Monday, May 6, 2013

ETHICS AND LEADERSHIP



INTRODUCTION
Ethics is from the Greek word ethos meaning custom, practice and usage.  Ethics refers to broadly accepted principles, judgments or ideas about:
  • what are right and wrong
  • good and evil
  • correct and incorrect behaviour / conduct
  • moral and immoral etc
“Morality” is often used interchangeably with ethicality.  Morality is more often related to personal morals or ethics in deciding about what is right and wrong as individuals.  Whereas ethics is typically related to a collective beliefs system about what is right and wrong.
Organizations of all sizes and types are only as ethically “sound” as the people that they employ and how fairly they think they are being treated.  An ethical culture will not emerge unless leaders play their full part in the process in bringing it into being and sustaining it.
 
ETHICS THEORY
Philosophers usually divide ethical theories into three general subject areas:
  • meta-ethics
    • investigates where ethical principles come from, and what they mean
    • focus on issues of universal truths, the role of reason in ethical judgments, and the meaning of ethical terms themselves
  • normative ethics
    • a more practical task to arrive at moral standards that regulate right and wrong conduct
    • involve articulating good habits that should be acquired, duties that should be follow, or consequences of our behaviour, when it comes to others
  • applied ethics
    • involves examining specific and controversial life issues, such as abortion, infanticide, animal rights, environmental concerns, homosexuality, capital punishment, or nuclear war
    • also examine a range of organizational issues
The lines of distinction between meta-ethics, normative ethics, and applied ethics are not always clear.
Corporate ethics are standards of behaviour or judgments about what is considered to be organizational right and wrong.  It allows individuals to act within certain boundaries when they face different circumstances or have to make a variety of different business-related decisions.  Three standard approaches to ethical policy:
  • Respect
  • Responsibility
  • Results
 
ETHICAL LEADERSHIP
Great leaders teach through words and through actions.  Thus, ethical leadership should be effective and efficient at implanting a solid corporate governance model, providing an ethical approach, and consistently setting an example to people at all levels.  An “ethical business dilemma” is often not just a choice between right and wrong but a choice between two “rights”.  Leaders can examine dilemmas from three different perspectives:
  • To anticipate the consequences of each choice and attempt to identify who will be affected, and in what ways
  • Use moral rules, assuming that the world would be a better place if people always followed certain widely accepted standards (such as telling the truth)
  • Emphasize caring, which is similar to the so-called “Golden Rule”
Many business ethics experts agree that all leaders should have and be willing to act on a definite sense of ethical standards.  Ethical behaviour must become a habit.  People become virtuous by practicing virtue.  Ethical behaviour should be a constant companion when a leader makes a myriad of little decisions each day, besides for the big and visible issues.
It is not enough to be ethical in one’s individual actions to be an ethical leader.  There are four components of ethical leadership that should be understood and developed:
  • Purpose – has reasons and acts with wider organizational purposes
  • Choice – has the knowledge to judge and act prudently
  • Responsibility – to make decisions and act, also recognizes that all those involved and affected must have the authority
  • Trust and Growth – inspires trust throughout the organization and its environment
 
HONESTY AND ETHICS
Honesty is the quality most appreciated by subordinates in any leader.  Everyone values honesty, or would urge that people be, as often as possible, as honest as they can be.  Adding honesty to the four components of ethical leadership will add specificity:
  • Purpose and honesty
Purpose gives meaning to our life.  We need to be honest with ourselves and others and share the same purpose.  If purposes are not shared, it will be found, over time that we are working at cross-purposes and that our efforts have been for nothing.
  • Choice and honesty
Choice is the essential activity that defines us as human beings.  If those we deal with have not been honest with themselves and others, we may be making choices based upon bad information, or worse, our choices may have been made for us through the dishonesty of others.
  • Responsibility and honesty
As the drivers or decision-makers of our own situation and lives as a whole, we are the cause of the actions we take, and is responsible for them.  If those we deal with have not been honest with themselves and others, they will be unable to exercise their authority prudently, and we will be unable to fix responsibility for the actions and consequences that affect us.  Where authority is not exercised prudently, we will find ourselves in a world of grey where we can count on neither individuals nor groups.
  • Trust/growth and honesty
Trust and growth are typically how individuals evolve in life and in the workplace.  Trust between people is a fundamental need for development and growth individually and collectively.
SUMMARY
One means of raising ethical awareness is to form an ethics committee.  The committees would raise awareness of ethical issues, formulate ethical codes and advise senior management grappling with ethical dilemmas.
Leaders should use their power with restraint, since it always holds the potential for treating others as poorly or even “inhumanely” when taken to extremes.  Stewardship asks leaders to acknowledge their own human faults and limitations rather than hiding behind their status and power.  To be an ethical leader is not just a matter of following a few simple rules.  The leader’s responsibility is complex and multi-dimensional, rooted less in technical expertise than in simple human integrity or character.
 
SHARED FROM:

Business Ethics by Dr. Jon Warner
March 22, 2013

Ethical Leadership by Dr. Jon Warner
October 12, 2012

Ethics in the Workplace by Dr. Jon Warner
May 17, 2012

Workplace Relationships and Ethics by Dr. Jon Warner
May 8, 2012

Developing Ethical Leadership Skills by Dr. Jon Warner
May 7, 2012
 

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