3. WHAT ARE ETHICS?
• Ethics, morals and values are generally used
interchangeably.
Values are the core beliefs or desires that motivate
and guide ones attitude and action.
Morals refers to the individuals beliefs about what
is right or wrong .they are an individuals
evaluations of values and behavior.
Ethics refers to a standard of conduct that indicate
how people ought to behave based on specific
values and principles. Ethics deal with the ability
to distinguish right from wrong & commitment to
do right
5. LEADERSHIP
“Leadership is getting someone to do what they need to do, to
achieve what they want to achieve”.
LEADERSHIP IS CREATION OF MEANS TO ACHIEVE THE
DESIRED ENDS.
Leader is the face of the organization and his actions reflect the
values and ethics that his organization stands for.
A leader with an image of being ethically strong lends the
same to the company and the team he leads…
ETHICS IN AN ORGANISATION FLOWS DOWNWARDS.
6. ETHICAL LEADERSHIP
"Ethical Leadership is the creation and fulfillment of worthwhile
opportunities by honorable means.”
AN ETHICAL LEADER MUST HAVE THE FOLLOWING
QUALITIES:
7. MEASUREMENT OF ETHICAL
LEADERSHIP.
A MAJOR LOOPHOLE LIES IN THE LACK OF A
UNIVERSALLY APPLICABLE ETHICAL
MEASUREMENT INSTRUMENT IN THE BUSINESS
LITERATURE.
A few measurement models have been introduced in the
area of sales and marketing {Newstrom and Ruch
(1975)based on the BARS concept} and a few
operational activities but are inadequate to measure
the role of ethics for the leaders in the organization.
8. MEASUREMENT OF ETHICAL
LEADERSHIP
AN ETHICAL SCORECARD AS A MEASURE
• Finance
• Customers
• Learning and growth
• Internal business processes
• Social Responsibility
9. ETHICAL SCORE CARD
Parameters Rank on
scale of
1-5
1-least,
5-max
1 2 3 4 5
Finance Tax compliance
Profits computation
Market capitalization
Debt servicing
Internal
business
process
Transparency across
organization
Communication flow
Work balance
Safety and security
10. Customers
Value
1 2 3 4 5
Quality
Differentiation
Channels
Learning and growth Innovation driven
Participative mgmt
style
Develop career
path
Skill based training
Social Responsibility Environmental
protection
Social infrastructure
Employment
generation
11. 1 2 3 4 5
Support physical
Infrastructure
TOTAL-______________
THE TOTAL CAN BE ANYTHING BETWEEN 0 TO 100.
LETS TERM THIS FIGURE MEASURE OF ETHICS FOR NOW.
12. LONG TERM SUCCESS
• Success is function of :
• ETHICS
• STRATEGY
• BOTTOM & TOPLINE
• ROI/ROA
Non financial
Financial
EXPONENTIAL SMOOTHING TECHNIQUE by:
Success = α * Financial + (1- α) * non financial
14. IMPACT OF ETHICAL
LEADERSHIP
IMPACT OF ETHICAL FOUNDATION ON
THE COMPANIES POLICY FRAMEWORK
CAN BE UNDERSTOOD IN THE SHORT
TERM AND THE LONG TERM CONTEXT.
16. ETHICS IN THE NEW ECONOMY
• Indian economy is experiencing phenomenal changes in the
current times and the way business is conducted is changing at
a meteoric speed.
• In the last 15 years we have moved from being a Sellers
Market to a buyers market and continue to empower the
buyers.
• Competition has intensified and brand premiums are shrinking.
• Companies are fighting tooth and nail to gain customers
mindshare and are constantly improving on their offerings.
17. ETHICS IN THE NEW ECONOMY
We are still moving further and the future is of
organizations with a global supply chain.
Not too far is the day when any product produced
anywhere in the world will be sold all over the world.
When such a market will come into existence only
those companies will sustain and grow those who
enjoy an image of a ‘good’ company in the minds of
the buyers.