1. 1. Managing for Ethical Employee Behavior Presented by: Tasmia Choudhury, Thapanut Uvijitr, Neha Choudhary, Nina Houston, Iaroslav Lutsenko, Sin Heang Lee, Josephine Herrera-Rivera
2. 2. Ethics in Theory Leadership should not go along to get along . Leadership must meet the moral challenge of the day Ethics refers to the principles of right conduct or a system of moral values Leaders are judged on the basis of a framework of values and not just in terms of their effectiveness. Gardner & Burns stressed the centrality and importance of the moral dimension of leadership. Burns even viewed ethically correct leadership behavior to demonstrate true leadership Ethics and trust go hand in hand
3. 3. The 4 Leadership Qualities that create Trust Vision: Followers tend to trust a leader who create a compelling vision Empathy: Understand the world as the followers see and experience it Consistency: Leaders who are consistent are trustworthy Integrity: Leaders with strong integrity are trusted by the followers
4. 4. Organizational Leadership Like individuals, organizations too have dominant values These values represent the principles by which employees are to get work done and how to treat other employees, customers, and vendors Often times there is a gap between a companys stated values and the way the company truly operates Values of top management can sometimes tell more about the companys operations than the company values Satisfaction and retention rate is higher when employees share the same values as company
5. 5. Leading by Example Interpersonal behaviors: Optimistic, hardworking and helpful. Shows care, concern and compassion for others Basic fairness: Behavior is manifested in the fairness shown to others. Treats others respectfully Ethical actions and self expectations: Possesses high integrity. Perceived as honest, trustworthy and humble Articulating ethical standards: Uncompromising high ethical standards. Puts ethical standards over personal and short-term company interests
6. 6. Leading by Example Leaders in the organization have the responsibility to shape the ethical culture The term upward leadership comes in here leadership behavior enacted by individuals who take action to maintain ethical standards in the face of questionable moral behaviors by higher ups Employees may not necessarily feel safe for raising ethical concerns and issues Fear of retribution by bosses Going along with the group Ethical climate moderates an employees likelihood of raising ethical concerns
7. 7. Culture Ethical climate: Ethical standards and norms are consistently, clearly, and pervasively communicated Embraced and enforced by leaders in both word and example Leaders must Walk the Talk! Unethical climate: Questionable or outright unethical behavior exists Little to no action taken to correct it High degree of moral distress among employees
8. 8. Culture Video
9. 9. Policies and Procedures Formal statements of ethical standards and policies: Organizations follow public and private policies and actions Companies have increased focus in written policies with Ethics HRM System Example Ethics Resource Center website Provides resources, research, services, standards, practices for companies
10. 10. Process Focus Tangible Achievements: Organizational Individual Team goals Intangible Process: How goals are achieved
11. 11. Organizations can be designed to encourage higher ethical performance and discourage unethical performance. Hiring Practices Higher standards Leaders with integrity Communicate, Communicate, Communicate! Meetings: daily weekly, monthly quarterly, annually Pamphlets/publications Emails Quarterly newsletters Structural Reinforcement
12. 12. Employee Behavioral Methodologies Rewards Monetary Praise Discipline Accountability at all levels Whistleblower Protection Programs Organizational, Corporate wide, small businesses Agencies Department of Labor Training The Network
13. 13. The Six Elements 1. Written standards of ethical workplace conduct. 2. Training on standards. 3. Company resources that provide advice on ethics issues. 4. A process to report potential violations confidentially or anonymously. 5. Performance evaluations of ethical conduct. 6. Systems to discipline violators. Source: 2013 National Business Ethics Survey, Ethics Resource Center.
14. 14. Unethical Behavior
15. 15. Importance in Business Analogous to Corporate Social responsibility -CSR SARBANES-OXLEY ACT 2002 Shaming or embarrassment Social Media Bad business equals no business
16. 16. Conclusion Just Good for Business! Good for overall moral! Thank you!!!
17. 17. Questions ?