Ls 601 ppt 11

1. CHAPTER 11.
MASTERING
THE ETHICAL
CHALLENGES
OF
LEADERSHIP
IN A GLOBAL
SOCIETY

2. Mastering the Ethical Challenges of
Leadership in a Global Society
• The Dark Side of Globalization
– Supporters of globalization point to its benefits.
– Critics of globalization note that global capitalism
encourages greed rather than concern for others.
– They believe ethical and spiritual values have been
overshadowed by the profit motive.
– As leaders, we need to give serious consideration to
the dark side of the global society in order to help
prevent ethical abuse.
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
2

3. The Dark Side of Globalization
• The Global Shadow of Power
• The Global Shadow of Privilege
• The Global Shadow of Mismanaged
Information
• The Global Shadow of Inconsistency
• The Global Shadow of Misplaced and
Broken Loyalties
• The Global Shadow of Irresponsibility
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
3

4. Cultural Differences and Ethical Values
• Defining Culture
– Cultures are comprehensive, incorporating both the visible
(architecture, physical objects, nonverbal behavior) and
the invisible (thoughts, attitudes, values).
– Elements of culture:
• Created
• Learned
• Shared
• Dynamic
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
4

5. Programmed Value Patterns
• According to Geert Hofstede of the
Netherlands, important values are
“programmed” into members of every culture.
• Four value orientations from Hofstede’s
study:
– Power Distance
– Individualism versus Collectivism
– Masculinity versus Femininity
– Uncertainty Avoidance
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
5

6. Project GLOBE
• Project GLOBE (Global Leadership and Organizational
Behavior Effectiveness) is an international effort involving 170
researchers who have gathered data from more than 17,000
managers in 62 countries.
• They extend Hofstede’s list by including the following:
– In-Group Collectivism
– Assertiveness
– Future Orientation
– Performance Orientation
– Humane Orientation
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
6

7. Focus on Follower Ethics: Across Cultures
• Ireland and U.S. Study
– Respondents in both countries gave equal ratings to (1) altruism
(being compassionate and generous), (2) collective (team oriented)
motivation that inspires subordinates to work toward shared goals
and to put the needs of the team first, and (3) encouragement that
empowers followers to develop self-confidence and self-sufficiency.
• Germany and U.S. Study
– They found that character/integrity, collective motivation, and
encouragement were strongly endorsed by managers in each
nation, while altruism was rated as less important.
• Asia Study
– Traits of ethical leaders: character, a collective orientation,
consideration and respect for others
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
7

8. Moral Foundations
• New York University moral psychologist Jonathan Haidt and
others believe that to understand ethical diversity we first
need to understand the psychological systems or
foundations of morality.
• Haidt identified five foundations for our moral intuitions:
– Harm/care
– Fairness/reciprocity
– In-group/loyalty
– Authority/respect
– Purity/sanctity
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
8

9. Facing the Challenges
• Overcoming Attitudinal Obstacles
– Prejudice: the prejudgment of others based
on prior experiences and beliefs
– Stereotyping: the process of classifying group
members according to their perceived
similarities
– Ethnocentrism: the tendency to see the world
from our cultural group’s point of view
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
9

10. Facing the Challenges
• We can reduce our levels of negative
prejudice, stereotyping, and ethnocentrism
by committing ourselves to the following:
– Mindfulness
• Openness to new categories, openness to new
information, recognizing the existence of more than
one perspective
– Dignity and Integrity
– Moral Inclusion
– Cosmopolitanism
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
10

11. Leadership Ethics at the Movies: McFarland, USA
• Discussion questions
– What character traits and attitudes enabled Jim
White and his family to adapt to a different
cultural setting?
– What examples of ethnocentrism, prejudice, and
stereotyping do you see in the film?
– How was Coach White transformed through his
experience coaching the cross-country team?
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
11

12. Standing on Moral Common Ground
 Cross-cultural research suggests that there might be
moral commonalties when making ethical decisions.
 Research into the neurological basis of moral
judgments is in the initial stages but suggests that,
when it comes to ethics, there might be some cultural
unity to go along with cultural diversity.
 Two approaches to uncovering ethical commonalities:
 Common Morality
 Cosmopolitanism
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
12

13. The United Nations Universal
Declaration of Human Rights
• Following World War II, a conflict fought in large part to
protect human freedoms, the United Nations adopted the
Universal Declaration of Human Rights.
• Rights protect the inherent dignity of every person
regardless of race, ethnic background, place of
residence, age, income, physical ability, or social status.
• More recently, the United Nations launched the Global
Compact to encourage multinational corporations to
honor human rights, labor rights, and the environment
while at the same time fighting corruption.
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
13

