For each answer, please include rationale and citations to provide support. You may use outside resources and research, but the expectation is that the majority of the citations will come from the course readings/presentations.Business writing skills are essential for effective business practices. Business writing means clear, concise, and persuasive. Please answer the below questions in NO MORE THAN the page limit specified at the end of the question. (Double spaced Times Roman 12ft font, 1 in margins (if you do it right, the page limit might be challenging)).1.Apply the Baird Method to the following ethical dilemma (yes, this is similar to the case that we worked out for the ethical reasoning model in class – this is intentional). 1 page (20 pts)You are about to make a major hire for your sales team. As the sales manager, you have the final say in which of the three final candidates will get the offer. The last step of your hiring process is to check refer­ences. You decide that you will see if the applicants have a FaceBook® page and see what information you can glean from that site. On the unsecure wall of your favorite candidate, you discover that she has several threads of conversation about the political situation in Russia. Some of the people whose conversations she is following are advocating going against the government, even to demonstrations and other acts of civil disobedience.What would you do given that one of you major markets is Russia , you find yourself wondering if someone who is against the current system in Russia would in fact be a good sales rep in that market?2.In your opinion, what are the advantages and disadvantages of the ethical reasoning method vs. the Baird method? Can you support this opinion? Lastly, do you think that you should exclusively use one over the other? 1 page (10 pts)3. What should organizational leaders do to create more ethical organizations (broad question, I know!) 1 page (10 pts)4.In your own words, describe Baird’s four ethical perspectives. Even though it is said that no one lens is better than the other, do you think that one is better for leadership positions (answers will and should vary). 1 page (10 pts)5.What are your most pressing issues surrounding moral intelligence (emotional or otherwise)? Are these reflected in your Baird ethical perspective? ½ page (10 pts)6. In your own words, what does it mean to be morally intelligent and why is it important? ½ page (10 pts)7.What can we do as organizations and as individuals about the Romance of Leadership and to limit the negative impact of unethical leaders? ½ page (10 pts)If done right, this midterm should be a process of both knowledge application, as well as self-reflection. The more you put into it, the more you will get out of it!FYI –If you are concerned about the page limits, I, personally, have gone through each of these questions myself within the midterm restrictions.
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Introduction to Ethical
Leadership
DR. JENELL WITTMER
Agenda
PART I
INTRODUCTIONS
ETHICAL CONCEPTS AND THEORY
PART II
INTRODUCTION TO BUSINESS ETHICS
DISCUSSION: WHY BUSINESS ETHICS
PART III
HOW TO CREATE ETHICAL ORGANIZATIONS
Part I
INTRODUCTIONS
ETHICAL CONCEPTS AND THEORY
About this Course
This class is NOT about:
Ethics in Business Systems: Government, Markets, and
International Trade
? Ethics in the Marketplace
? Ethics and the Environment
? Ethics of Consumer Production and Marketing
? Ethics of Job Discrimination
?
About this Course
This course IS about:
? Ethical
Leadership
? Understanding the importance of ethical leadership
? Leading ethically through understanding oneself
? Leading ethically through treatment of employees
? Leading ethically by setting a good example
What is ethics?
? Ethics is a branch of philosophy dealing with the
questions of what ought to be done or what ought
not to be done, under what kinds of reasons.
? Ethical deliberation is as important as human
culture itself; it originated as something based on
religion, but later developed to be more secular.
Ethics and Morality
? Ethics is the study of morality.
Morality = The standards that an individual or a group
has about what is right and wrong, or good and evil.
? Moral Standards = norms about the kinds of actions that
are morally right and wrong, as well as the values placed
on what is morally good or bad.
? Non-Moral Standards: The standards by which we judge
what is good or bad and right or wrong in a non-moral
way.
?
Five Characteristics of Moral Standards
? Involve significant injuries or benefits
? Not established by authority figures
? Should be preferred to other values including self-
interest
? Based on impartial considerations
? Associated with special emotions and vocabulary.
Values in the Workplace
Values
Work Values
Ethical Values
Justice
Values
Utilitarian
Values
Moral
Rights
Values
Ethical Theoretical Perspectives
? What should I do? (Deontology-Kant) – The rights perspective.
? What will be the results? (Utilitarianism-Mill) – The results perspective.
? How will this impact others? (Justice-Rawls) – The relationship
perspective.
? What will others think? (Virtue – Aristotle and Maclntyre) – The
reputation perspective
Major Ethical Theories
?
Immanuel Kant – deontological ethics
‘deontos’ is Greek for ‘duty’
? Emphasis on the role of duty and conforming to rational ideal.
?
?
J. S. Mill – utilitarianism, or consequentialist ethics
“Greatest good for the greatest number”
? Calculation of goods and utilities.
?
?
Criticisms?
