Right vs. Right – The Complexity of Leading Ethically

1. Right vs. Right – The Complexity of Leading Ethically Kristina Ricketts, Ph.D. July 29, 2009

2. Today’s Objectives Define the basics of ethics Introduce Kohlberg’s theory of moral development Outline ethical leadership behaviors Determine why ethical decision-making can be difficult Establish what affect groups/organizations have on leaders Discuss two types of ethical leadership

3. What do you think? Is right and wrong always clear cut and easy to recognize? Do you think we have a problem with ethical leadership in today’s society? Why or why not? Think of a personal example where you were faced with an ethical decision – what did you do?

4. What you may perceive as a simple lie…that doesn’t hurt anybody and protects the company, sooner or later will come back to bite you… If you can’t be open and honest at all times, you’re sending a signal to the organization that you will let them get away with lying occasionally. And that includes lying to you. - D. Clare, CEO, Johnson & Johnson

5. Important Definitions • Morals: an individual’s determination of right and wrong • Ethics: a set of moral principles; the study of moral obligations • Moral leadership: to display a commitment to right action while influencing others • Values: something (as a principle or quality) intrinsically valuable • Influence individual morals, ethics

6. The Basics of Ethics • Two types of ethics • Ethics of justice – based on principles of justice, fairness, equality, and authority • Based on moral principles, laws that should be applied equally • Style can be cold, inflexible, uncaring • Ethics of care – based on the principle to reduce harm or suffering to others • Based on equity, appropriateness, and fitting the situation • Special circumstances considered • Responsive to suffering and harm – but may seem arbitrary/subjective

7. Moral Development • Three stages (Kohlberg’s theory) • Preconvential – ages 4 to 10 • Something is good because of adult influence, or it satisfies a need we have • Conventional morality – begin to consider what is good for others/or the whole • Postconventional (develops as an adult) – develop appreciation for moral principles, individual ethical thinking • Includes principles of justice, equality of human rights, respect for dignity of human beings as individuals • Some individuals never get to this stage

8. Moral Conduct • Moral leadership involves… • Ethical conduct of leaders AND • Capacity to inspire such conduct in followers • Moral character • Fixed character traits – partially responsible for ethical behavior • Upbringing, background • Moral conduct is highly situational • Heavily influenced by peer pressures/reward structures

9. Ethical Leadership Behavior • Being honest & trustworthy – deal with integrity • Leaders today are often seen as untrustworthy • Integrity: working under a loyalty to rational principals • Pay attention to all stakeholders • Treat everyone involved fairly • Authentic leadership – perceiving leadership role to include having an ethical responsibility

10. Ethical Leadership Behavior • Build community • Helping people to achieve a common goal • When people work together towards a common goal, building community • Respect the individual • Keep promises, telling the truth, treating others fairly – shows respect • Accomplish silent victories • Working “quietly” on an ethical agenda

11. Ethical Decision Making • Four components of ethical decision making: • Moral awareness: recognition that a situation raises ethical issues • Moral reasoning: determining what course of action is ethically sound • Moral intent: identifying which values should take priority in the decision • Moral behaviors: acting on ethical decisions

12. Guidelines for Ethical Decision-making • Is it right? • Is it fair? • Who gets hurt? • Would you be comfortable if the details of your decision or actions were made public in the media or through email? • What would you tell your child, sibling, or young relative to do? • How does it smell?

13. Contributing Factors to Ethical Issues • Individual leaders differ • Level of greed and gluttony • Level of moral development • Preconventional, conventional, postconventional • Sense of entitlement • Specific situation – organizational culture • Person’s character

14. Organizational Influence on Ethics • Factors contributing to unethical climates • Elevation of personal interests over moral values • Enron – hypercompetitive, profit-at-any-cost environment • “Rank and yank” evaluation system – financial performance key indicator • Mutual peer rewards • Key point – Many leaders failed to exercise appropriate moral oversight and create a climate that would encourage it • Ethical indifference • Moral leadership isn’t made a priority • Difficulty of decision-making in organizations • “Right vs Right” decisions

15. Values-based Leadership • Values-based leadership: understanding the different and conflicting needs of followers, and energizing followers to pursue a goal than they had never thought possible • Effectiveness – measuring the achievement of the objectives • Morality – measuring how change affects concerned parties, and • Time – measuring the desirability of any goal over the long term

16. Social Change Model of Leadership • Basic premises: • Values demand a conscious focus • Leadership out to bring about desirable social change • Leadership is a process • Anyone is a potential leader • Service is a powerful vehicle for leadership development • Seven core values: • Personal/individual values • Consciousness of self, congruence, commitment • Group values • Collaboration, common purpose, controversy with civility • Societal/community value • Citizenship

17. Review • Define the basics of ethics • Introduce Kohlberg’s theory of moral development • Outline ethical leadership behaviors • Determine why ethical decision-making can be difficult • Establish what affect groups/organizations have on leaders • Discuss two types of ethical leadership

18. Questions?