LEADERSHIP

AND ETHICS
 AIM/ FOCUS AREA

• Explain the Concept of Ethics

• Identify what forms Ethical Behaviour
• Identify the Challenges of Ethical
Leadership
• Approaches to Ethical Leadership
• Myths Surrounding Ethics
•
The Concept of Ethics.

 Investigating into the basic concepts and

fundamental principles of human conduct. It
includes the study of universal values such as
the essential equality of all men and women,
human or natural rights, obedience to the law of
the land, concern for health and safety and,
increasingly also for the natural environment.
 (Business Dictionary, 2009)
 The study of Ethics generally consists of
the examination of right, wrong, good, virtue,
duty, obligation, justice, fairness….in human
relationship with each other.
 (Ciulla, 2004)
 Definitions
• Moral Principles of an Individual
• A system of Moral Principles: The Ethics of
Culture
• A discipline that examines good or bad practices
within the context of a moral duty
• Rules of Conduct recognised in respect to
a particular class of human actions or
group; e.g. Medical Ethics
• Business ethics include Rules or
standards governing
the conduct of a business illustrating
practices and behaviors that are good or
bad.
•
What forms the Basis of Ethical
Behaviour?

 NORMS
 Ethical Norms
Regions of
Fellow Workers Age Country

Family Profession
The
Individual
Conscience
Friends Employer

The Law Religious Society at

Beliefs Large

McDonald (2007) and Steven

 Why practice ethical
leadership?
• Ethical leadership models ethical
behavior to the organization and the
community.
• Ethical leadership builds trust.
• Ethical leadership brings credibility and
respect, both for you and for the
organization.
• Ethical leadership can lead to
collaboration.
• Ethical leadership creates a good climate
within the organization.
• If you have opposition, or are strongly
supporting a position, ethical
leadership allows you to occupy the
moral high ground.
• Ethical leadership is simply the right
way to go.
 Ethics in Leadership

 Leaders do the Right Thingswhile

Managers do the what is Right


 Ascertaining what is Right forms the Basis

of Ethics in Leadership
 Ethical Challenges in
Leadership

JOANNE CIULLA’S PERSPECTIVE



• Ethical Virtues
•
• Ethical Values


• Moral Values
 Leadership Ethics &
Intervening Factors
 Shareholders
 Customers
 Employees
Stakeholders CEO/Managers
 Suppliers
 Government
 Local Community
 Environment
 Approaches to Leadership
Ethics
• Demonstrate the Unequivocal importance
of ethics from the top.
 “CEO – Chief Ethics Officer”
• Make ethics essential for career
advancement – employing practise
officers for all the business units
• Technology to monitor transparency
• Reward ethical behaviour; Punish lapses
• Ethics is for everyone
 (Dov Seidman, 2004)



 Myths surrounding Ethics

It’s easy to be ethical

 Ethical decisions are complex. Conflicts of
interest.
 Moral awareness required. Not everyone are
nurtured with such values.
 Multi stage problem resolution and organizational
context.
Unethical behaviour is a result of few individuals

 Knock on effect has been observed in the past.

Ethics can be managed through program initiatives

 Not all attend these programs that have positive

effect.
 (Linda;Michael, 2004)

When and by whom should
ethical leadership be
practiced?
 Ethical leadership should
be practiced all the time by
anyone in a formal or
informal leadership position.
•
•
 Conclusion

• Running basic awareness programmes

• Running specific ethics-training programmes
• Developing an appreciation of individual differences
• Employing individuals of adequate and desirable ethical
standards.
•
•
•
• Whether we derive a code of ethics from religious beliefs, a
study of history and literature, or personal experience and
observation: We can all agree upon some basic values.
•
 Reference

• Cuilla,J (2004) Ethics the Heart of Leadership

Praeger Publishers, 88 Post Road West,
Westport.
• Business Dictionary (2009) Ethics Definition [online]
Available from:
www.businessdictionary.com/definition/ethics
• McDonald, G.M and Zepp, R. A (2007), What should
be done? A Practical Approach to business ethics,

• Steven, B (2009) Corporate ethical codes as

strategic documents: An analysis of success and
failure, Electronic Journal of Business Ethics and
Organization Studies, Vol 14 issue 2
•