Major Ethical Theories
Fairness: The idea of justice
John Rawls’ A Theory of Justice
Justice – expressed in terms of fairness and equality
Issues involving questions of justice are divided
into categories:
For example:
distributive
procedural
Major Ethical Theories
Virtue:
After Virtue by Alasdair MacIntyre
– failure of modern ethics
Aristotle: Nicomachean Ethics
– Not “what ought I do” but “what sort of
person am I”
So, What’s the Problem?
? Everyone has a different view of ethics
? Reasonable people disagree on what is “right,” “just,”
“fair,” and “reasonable”
? Understanding how all of us view what is ethical is
important for leading others and setting policy
Part II
INTRODUCTION TO BUSINESS ETHICS
DISCUSSION: WHY BUSINESS ETHICS
What are Business Ethics?
? To recap, ethics is the discipline that examines one’s
moral standards or the moral standards of a society
to evaluate their reasonableness and their
implications for one’s life.
? Business ethics is a specialized study of moral right
and wrong that concentrates on moral standards as
they apply to business institutions, organizations,
and behavior.
Types of Ethical Issues
? Systemic—ethical questions about the social,
political, legal, or economic systems within which
companies operate.
? Corporate—ethical questions about a particular
corporation and its policies, culture, climate, impact,
or actions.
? Individual—ethical questions about a particular
individual’s decisions, behavior, or character.
Can ethical qualities be attributed to corporations?
? View #1: corporations, like people, act intentionally and
have moral rights, and obligations, and are morally
responsible.
? View #2: it makes no sense to attribute ethical qualities
to corporations since they are not like people but more
like machines; only humans can have ethical qualities.
? View #3: humans carry out the corporation’s actions so
they are morally responsible for what they do and ethical
qualities apply in a primary sense to them; corporations
have ethical qualities only in a derivative sense.
Arguments Against Business Ethics
? In a free market economy, the pursuit of profit will
ensure maximum social benefit so business ethics is
not needed.
? A manager’s most important obligation is loyalty to
the company regardless of ethics.
? So long as companies obey the law they will do all
that ethics requires.
Arguments Supporting Business Ethics
? Ethics applies to all human activities.
? Business cannot survive without ethics.
? Ethics is consistent with profit seeking.
? Customers, employees, and people in general care
about ethics.
? Studies suggest ethics does not detract from profits
and seems to contribute to profits.
Corporate Social Responsibility
? Corporate social responsibility refers to a
corporation’s responsibilities or obligations toward
society.
? Business ethics is both a part of corporate social
responsibility and part of the justification for
corporate social responsibility.
? Shareholder vs. Stakeholder Theory
Class Discussion
WHAT ARE THE REASONS WE SHOULD CARE
ABOUT ETHICAL BEHAVIOR IN
ORGANIZATIONS?
It’s a bottomline issue
Regardless of how
people feel about an
organization’s role in
influencing people’s
moral behavior, ethics
are a bottom-line issue
for organizations
Part III
HOW TO CREATE A MORE ETHICAL
ORGANIZATION
What Shapes Ethical Behavior?
Individual Factors
? Age
? Older workers in general had stricter interpretations of
ethical standards and made more ethical decisions than
younger employees
? Nature vs. Nurture
? Life experiences and role models play a large role in our
future behavior
8- 25
What Shapes Ethical Behavior?
Organizational Factors
? Being under the gun to meet scheduling pressures
? Meeting overly aggressive business objectives
? Helping the company survive
? Unethical behavior is more prevalent in competitive settings
? Presence or absence of ethics codes and compliance
mechanisms
? An unethical boss
8- 26
Boss’s Influence
? Level of misconduct at work dropped dramatically
when employees said their supervisors exhibited
ethical behavior
? How supervisors lead subordinates astray:
?
?
?
?
Tell staffers to do whatever is necessary to achieve results
Overload top performers to ensure work gets done
Look the other way when wrongdoing occurs
Take credit for others’ work
8- 27
Research: Leader Influence
Investigations into Human Nature
?
?
Zimbardo’s Prison Guard Study (1972)
?
Role play guards and prisoners
?
Experiment terminated early
Milgram’s Obedience Study (1965)
?
Supposed study of learning and memory

Role of Management in Ethics
Staffing and Selection
? Simplest way to tune up an organization is to hire more ethical
people.
Training
? Include showing employees how to recognize ethical dilemmas
Performance Appraisal
? Employees’ standards should be clear
? Appraisals themselves should be performed objectively and
fairly
Reward and Disciplinary Systems
? relatively harsh punishment for unethical conduct
8- 29
Code of Ethics
? In order to make sure employees know how to make
ethical decisions organizations should make an
organizational Code of Ethics
? Set of formal rules and standards, based on ethical
values and beliefs about what is right and wrong, that
employees can use to make appropriate decisions
when the interests of other individuals or groups are
at stake
? Whistleblowers
Enforceable Ethical Standards
? Organizations are also
realizing that employees
need clarification on
ethical standards and
expectations
? Ethical behavior should
be part of employee
selection, training,
evaluation, and rewards
Actions to Integrate Ethical Decision Making into
the Organization’s Daily Life
? Top management should commit to and model
?
