Leadership and Ethics

MGT594

Prepared by: Brendan Ho

 The Mosaic
of Leadership
 LEADERSHIP 805,000,000

TYPES OF LEADERSHIP 345,000,000

LEADERSHIP DEFINITIONS 82,500,000

LEADERSHIP SKILLS 595,100,000

LEADERSHIP STYLES 18,800,000

LEADERSHIP QUALITIES 71,300,000

LEADERSHIP THEORIES 3,990,000

LEADERSHIP ETHICS 163,000,000

Every
Week,
New Titles
on
Leadershi
p are
Leadership
Leadership and Ethics
by Brendan Ho
 Why
Leadership?
Robert Kuok

Multi-Purposes future
looks much better
7th June 1988
Steve Jobs
Leadership Affects Organisations
 GM Automotive Assembly Plant in Fremont,
California
1982 Performance Statistics were
dismal
1985 GM signed joint-venture
agreement with Toyota Motors
Toyota Motors managed the plant
New Management Team
But most former workers rehired
Workers exposed to training in
high-involvement work practices
GM Automotive Assembly Plant in Fremont,
California
Jim Collins
 Started with 1,435 good companies
Found the companies that became
great based on certain criteria over 40
year performance
Company had to show good stock
performance, capped with a
transition point
After transition, company had to
generate stock returns that
exceeded general market at least 3
times over 15 years independent
of industry
 Vast majority of good companies
remain just that good, not great
11 great companies were identified
$1 invested in the general market
since 1970 would yield $56 by year
2000
$1 invested evenly upon the 11
great companies would have
yielded $471 by year 2000
All 11 companies had decent
performance, until a transition
occurred
11 Great Companies

Abbot
Circuit City
Fannie Mae
Gillette
Kimberly-Clark
Wells Fargo
Walgreens
Philip Morris
Kroger
Nucor
Pitney Bowes
The research team was
shocked to discover
Leadership required to
achieve greatness.

Level 5
Leadership
Great Leaders Can Double
Profits, Research Shows
Leaders, good and
bad, directly affect
the bottom line of
the organisation.
 Findings/Lessons
Good Leadership fosters Financial Success,
whereas Bad Leadership fosters Financial Distress.
Successful Organisations have Leaders with Well-
Developed People Leading Skills
The Factor Most Responsible for Business Failure is
Bad Leadership. The Best Way to ensure
Business Success is To Provide Better
Leadership.
 EVERYTHING
RISES & FALLS
ON LEADERSHIP
John C. Maxwell
 Thus,
What is
Leadership?
 Some Classical Leaders
(They dont have to be from the world of business!)

Gandhi Genghis Khan Confucius Edmund Hillary & Norgay Tenzing

Lenin King Jayavarman VII Churchill Roosevelt

 Some Contemporary Leaders
(They dont have to be from the world of business!)

Angela Merkel Deng Xiaoping Lee Kuan Yew

Al Gore Jos Mujica Nelson Mandela

Some Business Leaders
 What about these?

Blake Mycoskie Elon Musk Ren Zhengfei Tony Hsieh

Mark Zuckerberg Travis Kalanick Olivia Lum Indra Nooyi

 What is Leadership?
Leadership is a Focus of Group Process
Leadership is Personality and its Effect
Leadership is an Act or Behaviour
Leadership is an Emerging Effect of Interaction
Leadership is a Differentiated Role
Leadership is Initiating Structure
Leadership is the Art of Inducing Compliance
Leadership is the Exercise of Influence
Leadership is a Form of Persuasion
 Classical Definitions of Leadership
The Process of Influencing an Organised Group toward
Accomplishing its Goals (Roach & Behling, 1984).
Actions that Focus Resources to Create Desirable
Opportunities (Campbell, 1991).
The Leaders job is to create conditions for the team to be
effective (Ginnett, 1996.)
Leadership is an influence relationship among leaders and
followers who intend changes and outcomes that reflect
their shared purposes. (Daft, 2015)
 Contemporary Definitions of Leadership
The only definition of a leader is someone who has followers.
(Peter Drucker)
Leadership is influence - nothing more, nothing less. (John C.
Maxwell)
Leadership is a function of knowing yourself, having a vision
that is well communicated, building trust among colleagues,
and taking effective action to realise your own leadership
potential. (Warren Bennis)
Leadership is the process of persuasion and example by which
an individual (or leadership team) induces a group to take
action that is in accord with the leaders purpose, or the
shared purposes of all. (John W. Gardner)
 Leadership is
the Art of Mobilising Others to
Want to Struggle
for Shared Aspirations.
Kouzes and Posner
 Lao Tzus on Leadership
Good leadership consists of doing less and being more.
Lao Tzu
Some Leaders accomplish a Great Deal and are Loved
and Praised by Followers.
Lesser Leaders use Threat and Fear to get Results.
The Worst Leaders use Force and Lie; they are Despised
But of the Best Leaders, when the Work is Done and the
Goal Attained, the people say, We Did It Ourselves!
 In Summary ...

Leadership is like Beauty:

it's Hard to Define,
but you Know it when you See it
Warren Bennis
Leaders & Managers
Different?
 Manager
Has Subordinates
Objectives to Follow
Follows Existing Roads
Plans the Details
Is Responsible for Stability
Keeps Control
Tells Ideas
Maintains the Structure
 Leader
Has Followers
Has Vision
Sets Direction
Takes New Roads
Is Responsible for Change
Is Passionate
Sells Ideas
Builds Structure
 Difference between
Leader and Manager
"People ask the Difference between a
Leader and a Boss....
The Leader works in the Open, and the Boss
in Covert.
The Leader Leads and the Boss Drives.
Theodore Roosevelt
Difference between
Leader and Manager
The Biggest Difference is the
way Leaders or Managers
Inspire Others
 Is it Possible to be Both
a Leader and a Manager?

