KRISTINA RICKETTS, PH.D.JULY 29, 2009

Right vs. Right – The Complexity of Leading Ethically

Today’s Objectives

Define the basics of ethicsIntroduce Kohlberg’s theory of moral

developmentOutline ethical leadership behaviorsDetermine why ethical decision-making can

be difficultEstablish what affect groups/organizations

have on leadersDiscuss two types of ethical leadership

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?

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

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

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

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

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

Ethical Leadership Behavior

Being honest & trustworthy – deal with integrity Leaders today are often seen as untrustworthy Integrity: working under a loyalty to rational

principalsPay attention to all stakeholders

Treat everyone involved fairly Authentic leadership – perceiving leadership role

to include having an ethical responsibility

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 respectAccomplish silent victories

Working “quietly” on an ethical agenda

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

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?

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

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

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

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

Review

Define the basics of ethicsIntroduce Kohlberg’s theory of moral

developmentOutline ethical leadership behaviorsDetermine why ethical decision-making can

be difficultEstablish what affect groups/organizations

have on leadersDiscuss two types of ethical leadership

Questions?