Ethical Leadership in Organizations Essay Example for Free

honorable Leadership in Organizations Essay ethical attractorship is trioing that is involved in leading in a manner that respects the rights and dignity of others. As attractionshiphiphip ar by nature in a position of accessible creator, ethical leading focuses on how leaders use their social power in the decisions they make, actions they engage in and modal determine they influence others. Leaders who atomic number 18 ethical demonstrate a level of integrity that is important for stimulating a intelligence of leader trustworthiness, which is important for followers to evaluate the vision of the leader. Leaders who are ethical are tribe-oriented, and too aware of how their decisions impact others, and use their social power to serve the heavy(p)er good kinda of self-serving interests. Motivating followers to put the of necessity or interests of the group ahead of their receive is another quality of ethical leaders. Motivating involves engaging others in an intellectual and emotional commitment between leaders and followers that makes both parties equ wholey responsible in the pursuit of a common goal. Ethical leadership falls within the nexus of inspiring, stimulating, and visionary leader behaviours that make up transformational and charismatic leadership. Ethical leaders assist followers in gaining a sense of person-to-person competence that allows them to be self-sufficient by encouraging and empowering them.What is Ethical Leadership?One exemplary response to the ethics crisis in business is a clarion call for much ethical leadership, until now there are few explanations of what exactly is meant by the term. M whatsoever executives and business ventureers believe that ethical leadership is simply a matter of leaders having good character. By having the right determine or beingness a person of strong character, the ethical leader tummy set the example for others and withstand any temptations that may occur along the burea u. Without denying the importance of good character and the right shelters, the reality of ethical leadership is far more complex and the stakes are much higher.Over the past 25 years, in talking to executives in a number of industries about the problems of how to lead in a world of great changeglobalization, democratization, and incredible technological advanceswe throw a means identified a number of touchst iodines for the idea of ethical leadership. Our companionship is very much contrary to the picture of business executives oneness finds in public discussion where they are often seen as greedy, competitive, and only concerned with compensation. In fact most executives want to be effective in their jobs and to leave their companies and the world a better place, creating value on both fronts for those whose lives they affect.Our view of ethical leadership takes into account not only the leader exactly also his constituents (followers and key stakeholders), the context or f eature that the leader and constituents face, the leaders processes and skills, and the outcomes that result. Leaders are first and foremost members of their own make-ups and stakeholder groups. As such, their purpose, vision, and determine are for the benefit of the entire organization and its key stakeholders.Leaders see their constituents as not notwithstanding followers, but kind of as stakeholders striving to achieve that same common purpose, vision, and values. These follower and stakeholder constituents welcome their own individuality and autonomy which must be respected to maintain a good community.Ethical leaders embody the purpose, vision, and values of the organization and of the constituents, within an understanding of ethical ideals. They connect the goals of the organization with that of the internal employees and outer stakeholders.Leaders work to create an exposed, two-way conversation, thereby maintaining a charitable understanding of different views, values , and constituents opinions. They are open to others opinions and ideas because they know those ideas make the organization they are leading better.Characteristics of Ethical LeadersIn straightaways turbulent world, ethics and values are present at a number of levels for executives and managersleaders who devote their time and energy to leading the process of value creation. This broader concept of ethical leadership empowers leaders to incorporate and be explicit about their own values and ethics. The following list provides a poser for developing ethical leadership. It is based on the observations of and conversations with a host of executives and students over the past 25 years, and on readings of both popular and scholarly business literature. Written from the perspective of the leader, these ten facets of ethical leaders furnish a way to understand ethical leadership that is more complex and more useful than near a matter of good character and values.It is important for lea ders to tell a compelling and virtuously rich story, but ethical leaders must also embody and live the story. This is a fractious task in todays business environment where everyone lives in a fishbowlon public display. So many an(prenominal) political leaders fail to embody the high-minded stories they tell at election time, and more