The answer is Yes

While they are quite different
roles, a Person can be Both.
 CHAOTIC CHANGING
EXTERNAL ENVIRONMENT

... Leadership ... has become

Significantly more important
John Kotter The Leadership Factor
Are Leaders Born or Made?
Leadership
can be
Learned
Leaders Born or Made?
Early Studies assumed
Leaders were Born.
 Born Leaders

Queen Elizabeth I King Louis XVI Emperor Chien Lung

 Leaders Born or Made?
But None of these Studies
was Conclusive
 Leaders

Abraham Lincoln Leonardo da Vinci Steve Jobs

 Leaders Born or Made?
Good Leaders are Made not Born. If you have the
Desire and Willpower, you can become an Effective
Leader.
Good Leaders are Developed through a Never Ending
Process of Self-study, Education, Training, and
Experience.
Leaders Born or Made?
If Leaders are Made,
then Theoretically
Anyone can be a Leader
 Leaders Born or Made?
The Truth probably lies in between
Leaders are probably Born with the
Aptitude but need Guidance and Nurturing
to Realise their Leadership Potential
Similar to Great Singers or Athletes, who are
Born with a Gift, but Need to Develop it
A Born and Made Leader
 Nick
Vijucic
The Models
of Leadership
 Evolutionary Process of Leadership
Theories/Models
Great man theories - first attempt in studying
leadership.
Based on idea Leaders are Born.
Additional approaches have been developed
Trait theories, Behavioral theories, and
contingency theories.
Emphasis today is Leadership Styles should
match the Situation at hand, which is a
contingency approach.
 Gary Yukls Multi-lens
Models of Leadership

TRAITS BEHAVIOURAL SITUATIONAL POWER- INTEGRATIVE

INFLUENCE
 Gary Yukls Multi-lens
Models of Leadership
Trait/Skills/Styles Approach: A Leadership Personality exists; Leaders are Born
not Made.
Behavioural Approach: Leader Behaviours are related to Task Performance,
Group Maintenance, and Employee Participation; Leaders can be Trained.
Situational Approach: Effective Leader Behaviours vary from Situation to
Situation; Leaders can be Trained to Assess the Situation and Use the Appropriate
Leadership Style.
Power-Influence Approach: Leadership Effectiveness is related to the Amount of
Power and Type of Power Possessed & How Power is Exercised.
Integrative/New Leadership Approach: Effective Leaders Influence Followers to
have More Optimism, Self-confidence, & Commitment to the Objectives or
Mission of the Organisation.
TRAITS/SKILLS
MODEL
TRAITS
 TRAITS MODEL (Great Mans Theory)
Traits refers to a variety of individual attributes, incl.
aspects of personality, temperament, needs, motives
and values.
Traits are relatively stable dispositions to behave in a
particular way.
 TRAITS MODEL (Great Mans Theory)
Personal Qualities or Characteristics
Physical, Skills & Abilities,
Personality, Social Factors
 Traits & Skills of Leaders
Traits Skills
Adaptable to situations Clever (Intelligent)
Alert to social environment Conceptually skilled
Ambitious, achievement oriented Creative
Assertive Diplomatic and tactful
Cooperative Fluent in speaking
Decisive Knowledgeable about the work
Dependable Organised (Admin Skills)
Dominant (Power Motivation) Persuasive
Energetic (High Activity Level) Socially skilled
Persistent
Self-confident
Tolerant of stress
Willing to assume responsibility

Source: Based on Stogdill (1974)

 Traits/Skills
that Derail Leaders
Emotional Stability
Defensiveness
Integrity
Interpersonal Skills
Technical & Cognitive
Skills
SKILLS
Robert Kantzs 3-Category Taxonomy of Leadership Skills
No Types of Skills Detail Description

1. Technical Skills Knowledge about methods, process, procedures, & techniques for
conducting a specialised activity; & the ability to use tools &
equipment relevant to that activity

2. Interpersonal Skills Knowledge about human behaviour & interpersonal processes;

ability to understand the feelings, attitude, and motives of others
from what they say & do (empathy, social sensitivity); ability to
communicate clearly & effectively (speech fluency,
persuasiveness); & ability to establish effective & cooperative
relationships (tact, diplomacy, listening skills, knowledge about
social behaviour)

3. Conceptual Skills General analytical ability; logical thinking, proficiency in concept

formation & conceptualisation of complex & ambiguous
relationships; creativity in idea generation & problem solving;
ability to analyse events, perceive trends, anticipate changes, &
recognise opportunities & potential problems (inductive &
deductive)
Types of Leadership Skill by Level
Whetten & Camerons
Leadership Skills
/Competencies
BEHAVIOURAL
MODEL
 Behavioural Model
Propose that Specific Behaviours
differentiate Leaders from Non-
Leaders.
What an Effective Leader Does.
 Behavioural Model

Behavioural Theories of
Leadership
Attempt to isolate Behaviours
that Differentiate Effective
Leaders from Ineffective Leaders
Focus on identifying Critical
Behavioural Determinants of
Leadership that could be used to
Train People to become Leaders.
 Behavioural Model

University of Iowa Studies (Kurt Lewin)

Identified three leadership styles:
Autocratic style: centralised authority, low participation
Democratic style: involvement, high participation, feedback
Laissez faire style: hands-off management
Research findings: mixed results
No specific style was consistently better for producing
better performance
Employees were more satisfied under a democratic
leader than an autocratic leader.
 Behavioural Model

University of Michigan Studies

Identified 2 dimensions of leader behaviour
Employee oriented: emphasizing Personal
Relationships
Production oriented: emphasizing Task
Accomplishment
Research findings:
Leaders who are Employee Oriented are strongly associated
with High Group Productivity and High Job Satisfaction.
 Behavioural Model

Ohio State Studies

Identified two dimensions of leader behaviour
Initiating structure: Role of the leader in defining his or her role
& the roles of group members
Consideration: Leaders mutual trust & respect for group
members ideas and feelings.
Research findings: mixed results
High-high Leaders generally, but not always, achieved high
group task performance and satisfaction.
Evidence indicated that Situational Factors appeared to strongly
influence Leadership Effectiveness.
Behavioural Model

