Leadership: Understanding its Global Impact Chapter 2: Values-driven leadership

Learning objectives Understand the nature and significance of values for leadership Understand the relationship between ethics and leadership Understand better your own value system Be able to lead an ethical organisation 2

Chapter contents Spotlight: Tim Costello Introduction The development of values Ethics and leadership Leading an ethical organisation Codes of conduct Leader in action: Lars Kolind Summary Case study: The Foodbank 3

Spotlight: Tim Costello Highlights the importance of values in effective leadership Identifies how values have critical role in addressing some of the critical issues for leaders Importance of having a clear vision and a set of values that inspires and motivates 4

Concept of values and ethics Personal values may be one of the most important determinants of how power is exercised Are values relevant in business? Ethics concerns right and wrong Introduction 5

Values: ‘constructs representing generalised behaviours or states of affairs that are considered by the individual to be important’ (Gordon 1975, p. 2) Revised throughout life Life experiences shape our values Morality and ethics start with values Instrumental values & end (terminal) values Gordon (1975): a leader’s personal values correlated positively with leadership effectiveness The development of values 6

Ethics: study of morality Ethics can be defined as “a set of moral principles or values,” a definition that portrays ethics as highly personal and relative … Lagan 2000, p. 13 Highly competitive and unsupervised situation can = unethical behaviour Actions speak louder than words Ethics and leadership 7

Strives to live its values An action is morally right if in carrying out the action the agent exercises, exhibits, or develops a morally virtuous character, and it is morally wrong to the extent that by carrying out the action the agent exercises, exhibits, or develops a morally vicious character. Velasquez (1998, p. 137) Rightness and wrongness: wrongness determined by examining character action tends to produce Leading an ethical organisation 8

Reasons for ethical behaviour: –working for something larger; more noble –easier to do business with someone who is ethical –like to feel proud of what we do Two elements to any program: –shared organisation purpose and value system –members who have professional self esteem, self confidence and commitment (Dalglish 1991) Leading an ethical organisation 9

Establishing ethical behaviour in an organisation: –leaders … must articulate a set of values –establish a code of ethics –leader serves as a role model –ensure that everyone is aware of what is expected –the example of the leader –development of professional pride Leading an ethical organisation 10

Ethical dilemmas: –human resource issues –conflict of interest –use of corporate resources Codes of conduct address: –conflict of interest –confidentiality of information –employment practices –relationships with outside organisations. –the protection of organisational assets Codes of ethics 11

The knowledge-based corporation is not only a vision. For me it is a reality. (Lars Kolind) Four critical principles for change –choice –multi-job –transparency –no controls Leader in action: Lars Kolind 12

Marcus Aurelius: –retreat –search for ‘lived truths’ –keep the imagined ‘best life’ in view ways of being a friend showing affection to children dealing with flatterers showing courtesy practising self-control worshipping the gods, and serving the community Managing in a world of conflict 13

Leader’s values important determinant of how power is exercised Ethical behaviour and a clearly articulated value position are important to effective leadership It is easier to do business with someone who is ethical Codes of ethics: supporters and critics Summary 14

Case study questions: –Why do you think Foodbank is so successful? –What are the values that Foodbank is driven by? –What sort of leadership skills do you think those who lead within this organisation need? Case study: FoodBank 15