ETHICAL

UNETHICAL

Ethical Leadership

• Explain What is meant by Ethical Leadership• Describe the Importance of Ethical Leadership• Explain What are Ethics• Explain the Various Ethical Theories• Explain the Ethical Leadership Perspectives of Leadership Scholars• Explain the Principles of Ethical Leadership• Describe the Various Elements of Character• Explain How to Make Ethical Decisions• List the Challenges of Ethical Leadership• Explain How to Develop Ethical Leadership in Leaders• Explain What is meant by Ethical Dilemmas• Explain the Four Paradigms of Dilemmas• Explain the Core Responsibilities of an Ethical Leader• List the Key Traits of an Ethical Leader• List the Tips to Improve Ethical Leadership in an Organization

Course Objectives

Introduction

David McCain worked as a Senior

Assistant at Lewinsky & Sculler Co.,

a law firm specializing in corporate

cases.

David has been working at Lewinsky

& Sculler for the past five years and

is a trusted and capable employee.

Introduction

Lewinsky & Sculler has a national as

well as international client base

which includes many Fortune 500

companies.

It had grown to become the largest

law firm in Canada and had started

as a small partnership firm between

two partners Andrew Lewinsky and

Keith Sculler.

Introduction

Many people believed that this rapid

and humongous growth of Lewinsky &

Sculler could be attributed to the core

values of ethical principles that each

employee of the company believed in.

Lewinsky & Sculler stressed on the

need for ethical principles to be

followed in each of its business

transactions and even encouraged its

employees to be ethical and just in

their personal lives.

Introduction

Owing to its high ethical standards

of working, Lewinsky & Sculler

had achieved a stellar reputation

and received many awards for its

outstanding work in the areas of

law and intellectual property.

Introduction

However, one day Mr. Andrew

Lewinsky, the firm’s Co-founder

and Partner received news that

David had committed a fraud in

his company.

David had found a loophole in the

power of attorney from one of

Lewinsky & Sculler’s client,

Howard Inc.

Introduction

Using the loophole, David had

illegally sold shares of the client in a

Canadian company. David had made

almost $110 million in this

embezzlement.

Andrew was shocked by this

fraudulent activity that had taken

place in his organization. It was also

very unfortunate that Lewinsky &

Sculler did not have any insurance to

cover this kind of activity.

Introduction

Lewinsky & Sculler now faced many daunting questions in the face of this

fraud, such as:

• What plan of action should be taken to save the law firm in this time

of crisis?

• What impact would this embezzlement have on the 600+ lawyers and

other employees of the company?

• How would the reputation of Lewinsky & Sculler be impacted by this

fraud?

• What impact would the news of this fraudulent activity have on

Lewinsky & Sculler’s relationship and business of its 14,000+ clients?

Introduction

Lewinsky & Sculler now faced many daunting questions in the face of this

fraud, such as:

• Would the clients lose trust in Lewinsky & Sculler’s ethics and integrity

and break all business ties with the company?

• Would this breach of trust ruin the firm’s reputation in Canada and

abroad?

• Would Lewinsky & Sculler survive this crisis and remain financially

stable?

• What can Lewinsky & Sculler do for the client whose shares had been

used to perpetuate the fraud and theft by David?

Introduction

You can understand from the above

situation that being ‘ethical’ is not

only important but also crucial in

any business.

Ethics should be integrated into the

basic day-today working of each and

every employee of an organization.

Introduction

However, as one goes up the

organizational hierarchy, it

becomes crucial that an

organization should have ‘ethical

leaders’ who follow and preach

‘ethical leadership’.

This is because it is these leaders

who lead the employees and

guide them.

Introduction

So if the leaders are themselves not

ethical, the organization cannot

expect to function on the lines of

ethics and moral values.

Let us learn about

‘Ethical Leadership’

in detail.

What is meant by Ethical Leadership?

Ethical Leadership means using ethics and making an ethical decision in situations that are faced by leaders.

It means keeping in mind several ethical perspectives while providing the overall leadership guidance to subordinates and the also the job responsibilities performed by leaders.

Ethical leadership helps leaders to make ethical decisions and be an ethical leader.

Importance of Ethical Leadership

They also aim to gain returns that benefit the firm, its stakeholders, and the CEO, at the same time obtaining everything within the purview of ethics and moral principles.

You can understand from the above situation that being ‘ethical’ is not only important but also crucial in any business.

Ethics should be integrated into the basic day-today working of each and every employee of an organization.

Virtue-Based Approach

Virtue-based Approaches (Theories related to Leaders’ Character)

• ‘Virtue-based Theories’ or the ‘Virtue-based Approach’ is related to who the leader is and is based on the leader’s character.

• However, you should keep in mind that an individual can learn these virtues and retain them through experience and practice.

Deontological Theories

Deontological Theories (Theories related to Duty or Rules )

• ‘Deontological Theories’ are related to duty or rules.

• Hence, ‘Deontological Theories’ are more concerned with the actions that lead to consequences and whether the actions are good or bad.

Respect for OthersRespect for Others

• Respect for Others:

o As per this principle of ethical leadership, leaders can be ethical when they treat others with dignity and respect.

o Hence, ethical leaders do not treat people as means to their own ends.

o Ethical leaders believe that followers have goals and ambitions.

What is meant by ‘Character’ in Ethical Leadership?

Responsibility Courageous

Honesty Obedience

Trustworthiness

Inspiring

LoyalIntegrity

RespectTactful

The following are some of the key attributes of a ‘good character’:

Real Life Example

You will now try to understand how Abraham Lincoln, the renowned American President was not only a great leader but also a great ethical leader.

Abraham Lincoln was born on February 12, 1809.

He became the 16th President of the United States.

His tenure as the President of the United States lasted from March 1861 until his assassination in April 1865.

Hence, for example, sometimes the leader may have to choose between two values that are important such

as success and honesty.

So, in such situations the leader should assign priorities to values and one takes precedence over the other.

When an ethical leader is faced with a situation where his important moral values come into conflict and the

leader has to make a choice between these values, then the situation is an ‘Ethical Dilemma’.

However, it is crucial that the leader should take care to balance between both the values in order

to avoid unethical decision making.

What is meant by Ethical Dilemmas?

Being Aware of One's Weaknesses

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Being Aware of One's Weaknesses

• Being Aware of One's Weaknesses:

o An ethical leader is aware of his strengths and is also aware of his weaknesses.

o Only when a person knows his weakness, he will be able to compensate for that weakness.

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