Ohio State
Leadership
Studies
Blake & Moutons Leadership Grid
Blake & Moutons Leadership Grid
 Golemans Six Leadership Styles
Coercive
Authoritative
Affiliative
Democratic
Pace-setting
Coaching
 Coercive
Leaders intent: Demand immediate
compliance
Do What I Tell You Now!
Leader has a need to achieve, show
initiative, self-control
Used when: Crisis, danger, kick-start
a turnaround, problem personnel
Impact: Negative
 Authoritative
Leaders intent: Mobilises people to
support the vision
Lets Go Together!
When used: Changes require new
vision, or clear direction is required
Impact: Most strongly correlated
with positive culture of clarity,
commitment, flexibility
 Affiliative
Leaders Intent: Creates harmony,
develops emotional bonds
People are Our Priority
Empathy, building good
relationships and communication
When used: Heal rifts in the team
or to motivate during high stress
times
Impact: Positive
 Democratic
Leaders intent: Forges consensus
through participation
What Do All of You Think About
This?
Collaboration, team leadership,
communication
When used: To build consensus or to
get valuable input for skilled team
 Pace-setting
Leaders intent: Sets high performance
standards for self and others
Do As I Do Right Now.
Conscientious, high need to achieve,
initiative
When used: Get quick results from a
highly motivated and well trained team
Impact: Negative
 Coaching
Leaders intent: Develops future leaders
Why Dont You Try This?
Develop skill in others, empathy, self-
awareness
When used: Help individual improve
and develop strengths over the long-
term
Impact: Positive
SITUATIONAL
MODEL
 Situational Model
Universally Important Traits and
Behaviours Dont Exist.
Effective Leader Behaviours Vary from
Situation to Situation.
Leader should first Analyse the
Situation and then Decide What To Do.
In other words, LOOK BEFORE YOU
LEAD.
Houses Path-Goal Model
 Houses Path-Goal Model
Effective Leaders motivate workers
to achieve by:

1) Clearly Identifying the Outcomes

workers are trying to achieve.
2) Reward workers for High-
Performance and attainment.
3) Clarifying the Paths to the
Attainment of the Goals.
 Motivating with Path-Goal
Path-Goal identifies 4 Leadership Behaviours:

1. Directive Behaviours: Set Goals, Assign Tasks, Show How to Do Things.

2. Supportive Behaviour: Look out for the Workers Best Interest.
3. Participative Behaviour: Give Subordinates a Say in Matters that Affect Them.
4. Achievement-oriented Behaviour: Setting Very Challenging Goals, Believing in
Workers Abilities.

Which Behaviour should be Used depends on:

the Characteristics of Subordinates and the Tasks
 The Path-Goal Framework
Characteristics
of Followers

Appropriateness of
1. Directive,
determine leading to Followers
2. Supportive,
goals and
3. Participative, or
performance
4. Achievement
leader behaviours

Characteristics
of Tasks
The Path-Goal Template
 Hersey & Blanchards
Situational Leadership
 Hersey & Blanchard Situational Model
Developed by Hersey and Blanchard
A Model, not a Theory
Different Situations and Followers require different
Leadership Styles
No one leadership style is appropriate for all situations
and Effective Leaders Adjust their style to match the
Situation
Use Model to Determine the Situation and then Choose
the Corresponding Leadership Style
 Hersey & Blanchard Situational Model
Focuses on Relationship between Leaders and Followers
Maturity = Ability and Willingness of People to take
Responsibility for directing their Own Behaviour, in
relation to the Tasks Performed
No perfect Leadership Style for all situations; Style must
be Adjusted to Meet the Development Level of
Followers
 (High)
THE FOUR LEADERSHIP STYLES

Hersey and Blanchards

S High Supportive and High Directive and

Situational Model II
U
P
Low Directive High Supportive
P
Behavior Behavior
O
R
T

S3 S2
I
V
E

S4 S1
B
E
H
A
V
I
O
U
Low Supportive and High Directive and
R Low Directive Low Supportive
Behavior Behavior
(Low) DIRECTIVE BEHAVIOUR (High)
HIGH MODERATE LOW
D4 D3 D2 D1
DEVELOPED DEVELOPING

DEVELOPMENT LEVEL OF FOLLOWER(S)

 Followers Development Level
Competence/Ability: Task, Knowledge and Skills
Commitment/Willingness: Motivation and
Confidence
 Levels of Development
D1 - Enthusiastic Beginner
D2 - Disillusioned Learner
D3 - Reluctant Contributor
D4 - Peak Performer
Levels of Development
D1
Low Competence,
High Commitment

Enthusiastic Beginner
Levels of Development
D2
Some Competence,
Low Commitment

Disillusioned
Learner
 Levels of Development
D3
Moderate to High Competence,
Variable Commitment

Reluctant Contributor
Levels of Development
D4
High Competence,
High Commitment

Peak Performer
(High) THE FOUR LEADERSHIP STYLES
S High Supportive and High Directive and
U Low Directive High Supportive
P Behaviour
P
Behaviour
O
R
T
I
V
E S3 S2
B
E
H
S4 S1
A
V
I
O Low Supportive and High Directive and
U Low Directive Low Supportive
R Behaviour Behaviour
(Low) DIRECTIVE BEHAVIOUR (High)

HIGH MODERATE LOW

D4 D3 D2 D1
DEVELOPED DEVELOPING

DEVELOPMENT LEVEL OF FOLLOWER(S)

 Directing
High Directive, Low
Supportive
Leader Defines Roles of
Followers
Problem Solving and
Decision Making Initiated by
the Leader
One-way Communication
(High) THE FOUR LEADERSHIP STYLES
S High Supportive and High Directive and
U Low Directive High Supportive
P Behaviour
P
Behaviour
O
R
T
I
V
E S3 S2
B
E
H
S4 S1
A
V
I
O Low Supportive and High Directive and
U Low Directive Low Supportive
R Behaviour Behaviour
(Low) DIRECTIVE BEHAVIOUR (High)