?
?
?
?
ethical behaviors and decisions.
Develop a clear code of ethics and follow it.
Have procedures for organization members to
report unethical behavior.
Involve managers and employees in identifying
and solving ethical problems.
Include ethics in the performance appraisal
process.
Publicize the organizational ethical orientation.
Ethical Reasoning Models
DR. JENELL WITTMER
Ethics Test
? Is the action legal?
? Is it right?
? Who will be affected?
? Does it fit the company’s values?
? How will it “feel” afterwards?
? How will it look in the newspaper?
? Will it reflect poorly on the company?
8- 2
7 Step Ethical Reasoning Model
? What are the relevant facts?
? What are the ethical issues?
? Who are the primary stakeholders?
? What are the possible alternatives?
? What are the ethics of the alternatives?
? What are the practical constraints?
? What action(s) should be taken?
Example #1: Jason Smith
? You are the IT Director for 21st Century
Pharmaceuticals who is filling a high-level IT
position. You do a Google search that reveals your
top candidate (Jason Smith) has a MySpace page.
? While reviewing a blog he wrote, you discover he is
passionately against the use of animals in medical
testing and research.
Example #2: Laura Grant
? You are the Operations Director for Dominion
Supplies and are in the process of hiring a Call
Center Operations Manager. Laura Grant, an
internal candidate, has been identified as the top
candidate because of her stellar performance as a
CSR.
? While verifying her degree, you discover she
falsified her application 3 years ago, but because a
college degree wasn’t required for a CSR, it was
never discovered.
? Definition
Ethical Lens Inventory (ELI) is a tool to help you learn
how to live with personal integrity as well as ethically in
community.
? As you become more aware of your own values, you will
discover your preferred approach to solving ethical
dilemmas
? ELI will help you identify which of the Four Ethical
Lenses is your preferred ethical perspective.
? Ethics is the way we demonstrate our values through our
actions
?
Being Included
? What behaviors are so unacceptable that one who
commits them will no longer be able to be a free
member of the community?
Question leads to a set of rules which members are
expected to follow
? These norms determine the rights and responsibilities
? Shunning is when someone is excluded from a
community for not following the rules
?
Being Respected By Others
? What behaviors and actions do leaders or ethical
role models demonstrate?
? What kind of person do we want to become?
?
As you choose a preferred path, you will model your own
behavior after that of people you respect
Respecting Ourselves
? What values and behaviors do I expect from myself
and others?
? This list should be your personal code of ethics
? The degree to which our personal values congruent
with the communities norms, the more we will fit
into the community.
The Developmental Task
? Psychologists tell us:
The first 12-13 years of our lives are spent learning how to
fit in
? Then from 14-22 years old we explore who we are as
individuals
? Our adult years are spend in conversation with friends
refining our understanding of our self as an ethical
person
? Along the way, we internalize both positive and negative
messages about our self
?
Ethics
? Teach us how to live well with ourselves and with
others
? As we learn rules and values of our community, we
have conversations about what behaviors count as
ethical.
? As standards evolve, continual discussions will take
place about what exactly is good character.
Personal and Community Values
? We might find our personal values are at odds with the
community’s values
? Discernment and courage are needed to choose the right
path
? Options
? Changing the recommended course of action
? Find a middle position-or a better option
? Compromise values or take a principle stand
Our Own Personal Values
? Having two important personal values conflict with
one another
? Do we want to be kind and tell a “white lie” or
honest and hurt someone’s feelings
? The tools of ELI can help us sort through which
values should take priority in a given situation
Our Best and Worst Selves
? Sometimes we know the right course of action but we
are tempted to act badly
? The most difficult part of becoming ethically mature
is learning how to act from our best self, the part of
us that knows what we are suppose to do
Rationality
? Using the skills of critical thinking and analysis to
determine the universal principles or system of
justice
?
o
Characteristics- “law- and-order” people
Gifts
o
o
o
o
Excess- Those that abuse rationality create two dangers
o
o
o
Assure people will be treated fairly regardless of differences
Confidence that rules will be applied to all
Creation of safe communities so people have a safe place to live
Immobility as people cant respond to change
Stagnant communities as people can not freely move
Starting Point- begins with authority
Sensibility
? Using the skills of empathy and compassion to
determine what specific actions we should take in
concrete situations to demonstrate ethical goals
?
?
