Ethical Decision Making and Ethical Leadership A frame work for Ethical Decision Making in Business-check figure 5-1. Ethical issue intensity. Individual factors. Organizational factors. Opportunity. Business ethics evaluation and intentions Using the ethical decision making framework to improve ethical decisions. The role of leadership in a corporate culture. Leadership style influence ethical decisions.

Ethical Decision Making and Ethical Leadership Habits of strong ethical leaders Ethical leaders have strong personal character. Ethical leaders have a passion to do right. Ethical leaders are proactive Ethical leaders consider stakeholder’s interests Ethical leaders are role models for the org’s value Ethical leaders are transparent and active Ethical leaders are competent and holistic in perspective.

A framework for ethical Decision making in business Ethical issue intensity. What is it? And what is moral intensity? The answer to the first question lies in following: To what extent you view certain ethical issue as critical, problematic with negative consequences or not. It’s the importance you (or the team or the organization) attach to a certain ethical issue. Are you concerned and anxious about lying or cheating. Two people have different levels of concern. Put a weight from 1 to 10 on the level of your concern to the issue of cheating.

Ethical issue intensity Which of the followings influence the intensity more? The workplace. Family. Religion. Legal system. Community. Profession.

Ethical issue intensity Moral intensity: refers to a person’s perception of social pressure and the harm the decision will have on others. Common concern regarding ethical issue in the organization is important. So managers need to create a common concern to avoid ethical conflict.

Individual factors Gender Education Nationality Age Locus of control

Organizational factors A corporate culture Ethical culture Significant others Obedience to authority

Opportunity Intrinsic rewards Extrinsic rewards

The role of leadership in a corporate culture Leadership- define leadership? Are you a leader or a manager? Can you as a leader create programs to maintain ethical culture? Planning, organizing, directing, and implementing an ethical program.

Leadership Transformational vs transactional leadership Do you know other forms of leadership? Level five leaders Visionary leaders Authentic leaders

Habits of strong ethical leaders The 7 habits Have strong personal character A passion to do right Proactive Consider stakeholder’s interest Role models Transparent and actively involved in org D-M Competent managers who take a holist view of the firm’s culture