HIGH MODERATE LOW

D4 D3 D2 D1
DEVELOPED DEVELOPING

DEVELOPMENT LEVEL OF FOLLOWER(S)

 Coaching
High Directive, High
Supportive
Leader Now Attempts to
Hear Followers Suggestions,
Ideas, and Opinions
Two-way Communication
Control Over Decision
Making Remains With the
Leader
(High) THE FOUR LEADERSHIP STYLES
S High Supportive and High Directive and
U Low Directive High Supportive
P Behaviour
P
Behaviour
O
R
T
I
V
E
S3 S2
B
E
H
S4 S1
A
V
I
O Low Supportive and High Directive and
U Low Directive Low Supportive
R Behaviour Behaviour
(Low) DIRECTIVE BEHAVIOUR (High)

HIGH MODERATE LOW

D4 D3 D2 D1
DEVELOPED DEVELOPING

DEVELOPMENT LEVEL OF FOLLOWER(S)

 Supporting
High Supportive, Low
Directive
Focus of Control Shifts
to Follower
Leader Actively Listens
Follower Has Ability
and Knowledge to Do
the Task
(High) THE FOUR LEADERSHIP STYLES
S High Supportive and High Directive and
U Low Directive High Supportive
P Behaviour
P
Behaviour
O
R
T
I
V
E S3 S2
B
E
H
S4 S1
A
V
I
O Low Supportive and High Directive and
U Low Directive Low Supportive
R Behaviour Behaviour
(Low) DIRECTIVE BEHAVIOUR (High)
HIGH MODERATE LOW
D4 D3 D2 D1
DEVELOPED DEVELOPING

DEVELOPMENT LEVEL OF FOLLOWER(S)

 Delegating
Low Supportive, Low
Directive
Leader Discusses
Problems With Followers
Seeks Joint Agreement on
Problem Definitions
Decision Making Is
Handled by the
Subordinate
(High) THE FOUR LEADERSHIP STYLES
S High Supportive and High Directive and
U Low Directive High Supportive
P Behavior
P
Behavior
O
R
T
I
V
E S3 S2
B
E
H
S4 S1
A
V
I
O Low Supportive and High Directive and
U Low Directive Low Supportive
R Behavior Behavior
(Low) DIRECTIVE BEHAVIOUR (High)

HIGH MODERATE LOW

D4 D3 D2 D1
DEVELOPED DEVELOPING

DEVELOPMENT LEVEL OF FOLLOWER(S)

POWER-INFLUENCE MODEL
 Power and Influence
Power
Ability of one person or department in an
organisation to Influence Other People to
bring about Desired Outcomes
Influence
Effect a Persons Actions have on the
Attitudes, Values, Beliefs, or Actions of
Others
 French & Ravens 5 Power Taxonomy

Reward
Reward
Power
Power
Legitimate
Legitimate Coercive
Coercive
Power
Power Power
Enable Power
Enablemanagers
managersto tobe
be
leaders
leaders&&influence
influence
subordinates
subordinatestoto
achieve
achievegoals
goals
Expert
Expert Referent
Referent
Power
Power Power
Power
Five Types of Leader Power

Legitimate Expert
Reward Referent
Coercive
Personal
Position
Power
Power
 Responses to the Use of Power

Position Power
use iate Personal Power

exc use
r

ess
rop

ive
app

Compliance Resistance Commitment

Politics
Activities to Acquire, Develop, and Use Power and
other Resources to obtain Desired Future Outcomes
when there is Uncertainty or Disagreement about
Choices
 Nine Types of Influence Tactics

Rational Persuasion Personal Appeal

Inspirational appeal Coalition
Consultation Legitimating
Ingratiation Pressure
Exchange
 Nine Types of Influence Tactics
Rational Persuasion
Logical arguments and factual evidence
Expert Power
Inspirational appeal
Arouse enthusiasm by appealing to values ideals and aspirations
Referent Power
Consultation
Need your support so will seek your assistance or modify your
proposal to get it.
Reward, Coercive or Legitimate Power
 Nine Types of Influence Tactics
Ingratiation
Get you in a good mood before asking you for something
Reward Power
Exchange
Quid pro Quo
Reward Power
Personal Appeal
Appeals to your feelings of loyalty and friendship
Referent or Reward Power
 Nine Types of Influence Tactics
Coalition
Get someone else to persuade you to comply
Use someone elses support as reason for you to comply
Coercive Power
Legitimating
Claims to have the authority to get you to do something
Verifying its in the policy manual, rules or practices and traditions
Legitimate Power
Pressure
Use demands threats or persistent reminders
Coercive Power
DARK SIDE OF
POWER
The Milgram Experiment
 The Milgram Experiment
video
Solomon Asch Experiment
Stanford Prison
Experiment
NEW LEADERSHIP
(INTEGRATIVE)
MODEL
Transactional and Transformational
Leadership
James McGregor Burns
 Transformational Leadership
Process - TL is a process that:
Changes and Transforms Individuals
frequently incorporates Charismatic
and Visionary Leadership

Influence - TL involves an exceptional

form of Influence that Moves
Followers to Accomplish More than
what is usually Expected of them
 Transformational Leadership
Core elements - TL
is concerned with Emotions, Values, Ethics, Standards, and Long-term
Goals
includes Assessing Followers Motives, Satisfying their Needs, and Treating
them as full Human Beings

Encompassing approach TL
describes a wide range of leadership Influence
Specific: one-to-one with followers
Broad: whole organisations or entire cultures
follower(s) and leader are inextricably bound together in the
transformation process
 Transformational Leadership
& Charisma

