Leadership Ethics and Social Responsibility

1. Leadership Ethics and Social Responsibility By: Reed, Smith, Stabile, Starnes, Thorton, Williamson

2. Five Ethical Leadership Behaviors • Be Honest and trustworthy and Have Integrity in Dealing with Others • Pay Attention To all Stakeholders • Build Community • Respect the Individual • Accomplish Silent Victories

3. Honest, Trustworthy, and Integrity • Survey evidence supports the belief that ethical leadership is important for the welfare of a company: attracting, retaining, and ensuring • Trust in business leaders is now low. • 1,200 workers were surveyed across a variety of industries • An ethical leader is honest and trustworthy and therefore has integrity

4. Pay Attention to All Stakeholders • An ethical and moral leader strives to treat fairly all interested parties affected by his or her decision. • CEO’s primary responsibility is to maximize shareholder wealth conflicts with the principle of paying attention to all stakeholders. • 1.Laying off valuable employees to reduce payroll cost • 2.Overcharing customers. • 3.Reducing health benefits for retirees

5. Build Community • The needs of all stakeholders to achieve a common goal. • When different types of people work torwards the constructive goal, they build a community. • A common goal among employees is equal treatment amongst each other.

6. Respect the Individual • Principle of ethical and moral leadership that incorporates other aspects of morality. • Telling the truth, keeping promises, and treating other fairly. • Showing respect for the individual also means that you recognize that everybody has some inner worth and should be treated with courtesy and kindness.

7. Accomplish Silent Victories • Modesty and restraint are largely responsible for the achievements of the most effective moral leaders in business. • Ethical and moral leader works silently and somewhat behind the scenes, to accomplish moral victories • Moral leaders usual work quietly on an ethical agenda.

8. Factors Contributing to Ethical Differences • Leader’s level of greed, gluttony, and avarice • Rationalization • Implied Permission • Level of moral development • Entitlement • Situation • Person’s character

9. Factors Continued • Greed- Maximize personal returns, even at the expense of others • Rationalization- Focus on the intent of the action, not the action itself • Implied Permission- Must be okay, if no one is telling me to stop • Level of moral development- preconventional, conventional, postconventional

10. Factors Continued • Entitlement- some leaders lose sense of reality and think they can do whatever they want • Situation- If top leaders take unethical risks, other leaders under them might behave similarly • Person’s character- Higher a person’s character, better chance they will be ethical

11. Ethical Mind for Leaders • Ethical Mind- “ point of view that helps the individual aspire to good work that matters to their colleagues, companies, and society in general.”

12. Evaluating the Ethics of a Decision • Is it right? Deontological theory • 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 mail? • What would you tell your child, sibling, or young relative to do? • How does it smell?

13. Strategic Leadership of Ethics and Social Responsibility • senior managers become ethics leaders: policies and actions set the ethical and social responsibility tone for an organization • if high ethics receive top priority, workers at all levels are more likely to behave ethically • includes leading by example • workers throughout an organization should believe that behaving ethically is “in” and behaving unethically is “out” • ethical behavior should be rewarded and unethical behavior punished

14. Creating a Pleasant Workplace • a pleasant workplace should have flexible working hours, on-site daycare, concierge services • stimulates employee production • firms with pleasant workplaces are also some of the most profitable • increases chances that employees’ lives will be enriched • a social responsibility initiative that directly affects employees’ well-being

15. Social Responsibility (Environment • It is the duty of the corporation to protect the environment from their own production • They are apart of the community to • What ever changes, even if minor, are a major help

16. Leadership Ethics(Environment • If the leadership doesn’t have good morals or ethics neither will the company • If its important to the leaders it will be important to everyone else • The leaders decide whether or not the company will ultimately be socially responsible or not

17. Philanthropy • Philanthropy is donating money to specific causes or charity’s • Most companies do this in order to gain good public relations • Some do it because the leadership decides its what should be done

18. Ethical Behavior & Organizational Performance • High Profits • High Demand Investments (Ex. Poor Community) • Reinforce Each Other • Customer & Client Loss (New & Old)