recently, business leaders have become the focus of similar criticism done the revelations of numerous scandals and bad behaviours. CEOs in todays corporations are really ethical role models for all of society.1. Articulate and embody the purpose and values of the organization.Following a series of unethical activities by Citigroup employees in Japan in 2004, new CEO Chuck Prince fired several executives, publicly accepted office and bowed apolo sterilizeically to Japanese officials. Not only did Princes message resonate within Japan, but it also printalled a new era of shared responsibility within the culture of Citigroup where every employee was evaluate to take ownership for their decisions that affected the enterprise.2. Focus on organizational success or else than on personal ego.Ethical leaders understand their place within the larger network of constituents and stakeholders. It is not about the leader as an individual, it is about something biggerthe goals and dreams of the organization. Ethical leaders also recognize that value is in the success of flock in the organization.In 1998, in a bold gesture demonstrating how he valued the lodges line employees, Roger Enrico, former Chairman and CEO of PepsiCo, chose to forego all but $1 of his salary, requesting that PepsiCo, in turn, contribute $1 million to a scholarship fund for employees children.In a similar manner, the founders of JetBlue began a process of matching, from their salaries, employee donations to a charity. Today, their entire salaries go to the JetBlue Crewmember Catastrophic Plan charity, to assist staff with crises not cover by insurance. The point of these examples is not that ethical leaders donate their salaries to charities, but rather that ethical leaders identify and act on levers, such as employee loyalty, that drive organizational success.3. Find the best people and develop them.This task is fairly standard in different models of leadership. Ethical leaders pay supererogatory attention to finding and developing the best people precisely because they see it as a moral imperativehelping them to lead better lives that create more value for themselves and for others. Finding the best people involves taking ethics and character into account in the selection process.Ethical leaders pay special attention to finding and developing the best people umteen CEOs have said to us that decide someones integrity is far more important than evaluating their experience and skills. Yet, in many organizations, employees are hired to fill a particular skill need with little regard to issues of integrity.4. Create a living conversation a bout ethics, values and the creation of value for stakeholders.Too often business executives think that having a laminated values card in their wallet or having a purely conformance forward motion to ethics has solved the ethics problem. Suffice it to say that Enron and other troubled companies had these systems in place. What they didnt have was a conversation across all levels of the business where the basics of value creation, stakeholder principles and societal expectations were routinely discussed and debated. thither is a fallacy that values and ethics are the soft, squishy part of management. Nothing could be win from the truth.In organizations that have a live conversation about ethics and values, people hold each(prenominal) other responsible and accountable about whether they are really living the values. And, they expect the leaders of the organization to do the same. Bringing such a conversation to life means that people must have knowledge of alternatives, must choo se every day to stay with the organization and its purpose because it is important and inspires them. fashioning a strong commitment to bringing this conversation to life is essential to do if one is to lead ethically.Most people know the story of Johnson and Johnsons former CEO Jim Burke and the Tylenol harvesting recall in the 1980s in which, at a great short-term financial cost, he pulled all potentially tampered-with products off the shelves, thereby keeping the publics trust intact.The less well-known(a) background to this story, however, is critical to understanding the final outcome. Well before the Tylenol crisis hit, Johnson Johnson had held a series of quarrel meetings all around the world, where managers sat and debated their Credo, a statement of their purpose and principles of who they wanted to be as a company. The conversation about ethics at Johnson Johnson was alive, and in many ways make Jim Burkes choice about handling the situation clearer than it otherwise would have been.5. Create mechanisms of dispute.This needs to be made part of the organizational culture, not alone a line item in a compliance program document. Some companies have used anonymous e-mail and telephone processes to give employees a way around the levels of management that inevitably spring up as barriers in large organizations. Many executives also have used skip level meetings where they go down multiple levels in the organization to get a more realistic view of what is actually going on.General Electrics celebrated workout processwhere workers meet to decide how to fix problems and make the company betterwas a way for front line employees to push back against the established policies