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Ethics and Leadership Ethics and Leadership

Business ethics

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Page 1: Business ethics

Ethics and LeadershipEthics and Leadership

Page 2: Business ethics

OutlineOutline

What is ethics?What is ethics? Three approaches to resolving Three approaches to resolving

ethical conflictsethical conflicts Making ethical decisionsMaking ethical decisions

Page 3: Business ethics

Ethics: What Does It Ethics: What Does It Really Mean?Really Mean?

DefinitionsDefinitions EthicsEthics involves a discipline that involves a discipline that

examines good or bad practices examines good or bad practices within the context of a moral dutywithin the context of a moral duty

Moral conductMoral conduct is behavior that is is behavior that is right or wrongright or wrong

Page 4: Business ethics

Two Key Branches of Two Key Branches of EthicsEthics

Descriptive ethicsDescriptive ethics involves involves describing, characterizing and describing, characterizing and studying moralitystudying morality ““What is”What is”

Normative ethicsNormative ethics involves involves supplying and justifying moral supplying and justifying moral systemssystems ““What should be”What should be”

Page 5: Business ethics

3 Models of Leadership 3 Models of Leadership EthicsEthics

1.1. Immoral LeadershipImmoral Leadership—A style devoid of ethical —A style devoid of ethical principles and active opposition to what is ethical.principles and active opposition to what is ethical.

2.2. Moral LeadershipMoral Leadership—Conforms to high standards —Conforms to high standards of ethical behavior.of ethical behavior.

3.3. Amoral LeadershipAmoral Leadership Intentional - does not consider ethical factorsIntentional - does not consider ethical factors Unintentional - casual or careless about ethical Unintentional - casual or careless about ethical

considerations in business considerations in business

Page 6: Business ethics

Resolving Ethical Resolving Ethical ConflictsConflicts

Three ApproachesThree Approaches Conventional Conventional PrinciplesPrinciples Ethical testsEthical tests

Page 7: Business ethics

Conventional Approach Conventional Approach to Ethicsto Ethics

Conventional approach to ethics Conventional approach to ethics involves a comparison of a involves a comparison of a decision or practice to prevailing decision or practice to prevailing societal normssocietal norms Pitfall: Pitfall: ethical relativismethical relativism

Decision or Practice Decision or Practice Prevailing NormsPrevailing Norms

Page 8: Business ethics

Leadership and EthicsLeadership and EthicsCulture RelativismCulture Relativism

Many people in contemporary Many people in contemporary society are inclined toward society are inclined toward relativism - roughly, the view relativism - roughly, the view that there is no objective truth that there is no objective truth in morality, right and wrong are in morality, right and wrong are only matters of opinion that only matters of opinion that vary from culture to culture, vary from culture to culture, and possibly, from person to and possibly, from person to person.person.

Page 9: Business ethics

Leadership and EthicsLeadership and Ethics Culture Relativism Culture Relativism

Descriptive relativismDescriptive relativism claims that claims that members of different cultures have members of different cultures have different moral beliefs.different moral beliefs.

Normative relativismNormative relativism claims that the claims that the truth of moral beliefs depends upon truth of moral beliefs depends upon particular cultures, such that the belief particular cultures, such that the belief that cannibalism is right can be true that cannibalism is right can be true for culture A but false for culture B.for culture A but false for culture B.

Page 10: Business ethics

Leadership and EthicsLeadership and Ethics Culture Relativism Culture Relativism

Normative relativism has some rather Normative relativism has some rather undesirable implications:undesirable implications: it prohibits us from ever morally condemning it prohibits us from ever morally condemning

another culture’s values and practices;another culture’s values and practices;

it suggests that we need look no further that it suggests that we need look no further that our own culture for moral guidance;our own culture for moral guidance;

it renders the notions of moral progress and it renders the notions of moral progress and moral reform incoherent.moral reform incoherent.

