BHU LS 600 Chapter 11

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Chapter 11:Chapter 11:
Addressing Ethics inAddressing Ethics in
LeadershipLeadership

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Chapter Objectives
• Explain the concept of ethical leadership.
• Discuss leadership ethics in practice by
reviewing the six factors related to ethical
leadership.
• Examine the six pillars of character.
• Discuss the three principles related to actions
of ethical leaders.
• Examine the five bases of power and its
relationship to ethical leadership.

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• Are there times when “the ends justify the
means” in leadership?
• Have you experienced times when
someone’s leadership has been
questionable?
• How did it make you feel?
Discussion Questions

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• Leadership has a moral dimension because
leaders influence the lives of others.
• There is an obligation to work for the common
good.
• Despite this there have been a number of
scandals in the business and the public sectors.
• Ethical leadership is the influence of a moral
person who moves others to do the right thing in
the right way for the right reasons (Ciulla, 2003).
Ethical Leadership

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• Factors include:
oThe character of the leader
o The actions of the leader
o The goals of the leader
o The honesty of the leader
o The power of the leader
o The values of the leader
Factors of Ethical Leadership

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Factors Related to
Ethical Leadership

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• A leader with strong character is seen as
a good & honorable human being.
• Character refers to the disposition & core
values of the leader.
• Aristotle argued that a moral person
demonstrates the virtues of courage,
generosity, self-control, honesty,
sociability, modesty, fairness, & justice.
Character of the Leader

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• Character is something that is developed.
• Schools are including character education
in curricula.
• There is a focus on training students to be
good citizens.
Character of the Leader

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• The Josephson Institute (2008) has
identified six dimensions of character:
o Trustworthiness
o Respect
o Responsibility
o Fairness
o Caring
o Citizenship
Character of the Leader

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• The way a leader goes about his or her
work determines whether or not he or she
is an ethical leader.
• We must ask, “Do the ends justify the
means?”
• Ethical leadership involves using morally
appropriate actions to achieve goals.
Actions of the Leader

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• Almost everything a leader does has
ethical overtones.
• A leader rewarding some people & not
others raises questions of fairness.
• Ignoring health problems & demanding
that a job be done quickly raises
questions about the leader’s
compassion.
Actions of the Leader

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• Three ethical standards emerge from
the research into ethical leadership.
o Showing respect
 Respect requires valuing others’ ideas and affirming
them as unique human beings.
o Serving others
 The leader places others’ interests foremost in his or
her work & acts in ways that will benefit all.
o Showing justice
 Justice demands that a leader place the issue of
fairness at the center of decision making.
 Ex.: Richard Lee coaching son’s Little League team
Actions of the Leader

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• Identifying & pursuing just & worthy goals are
the most important steps an ethical leader will
undertake.
• The goals incorporate many perspectives:
o The interests of others in the group or
organization
o The interests of the community
o The larger culture in which they work
• An ethical leader tries to establish goals on
which all parties can mutually agree.
Goals of the Leader

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• More than any other quality, people want their
leaders to be honest.
• Being honest is synonymous with being ethical.
• Dishonesty has a negative effect on a leader’s
interpersonal relationships.
• Dishonesty, even when used with good
intentions, contributes to the breakdown of
relationships.
Honesty of the Leader

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• There are times when telling the
complete truth can be destructive or
counterproductive.
• The challenge for a leader includes:
o striking a balance between being open &
being candid
o at the same time, monitoring what is
appropriate to disclose in particular
situations
Honesty of the Leader

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• Power is the capacity to influence or
affect others.
• A leader has power because of the
ability to affect others’ beliefs,
attitudes, and courses of action.
Power of the Leader

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• French and Raven (1959) identified five
common and important bases of power:
o Referent power
o Expert power
o Legitimate power
o Reward power
o Coercive power
Power of the Leader

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• Referent power is based on follower’s
identification and liking for the leader.
o Ex.: a college professor who is highly
admired by students
• Expert power is based on the followers’
perceptions of the leader’s competence.
o Ex.: a person with strong knowledge
about a software program
Power of the Leader

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• Legitimate power is associated with
having status or formal job authority.
o Ex.: a judge presiding over a court case
• Reward power is derived from having the
capacity to provide benefits to others.
o Ex.: a supervisor who can give bonuses
to employees
Power of the Leader

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• Coercive power is derived from
being able to punish or penalize
others.
o Ex.: a professor who can lower a
student’s grade for missing class
Power of the Leader

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• Values are the ideas, beliefs, and modes of
action that people find worthwhile or
desirable.
• James MacGregor Burns suggested that
there are three kinds of leadership values:
o Ethical values—such as kindness and altruism
o Modal values—such as responsibility &
o accountability
o End values—such as justice and community
Values of the Leader

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Leadership Snapshot: Warren Buffett, Bill &
Melinda Gates
• Started with three billionaires promising to give away half
their fortune during their lifetimes.
• Now encompasses more than 100 other super-rich
families promising to do the same thing.
• The Giving Pledge lead by Bill and Melinda Gates &
Warren Buffett.
• The Pledge is simple: the signers have to be billionaires
and they have to promise to give away at least half of
their fortunes during their lifetimes.
• The Pledge is less about the financial promise than a
public statement meant to inspire others.

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Leadership Snapshot: Warren Buffett,
Bill & Melinda Gates
• Bill Gates said that the “goal is to raise the visibility
of philanthropy and the great things it can do”.
• Critics maintain that the Pledge uses the power of
the super-rich to shape issues of public concern like
education and healthcare.
• Critics also claim that the pledges will increase the
gap between the large and small nonprofits.
• Pledge singer Nicolas Berggruen states that “wealth
is an advantage, but it also is frankly a
responsibility”.

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Case Study: The Write Choice
• Even though Professor Ramirez deviated from the
college’s policy regarding plagiarism, do you feel that
she acted ethically?
• If you were a student in this class and learned Professor
Ramirez made an exception for this student, would you
think she acted ethically? Explain.
• In table 11.1 the six pillars of character are detailed.
Which of these six pillars did Professor Ramirez display
in consideration for her student and how?
• Professor Ramirez’s actions ultimately brought into
question whether or not the ends justify the means. Do
you feel that her leniency in this case made her a
stronger or more ethical leader? Explain.

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• There is high demand for ethical leadership
today.
• Ethical leadership is comprised of the
character, actions, goals, honesty,
power, & values of the leader.
• Ethical leadership has many dimensions.
o To be an ethical leader, you need to pay
attention to who you are, what you do,
what goals you seek, your honesty, the
way you use power, & your values.
Summary