and authority of management. All of these processes lead to better decisions, more engaged employees, and an increased likelihood of avoiding damaging mistakes.In a company that takes its purpose or values seriously, there must be mechanisms of pushing back to avoid the values becom ing stale and dead. Indeed, many of the current corporate scandals could have been prevented if only there were more creative ways for people to transmit their dissatisfaction with the actions of some of their leaders and others in the companies. The process of developing these mechanisms of dissent will vary by company, by leadership style, and by culture, but it is a crucial leadership task for value creation in todays business world.6. Take a charitable understanding of others values.Ethical leaders can understand why different people make different choices, but still have a strong grasp on what they would do and why. Following twenty-seven years in South African prisons, Nelson Mandela was still able to see the good in his jailors. After one particularly vicious jailer was being transferred away from Robbins Island because of Mandelas protest and push back, the jailer turned to Mandela and stated I proficient want to wish you people good luck. Mandela interpreted this stateme nt charitably as a sign that all people had some good within them, even those caught up in an evil system. Mandela tangle that it was his responsibility to see this good in people and to try and bring it out. One CEO suggested that instead of seeing ethical leadership as preventing people from doing the wrong thing, we need to view it as modify people to do the right thing.7. Make tough calls while being imaginative.Ethical leaders inevitably have to make a lot of difficult decisions, from reorienting the companys strategy and basic value proposition to making individual personnel decisions such as working with employees exiting the organization. Ethical leaders do not attempt to avoid difficult decisions by using an excuse of Im doing this for the business. The ethical leader consistently unites doing the right thing and doing the right thing for the business.The idea that ethical leadership is just being nice is far from the truth. Often, exercising moral imagination is the most important task. Mohammed Yunus founded the Grameen Bank on such moral imagination. By taking the standard banking practice of only lending to people with collateral, and go it on its head, Yunus spawned an industry of micro-lending to the brusque.The Grameen Banks motto is that poverty belongs in a museum. In entree to having one of the highest loan repayment rates in the banking industry, the banks program of lending to poor women in Bangladesh to start businesses has helped millions of them to be able to feed themselves.8. Know the limits of the values and ethical principles they live.All values have limits, particular spheres in which they do not work as well as others. The limits for accredited values, for instance, may be related to the context or the audience in which they are being used. Ethical leaders have an acute sense of the limits of the values they live and are prepared with solid reasons to contain their chosen course of action. Problems can arise when managers do not understand the limits of certain values.As an example, one issue common to the recent business scandals was that managers and executives did not understand the limits of putting shareholders first. Attempts to artificially keep tune prices highwithout creating any lasting value for customers and other stakeholderscan border on fanaticism rather than good judgment. Ethics is no different from any other part of our lives there is no succor for good judgment, sound advice, practical sense, and conversations with those affected by our actions.9. Frame actions in ethical terms.Ethical leaders see their leadership as a fully ethical task. This entails taking seriously the rights claims of others, considering the effects of ones actions on others (stakeholders), and understanding how acting or leading in a certain way will have effects on ones character and the character of others. There is slide fastener amoral about ethical leaders, and they recognize that their own values may sometimes turn out to be a poor guidepost.The ethical leader takes responsibility for using sound moral judgment. But, there is a caution here. It is easy to frame actions in ethical terms and be perceived as righteous. Many have the view that ethics is about universal, inviolable principles that are carved into stone. We need to start with principles and values, and and then work hard to figure out how they can be applied in todays complex global business environment.Principles, values, cultures, and individual differences often conflict. Ethical leadership requires an attitude of humility rather than righteousness a commitment to ones own principles, and at the same time, openness to culture and to having conversations with others who may have a different way of seeing the world. Ethics is best viewed as an open conversation about those values and issues that are most important to us and to our business. It is a continual stripping and reaffirmation of our own principles and va lues, and a realization that we can improve through encountering new ideas.