Charisma - A special
Personality Characteristic that
gives a person Superhuman or
Exceptional Powers and is
reserved for a few, is of Divine
Origin, and results in the
person being treated as a
leader (Weber, 1947)
 Transformational Leadership
& Charisma

Charismatic Leadership
Theory (House, 1976)
Charismatic leaders act in
Unique Ways that have
specific Charismatic Effects
on their followers
Theory of Charismatic
Leadership (House,
1976)
 Theory of Charismatic Leadership
(Shamir, House, & Arthur, 1993)
Later Studies

Charismatic Leadership
Transforms followers self-concepts; tries to link identity of followers to collective
identity of the organisation

Forge this link by emphasising intrinsic rewards & de-emphasising extrinsic

rewards

Throughout process leaders

Express high expectations for followers
help followers gain sense of self-confidence and self-efficacy
 Basss Model of
Transformational Leadership (1985)
Transformational Leadership Model
Expanded and refined version of work done by Burns and
House. It included:
More attention to followers rather than leaders needs
Suggested TL could apply to outcomes that were not positive
Described transactional and transformational leadership as a continuum
Extended Houses work by:
Giving more attention to emotional elements & origins of charisma
Suggested charisma is a necessary but not sufficient condition for TL
 Model of Transformational Leadership
Bass (1985)

TL motivates followers beyond the expected by:

Raising Consciousness about the Value and importance of Specific and Idealized
Goals
Transcending Self-interest for the good of the Team or Organisation
Addressing higher-level needs
 Transformational Leadership Factors

Leaders
Leaderswho
whoexhibit
exhibitTL:
TL:
have
haveaaStrong
Strongset
setof
ofInternal
InternalValues
Values&&Ideals
Ideals
are
areeffective
effectiveininMotivating
Motivating followers
followersto
tosupport
support
Greater
GreaterGood
Goodover
over Self-interest
Self-interest
 Transformational Leadership Factors
Idealised Influence The 4 Is
Charisma

Describes leaders who act as strong Role Models for

followers
Followers Identify with Leaders and Emulate them
Leaders have high Standards of Ethical and
Moral conduct
Followers deeply Respect & Trust Leaders
Leaders provide a Vision and Sense of Mission
 Transformational Leadership Factors
Inspirational Motivation
The 4 Is

Leaders who Communicate High Expectations to

followers
Inspiring followers through Motivation to Commitment
and Engagement in Shared Vision of the organisation
Leaders use Symbols & Emotional Appeals to Focus Group
members to Achieve more than Self-interest; Team spirit
promoted
 Transformational Leadership Factors
The 4 Is
Intellectual Stimulation

Stimulates followers to be Creative and Innovative

Challenge their own Beliefs and Values those of
leader and organisation
Leader supports followers to
Try New Approaches
Develop Innovative Ways of Dealing with organisation
issues
 Transformational Leadership Factors
The 4 Is
Individualised Consideration

Leaders provide a Supportive Climate in which

they Listen carefully to the needs of Followers
Leaders act as Coaches and Advisors encouraging
Self-actualisation
 Transactional Leadership Factors
Transactional Leaders
Leaders do not Individualise the
needs of subordinates nor focus
on their Personal Development
Exchange Things of value with
subordinates to further boths
Agendas
 Transactional Leadership Factors
Contingent Reward
Exchange process between leaders and followers in which effort by is
exchanged for Specified Rewards

Management by Exception

Leadership involves Corrective Criticism, Negative Feedback, and Negative

Reinforcement
Two forms
Active - Watches follower closely to identify Mistakes /Rule
Violations
Passive - Intervenes only after Standards have not been met or
Problems have arisen
 Non-leadership Factor
Laissez-Faire
Absence of Leadership
Hands-off, let-things-ride Approach
Refers to a leader who
Abdicates Responsibility
Delays Decisions
Gives No Feedback, and
Makes little Effort to help Followers Satisfy their
Needs
Additive Effect of
Transformational Leadership
 Other Transformational Perspectives
Bennis
Bennis &
& Nanus
Nanus (1985)
(1985)

Four Leader Strategies in Transforming Organisations

Clear Vision of organisations future state
TLs Social Architect of organisation
Create Trust by making their Position known and Standing by
it
Creatively Deploy themselves through Positive Self-regard
 Other Transformational Perspectives
Kouzes
Kouzes &
& Pozner
Pozner (1987, 2002)
2002)

Model consists of 5 Fundamental Practices:

Enable leaders to get extraordinary things
accomplished
Model the Way
Exemplary leaders set a Personal Example for others by
their own behaviour
Inspire a Shared Vision
Effective leaders Inspire Visions that Challenge others to
Transcend the Status Quo to do Something for Others
 Other Transformational Perspectives
Kouzes
Kouzes &
& Pozner
Pozner (1987, 2002)
2002)

Challenge the Process

Leaders are like Pioneers are willing to Innovate, Grow, take Risks, &
Improve
Enable Others to Act
Leaders create Environments where people can feel Good about their work
& how it Contributes to Greater Community
Encourage the Heart
Leaders use Authentic Celebrations & Rituals to show Appreciation &
Encouragement to others
How Does the Transformational Leadership
Approach Work?
Focus of Transformational Leadership
Strengths
Criticisms
Application
 Transformational Leadership
Focus
Focus of Transformational
Transformational
Leaders
Overall Scope
Leaders
Empower and Nurture Followers Describes how leaders
Stimulate Change by becoming
Strong Role Models for
can Initiate, Develop,
followers and carry out Significant
Commonly create a Vision Changes in organisations
Require leaders to become
Social Architects
Build Trust & Foster
Collaboration
 Strengths
Broadly researched. TL has been widely researched, including a large body
of qualitative research centering on prominent leaders and CEOs in major
firms.
Intuitive Appeal. People are attracted to TL because it makes sense to
them.
Process-focused. TL treats leadership as a process occurring between
followers and leaders.
Expansive Leadership View. TL provides a broader view of leadership that
augments other leadership models.
Emphasizes Follower. TL emphasizes followers Needs, Values, and Morals.
Effectiveness. Evidence supports that TL is an Effective form of Leadership.
 Criticisms
Lacks Conceptual clarity
Dimensions are not clearly delimited
Parameters of TL overlap with similar conceptualizations of leadership
Measurement questioned
Validity of MLQ not fully established
Some transformational factors are not unique solely to the transformational model
TL treats leadership more as a personality trait or predisposition
than a behaviour that can be taught
TL is Elitist and Antidemocratic
Suffers from Heroic Leadership bias
TL is based primarily on Qualitative data
Has the potential to be Abused
Two Types of Leadership
 But is this
Leadership too?
Financial Scandals
 Leadership? Leadership!
Thoughts?

