Ethics & Integrity of Governance
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This document discusses a symposium on servant leadership and ethics in governance. It defines key concepts like governance, integrity, and corruption. It then summarizes a presentation on how leadership styles can indirectly influence integrity through establishing an ethical organizational culture. Specifically, ethical leadership that serves as a moral role model and promotes ethics among followers can help reduce integrity violations. Lastly, it discusses how these conclusions relate to promoting ethics and integrity in higher education, particularly through bottom-up approaches like group codes of conduct in addition to top-down policies.
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GlaxoSmithKline (GSK) has a strong code of conduct that emphasizes honesty, integrity, and compliance with all legal and regulatory requirements. GSK provides guidance and support for employees, backed by rigorous auditing and disciplinary action for misconduct. The code promotes ethical business practices that benefit stakeholders, and employees are encouraged to seek advice regarding ethical situations.
Corporate governance ppt mba
Corporate governance refers to the structures and processes used to direct and manage companies in the interests of all stakeholders. The basic principles of corporate governance include accountability, transparency, fairness, integrity, responsibility and commitment. Good corporate governance enhances company performance, access to capital, and long-term prosperity while providing barriers against corruption. Both public and private sectors benefit from good corporate governance through better management, resource allocation, and reduced financial risk.
Moral values and ethics.
The document discusses moral values and ethics from business and personal perspectives. It defines business ethics and describes three key branches of ethics - descriptive, normative, and applied. It then discusses the importance of moral values and different types of values such as universal, instrumental, intrinsic, and operative values. The sources of moral values are discussed as religion, science, culture and law. The document emphasizes the importance of personal values for character modeling and significance of values for businesses in guiding principles and performance. It provides examples of some business values.
Corporate governance
This document provides an overview of corporate governance. It defines corporate governance as applying best management practices and complying with laws and ethical standards to effectively manage a company and create wealth for stakeholders. Good corporate governance provides benefits like better access to financing, lower costs of capital, improved performance, and reduced risk. The four pillars of corporate governance are accountability, fairness, transparency, and independence. In India, organizations like CII and SEBI have worked to establish corporate governance standards and regulations like Clause 49 to strengthen practices at publicly listed companies.
New public management
The document discusses New Public Management (NPM), which refers to reforms since the 1980s to improve efficiency and performance in western governments. Key aspects of NPM include emphasizing cost-cutting, adopting private sector practices, focusing on results over procedures, increasing competition, and making organizations more customer-oriented. However, some argue NPM has increased costs in the short-term and damaged organizations' ability to provide quality services. Overall, NPM aims to make public services more efficient and effective.
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Course Project APA Unit 10 Assignment
This document describes an ethical dilemma faced by the director of a charity organization. The director was pressured by a city official to hire the official's friend, despite concerns from the board of trustees. Over time, it became clear the friend was not doing any real work. The document then discusses various ethical theories that could help analyze this dilemma, such as virtue ethics, consequentialism, and utilitarianism. It concludes by outlining steps for ethical decision making, like defining the issue and identifying affected stakeholders.
Fostering ethical leadership in organizations
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Organizational ethics
This document discusses organizational and business ethics. It begins by defining organizational business ethics as the application of individual morality to choices made in professional contexts and business situations. It then discusses why ethics are important for organizations, noting they can influence employee commitment, investor/customer loyalty, legal issues, reputation, and profits. The document outlines ethical dilemmas organizations may face and the role of leaders in developing an ethical culture through training, strong values, strategic plans, and building integrity. It concludes that high ethics companies are driven by values, ensure fair treatment, and can make ethics a core competency.
Organizational ethics
This document discusses organizational and business ethics. It begins by defining organizational business ethics as the application of individual morality to choices made in professional contexts and business situations. It then discusses why ethics are important for organizations, noting they can influence employee commitment, investor/customer loyalty, legal issues, reputation, and profits. The document outlines ethical dilemmas organizations may face and the role of leaders in developing an ethical culture through training, strong values, strategic plans, and building integrity. It concludes that high ethics companies are driven by values, ensure fair treatment, and can make ethics a core competency.
