1. Ethical Decision Making and Ethical Leadership
Ethical Decision Making For Business 8e Fraedrich/Ferrell/Ferrell
C H A P T E R 5
CHAPTER 5
Ethical Decision Making and Ethical Leadership

2. Framework for Understanding the Ethical Decision Making Process in Business

3. Ethical Issue Intensity
the perceived relevance or importance of an ethical issue to the individual, work group, and/or organization
Reflects the ethical sensitivity of the individual or work group
Triggers the ethical decision process
Moral Intensity
relates to a person’s perception of social pressure

4. Individual Factors
People‘s own values and principles of right or wrong
Research: women are generally more ethical than males (gender)
Education, Nationality, and Age are other individual factors
Locus of control
relates to individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements
Can be external or internal

5. Organizational Factors
Corporate culture
a set of values, norms, and artifacts that members (employees) of an organization share
Those who have influence in a work group (e.g. managers, coworkers, subordinates) are referred to as significant others
Obedience to authority helps to explain why many employees simply follow the directives of a superior
Source: Digital Vision

6. Opportunity
Describes the conditions in an organization that limit/permit ethical/unethical behavior
Relates to individuals’ immediate job context
Where they work, with whom they work, and the nature of the work
Opportunities for misconduct can be reduced by establishing formal codes, policies, and enforced rules
Source: Triangle Images

7. Using the Framework to Improve Ethical Decisions
It is impossible to objectively determine right and wrong
Having a thorough knowledge about how ethical decisions are made will not solve ethical problems
Business ethics involves value judgments and collective agreement about acceptable patterns of behavior
Organizations take on a culture of their own, which have a significant influence on business ethics

8. Leadership in Corporate Culture
The ability or authority to guide and direct others toward achievement of a goal
Leaders are key to influencing an organization’s corporate culture and ethics
Leadership styles influence organizational behavior
Source: © Jack Hollingsworth/Corbis

9. The Managerial Role in Developing Ethics Program Leadership

10. Leadership Styles Coercive leaders (強制性領導)
Authoritative leaders (權威式領導)
Affiliative leaders (關係式領導)
Democratic leaders (民主式領導)
Pacesetting leaders (先導式領導)
Coaching leaders (教練式領導)
The most successful leaders do not rely on one style of leadership but alternate their technique based on the characteristics of the situation.

11. Types of Leaders Transactional leaders Transformational leaders
create employee satisfaction through bartering (交換、交易) for desired behaviors/performance
Transformational leaders
raise employees’ commitment and foster trust and motivation
Transformational ethical leadership is best suited for organizations with high ethical commitment among employees and strong stakeholder support for an ethical culture

12. Habits of Strong Ethical Leaders

13. The essential of leadership
Leaders see the way.
Leaders see connections.
Leaders see others.
Leaders see within.
A short film about leadership