Characteristics- adjust behavior to create “win-win” solutions
Gifts
Flexibility to respond to challenging situations
? Sensitivity to the context of the situation and the uniqueness of
each person as options for actions
?
?
Excess- Those who abuse sensibility create two dangers
Chaos as people do whatever their hearts desires
? Rationalizations of unethical behavior as people find “reasons” to
break all the rules
?
?
Starting Point- personal experience
Autonomy
? Individuals deciding what values should take priority in
determining what behaviors is ethical
?
?
Characteristics- wants individuals to be able to choose how they live
with little interference through laws
Gifts
Self-reliance and resourcefulness as people embrace their rights
? Freedom for each person to choose best how to live
? Tolerance for personal quirks that come with individual choice
?
?
Excess-Those who abuse autonomy create three dangers
Anarchy- people do what is “right” without considering others.
? Selfishness that blinds people to the needs of those without power
? Becoming victims who expect others to rescue them from the
consequences of their decisions
?
?
Starting Point- our sense of the personal self
Equality
? The community deciding what values should take
priority in determining what behavior is ethical
?
?
Characteristics- “being fair”
Gifts
Fairness in distribution of goods
? Sensitivity to those without power
? Passion for systems so all receive similar treatment
?
?
Excess-Those who abuse equality create three dangers
Apathy
? Freeloading
? Entitlement
?
?
Starting Point- privileges, needs, and expectations
of the community
Human Task
? Rights and Responsibilities Lens:
? Principles: Rules that guide individuals to appropriate
behavior
? Relationship Lens
? Justice: assuring that all in the community are treated fairly
? Result Lens
? Ideal goals: result that we want to accomplish
? Reputation Lens
? Virtues: qualities of character that allow us to be effective in
the community
The Four Ethical Lenses
? RIGHTS AND RESPONSIBILITIES LENS
? Using this vantage point is like looking through a telescope:
taking a very long view to find the ideal values that are
important for human beings.
? Theorists focus on identifying the ideals (whether revealed
through nature or given by God) that we as people should
seek and follow as we make our choices.
? The task is to identify the ethical principles, the duties, that
apply to all people.
? The secondary values that are associated with this lens
presume that an ethical person is highly self-aware and selfmanaging as choices are made.
The Four Ethical Lenses
? RELATIONSHIP LENS
? Using this vantage point is like looking through binoculars;
we look around our own community as we seek justice.
? Theorist focus on what is called to fulfill our duties in
service to the ideals of a perfectly just community.
The secondary values flow from a passion for basic
fairness
? These values also assume that all in the community are
entitled to enough of the basic goods and services needed
for people to thrive, regardless of financial position or
status.
?
The Four Ethical Lenses
? RESULT LENS
?
?
?
Using this vantage point is like looking through a microscope: our
attention is focused on the present as we make choices that
will help us reach the goals we have set for our life.
The secondary values associated here emphasize the freedom
of the ethical actor.
These values flow from considering the consequences of our
choices and making decisions that will help us reach our goals.
The Four Ethical Lenses
? REPUTATION LENS
? Using this vantage point is like looking through a camera: each
picture focuses on a person, or people, to help identify the roles
which we have in this life
? Another idea is that we each frame and name what we see in
our life
? Theorists focused on what virtues the community believes
should be held by those in positions of responsibility
? The secondary values relate to a good character that is
developed through habitual reflective behavior
? These virtuous habits are to be developed for their own sake,
not because one good character will have advantages in the
community
Foundational Values
? RIGHTS AND RESPONSIBILITIES LENS
? Rationality
?
?
You believe that the universal rules exist that apply equally to
everyone.
Autonomy
?
Primary concern is protecting and enhancing individual rights
? RELATIONSHIP LENS
? Rationality
?
?
You believe that universal rules exist that apply equally to
everyone.
Equality
?
Believe that assuring the community’s well-being and health is the
best way to assure that individuals are treated fairly
Foundational Values
? RESULT LENS
?
Sensibility
?
?
You believe that experience is the best teacher, especially as you try
ideas out yourself
Autonomy
?
Primary concern is protecting and enhancing individual rights
? REPUTATION LENS
?
Sensibility
?
?
You believe that experience is the best teacher, especially as seen
through the lives of role-models
Equality
?
Believe that developing virtuous leaders who assure the community’s
well-being and health is the best way to assure that individuals are
treated fairly
Determining What is Ethical
? RIGHTS AND RESPONSIBILITIES LENS
? Process
?
?
I (autonomy) use my reason (rationality) to determine the universal
principles by which I (and others) should live
Ethical Act
Fills the rights and responsibilities of the ethical actor
? Is done with care and concern for other individuals
? Allows you to delight in your work as you carry out your obligations
?
Determining What is Ethical
? RELATIONSHIP LENS
? Process
?
?
Members of the community (equality) use their collective reason
( …
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