2. Definition of ethics
Ethical leadership
Dilemmas in assessing ethical leadership
Determinants of ethical leadership
Consequences of ethical and unethical leadership
Theories of ethical leadership
Evaluation of ethical leadership
Guidelines for ethical leadership
Outline
3. ETHICS: doing right things for greater goods
Unethical does not mean illegal
Ethics is knowing the difference between what you have to do and what is
right to do.
Why Now?
Environmental crisis
Social crisis
Economic crisis
Interest in ethical aspects of leadership has been growing as public confidence
in political and corporate leaders continue to decline
4. Leading in the manner that consistently respects the rights and dignity of all
stakeholders.
Attributes and behavior of ethical leadership
Consideration and respect for others
Fairness and non-discriminatory treatment
Dissemination of ethical guidelines for
Modeling ethical behavior to set a visible example for others
Criticizing or punishing unethical behavior
It is important for leaders to tell a compelling and morally rich story, but ethical
leaders must also embody and live the story.
Ethical Leadership
5. Moral standards used to evaluate ethical behavior are:
Violating basic laws of society
Denying others their rights
Endangers the health and lives of other people
Attempts to deceive and exploit others for personal benefit.
Judgments about ethical leadership vary somewhat across cultures.
It is necessary to consider a leader’s intentions and values as well as
behaviors when evaluating ethical leadership
6. Influencing Expectations
Unethical to make false promises and deceiving about likely outcomes
Crisis time
Influencing values and beliefs
Unethical to attempt to change the underlying individual values and beliefs
Major changes for firms survival and effectiveness
Multiple stakeholders and competing values
Unethical to do best in the interest of particular stake holders
Serving conflicting interest of different stakeholders
So ethical leadership can be assessed on the basis of subjective judgements about rights,
accountability, due process, social responsibility
Dilemmas in Assessing Ethical Leadership
7. Individual determinants Situational determinants
Personality traits and needs:
High conscientiousness, low neuroticism and
personalized power orientation
Organizational culture and reward system
Values
Personal values, organizational values, social
and moral values
Community or national cultural values and
beliefs
Integrity
Honesty and having strong moral principles
Uncertain environment and lack of strong
government regulation
Kohlberg(1984) stages of moral development
Lowest, middle and highest level
Followers characteristics
Self-esteem and self efficacy
Determinants of Ethical Leadership
8. Ethical Leadership Unethical Leadership
Increase organizational citizenship behavior Decrease organizational citizenship behavior
Build trust, creditability and respect both for
individual and for the organization
Aggression towards organization and
coworkers
Increase the self-respect and moral of peoples
in the organization
Pessimistic employee attitudes
Lead to collaboration which creates good
atmosphere and good-team working
Difficulty of recruitment and bad work
environment
Consequences of Ethical and Unethical
Leadership
Sometime unethical leadership can help some organization to achieve the objectives and goals
with the profitability into the company in short run, but this leadership style can create the
negative effects in long run.
9. Transformational Leadership: leader identifies the needed change, creates a vision to
guide the change through inspiration, and executes the change with the
commitment of the members of the group
It may involve influencing peers
and superiors as well as
subordinates
Theories of Ethical Leadership
10. The servant-leader is servant first…. It begins with the natural feeling that
one wants to serve
Helping others to accomplish shared objectives
Encourage others
Build morale
Individual development and Empowerment in followers
Servant leadership
11. Goal: Enhance intrinsic motivation
Reason: many people are seeing deeper meaning in work
Why: one’s work will have meaning and value other than instrumental
benefits and self gratification
: to increase the need for transcendence and fellowship
How: through altruistic love such as kindness, gratitude, forgiveness,
humility, honesty, compassion trust and loyalty
Spiritual leaders increase the intrinsic motivation, confidence and organizational
commitment through transcendence and fellowship.
Spiritual Leadership
12. Based on positive psychology and psychological theories of self regulation
Authentic leaders have core values that motivate them to do what is right
and fair
Aspects includes:
Positive leader values, Leader self-awareness and Trusting relationship
with followers
They create special type of relationship with followers
Create high mutual trust
Transparent
Guidance towards worthy shared objectives
Generally, authentic leaders are positive people with truthful self-concepts
who promote openness.
Authentic leadership
13. More emphasis on leader values than on leader behavior
More emphasis on consequences for stakeholders than on enhancement
of subordinate motivation and performance
For charismatic and transformational theories, these priorities are
reversed.
Early stage of development
Substantial conceptual ambiguity
Measures of ethical leadership are still in the early stages
More research, including some intensive, longitudinal studies, will be
needed to clarify the relationships proposed by the theories.
Evaluation of Ethical Leadership Theories
14. Set clear standards of ethical conduct.
Model ethical behavior in your own actions.
Help people find fair and ethical ways to resolve problems and conflicts.
Oppose unethical practices in the organization.
Implement and support programs to promote ethical behavior
Cultural values, laws and ethical standards
Guidelines for Ethical Leadership