ethical leadership. explain what is meant by ethical leadership describe the importance of ethical...
TRANSCRIPT
• 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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