Trust Me! Insights into Ethical Leadership MIAPPA 2009 summer Conference July 14, 2009 Eagle Crest Conference Center Ypsilanti, MI www.frankbucaro.com

Norman R. Augustine- Former CEO of Lockheed Martin Corporation “I can think of no commitment more important to a corporation or its survival than its commitment to ethics. That means not only conducting our business affairs within the letter of the law, but also in the spirit of the law.”

Negative Ethics Tell us what not to do. Prevent harm. Imply the obligation to not do harm. -Marvin T. Brown

Positive Ethics Give guidelines for what we should do. Promote a good. Imply a responsibility to do good. Rely on the power of the organization to be responsive, and to love the ability to respond. -Marvin T. Brown

Ethics Focus on action not behavior. Justify action not behavior. Acknowledge the gap between “ought” and “is.”

Myths That Our Culture Teaches… 1. PAIN Must be avoided at all costs. 2. HAPPINESS “Go For It!” “If it feels good, do it!” “ME” ORIENTED SOCIETY Money and materialism COMPETITION Winning isn’t the only thing, it is everything!

Decision Making Process EXPERIENCE REFLECTION DECISION

Three Psychological Persons CHILD Go For It! PARENT No! No! No! ADULT Go Slow!

Five Emotions Sad Mad Glad Scared Hurt

Leaders It’s not about what you do… it’s about what other people do because you are there!

Effective Leaders Need To: Deal with direction. Deal with vision. Focus on the top line. Derive power from values and correct principles. Foster mutual respect and build a complimentary team. -Steven Covey

Leaders Must Do Three Things Well Develop, shape and reinforce how their mission, vision and values offer employees a meaningful foundation. Enhance the trust that employees feel towards leadership by creating a work environment that supports and develops employees.

Leaders, continued 3. Address both the difficult and sensitive economic issues impacting your employees within the context of strengthening and enhancing the commitment of your employees.

You Must Consider: The Act Circumstances Criteria for Judgment Communal Wisdom

Kolberg & Piaget Punishment Reward “Good” Rules and Regulations Choice and Commitment Internalization

Power Authoritarian Authoritative Empowers oneself at the cost of the other. Self serving as one uses fear to get obedience. Must have power over others. Commands, does not invite. To command is to settle for behavior change. NO value change or understanding. Authoritative Empowers the other through service for the other. They are chosen by their peers, They don’t force themselves, but gain our trust. Invites, does not command. To invite is to recognize the value of the other.

Business Should Focus on: Purpose: Why are we here? Mission: What do we do to fulfill our purpose? Values: How do we work together to fulfill our mission and accomplish our purpose?

Ethical Considerations On what foundation do we base our ethical decisions? People make decisions based on the values they hold dear. Ethical principles are not concerned with how things do operate, but with how they should operate!

Ethical Considerations (continued) The most difficult decisions to make, are those in which there is a conflict between two or more principles of which you deeply believe in. It is important that we determine in advance what our priorities are, realizing that a lot will depend on the situation.

GIFT Each Person Each Day