Part 3—The Importance of EthicsPart 3—The Importance of EthicsMcGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Six qualities of Six qualities of Transformational LeadersTransformational LeadersVisionEnergySymbolismEmpowermentIntellectual stimulationIntegrity

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Aristotle’s Six Elements of a Aristotle’s Six Elements of a Whole Human LifeWhole Human Life

HealthWealthFriendshipMoral VirtueIntellectual VirtueGood Fortune

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Important Influences on Character Formation

Associations Our friends, family, and role models

Books Can expand or limit our potential

Self-Concept We do what we do to be

consistent with who we are

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Levels of MoralityA person’s level of morality determines whether people will trust and respect the leader. On what basis does the individual make ethical decisions?

Preconventional Morality

Conventional Morality

Postconventional Morality

Stages 1 & 2 Stages 3 & 4 Stages 5 & 6

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Most Mentioned ValuesHonestyRespectServiceExcellenceIntegrity

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The Ethical Leader Focuses on the Well-Being of Four Groups of People

CustomersEmployeesShareholdersCommunity

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Six Values of Caring LeadersHonestyConsiderationResponsibilityPersistenceExcellenceCommitment

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Six Types of ValuesTheoreticalEconomicAestheticSocialPoliticalReligious

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TheoreticalPrimary interest is

the discovery of truth

Prefers a cognitive approach

Prefers to order and systemize knowledge

One example is Albert Einstein

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EconomicPrimary interest is

finding what is usefulEnterprising and

efficientMore interested in

financial worth than political or social worth

Want practical education

One example is Andrew Carnegie

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AestheticReceives the highest

satisfaction from harmony and beauty

Feels life is to be enjoyed for its own sake

Interested in people but not necessarily their welfare

IndividualisticOne example is

Leonardo da Vinci3-12

SocialLove is their highest

valueKind, sympathetic,

and helpful to othersOthers are people,

not toolsUnselfishOne example is Jane

Addams

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PoliticalInterested in gaining

power and influenceWant to exercise

authorityWant to be in chargeOne example is

Queen Elizabeth I

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ReligiousHighest value is

spiritual peaceFocus on events,

people, and experiences in the world

An example is Mother Teresa

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Character DevelopmentStephen Covey, author, wrote the book The Seven Habits of Highly Effective People.He concluded that each person should strive to develop seven important habits that are basic ingredients for character development.

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Habit #1Be Proactive

Take personal responsibility for your life.

Be a driver, not a drifter

View yourself as the master of your own destiny.

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Habit #2Begin with the end in mind

Have a clear picture of what you want to accomplish before you act

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Habit #3Put first things first

Prioritize your activities in line with your value system to gain control of your life

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Habit #4Think Win-Win

Helping others can let both parties succeed.

Treat others how you would like to be treated.

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Habit #5First Understand

Then be Understood

This shows humility and respect.

It yields more truth and multiplies knowledge.

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Habit #6Synergize

Together everyone achieves more! Synergy requires openness to change and appreciation of diversity.

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Habit #7Sharpen the Saw

There is inevitable need for renewal and reinforcement. Continue your education and open yourself to new experiences!

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Criteria for the Best Work Rules1) they reflect the ethical ideals of the ownership, or, in the case of public organizations, the public trust;

2) they are reviewed periodically for needed revisions;

3) they are few in number;

4) they are stated clearly;

5) they are communicated to all employees; and

6) they apply equally to all employees, regardless of level of authority or nature of duties.

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Six Areas for Ethical GuidelinesGovernment relationsEmployee relationsCommunity and environment relationsBusiness relationsProductionConsumer relations

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Seven Basic Rules for Organizations EthicsObey the lawTell the truthShow respect for peopleFollow the Golden RulePrimum non nocere (above all, do no harm)Practice participation, not paternalismAlways act when you have the responsibility

to do so

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Four key Ethical Questions of Rotary International

1. Is it truth?2. Is it fair to all concerned?3. Will it build goodwill and better

relationships?4. Will it be beneficial to all concerned?

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Sample Credo of an Ethical CompanyWe will be honest and trustworthy in all of our dealings. We will treat every individual with respect and dignity. We will follow the golden rule in all matters. We will strive for excellence in all work performed. We will obey the laws of our land in fact and in spirit. We will always do the right thing in every situation to the best of our abilities. If we fail in abiding by these principles, we will do whatever is needed to make amends.

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