress the importance of stakeholder relationships. Establishing and implementing a strategic approach to improving organizational ethics is based on establishing, communicating, and monitoring ethical values and legal requirements that characterize the firm's history, culture, and operating environment” (p. 129). Ethics programs ensure satisfactory relationships with all stakeholders by aligning with all of their demands and needs, and determine conduct with customers and relationships with regulators, shareholders, suppliers, and employees (Ferrell, 2004).
For a company to be successful ethically, it must go beyond the notion of simple legal compliance and adopt a values-based organizational culture. A corporate code of ethics can be a very valuable and integral part of a company’s culture but I believe that it is not strong enough to stand alone. Thought and care must go into constructing the code of ethics and the implementation of it. Companies need to infuse ethics and integrity throughout their corporate culture as well as into their definition of success. To be successfully ethical, companies must go beyond the notion of simple legal compliance and adopt a values-based organizational culture.
[3] Mike Schminke, Maureen Ambrose, and Donald Neubaum (2005), “The Effect of Leader Moral Development on Ethical Climate and Employee Attitudes,” Organizational Behavior and Human Decision Processes, 97, 2: 135-151.
Organizational culture is key to fostering ethical decision making. The first step in creating an ethical climate is for managers, especially top managers, to act ethical themselves. The second step in establishing an ethical climate is for top managers to be active in and committed to the company ethics program themselves. Managers who consistently talk about the importance of ethics and back up that talk by participating in their companies’ ethics programs send the clear message that ethics matters. When management/owners engages and communicates about ethical issues, employees are less likely to break rules and more likely to report ethical violations. The third step would be to put in place a reporting system that encourages managers and
Working well with others, especially those in a position of authority is a sought after characteristic for employers. However, disrupting the stagnant norm for good reason is essential for community and business growth, particularly when it concerns ethics. Leaders are created by the hard decisions they make that develops influence over others, regardless of the delegation of power.
One factor that can lead to unethical behavior is narcissism. Someone who has narcissistic have a propensity for acting unethically. These leaders are self-absorbed and their focus is on themselves and what benefits themselves (Doty & Fenlason, 2013). Unfortunately, this type of behavior creates an ego and leads to personal career building through using other employees to get ahead. Narcissistic leaders do not have the emotional intelligence which focuses on others.
Never the less, the importance of ethical behavior to an organization has never been more apparent and has generated a great deal of knowledge about the managing individual behavior.
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...
An integrative model for understanding and managing ethical behavior in business organizations. Journal of Business Ethics, 9(3), 233-242. Doi: 10.1007/BF00382649
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. .
Good, strong, ethical people can have an immeasurable impact on a company as well. “Ethical leadership creates an ethical culture. Top managers provide a blueprint for a firm’s corporate culture. If these leaders fail to express desired ethical behaviors and goals, a corporate culture evolves on its own to reflect the values and norms of the company” (Ferrell, 2015). “Leadership has a significant impact on ethical decision making because leaders have the power to motivate others and enforce the organization’s norms, policies, and viewpoints” (Ferrell, 2015). Often employees will look to management and top leadership for clues as to what is acceptable and what is not. It is not only important to have good role models in those top positions, but to have a culture where they can fully express their ethical
An ethical leader has a significant effect on the manner staff performs in a team and what they
Moral leadership is based, to a greater extent, on the authority, not on power, the sources of which is coercion and punishment and its strength depends on the magnitude of these parameters. If we talk about the power, there is always the opportunity to buy or inherit it, but the authority is rather an intrapersonal entity, and the only way to get it is to earn by demonstrating the values being proclaimed in your behavior. The main mechanism of the influence of a moral leader is identification. Receiving a "credit of trust," the leader becomes an object of imitation for the subordinates who actually copy his behavior, launching an identification mechanism that takes the form of the desire to be like his leader. The influence of the moral leader lies in the ability to create, set and broadcast the standards of highly moral behavior. The identification with such a leader allows the subordinates to internalize his values ( i.e. to absorb social norms and assessments). The uniqueness of a moral leader lies in his ability to convey the values to employees at emotional and behavioral levels, to "materialize" these values.