14. The Global Business Standards Codex
• Harvard business professor Lynn Paine and her
colleagues argue that world-class corporations base
their codes of ethics on a set of eight universal,
overarching ethical principles.
– 1. Fiduciary principle
– 2. Property principle
– 3. Reliability principle
– 4. Transparency principle
– 5. Dignity principle
– 6. Fairness principle
– 7. Citizenship principle
– 8. Responsiveness principle
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
14

15. The Caux Principles
• The Caux Round Table is made up of business executives from
the United States, Japan, and Europe who meet every year in
Caux, Switzerland.
• Their principles:
– Principle 1. The responsibilities of corporations
– Principle 2. The economic and social impact of
corporations
– Principle 3. Corporate behavior
– Principle 4. Respect for rules
– Principle 5. Support for multilateral trade
– Principle 6. Respect for the environment
– Principle 7. Avoidance of illicit operations
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
15

16. Making Ethical Choices in Culturally Diverse Settings
• The Integrative Social Contracts Theory (ISCT)
provides one set of guidelines for balancing respect for
ethical diversity with adherence to universal ethical
standards.
• ISCT is based on the idea of social contracts—
agreements that spell out the duties of institutions,
communities, and societies.
• Two kinds of contracts:
– Macrosocial
– Microsocial
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
16

17. Making Ethical Choices in Culturally Diverse Settings
• To make decisions following ISCT guidelines, follow
these steps:
– 1. Identify all relevant stakeholders or communities.
– 2. Determine whether these communities are legitimate
(do they allow voice and exit by members?).
– 3. Identify authentic norms (those that are widely known
and shared).
– 4. Determine whether the norms are legitimate (do not
conflict with hypernorms).
– 5. Resolve any conflicts between legitimate norms. (If
both sets of norms do not conflict with universal
standards, go with the option that is dominant—the one
accepted by the larger community.)
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
17

18. Making Ethical Choices in Culturally Diverse Settings
• University of Louisiana professors J. Brooke
Hamilton, Stephen Knouse, and Vanessa Hill
(HKH) offer another set of guidelines for
making choices in ethically diverse contexts.
• They provide six questions specifically
designed to help managers at multinational
enterprises (MNEs) make moral choices
when corporate values conflict with business
practices in the host country.
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
18

19. HKH Six Questions
• 1. What is the questionable practice (QP) in this situation?
• 2. Does the QP violate any laws that are enforced?
• 3. Is the QP simply a cultural difference, or is it also a potential
ethics problem?
• 4. Does the QP violate the firm’s core values or code of conduct, an
industry-wide or international code to which the firm subscribes, or a
firmly established hypernorm?
• 5. Does the firm have leverage (something of value to offer) in the
host country that allows the firm to follow its own practices rather
than the QP?
• 6. Will market practices in the host country improve if the firm follows
its own practices rather than the QP in the host country
marketplace?
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
19

20. Case Study 11.1: Being Worked to Death?
• Discussion Questions:
– If you own an iPhone, are you bothered by working conditions at Foxconn
plants? Do you worry that the production of your phone might have
contributed to the death of a worker?
– How much blame, if any, for worker suicides should go to CEO Gou and
Foxconn? To the leaders of Apple?
– Is Foxconn being unfairly scrutinized given that its facilities and treatment of
workers may be better than at other manufacturing firms in China? Is Apple
being unfairly singled out for criticism given that a number of other
electronics firms also have contracts with Foxconn?
– Has Apple taken enough responsibility for the treatment of those who
manufacture its projects?
– Should Apple accept lower profits to help those who work for its
subcontractors? As an Apple stockholder, would you be willing to accept a
lower stock price if this company did so?
– What global shadows are cast in this case?
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
20

21. Case Study 11.2: The Dentist as Lion Killer
• Discussion Questions:
– Why do you think the death of Cecil the lion sparked so
much outrage on social media?
– Has there been too much concern about this lion and not
enough concern for the people of Zimbabwe?
– Do you think trophy hunts are ethical? Do they help or
threaten wildlife conservation?
– What cultural values are in conflict in this situation? How
do you account for the differences between how
Westerners and Zimbabweans responded to this event?
– How can international authorities protect African wildlife
while meeting the needs and honoring the values of local
residents?
Johnson, Meeting the Ethical Challenges of
Leadership, 6e. SAGE Publishing, 2018.
21