1. Strategic Leadership: Creating a Learning Organization and an Ethical Organization Chapter Eleven McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Learning Objectives After reading this chapter, you should have a good understanding of: LO11.1 The three key interdependent activities in which all successful leaders must be continually engaged. LO11.2 Three elements of effective leadership: integrative thinking, overcoming barriers to change, and the effective use of power. LO11.3 The crucial role of emotional intelligence (EI) in successful leadership as well as its potential drawbacks. 11-2

3. Learning Objectives LO11.4 The value of creating and maintaining a learning organization in today’s global marketplace. LO11.5 The leader’s role in establishing an ethical organization. LO11.6 The difference between integrity-based and compliance-based approaches to organizational ethics. LO11.7 Several key elements that organizations must have to become an ethical organization. 11-3

4. Leadership: Three Interdependent Activities  Leadership  process of transforming organizations from what they are to what the leader would have them become 11-4

5. Three Interdependent Activities of Leadership 11-5 Exhibit 11.1

6. The Ambicultural Approach  “Ambicultural” perspective on leadership  leaders can benefit by taking the best of different philosophies and business practices while avoiding the negatives  challenge for managers is to utilize the thinking and orientations of respective cultures in order to understand, identify with, and benefit from them 11-6

7. Integrative Thinking: The Process of Thinking and Deciding 11-7 Exhibit 11.2

8. A Leader’s Bases of Power 11-8 Exhibit 11.3

9. Five Components of Emotional Intelligence at Work 11-9 Exhibit 11.4

10. Key Elements of a Learning Organization 11-10 Exhibit 11.5

11. Best Practices: Learning from Failures 11-11 Exhibit 11.6

12. Creating An Ethical Organization  Ethical orientation  the practices that firms use to promote an ethical business culture,  Includes ethical role models, corporate credos and codes of conduct, ethically-based reward and evaluation systems, and consistently enforced ethical policies and procedures. 11-12

13. Integrity-Based versus Compliance- Based Approaches  Compliance-based ethics programs  programs for building ethical organizations that have the goal of preventing, detecting, and punishing legal violations. 11-13

14. Approaches to Ethics Management 11-14 Exhibit 11.8

15. Johnson & Johnson’s Credo 11-15 Exhibit 11.10