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Ethical Leadership<br />Saint Paul SCOREAugust 9, 2011<br />

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“Business ethics is so…negative.”<br />

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Empower others to improve the world<br />

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Ethical Leaders in ActionLeadership Development Model<br />LeadingSelf<br />Leading in Context<br />Leading Others<br />

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Learning across contexts<br />

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Among my teachers…<br />

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Thinking about stakeholders<br />Investors<br />Fiduciary<br />Employees<br />Partners<br />Contractual<br />Vendors<br />Customers<br />Environment<br />Communities<br />Competitors<br />Arms-Length<br />

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A More Realistic View of Stakeholder Diagrams<br />Relationshipsmay be harder tograph <br />than toimprove!<br />

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The Old Employment Model:“Master-Slave”<br />Not allslavery structureswere/are<br />the same.The same<br />Is true foremployment<br />terms<br />Minimally constrained by human rights. Employment at Will is a logical evolution from this view.Eugene Genovese’s economic conclusion: slavery didn’t pay!<br />(The Political Economy of Slavery: Studies in the Economy and the Society of the Slave South, 1965).<br />

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Measuring Engagement<br />Retention<br />Safety<br />Customer Service<br />Productivity<br />Profitability<br />Source: Gallup Q12 Summary<br />

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Employee Engagement Drivers<br />Clear expectations for performance<br />Adequate materials and equipment<br />Ability to succeedin assigned roles<br />A supervisor who cares about subordinates<br />Co-workers committed to quality work<br />Opportunities to learn and grow<br />Source: Gallup Q12 Summary<br />

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Why think about “Fair Process?”<br />“Process” <br />includesanything fromgiving feedback toa single FF<br />to setting<br />departmental<br />strategy <br />We are most likely to trust and co-operate with individuals and systems - whether we win or lose - when we experience fair process. <br />Kim & Mauborgne, Harvard Business Review, July – August 1997<br />

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The Three Elements of Fair Process<br />Engagement<br />Stakeholders invited to participate<br />Participants have an opportunity to be heard<br />Explanation<br />Process and rationale are clearly explained, along with decisions and outcomes.<br />Explanation is respectful – it is also often educational.<br />Expectation Clarity<br />When decisions are made, implications for all stakeholders are clearly articulated.<br />Everyone knows what to expect, and what is expected of them.<br />FairProcess isworking<br />WITHothers<br />

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Fair Process does not mean:<br />Democracy<br />Consensus<br />Happiness or Contentment<br />Accommodation of individual wishes or whims<br />Command relinquishing legitimate decision authority or accountability<br />Just being nice<br />A good indication of a fair process is when people who do not“get their way” understand why and how a decision was made, and acknowledge that the process was fair.<br />

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The Misuse of Power<br />Maintain control by keeping employee’s at arms length.<br />Substitute memos and forms for direct, two-way communication.<br />Avoid challenges to their ideas and authority.<br />Believe that knowledge is power and retain power by keeping what they know to themselves.<br />Deliberately leave the rules for success and failure vague. <br />

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Customer Expectations and Commitments<br />What should our customers expect from us?<br />Do we communicate about those expectations?<br />How do we hold ourselves accountable?<br />How do we respond when problems arise?<br />“Even if two customers are buying the same product, they may want totally different services wrapped around it.” – VP, Customer Service, semiconductor firm<br />

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Challenge: engaging vendors<br />What should your clients expect from their vendors?<br />What should vendors expect of them?<br />What do basic, healthy relationships look like?<br />What about shared-destiny, strategic relationships?<br />

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Ethical Dimensions of Competitors<br />Ethical Duties: <br />Comply with laws<br />Refrain from manipulating legal/regulatory processes<br />Competition can expand markets and validate customer desire<br />Competition can drive innovation, discipline, and efficiency.<br />Defeating competitors is an easy surrogate for the pursuit of excellence.<br />

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The oldest leadership seminar<br />Safety and comfort<br />Tactical information<br />Problem-solving<br />Strategic decisions <br />Who are we???<br />If we aren’ttelling <br />stories,otherssurely <br />are!<br />

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Thank you for your attention!<br />Chad WeinsteinEthical Leaders in Action, LLC<br />cweinstein@ethinact.com<br />651-646-1512 <br />“We enable ethical leaders to achieve extraordinary results” <br />