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Governance Approach
Situation & Character
• Un reflective Obedience
• Social loafing
• Group thinking
Social loafing
Group thinking
Situation Override Character-
Framework- Albert Hirschman (1970)
• Exit can be one way to maintain personal morality
• Add voice to uphold ethical responsibility
• Provide feedback in opportune times to signal professional ethics
– more likely you would find your fit to the organization
• Ethical leadership is displayed in trade-off situation
- Awareness (foreseeing the ethical dimension)
- Judgement (being impartial)
- Action (being consistent to build character)
- Leadership (setting examples through hard choices)
Facilitate whistleblowing (Berry, 2004)
• Vigilance – awareness about organizational values and standards
• Engagement – alignment of personal values with organizational values
• Credibility – leadership approach, incentive system
• Accountability – ethics as part of job description
• Empowerment – sense of control over decision making
• Courage – maintaining managerial responsiveness to employee
concerns, encouraging the expression of legitimate challenges,
creating space for alternative perspectives
• Options – multiple channels
Corporate Governance
• Transparency
• Accountability
• Fairness
Ethics and economics
• Market fails not only to economic inefficiency, but also to socially
undesirable impacts
• Morally objectionable exchange
• Socially important goods
• Procedural fairness
• Distributive justice
• Government regulation is an important tool, but is limited by
resources and capabilities, as well as scope.
• Business leaders ought to play an important role as members of the
society and be mindful of ethical consequences, not just economic
ones

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ECR Claoiujhguvfujjjbcgjcgucuss 5 PGP.pptx

  • 2. Situation & Character • Un reflective Obedience • Social loafing • Group thinking
  • 6. Framework- Albert Hirschman (1970) • Exit can be one way to maintain personal morality • Add voice to uphold ethical responsibility • Provide feedback in opportune times to signal professional ethics – more likely you would find your fit to the organization • Ethical leadership is displayed in trade-off situation - Awareness (foreseeing the ethical dimension) - Judgement (being impartial) - Action (being consistent to build character) - Leadership (setting examples through hard choices)
  • 7. Facilitate whistleblowing (Berry, 2004) • Vigilance – awareness about organizational values and standards • Engagement – alignment of personal values with organizational values • Credibility – leadership approach, incentive system • Accountability – ethics as part of job description • Empowerment – sense of control over decision making • Courage – maintaining managerial responsiveness to employee concerns, encouraging the expression of legitimate challenges, creating space for alternative perspectives • Options – multiple channels
  • 8. Corporate Governance • Transparency • Accountability • Fairness
  • 9. Ethics and economics • Market fails not only to economic inefficiency, but also to socially undesirable impacts • Morally objectionable exchange • Socially important goods • Procedural fairness • Distributive justice • Government regulation is an important tool, but is limited by resources and capabilities, as well as scope. • Business leaders ought to play an important role as members of the society and be mindful of ethical consequences, not just economic ones