1. Leadership Ethics & Social Responsibility
Andrew J. DuBrin, 7th Edition

2. Leadership
“Leadership is not about hierarchy or title or status: It is about having influence and mastering change. Leadership is not about bragging rights or battles or even the accumulation of wealth; it’s about connecting and engaging at multiple levels … Leaders can no longer view strategy and execution as abstract concepts, but must realize that both elements are ultimately about people.” -Carly Fiorina, former CEO, HP
Global marketing demands exceptional leadership. The hallmark of a global company is the capacity to formulate and implement global strategies that leverage worldwide learning, respond fully to local needs and wants, and draw on the talent and energy of every member of the organization. This heroic task requires global vision and sensitivity to local needs. Overall, the leader’s challenge is to direct the efforts and creativity of everyone in the company toward a global effort that best utilizes organizational resources to exploit global opportunities.

3. Leadership The leader’s task is to communicate:
Intended geographical scope of activities
Beliefs
Values
Policies
It is one thing to spell out the vision and another thing entirely to secure commitment to it throughout the organization. As noted in Chapter 1, global marketing entails engaging in significant business activities outside the home country. This means exposure to different languages and cultures. In addition, global marketing involves skillful application of specific concepts, considerations, and strategies. Such endeavors may represent substantial change, especially in U.S. companies with a long tradition of domestic focus. When the "go global" initiative is greeted with skepticism, the CEO must be a change agent who prepares and motivates employees.

4. Top Management Nationality
“Companies are realizing that they have a portfolio of human resources worldwide, that their brightest technical person might come from Germany, or their best financial manager from England. They are starting to tap their worldwide human resources. And as they do, it will not be surprising to see non-Americans rise to the top.”
- Christopher Bartlett, Harvard Business School
The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. For example, the U.S. Department of Education recently reported that 200 million Chinese children are studying English; by contrast, only 24,000 American children are studying Chinese! Roberto Goizueta, the Cuban-born CEO of Coca-Cola who died in 1997, spoke English, Spanish, and Portuguese; Ford's former chief executive, Alexander Trotman, was born in England and speaks English, French, and German.

5. Top Management Nationality, 2010
Corporate leaders and their national backgrounds.

6. Ethics and Stewardship
Today’s CEO must be a proactive steward of the firm
He or she must respond to:
Stakeholders—managers, employees, customers, stockholders, suppliers
Secondary stakeholders—general business community, local community groups, and nongovernmental organizations (NGOs)
Nongovernmental organizations (NGOs) include Oxfam, Greenpeace, and Amnesty International. Stakeholder analysis is the process of formulating a “win-win” outcome for all stakeholders

7. Corporate Social Responsibility
“Perhaps we have the opportunity to be a different type of global company, a global brand that can build a different model, a company that is a global business, that makes a profit, but at the same time demonstrates a social conscience and gives back to the local market.” -Howard Schultz, CEO, Starbucks, responding to a question about the likelihood of anti-globalization activists

8. Issues in CSR
How do CEOs decide what is in the best interest of society?
Bangladeshi children lost garment industry jobs after the U.S. threatened trade sanctions and the children were worse off
Nike has been criticized for alleged poor working conditions in its factories
Wal-Mart has been under fire for a number of reasons including labor practices, resulting in social impacts in communities it serves
As retail gasoline prices soared in the United States following the devastation of Hurricane Katrina, BP, Royal Dutch Shell, and other companies were accused of gouging. The American Petroleum Institute, the industry’s trade group, launched a national TV advertising campaign aimed at explaining its business and urging conservation.
CEO pay in the United States is rising faster than average salaries and much faster than inflation. One study found that in 2004, CEOs were paid 431 times more than the average worker.

9. Principles & Practices of Ethical & Moral Leadership
Ethics
The study of moral obligations
The study of separating right from wrong
Morals
An individual’s determination of what is right or wrong
Influenced by a person’s values
Values
Connected to ethics because ethics become the vehicle for converting ethics into action

10. Ethical Leadership Behaviors
Ethics is at the center of leadership because the goal of a rational leader is to merge the interests of all parties so that everyone benefits and the organization prospers.
Be Honest and Trustworthy and Have Integrity in Dealing with Others
Pay Attention to All Stakeholders
Build Community
Respect the Individual
Accomplish Silent Victories

11. Factors Contributing to Ethical Differences
Level of Greed, Gluttony, & Desire
Rationalization
Implied Authorization
Level of Moral Development
Pre-conventional
Conventional
Post-conventional
Entitlement
Situation
Person’s Character

12. The Ethical Mind for Leaders
The view that helps individuals aspire to good work that matters to their colleagues, their companies, and their societies in general.
Behaving ethically
Establishing an ethical compass
Adhering to ethical values
Reflecting on ethical behavior through self-tests
Asking mentors to comment on ethical behavior
Acting quickly to confront unethical behavior of others

13. Guidelines for Evaluating the Ethics of a Decision
Ethical Screen/Guidelines to Help Leaders Determine if a Given Act is Ethical or Unethical
Is it right?
Is it fair?
Who gets hurt?
Would you be comfortable if the details of your decision or actions were made public in the media or through ?
What would you tell your child, sibling, or young relative to do?
How does it smell?
Leaders regularly face the necessity of running a contemplated decision through an ethics test.

14. A Sampling of Unethical Leadership Behaviors
A statement often made is that about 95 percent of business leaders are ethical and that the 5 percent of bad apples (mostly senior executives) get all the publicity.
The impact of unethical leadership has been enormous:
Bankruptcy
Layoffs of thousands of workers
Diminished trust in stock investments
Discourage talented young people to study business

15. Leadership & Social Responsibility
Having welfare for the community within which the business operates.
Obligations to society beyond the company’s economic obligations to owners or stockholders – and – beyond those prescribed by law or contract.
Both ethics and social responsibility relate to the goodness or morality of organizations…
But social responsibility relates to an organization’s impact on society and goes beyond doing what is ethical.

16. Socially Responsible Actions
Creating a Pleasant Workplace
Guarding the Environment
Engaging in Philanthropy
Working With Suppliers to Improve Working Conditions

17. Creating an Ethical Organizational Culture
Providing Strategic Leadership
Creating a Pleasant Workforce
Conducting an Environmental Audit
Helping Build a Sustainable Environment
Engaging in Philanthropy
Working with Suppliers to Improve Working Conditions
Establishing Written Codes of Ethical Conduct
Developing Formal Mechanisms for Dealing with Ethical Problems
Accepting Whistleblowers
Providing Training in Ethics and Social Responsibility
Placing Company Interests over Personal Interests

18. Ethical Behavior & Organizational Performance
High ethics and social responsibility are related to good financial performance.
Relationship between social responsibility and financial performance may be a virtuous circle.
Corporate social responsibility and corporate financial performance may feed and reinforce each other.

19. Summary
Key principles of ethical leadership include having honesty and integrity, paying attention to all stakeholders, building community, respecting the individual, and accomplishing silent victories.
Examples of factors contributing to how one person’s ethics differ from another include the person’s level of greed, gluttony, and avarice; the person’s level of moral development; the person’s sense of entitlement; the situation itself, combined with the corporate culture; and/or the person’s character.
Leaders should seek answers to a series of important questions before reaching a decision about an issue that is not clearly either ethical or unethical.
Unethical behaviors have had detrimental effects on many companies.
Leaders can encourage ethical behavior by promoting social responsibility.
Ethical behavior is related to financial performance.