Dennis Kozlowski
Leadership? Leadership!
Thoughts?

Ken Lay Jeff Skilling Andrew Fastow

 2008
Global Financial Crisis
Libor Scandal
Bernie Madoff
Are Leaders Trusted
Today?
 Distrust of Leaders
Crisis in Leadership

People around the Globe largely Mistrust their

Political Leaders and Nearly Half fear the World will
be Less Safe for their Children, according to a
Survey.
The Story of Trust
video
Moral Dimension of
Leadership
 What has
Leadership got to
do with Ethics?
Personal Reflections

What is Ethics?
 What is Ethics?
Obligation
Virtue
Responsibility Professionalism
Ethics
Morals
Courage
CharacterIntegrity
Honesty Accountability
Ideals
Self-Respect
 What is Ethics?

Concerned with what is Right or Wrong, Good or

Bad, Fair or Unfair, Responsible or Irresponsible,
Obligatory or Permissible, Praiseworthy or
Blameworthy.
Associated with Guilt, Shame, Indignation,
Resentment, Empathy, Compassion, and Care.
Interested in Character as well as Conduct. It
addresses matters of Public Policy as well as more
Personal Matters.
 Leadership & Ethics
Leadership is Not a Person or a Position.
Leadership is a Complex Moral Relationship
between People, based on Trust, Obligation,
Commitment, Emotion and a Shared Vision
of the Good.
Ethics, then, lies at the very Heart of
Leadership.
Ciulla, 1998
 Leadership & Ethics
Leadership is getting People to Act with
certain Goals or Values

Leadership involves Strategies of Power &

Influence (Means) as well as Goals (Ends)
that may be Ethical or Unethical.
 What is Ethics?
Whether or Not the Means
(Actions) a Person or People
use to Achieve a Goal (Ends)
are Right or Wrong
 What is Ethics?
A businessman can act in a way that is Efficient
(the act helps him/her to achieve a goal with
the minimum of effort) but according to some
people the act may be wrong (unethical).
A businessman can act in a way that is
Effective (the act helps him/her to successfully
achieve a goal) but according to some people
the act may be wrong (unethical).
 Personal Reflections
Imagine you are a leader of a team of people. Image further that in
order to keep up with some major competitors, you and your team need
to start producing a new innovative product. At the moment you need
all people in the team to enthusiastically participate so that the change
over to the new product is smooth. However, shifting to this new
product will unfortunately eventually mean that some of your team will
be redundant.

Now imagine that the most efficient and effective way to get this
enthusiastic participation is to lie to your team about the future risk of
redundancy. That is, if you tell them the truth resistance and costly
delays will inevitably follow.
 Personal Reflections

Is lying in this
case the right
thing to do?
 Ethics is Not just about
the Means to Ends
 Personal Reflections
Imagine you are a leader of a team of people. In order to keep
up with some major competitors you and your team need to
start producing a new innovative product and moreover
imaging that this new product will definitely ensure that all
team members keep their jobs. Given this, imagine that your
whole team are enthusiastic participants in the change.

Now for the sake of this exercise, imagine that the new
product is a new innovative bullet that has a far higher kill
rate than any other product currently in the market
 Personal Reflections

Is moving the production

of this new bullets the
right thing to do?
 Ethics is Doing the Right Thing
... But What is the Right Thing? Ethics (Right & Wrong)
can be:
1. A Communitys Norms & Rules of Right & Wrong
2. A Body of Religious Doctrine of Right & Wrong
3. The Rational Study of Right & Wrong
4. The Standard of Right & Wrong that Ought to be
5. A Philosophical Inquiry to Explain & Analyse Questions
of Right & Wrong
 1. Communitys Norms & Rules
Collective Noun: Ethics is What is seen in any Society,
Community, Organisation, Family as the Norms &
Rules of Right & Wrong. (Mautner, 1997)
Collection of Norms & Rules that inform members of
orgn what ought & ought-not to do (formal or
informal rules).
Code of Conduct or Ethics
POSITIVE MORALITY
 1. Communitys Norms & Rules (contd)
Act with Integrity
Be Honest
Follow the Law
Comply with the Code
Be Accountable
 2. A Body of Religious Doctrine

Collective Noun: ethics are

Commandments about Right &
Wrong & related to a much
broader Spiritual or World View
about the Nature of Reality & Life.
(Mautner, 1997)
Ethics of groups of people who
are active Followers of a Religion
RELIGIOUS ETHICS
 3. Rational Study of Right & Right

Rational Inquiry: Ethics are Moral Norms & Rules

exist in a Group & the Dynamics of being Ethical in
the Group. (Mautner, 1997)
Study of Positive Moralities & Peoples Attempts to
be Ethical.
It studies into factors or influences that make being
ethical hard or easy.
DESCRIPTIVE ETHICS (also refer to as COMPARATIVE
ETHICS)
What is? OR What do People Think is Right?
 4. The Standard of Right & Wrong
that Ought to be
Ethics are Standards of Right & Wrong, Good & Bad Conduct
& Character that Ought to be Accepted by People. (Mautner,
1997)
Study of Ethical Theories that Prescribe How people Ought
to Act.
After finding out what norms are in an organisation we
might argue these norms ought to be different.
NORMATIVE ETHICS (also refer to as PRESCRIPTIVE ETHICS)
What Should/Ought To Be? OR How Should People Act?
 5. A Philosophical Inquiry