Kemahiran Organisasi dan Kepimpinan
The document discusses several concepts related to ethical leadership:
1. It outlines processes for creating and sustaining ethical organizational environments, including critical thinking skills, integrity, perspective-taking, and motivation to do right.
2. It analyzes the moral dimensions of transformational leadership theory and how shared moral purposes between leaders and followers can drive change.
3. It examines how role-modeling ethical behavior can influence organizational culture and how "moral talk" can be used to address dilemmas and shape environment.
4. It presents several ethical decision-making models that can guide resolving dilemmas, including Rest's four-component model and five principles of biomedical ethics.
Organizational business ethics
This document discusses organizational and business ethics. It begins by defining organizational business ethics as the application of individual morality to choices made in professional contexts guided by an organization's values and standards. It then discusses why ethics are important for organizations, noting they influence employee commitment, investor/customer loyalty, legal issues, reputation, and profits. The document outlines ethical dilemmas organizations may face and the challenges for leaders to create an ethical culture. It emphasizes that ethics starts at the top with leadership. Leaders must consider their own and their organization's values when making decisions. Finally, the document contrasts compliance and integrity strategies, arguing an integrity strategy better guides ethical behavior through a values-based culture rather than just rules.
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Ethical problems in business encompass a wide range of issues related to moral principles and conduct within the business context. These problems can include:
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2. **Employee Relations**: Concerns such as fair wages, workplace discrimination, harassment, and labor rights violations.
3. **Supply Chain Ethics**: Ensuring that suppliers and partners adhere to ethical standards in areas such as labor practices, environmental sustainability, and human rights.
4. **Consumer Protection**: Ensuring the safety, accuracy, and fairness of products and services offered to consumers, as well as transparent marketing and advertising practices.
5. **Environmental Responsibility**: Addressing the environmental impact of business operations, including pollution, resource depletion, and climate change.
6. **Financial Integrity**: Ensuring honesty and transparency in financial reporting, preventing fraud, insider trading, and unethical accounting practices.
7. **Corporate Social Responsibility (CSR)**: Engaging in activities that benefit society beyond the scope of legal obligations, such as philanthropy, community development, and sustainable business practices.
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Certainly, here's a more detailed description of some common ethical problems in business:
1. **Conflict of Interest**: Occurs when individuals or entities have competing interests that could potentially influence their decision-making, such as personal relationships, financial investments, or other affiliations.
2. **Whistleblowing**: The act of reporting unethical or illegal activities within an organization, which can create ethical dilemmas for employees who may fear retaliation or negative consequences for speaking out.
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5. **Product Safety**: Ensuring that products are safe for consumers to use and that any risks or hazards are clearly communicated, avoiding the sale of defective or dangerous products.
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Building an ethical workplace culture requires equal skills in policy-making and relationship-building, and equal emphasis on procedures and values. Structural concerns like codes, training and clear criteria matter, but so do storytelling, mentoring and presiding over an organization’s routines and ceremonies. In an ideal workplace, structures and relationships will work together around core values that transcend self-interest. Core values will inspire value-creating efforts as employees feel inspired to do what is right, even when the right thing is hard to do. The ethics of our workplace cultures matter because the work itself matters and requires the cooperation that only positive, virtuous ethics can sustain. Compliance keeps us out of trouble, but virtuous ethics will create value for our co-workers and for our organization.
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1BUSM 319931154198 Ethics & GovernanceLecture 4 Creat.docx
1
BUSM 3199/3115/4198
Ethics & Governance
Lecture 4: Creating an Ethical Organisation
1
2
Today
So what are we are saying is:
B = f (P & E)
BEHAVIOUR
ENVIRONMENT
PERSON
2
3
Outline
The work context
Organisational culture
Ethical formal and informal cultural systems
Ethics codes
Ethical leadership
The relationship between leadership, culture, ethics codes and behaviour
3
4
Learning objectives for today
Know the characteristics of an ethical organization
Discuss the difference between ethics of value and ethics of compliance
Understand the ethical formal and informal cultural systems
Discuss a code of ethics
Discuss ethical leadership
5
An Ethical Organisation
Trust
Effective communication
Openness
Objectivity and fairness
Integrity
Transparency
Values
6
The organisation as a context
individual personality is unimportant in organisational criminal behaviour, as it results from role fulfilling rather than individual pathology (Schrager & Short 1978)
a reliable picture of moral conduct can be ascertained “not so much in direct observation of the decision maker as in a firmer grasp of the decision maker’s environment” (Frederick 1992)
Bad apples and bad barrels: Most people are the product of the context they find themselves. They look up and around… (Trevino and Brown 2004)
7
Organisational membership
Persons in organisations are socialised in their roles (Katz and Kahn 1978).