Page 11: Business ethics

Sources of Ethical NormsSources of Ethical Norms

Fellow Workers

Family

Friends

The Law

Regions of Country

Profession

Employer

Society at Large

Fellow Workers

Religious Beliefs

The Individual

Conscience

Page 12: Business ethics

Principles Approach to Principles Approach to EthicsEthics

UtilitarianismUtilitarianism RightsRights JusticeJustice

CaringCaring Virtue ethicsVirtue ethics Servant leadershipServant leadership Golden RuleGolden Rule

Principles ApproachAnchors decision making on an ethical principle such as:

Page 13: Business ethics

Principles Approach to Principles Approach to EthicsEthics

Principle of UtilitarianismPrinciple of Utilitarianism focuses focuses on an act that produces the greatest on an act that produces the greatest ratio of good to evil for everyoneratio of good to evil for everyone Consequentialist theory Consequentialist theory

Page 14: Business ethics

Principles Approach to Principles Approach to EthicsEthics

Principle of RightsPrinciple of Rights focuses on focuses on examining and possibly protecting examining and possibly protecting individual individual moralmoral or or legal legal rightsrights

Page 15: Business ethics

Principles Approach to Principles Approach to EthicsEthics

Page 16: Business ethics

Principles Approach to Principles Approach to EthicsEthics

Principle of justicePrinciple of justice involves involves considering what alternative considering what alternative promotes fair treatment of peoplepromotes fair treatment of people

Types of justiceTypes of justice DistributiveDistributive CompensatoryCompensatory ProceduralProcedural

Page 17: Business ethics

Principles Approach to Principles Approach to EthicsEthics

Principle of caringPrinciple of caring focuses on a focuses on a person as a relational (cooperative) person as a relational (cooperative) and not as an individualand not as an individual Feminist theoryFeminist theory

Virtue ethicsVirtue ethics focuses on individuals focuses on individuals becoming imbued with virtuesbecoming imbued with virtues Aristotle and PlatoAristotle and Plato

Page 18: Business ethics

Servant Leadership and Servant Leadership and EthicsEthics

ListeningListening EmpathyEmpathy HealingHealing PersuasionPersuasion AwarenessAwareness

ForesightForesight ConceptualizationConceptualization Commitment to the Commitment to the

growth of peoplegrowth of people StewardshipStewardship Building Building

communitycommunity

Characteristics of Servant Leaders

Page 19: Business ethics

Golden RuleGolden Rule

Golden ruleGolden rule focuses on the focuses on the premise that you should of unto premise that you should of unto others as you would have them do others as you would have them do unto youunto you

Page 20: Business ethics

Ethics Test ApproachEthics Test Approach

Ethics Test ApproachEthics Test Approach Test of common senseTest of common sense Test of one’s best selfTest of one’s best self Test of making something publicTest of making something public Test of ventilationTest of ventilation Gag testGag test

Page 21: Business ethics

Ethical Decision-MakingEthical Decision-MakingIdentify decision you are about to make

Articulate all dimensions of proposed decision

Conventional ApproachStandards/Norms-Personal-Organizational-Societal-International

Principles ApproachEthical Principles-Justice-Rights-Utilitarianism-Golden Rule

Ethical Tests ApproachEthical Tests-Common sense-One’s best self-Public disclosure-Gag test . . .

Course of action passes ethics screen

Engage in course of action

Course of action fails ethics screen

Do not engage in course of action

Identify new course of action

Page 22: Business ethics

Ethical Decision ModelsEthical Decision ModelsUtilitarian ModelUtilitarian Model

An ethical decision is one that produces the greatest good for the An ethical decision is one that produces the greatest good for the greatest number of people.greatest number of people.

Moral Rights ModelMoral Rights Model An ethical decision is one that best maintains and protects the An ethical decision is one that best maintains and protects the

fundamental rights and privileges of the people affected by it.fundamental rights and privileges of the people affected by it.Justice ModelJustice Model

An ethical decision is one that distributes benefits and harms An ethical decision is one that distributes benefits and harms among individuals in a fair, equitable, or impartial way.among individuals in a fair, equitable, or impartial way.

Page 23: Business ethics

Ethical ModelsEthical Models

UtilitarianJustice

Moral Rights

IDEALIDEALOutcomeOutcome

Page 24: Business ethics

Steps to Ethical Decision Steps to Ethical Decision MakingMaking

Think through dilemma; identify all components as objectively as possible.

Consider options

Decide which option is most ethical

How can the option be implemented

What are the consequences of your decision