Seeks to Explain & Analyse Ethical Concepts such

as Norms, Autonomy & Moral Responsibility in
terms of such things as Objective or Subjective
Constructs. (Mautner, 1997)
Study of what Ethical Terms and Theories actually
Refer To.
META-ETHICS
What does Right' even Mean?
 Descriptive ethics Normative ethics Metaethics
Rational Study The Standard of Right & Philosophical Inquiry
Wrong
that Ought to be
Factual statements about Ethical judgements The meaning of ethical
ethical subjects. language

What is OR what do people What Should/Ought To Be? What does Right' even
think is right? OR How Should People Act? Mean?
 Descriptive ethics Normative ethics Metaethics
Rational Study The Standard of Right & Wrong Philosophical Inquiry
that Ought to be

Rearrange these statements

Abortion is wrong according to whether they are
What does it mean to say abortion is wrong? descriptive, normative or
meta-ethics
I think abortion is wrong
The morality of abortion must be more than a matter of opinion
Abortion is murder
Abortion is every womans right
75% of women in Eire think that abortion is wrong
Different people have different opinions about
abortion
Rearrange these statements Why is abortion wrong?
according to whether they are
descriptive, normative or meta-
ethics
 Descriptive ethics Normative ethics Metaethics
Rational Study The Standard of Right & Wrong Philosophical Inquiry
that Ought to be

75% of women in Eire Abortion is wrong What does it mean to

think that abortion is say abortion is
wrong wrong?
Different people have Abortion is every Why is abortion
different opinions about womans right wrong?
abortion
I think abortion is Abortion is murder The morality of
wrong abortion must be more
than a matter of
opinion
 In this module we will look at:

We shall look at:

Descriptive Ethics what norms &
rules of right & wrong and wrong
leadership exist in business & what
makes it easy or hard to lead
ethically.
 In this module we will look at:

We shall look at:

Normative Ethics standards of right
and wrong leadership that different
people think ought to be accepted by
business people.
 In this module we will look at:

We shall look at:

MetaEthics
Inquiry that seeks to explain and analyse ethical
concepts as they apply to leadership in business.
How different writers seek to ground ethics &
Think how different moral theories give weight
to claim that leaders should act decently.
 Theory & Debate
in Moral Philosophy
 In this module we will look at:

The Norms & Rules of Right (Ethical) & Wrong (Unethical)

Leadership;
Thinking about Whether these Norms & Rules are
Appropriate;
Reflecting How we might Solve some of the Moral
Dilemmas, Conundrums & Problems of Right (Ethical)
Leadership in modern globalised, market-based societies &
Reflecting on Why Leading should be Undertaken in an
Ethical Manner & with Ethical Aims in Mind.
 Relook at
What is Leadership?
Practices of Leadership from a Moral Perspective
The Actions & Influences an Individual or Individuals
must Provide to Ensure Group Activities (Means)
are given Direction & Effort to Achieve the Ends the
Group Adopted or been Given.
 Relook at
What is Leadership?
Effective Leadership is where a leaders behaviour &
the exercise of the leadership influence process are
consistent with ethical and moral values.
To be a True Leader is to be an Altruistic Leader.
All Leadership is Moral Leadership
To be a True Leader is to be a Moral Leader.
BUT WHAT IS MORAL LEADERSHIP?
Dr. Rob Macklin
 What is Moral Leadership?
Code of Moral Principles & Values that Governs the
Behaviour of a Person or Group with respect to What is
Right or Wrong
Standards of What is Good or Bad Conduct of Decision-
making
Morality the extent a person acts in accord with Ethics of
a Community
Therefore, Moral Leadership is identifying Ethical Standard
& following these Standards in Decision-making & Actions.
 What is Moral Leadership?
Al Gini

Moral Leadership
The Jobs
The
The Person of
Process
Leadership
 What is Moral Leadership?
Al Gini
The Process
Power
Value Laden
Leaders and Followers/Constituents
Leaders and Followers intend Real Changes
Mutual Purpose and Goals
 What is Moral Leadership?
Al Gini
The Personal
Character
Charisma
Political Ambition
Know-how
 What is Moral Leadership?
Al Gini
The Jobs of Leadership
Vision
Managing
Stakeholdership
Responsibility
 Is It That Easy?
Complexity & Diversity of
our Societies
Globalisation
ETHICAL RELATIVISM
 Ethical Relativism
There is No Universal Standard by which
Morality can be Judged
What is Correct for One Society may be
Wrong for Another
Therefore Ethics and Morality are Relative
What Do You Think of This?
 Personal Reflections
This attempt to use ethical relativism as a base of tolerance can seem
intuitively appealing. However, if you think about it further
contradictions emerge.

Before you go on to think about the above argument now. What do

you think are the strengths and weaknesses of ethical relativism
argument? Do they make sense to you? If they do why; if not, why
not?