Through this process, people accept the organisational goal structure and the culture (Clinard & Yeager 1980).
The expected role behaviour is learned from others’ expectations and the rewards that they receive from their organisational membership.
8
Ethics of Values? or Ethics of Compliance?
Values approach - is proactive and inspirational; emphasises expected behaviour, high standards
Compliance approach - is reactive and punitive; emphasises required behaviour, obeying the law
9
Organisational culture
Organisational culture affects people in organisations
The organisational culture includes the basic assumptions concerning what is right, proper and fair (Gottlieb & Sanzgiri 1996).
Expresses shared assumptions, values and beliefs and is the social glue that holds the organization together. It’s “how we do things around here.” (Trevino & Nelson 2006)
10
Ethical formal cultural systems
Leadership: creates, maintains and changes culture. Most important aspect of an organisation’s ethical culture
Selection and reward systems
Structure - authority, responsibility and ethical culture
Policies and codes- their effectiveness depends on other formal and informal systems. Ethics must be in the blood line of the organisation.
Orientation and training programs.
Decision making processes assumptions and scripts
(Trevino & Nelson 2006)
11
Reward systems
Reward systems can encourage unethical behavior
People do what’s rewarded
Rewards don’t have to be explicit
Think about how attempts to motivate can backfire
Set goals f.
SMART Goal WorksheetToday’s DateTarget DateStart DateDate .docx
SMART Goal Worksheet
Today’s Date
Target Date
Start Date
Date Achieved
Goal
Specific: What exactly will be accomplished?
Measurable: How will you know when the goal is reached?
Attainable: Are the resources available to reach the goal? If not how will they be obtained?
Role-Related: Is this goal hitting the correct audience?
Time-Bound: When will the goal be achieved?
MORALIZED LEADERSHIP: THE
CONSTRUCTION AND CONSEQUENCES OF
ETHICAL LEADER PERCEPTIONS
RYAN FEHR
University of Washington, Seattle
KAI CHI (SAM) YAM
National University of Singapore
CAROLYN DANG
University of New Mexico
In this article we examine the construction and consequences of ethical leader
perceptions. First, we introduce moralization as the primary process through which
followers come to view their leaders as ethical. Second, we use moral foundations
theory to illustrate the types of leader behavior that followers are most likely to
moralize. Third, we identify motivations to maintain moral self-regard and a moral
reputation as two distinct pathways through which moralization influences follower
behavior. Finally, we show how the values that underlie leaders’ moralized behavior
(e.g., compassion, loyalty) determine the specific types of follower behavior that
emerge (e.g., prosocial behavior, pro-organizational behavior).
History is replete with examples of leaders
who are renowned for their positions of moral1
authority—for their status as paragons of virtue
and goodness and for their ability to motivate
their followers to do good deeds. Martin Luther
King, Jr., worked for equal rights and inspired
his followers to fight for justice, while Mahatma
Gandhi emphasized compassion for the less for-
tunate. Winston Churchill is widely renowned
for demonstrating and inspiring loyalty to the
British Crown, while Mother Theresa is particu-
larly well-known for her emphasis on the sanc-
tity of body and spirit (Frimer, Biesanz, Walker,
& MacKinlay, 2013). Many CEOs, such as James
Burke of Johnson & Johnson, are admired for
their care and compassion, while others, such as
Whole Foods CEO John Mackey, are admired for
their focus on purity. Regardless of the actions
for which these leaders are most renowned (e.g.,
actions that reflect justice, compassion, loyalty,
or purity), all of them have demonstrated an
ability to leverage morality as a means of gar-
nering commitment to a cause, tapping into
their followers’ moral beliefs and conveying
what it takes to be moral in a given place and at
a given point in time.
