This document discusses managing ethical employee behavior through organizational leadership and culture. It argues that leadership must meet moral challenges through demonstrating integrity, empathy, consistency, and vision to build trust. Companies should clearly communicate ethical standards and have policies, training, and processes to encourage ethical conduct and address violations. Leaders must exemplify ethical behavior and shape an ethical culture where employees feel comfortable raising concerns without fear of retribution. Fostering an ethical environment through open communication and accountability benefits both business and society.

1. Managing for Ethical
Employee Behavior
Presented by:
Tasmia Choudhury, Thapanut Uvijitr, Neha Choudhary,
Nina Houston, Iaroslav Lutsenko, Sin Heang Lee,
Josephine Herrera-Rivera

2. Ethics in Theory
“Leadership should not go along to get along …. Leadership must
meet the moral challenge of the day”
Ethics refers to the principles of right conduct or a system of
moral values
Leaders are judged on the basis of a framework of values and not just in terms of
their effectiveness.
Gardner & Burns stressed the centrality and importance of the moral dimension of
leadership.
Burns even viewed ethically correct leadership behavior to demonstrate “true
leadership”
Ethics and trust go hand in hand

3. The 4 Leadership Qualities
that create Trust
Vision:
• Followers tend to trust a leader who create a compelling vision
Empathy:
• Understand the world as the followers see and experience it
Consistency:
• Leaders who are consistent are trustworthy
Integrity:
• Leaders with strong integrity are trusted by the followers

4. Organizational Leadership
 Like individuals, organizations too have dominant values
 These values represent the principles by which employees are to
get work done and how to treat other employees, customers, and
vendors
 Often times there is a gap between a company’s stated values and
the way the company truly operates
 Values of top management can sometimes tell more about the
company’s operations than the company values
 Satisfaction and retention rate is higher when employees share the
same values as company

6. Leading by Example
Interpersonal behaviors:
• Optimistic, hardworking and helpful. Shows care, concern and compassion
for others
Basic fairness:
• Behavior is manifested in the fairness shown to others. Treats others
respectfully
Ethical actions and self expectations:
• Possesses high integrity. Perceived as honest, trustworthy and humble
Articulating ethical standards:
• Uncompromising high ethical standards. Puts ethical standards over
personal and short-term company interests

7. Leading by Example
Leaders in the organization have the responsibility to shape
the ethical culture
The term upward leadership comes in here
“ leadership behavior enacted by individuals who take action to maintain
ethical standards in the face of questionable moral behaviors by higher ups”
Employees may not necessarily feel safe for raising ethical
concerns and issues
• Fear of retribution by bosses
• Going along with the group
Ethical climate moderates an employees likelihood of raising
ethical concerns

8. Culture
Ethical climate:
• Ethical standards and norms are consistently, clearly, and
pervasively communicated
• Embraced and enforced by leaders in both word and
example
• Leaders must “Walk the Talk!”
Unethical climate:
• Questionable or outright unethical behavior exists
• Little to no action taken to correct it
• High degree of moral distress among employees

9. Culture Video

10. Policies and Procedures
Formal statements of ethical standards and policies:
Organizations follow public and private policies and actions
• Companies have increased focus in written policies with Ethics
HRM System Example
Ethics Resource Center website
• Provides resources, research, services, standards, practices for
companies

11. Process Focus
Tangible Achievements:
Organizational
Individual
Team goals
Intangible Process:
 How goals are achieved

12. Organization’s can be designed to encourage higher ethical
performance and discourage unethical performance.
Hiring Practices
• Higher standards
• Leaders with integrity
Communicate, Communicate, Communicate!
• Meetings: daily weekly, monthly quarterly, annually
• Pamphlets/publications
• Emails
• Quarterly newsletters
Structural Reinforcement

13. Employee Behavioral Methodologies
Rewards
• Monetary
• Praise
Discipline
• Accountability at all levels
“Whistleblower” Protection Programs
• Organizational, Corporate wide, small businesses
• Agencies
• Department of Labor
Training
• The Network©

14. The Six Elements
1. Written standards of ethical workplace conduct.
2. Training on standards.
3. Company resources that provide advice on ethics issues.
4. A process to report potential violations confidentially or
anonymously.
5. Performance evaluations of ethical conduct.
6. Systems to discipline violators.
Source: 2013 National Business Ethics Survey, Ethics Resource Center.

15. Unethical Behavior

16. Importance in Business
 Analogous to Corporate Social responsibility -CSR
 SARBANES-OXLEY ACT 2002
 Shaming or embarrassment
• Social Media
 Bad business equals no business

17. Conclusion
Just Good for Business!
Good for overall moral!
Thank you!!!

18. Questions
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