ETHICAL UNETHICAL Ethical Leadership

Course Objectives Explain What is meant by Ethical Leadership Describe the Importance of Ethical Leadership Explain What are Ethics Explain the Various Ethical Theories Explain the Ethical Leadership Perspectives of Leadership Scholars Explain the Principles of Ethical Leadership Describe the Various Elements of Character Explain How to Make Ethical Decisions List the Challenges of Ethical Leadership Explain How to Develop Ethical Leadership in Leaders Explain What is meant by Ethical Dilemmas Explain the Four Paradigms of Dilemmas Explain the Core Responsibilities of an Ethical Leader List the Key Traits of an Ethical Leader List the Tips to Improve Ethical Leadership in an Organization

Introduction David McCain worked as a Senior Assistant at Lewinsky & Sculler Co., a law firm specializing in corporate cases. David has been working at Lewinsky & Sculler for the past five years and is a trusted and capable employee.

Introduction Lewinsky & Sculler has a national as well as international client base which includes many Fortune 500 companies. It had grown to become the largest law firm in Canada and had started as a small partnership firm between two partners Andrew Lewinsky and Keith Sculler.

Introduction Many people believed that this rapid and humongous growth of Lewinsky & Sculler could be attributed to the core values of ethical principles that each employee of the company believed in. Lewinsky & Sculler stressed on the need for ethical principles to be followed in each of its business transactions and even encouraged its employees to be ethical and just in their personal lives.

Introduction Owing to its high ethical standards of working, Lewinsky & Sculler had achieved a stellar reputation and received many awards for its outstanding work in the areas of law and intellectual property.

Introduction However, one day Mr. Andrew Lewinsky, the firm’s Co-founder and Partner received news that David had committed a fraud in his company. David had found a loophole in the power of attorney from one of Lewinsky & Sculler’s client, Howard Inc.

Introduction Using the loophole, David had illegally sold shares of the client in a Canadian company. David had made almost $110 million in this embezzlement. Andrew was shocked by this fraudulent activity that had taken place in his organization. It was also very unfortunate that Lewinsky & Sculler did not have any insurance to cover this kind of activity.

Introduction Lewinsky & Sculler now faced many daunting questions in the face of this fraud, such as: What plan of action should be taken to save the law firm in this time of crisis? What impact would this embezzlement have on the 600+ lawyers and other employees of the company? How would the reputation of Lewinsky & Sculler be impacted by this fraud? What impact would the news of this fraudulent activity have on Lewinsky & Sculler’s relationship and business of its 14,000+ clients?

Introduction Lewinsky & Sculler now faced many daunting questions in the face of this fraud, such as: Would the clients lose trust in Lewinsky & Sculler’s ethics and integrity and break all business ties with the company? Would this breach of trust ruin the firm’s reputation in Canada and abroad? Would Lewinsky & Sculler survive this crisis and remain financially stable? What can Lewinsky & Sculler do for the client whose shares had been used to perpetuate the fraud and theft by David?

Introduction You can understand from the above situation that being ‘ethical’ is not only important but also crucial in any business. Ethics should be integrated into the basic day-today working of each and every employee of an organization.

Introduction However, as one goes up the organizational hierarchy, it becomes crucial that an organization should have ‘ethical leaders’ who follow and preach ‘ethical leadership’. This is because it is these leaders who lead the employees and guide them.

Introduction ‘Ethical Leadership’ in detail. So if the leaders are themselves not ethical, the organization cannot expect to function on the lines of ethics and moral values. Let us learn about ‘Ethical Leadership’ in detail.

What is meant by Ethical Leadership? Ethical Leadership means using ethics and making an ethical decision in situations that are faced by leaders. It means keeping in mind several ethical perspectives while providing the overall leadership guidance to subordinates and the also the job responsibilities performed by leaders. Ethical leadership helps leaders to make ethical decisions and be an ethical leader.

Importance of Ethical Leadership They also aim to gain returns that benefit the firm, its stakeholders, and the CEO, at the same time obtaining everything within the purview of ethics and moral principles. You can understand from the above situation that being ‘ethical’ is not only important but also crucial in any business. Ethics should be integrated into the basic day-today working of each and every employee of an organization.

Virtue-based Approaches (Theories related to Leaders’ Character) ‘Virtue-based Theories’ or the ‘Virtue-based Approach’ is related to who the leader is and is based on the leader’s character. However, you should keep in mind that an individual can learn these virtues and retain them through experience and practice.

Deontological Theories (Theories related to Duty or Rules ) ‘Deontological Theories’ are related to duty or rules. Hence, ‘Deontological Theories’ are more concerned with the actions that lead to consequences and whether the actions are good or bad.

Respect for Others Respect for Others Respect for Others: As per this principle of ethical leadership, leaders can be ethical when they treat others with dignity and respect. Hence, ethical leaders do not treat people as means to their own ends. Ethical leaders believe that followers have goals and ambitions.

What is meant by ‘Character’ in Ethical Leadership? The following are some of the key attributes of a ‘good character’: Inspiring Honesty Obedience Integrity Loyal Responsibility Courageous Tactful Respect Trustworthiness

Real Life Example You will now try to understand how Abraham Lincoln, the renowned American President was not only a great leader but also a great ethical leader. Abraham Lincoln was born on February 12, 1809. He became the 16th President of the United States. His tenure as the President of the United States lasted from March 1861 until his assassination in April 1865.

What is meant by Ethical Dilemmas? When an ethical leader is faced with a situation where his important moral values come into conflict and the leader has to make a choice between these values, then the situation is an ‘Ethical Dilemma’. Hence, for example, sometimes the leader may have to choose between two values that are important such as success and honesty. So, in such situations the leader should assign priorities to values and one takes precedence over the other. However, it is crucial that the leader should take care to balance between both the values in order to avoid unethical decision making.

Being Aware of One's Weaknesses 1 6 2 7 Being Aware of One's Weaknesses: An ethical leader is aware of his strengths and is also aware of his weaknesses. Only when a person knows his weakness, he will be able to compensate for that weakness. 3 8 4 9 5 10 Being Aware of One's Weaknesses

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