In contrast to these canonical yet divergent
examples of ethical leaders, the organizational
sciences paint a comparatively narrow view of
what it means to be an ethical leader. Scholars
have cultivated a notion of ethical leaders as
the embodiment of justice and compassion, fa-
cilitating prosocial behavior and fair treatment
by showing their followers that this behavior is
expected and rewarded (Bass, 2008; Brown &
Treviño, 2006; Eisenbeiss, 2012). At t.
HILD: Leadership Ethics
This document discusses leadership ethics and provides an overview of ethical theories and principles of ethical leadership. It describes how ethics relates to leadership and influences a leader's behavior and decision-making. Several perspectives on ethical leadership are presented, including focusing on followers' needs and values, serving others, building community, showing justice and honesty. Principles of ethical leadership include respecting others, serving others, showing justice, manifesting honesty, and building community. The strengths and criticisms of the ethical leadership perspective are addressed, along with its potential applications.
Ethical leadership
Ethical leadership is directed by respect for ethical beliefs and values and for the dignity and rights of others.2. Social Learning theory and Ethical Leadership
3. Transformational, Authentic, Spiritual Leaderships
4. Individual characteristics and Ethical Leadership
5. Outcomes of Ethical Leadership
6. Implications for research and practice
7. Conclusion
• How prevalent is ethical leadership?
Many organizations provide an “ethical neutral” backdrop against which leaders are perceived
• Can ethical leaders be selected, developed?
All kinds of organizations are training future leaders.
1. Selection
2. Role Modeling
3. Training
4. Organizational Culture and Socialization
HRD culture & climate
HRD refers to helping employees continuously develop their capabilities to perform current and future roles through training, learning, and developing an organizational culture of collaboration. An organization's culture is shaped by the underlying values and assumptions held by its members, while climate refers to the conscious environment as perceived by employees. HRD climate is influenced by how important human resource development is perceived to be, the level of openness, trust, and collaboration fostered, and how well HRD mechanisms like training and performance reviews are implemented. Developing an optimal HRD climate through supportive policies and practices can facilitate employee learning and development.
Ethical leadership
Ethical leadership is directed by respect for ethical beliefs and values of others. Research shows that social learning theory explains how leaders can influence followers' perceptions of them as ethical - leaders must be attractive and credible role models. Ethical leadership is positively related to follower work attitudes and behaviors, and negatively related to counterproductive behaviors. Situational factors like ethical role modeling, organizational ethical context, and moral intensity of issues can influence ethical leadership.
Sociology 13 ethical culture
This document discusses organizational culture and ethics. It defines organizational culture as shared beliefs, traditions, and behaviors within a group. Formal systems like policies and informal systems like norms influence culture. Leaders shape culture through modeling ethics in decision-making and holding others accountable. Both formal systems like codes and informal systems like stories socialize new employees. The goal is aligning all systems to consistently reinforce ethical behavior. Developing ethical culture requires a long-term, systemic approach of assessing, intervening in, and evaluating culture over time.
Actions Speak Louder Than Words
Ethical leaders act consistently on their moral values across situations and barriers. The researchers developed the Ethical Leadership Behavior Scale to measure ethical leadership through specific behaviors rather than abstract attributes. An initial study with 592 employees found the scale reliably assessed a variety of ethical behaviors of varying difficulty. Higher scores on the scale predicted important employee attitudes like job satisfaction and outcomes like fewer health complaints, demonstrating the value of ethical leadership.
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Ethics & Integrity of Governance
- 1. Ethics & Integrity of Governance 22 november 2010 Symposium Servant Leadership Prof.Dr. Leo Huberts Governance Studies (FSW) www.fsw.vu.nl/integriteit
- 2. 1 Introduction 2 Concepts: Integrity (violations) and Ethics 3 Leading to Integrity 4 Leading to Integrity in Higher Education: Food for Thought
- 3. Ethics and Integrity of Governance Central Concepts Governance: intentional exercise of power and authority to achieve collective goals Integrity: characteristic or a quality referring to accordance with relevant moral values and norms Moral: characteristic of right or wrong, good or bad (general and unavoidable) Integrity violation: behavior that violates the relevant moral values and norms Corruption: the misuse of (public) authority because of the private benefits
- 4. Integrity Violations 1 corruption: bribing 2 corruption: favoritism 3 conflict of interest (gifts, jobs etc.) 4 fraud and theft of resources 5 waste and abuse of resources 6 break rules /misuse power for the organization 7 misuse and manipulation of information 8 indecent treatment colleagues, citizens 9 private time misconduct
- 5. What makes ‘corrupt’: framework Individual and work individual: character and private circumstances work: type, colleagues, contacts Organization leadership organization structure: size, complexity: control, auditing: separation of responsibilities organization culture: goals/mission; values and norms; operational code personnel (policy): training and selection; rewarding Environment: Environment law, politics, society: crime etc.
