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© 2015 SAGE Publications, Inc.
Chapter 11:Chapter 11:Addressing Ethics in Addressing Ethics in
LeadershipLeadership
© 2015 SAGE Publications, Inc.
Chapter Objectives• Explain the concept of ethical leadership.• Discuss leadership ethics in practice by
reviewing the six factors related to ethical leadership.
• Examine the six pillars of character.• Discuss the three principles related to actions
of ethical leaders.
• Examine the five bases of power and its relationship to ethical leadership.
© 2015 SAGE Publications, Inc.
• Are there times when “the ends justify the means” in leadership?
• Have you experienced times when someone’s leadership has been questionable?
• How did it make you feel?
Discussion Questions
© 2015 SAGE Publications, Inc.
• Leadership has a moral dimension because leaders influence the lives of others.
• There is an obligation to work for the common good.
• Despite this there have been a number of scandals in the business and the public sectors.
• Ethical leadership is the influence of a moral person who moves others to do the right thing in the right way for the right reasons (Ciulla, 2003).
Ethical Leadership
© 2015 SAGE Publications, Inc.
• Factors include:
oThe character of the leader
o The actions of the leader
o The goals of the leader
o The honesty of the leader
o The power of the leader
o The values of the leader
Factors of Ethical Leadership
© 2015 SAGE Publications, Inc.
Factors Related to Ethical Leadership
© 2015 SAGE Publications, Inc.
• A leader with strong character is seen as a good & honorable human being.
• Character refers to the disposition & core values of the leader.
• Aristotle argued that a moral person demonstrates the virtues of courage, generosity, self-control, honesty, sociability, modesty, fairness, & justice.
Character of the Leader
© 2015 SAGE Publications, Inc.
• Character is something that is developed.
• Schools are including character education in curricula.
• There is a focus on training students to be good citizens.
Character of the Leader
© 2015 SAGE Publications, Inc.
• The Josephson Institute (2008) has identified six dimensions of character:
o Trustworthiness
o Respect
o Responsibility
o Fairness
o Caring
o Citizenship
Character of the Leader
© 2015 SAGE Publications, Inc.
© 2015 SAGE Publications, Inc.
• The way a leader goes about his or her work determines whether or not he or she is an ethical leader.
• We must ask, “Do the ends justify the means?”
• Ethical leadership involves using morally appropriate actions to achieve goals.
Actions of the Leader
© 2015 SAGE Publications, Inc.
• Almost everything a leader does has ethical overtones.
• A leader rewarding some people & not others raises questions of fairness.
• Ignoring health problems & demanding that a job be done quickly raises questions about the leader’s compassion.
Actions of the Leader
© 2015 SAGE Publications, Inc.
• Three ethical standards emerge from the research into ethical leadership.o Showing respect
Respect requires valuing others’ ideas and affirming them as unique human beings.
o Serving others The leader places others’ interests foremost in his or
her work & acts in ways that will benefit all.o Showing justice
Justice demands that a leader place the issue of fairness at the center of decision making.
Ex.: Richard Lee coaching son’s Little League team
Actions of the Leader
© 2015 SAGE Publications, Inc.
• Identifying & pursuing just & worthy goals are the most important steps an ethical leader will undertake.
• The goals incorporate many perspectives:o The interests of others in the group or
organizationo The interests of the community o The larger culture in which they work
• An ethical leader tries to establish goals on which all parties can mutually agree.
Goals of the Leader
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• More than any other quality, people want their leaders to be honest.
• Being honest is synonymous with being ethical.
• Dishonesty has a negative effect on a leader’s interpersonal relationships.
• Dishonesty, even when used with good intentions, contributes to the breakdown of relationships.
Honesty of the Leader
© 2015 SAGE Publications, Inc.
• There are times when telling the complete truth can be destructive or counterproductive.
• The challenge for a leader includes:
o striking a balance between being open & being candid
o at the same time, monitoring what is appropriate to disclose in particular situations
Honesty of the Leader
© 2015 SAGE Publications, Inc.
• Power is the capacity to influence or affect others.
• A leader has power because of the ability to affect others’ beliefs, attitudes, and courses of action.
Power of the Leader
© 2015 SAGE Publications, Inc.
• French and Raven (1959) identified five common and important bases of power:
o Referent power
o Expert power
o Legitimate power
o Reward power
o Coercive power
Power of the Leader
© 2015 SAGE Publications, Inc.
• Referent power is based on follower’s identification and liking for the leader.
o Ex.: a college professor who is highly admired by students
• Expert power is based on the followers’ perceptions of the leader’s competence.
o Ex.: a person with strong knowledge about a software program
Power of the Leader
© 2015 SAGE Publications, Inc.
• Legitimate power is associated with having status or formal job authority.
o Ex.: a judge presiding over a court case
• Reward power is derived from having the capacity to provide benefits to others.
o Ex.: a supervisor who can give bonuses to employees
Power of the Leader
© 2015 SAGE Publications, Inc.
• Coercive power is derived from being able to punish or penalize others.
o Ex.: a professor who can lower a student’s grade for missing class
Power of the Leader
© 2015 SAGE Publications, Inc.
• Values are the ideas, beliefs, and modes of action that people find worthwhile or desirable.
• James MacGregor Burns suggested that there are three kinds of leadership values: o Ethical values—such as kindness and altruism
o Modal values—such as responsibility &
o accountability
o End values—such as justice and community
Values of the Leader
© 2015 SAGE Publications, Inc.
Leadership Snapshot: Warren Buffett, Bill & Melinda Gates
• Started with three billionaires promising to give away half their fortune during their lifetimes.
• Now encompasses more than 100 other super-rich families promising to do the same thing.
• The Giving Pledge lead by Bill and Melinda Gates & Warren Buffett.
• The Pledge is simple: the signers have to be billionaires and they have to promise to give away at least half of their fortunes during their lifetimes.
• The Pledge is less about the financial promise than a public statement meant to inspire others.
© 2015 SAGE Publications, Inc.
Leadership Snapshot: Warren Buffett, Bill & Melinda Gates
• Bill Gates said that the “goal is to raise the visibility of philanthropy and the great things it can do”.
• Critics maintain that the Pledge uses the power of the super-rich to shape issues of public concern like education and healthcare.
• Critics also claim that the pledges will increase the gap between the large and small nonprofits.
• Pledge singer Nicolas Berggruen states that “wealth is an advantage, but it also is frankly a responsibility”.
© 2015 SAGE Publications, Inc.
Case Study: The Write Choice• Even though Professor Ramirez deviated from the
college’s policy regarding plagiarism, do you feel that she acted ethically?
• If you were a student in this class and learned Professor Ramirez made an exception for this student, would you think she acted ethically? Explain.
• In table 11.1 the six pillars of character are detailed. Which of these six pillars did Professor Ramirez display in consideration for her student and how?
• Professor Ramirez’s actions ultimately brought into question whether or not the ends justify the means. Do you feel that her leniency in this case made her a stronger or more ethical leader? Explain.
© 2015 SAGE Publications, Inc.
• There is high demand for ethical leadership today.
• Ethical leadership is comprised of the character, actions, goals, honesty, power, & values of the leader.
• Ethical leadership has many dimensions.
o To be an ethical leader, you need to pay attention to who you are, what you do, what goals you seek, your honesty, the way you use power, & your values.
Summary