1. Presented by: Leigh Anne Clark, PhD, JD Associate Professor of Management Jones College of Business Department of Management & Marketing Middle Tennessee State University (615) 494-8672 * La.clark@mtsu.edu Requires Deliberate and Consistent Action

2. Ethical Leader List Characteristics Unethical Leader List Characteristics

4. The basic concepts and fundamental principles of right human conduct (Businessdictionary.com) A guiding philosophy or a set of moral principles or a system of moral values (www.merriam- webster.com/dictionary/)

5. Using your influence, decision making, and motivation skills to get “right or moral human conduct” from the people you lead.

7. Personal Ethics What is Right? Moral Philosophies Thinking Ethically reading Taking Action as a Leader Organizational Ethics Stated beliefs/values Actions of the Organization Organizational Culture Obedience to Authority Group Conformity Reluctance to Get Involved But what is right depends on the person... We often operate in the gray area of what is right/wrong... Ethical Leadership – Key Factors and Tools

8. Important for a leader to have a clear understanding of his/her own personal ethics. Also, important for the people you lead to understand their own ethics. ACTIVITY – Create your Personal Ethics Statement

9. Step 1: Individually complete the personal ethics worksheet. Step 2: Create a personal ethics statement that will (a) fit on a business card (b) will guide your decision making when faced with an ethical dilemma. Step 3: Now in groups of 3, consider the ethical dilemma that I have given you. Use your personal ethics statement to direct your decision of what you would do. Step 4: At home, fine-tune your personal ethics statement and write it on the business card provided. Self-laminate the card and carry in your purse/wallet.

10. -Not fair? -Just not right? -The greatest good is served by …. -Lying is wrong …

11. Utilitarian Approach Look at consequences (end results) and evaluate benefits v. harms of those affected Right action is the one that provides greatest good and least harm. Rights Approach Humans have a right to choose freely and to have those choices respected Humans have other rights (to truth, privacy, to not be injured, to what was promised) The right action is the one that is consistent with these rights of individuals. Fairness or Justice Approach The right action is the one that treats people fairly and does not show favoritisms or discrimination. Was the process fair? Notice provided? Had opportunity to present your side, etc. Common-Good Approach Assumes that there are some goals that members of a community share and that our social policies, social systems, and institutions should benefit everyone. The right action is the one that further the goals that members share in common. Virtue or Values Approach Assumes that there are certain ideals to which all humans should strive. These ideals or virtues (honesty, courage, compassion, fairness, self-control, etc.) develop human character and human potential. The right action is the action that is consistent with one of these human virtues.

12. You may be limited in changing the internal compass of those who work for you – but you can influence their decisions and actions.

13. Obedience to Authority Group Conformity Reluctance to Get Involved Differential Association What is rewarded/Lack of Punishment As a leader, what can you do to get the right human behavior knowing that these factors exist? Taking Action How to Impact the Behavior of People Who Follow You ACTIVITY: Divide into five groups. I will assign you one of the organizational factors listed above. Discuss and generate at least three ways that a leader can use that concept to get the desired ethical behavior from employees.

14. Organizational Culture is a system of shared meanings and common beliefs held by organizational members that determines (in a large degree) how organizational members act Culture is reflected in the values, rituals, symbols, myths, and practices of the organization. Culture is perceived. It is shared. It is descriptive. It is powerful. “The way we do things around here”

15. The “key” parts of the culture are held deeply by members. Culture has a strong influence over members. Benefits from Strong Culture: Employees are committed to the organization People are drawn to the organization (want to work there) Easier to socialize new members to the organization Can result in higher organizational performance Drawbacks from Strong Culture: Resistant to change If culture is counter to organizational goals, then will yield undesired outcomes Hard to identify “key” parts of culture – when you identify them, they not held deeply by members. Culture does not have a strong hold on members. STRONGWEAK As a leader, you can influence the culture. Understand where you are and where you want to go. Be deliberate in making changes.

16. Watch behavior Look at data Survey employees (stakeholders) about perceptions What do you reward? Punish? Ethical issues (how many?) Look at where your money is spent Look online What else?

17. Walk the Walk Personally and As a Leader

18. Understand Your Own Values Actions Not Just Words Communicate Honestly Increase your Ethical Know-How Get a Mentor Train Your Employees Ask People to Challenge Wrongdoing Include Ethical Behavior in Your Appraisal System Hire for Values as well as Capabilities Insist on the Right People (source: www.sallybibb.com)

19. Deliberate Know your own personal ethics Plan, evaluate, implement steps to ensure ethics is followed Consistent Reward ethical behavior, punish unethical behavior – consistently Consistency leads to perception of character (character = consistency) Personal ethics is consistent or incongruence with the organization’s ethics Active Observe and impact the organizational culture so that embraces the organization’s ethics Be deliberate with mentor assignments, use group conformity, use psychological factors to get ethical behavior BAD

20. Obedience to Authority http://www.youtube.com/watch?v=y6GxIuljT3w http://www.youtube.com/watch?v=y6GxIuljT3w Group Conformity http://www.youtube.com/watch?v=qA-gbpt7Ts8 http://www.youtube.com/watch?v=nPobACr9oL4 Bystander Effect http://www.youtube.com/watch?v=OSsPfbup0ac http://www.youtube.com/watch?v=OSsPfbup0ac