- 6. Karin Lasthuizen LEADING TO INTEGRITY Empirical Research into the Effects of Leadership on Ethics and Integrity How and to what extent does leadership influence the integrity of an organization and its employees?
- 7. Basic Model Ethical Culture Leadership Integrity Styles Violations Moral Judgments
- 8. Conclusions Leadership is neither an Eureka concept nor a panacea: the influence of (ethical) leadership on integrity violations is rather small, and primarily works indirectly through the organizational ethical culture. Important other factors in combating integrity violations are clarity about the norms and rules and employee’s own moral acceptability judgments (if employees find a specific type of integrity violation unacceptable, less integrity violations of that type will occur). Leadership that does work is ethical leadership: organizational leadership styles, including transformational leadership, clearly have a far smaller influence on integrity violations - or work sometimes even contradictory - than ethical leadership styles.
- 9. Conclusions Ethical leadership concerns leadership that involves both the display of ethical conduct and the promotion of ethics and integrity among followers. Moral Person Moral Manager Integrity, honesty, Role modeling ethical authenticity, reliability behavior through visible action Do the right thing, concern for others, Reinforcement through personal morality and holding accountable, moral courage rewards and punishment Following ethical Two-way communication decision rules, openness, about ethics and values transparency Positive leader-follower relationship: Mutual trust, loyalty, respect, openness and safety
- 10. Relating the conclusions to (VU) Higher Education Contributing to the integrity of researchers and teachers should be aimed at establishing an ethical culture taking into account moral awareness/consciousness. Ethical leadership concerns leadership that involves both the display of ethical conduct and the promotion of ethics and integrity among followers: the promotion of ethics presupposes clarity about values and norms, sanctioning contrary behavior, as well as servant leadership building upon the day to day experiences of teachers and researchers.
- 11. - Relating the Conclusions to (VU) Higher Education The promotion of ethics and integrity at the VU is tackled primarily top down but is not yet part of day to day practice of research and teaching (groups). Servant leadership might help to promote ethics and integrity, if this would stimulate: bottom up action concerning ethics and integrity, including codes of conduct of groups and programs, integrating it in HRM practice of selection and evaluation, without denying the top down responsibilities of VU leadership in clarifying and establishing organizational policies, values and norms.
- 12. Thank you for your attention! Leo Huberts: L.W.J.C.Huberts@vu.nl Further readings • Brown, M. E., and L. K. Treviño. 2006. Ethical leadership: A review and future directions. Leadership Quarterly 17 (6):595-616. • Brown, M. E., L. K. Treviño, and D. A. Harrison. 2005. Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes 97 (2):117-134. Heres, L. 2010. What Makes the Difference? Ethical Leadership Across the Public-Private Continuum. Dynamics of Governance, no.15. Amsterdam: Vrije Universiteit Amsterdam. Heres, L. and K. Lasthuizen (2010). Ethical Leadership: A Variform Universal Phenomenon. Paper for the 32nd EGPA conference in Toulouse. http://egpa2010.com/en/?page_id=62 Lasthuizen, K. (2008). Leading to Integrity. Empirical Research into the Effects of Leadership on Ethics and Integrity. Enschede: Printpartners Ipskamp. http://dare.ubvu.vu.nl/handle/1871/12872 Van den Akker, L., L. Heres, K. Lasthuizen en F.E. Six (2009). ‘Ethical leadership and trust: it’s all about meeting expectations’. International Journal of Leadership Studies, special issue on leader integrity, 5/2:102- 122. http://www.regent.edu/acad/global/publications/ijls/new/home.htm