Think about the business context, what issues could ethical relativism
cover at work, especially given the international or global nature of
most economies.
 Relativism - Problems
There are No Absolutes - Murder, Slavery,
Torture, Rape, Honour Killing OK
What is meant by a Society? Sub-societies
Leads to conclusion - Each Persons Opinion is
Correct
Nothing that Anyone Does is Morally Wrong
 Ethical Relativism
Ethical Relativism is a failure because of the
following:
Not able to Identify some Ethical Guidelines
Not able to show some ethical guidelines are better than
others
Not able to identify ethical guidelines that prohibit
unlimited pursuit of self-interest
Not able to produce effective solutions to ethical problems
Douglas Birch (2002)
 Concepts of Ethics
Developed by Moral Philosophers over generations
Used to Distinguish Ethical from Unethical behaviour
Each has Problems
 Concepts of Ethics
Standard or guidelines for determining good and
bad or right and wrong
Justification for using these particular standards
Differentiation between what is and what is not
morally significant
Conclusion: provide moral guidelines, a reason to
follow these guidelines & a way to tell differences
bet moral questions & those that have no moral
relevance
 Ethical Utilitarianism
Egoism (Teleology)
The 4 Concepts of
Ethics
Deontologism Empirical
(Kantianism) Universalism
Ethical
Egoism
Ethical Egoism
Underlying assumption of most morality: we have
natural duties to help others simply because they are
people who could be helped or harmed by what we do.
But Ethical egoism holds that we have no natural duties
to others.
Ethical egoism: a normative ethical theory. Holds that
each person ought to pursue his or her own self-
interest. Our only Duty is our Duty to Ourselves.
 Ethical Egoism
One ought to Act in His or Her Own Self
Interest
Ethical Behaviour is that which Promotes
Ones Own Self Interest
Does not Mean should not Obey Laws -
Only Do So if in Self Interest
 Ayn Rands Argument
To value the individual, we cannot
expect them to sacrifice it for others.
1. A persons life is of supreme importance
2. Altruism regards the life of the individual as
something one must be ready to sacrifice for
others.
3. Therefore, altruism does not take seriously
the value of the human individual.
4. Ethical egoism allows each person to value his
or her own life as being of ultimate value.
5. Therefore, Ethical Egoism is the Philosophy
we ought to Accept.
 Personal Reflections
Imagine you are a leader of a team of people. Imagine further that in order to keep
up with some competitors you and your team need to start producing a new
innovative product. At the moment you need all the people in the team to
enthusiastically participate so that the change over to the new product is smooth.
However, unfortunately shifting to this new product will eventually mean that some
of your team will become redundant. Now for the sake of this exercise, imagine that
the most efficient and effective way to get this enthusiastic participation is to lie to
your team about the future risk of redundancy. That is, if you tell them the truth
resistance and costly delays will inevitably follow. Finally, also imagine that your
next promotion is dependent on the smooth and successful change over to the new
product.

From an Ethical Egoist perspective, is lying in this case the

Right thing for you to do?
 Personal Reflections
Now reflect further on what you think the implications of following an ethical
egoist line would be for a leader.

What advantages would it have?

What difficulties would it raise?

In addition go back to Birschs criteria. How does it match up to this criteria in

your view?

Now, what is your overall view of ethical egoism as a personal potential moral
guide for leader?
 Ethical Egoism
What Do you Think of this Concept?
Problem - Externalities associated with private
actions - OK to dump toxic wastes as long as dont
get caught
 Basic Insights of
The purpose of morality is to
make the world a better place. Utilitarianism
Morality is about producing
good consequences, not
having good intentions
We should do whatever will
bring the most benefit (i.e.,
intrinsic value) to all of
humanity.
 The Purpose of Morality
The utilitarian has a very simple
answer to the question of why
morality exists at all:
The purpose of morality is to
guide peoples actions in such
a way as to produce a better
world.
Consequently, the emphasis in
utilitarianism is on
consequences, not intentions.
 Fundamental Imperative
The fundamental
imperative of utilitarianism
is:

Always act in the way

that will produce the
greatest overall amount
of good in the world.
 Utilitarianism/Teleology
The Morality of an Action can be
Determined by its Consequences
An Action is Ethical if it Promotes the
Greatest Good for the Greatest
Number
Benefits and Costs of an Action to Whomsoever
They Accrue
B1 + B2 + B3 + . .+ Bn> C1 + C2 + C3 + . . .+ Cn

Then the Action is Ethical

B1 + B2 + B3 + . .+ Bn< C1 + C2 + C3 + . . .+ Cn
 The Emphasis on the Overall Good
We often speak of utilitarian solutions in a
disparaging tone, but in fact utilitarianism is a
demanding moral position that often asks us to
put aside self-interest for the sake of the whole.
Utilitarianism is a morally demanding position for
two reasons:
It always asks us to do the most, to maximise utility,
not to do the minimum.
It asks us to set aside personal interest.
 The Dream of Utilitarianism:
Bringing Scientific Certainty to Ethics
Utilitarianism offers us a powerful vision of the moral
life, one that promises to reduce or eliminate moral
disagreement.
If we can agree that the purpose of morality is to make the
world a better place; and
If we can scientifically assess various possible courses of
action to determine which will have the greatest positive
effect on the world; then
We can provide a scientific answer to the question of what
we ought to do.
 Utilitarianism Example
Harry Truman and Decision to Drop Bomb
on Japan
What do you Think of this Concept?
How do you Quantify Benefits and Costs?
How do you Value Benefits and Costs?
Can Lead to Unjust Consequences?
 Deontologism/Kantianism
In the Chinese philosophy of
Confucius (Kung fu-tzu), it is clear
that acting ethically out of
motivation for righteousness is
better than being motivated by
benefit (good consequences).

Therefore, Confucius was an early

non-consequentialist. (551-479
BCE)
 Deontologism/Kantianism
Indian philosophy, in the Bhagavad
Gita, is very clear on the importance of
following ones duty. Krishna, a Hindu
god, tells the warrior Arjuna that it is
his duty to fight, and that he should not
concern himself with consequences.
This is clearly Deontological ethics.
 Deontologism/Kantianism
Derived from the Greek word for DUTY
Actions are Not Justified by their Consequences.
Factors other than Good Outcomes Determine the
Rightness of Actions
Some things are just wrong regardless of their
consequences
Focus on the Intentions as the basis to determine the
Rightness of Actions
 Deontologism/Kantianism
Good intention is derived from Good Will
Good Will is Acting from or on Principle e.g.
Always Tell the Truth
Never Break a Promise
Be Fair in all our Dealings
Always Keep a Confidence
Leader act morally if he acts in accord with Duty
 Deontologism/Kantianism
Leader acting morally if he acts in accord with Duty; to
act in accord with Principles
WHAT ARE THESE PRINCIPLES THAT IS OUR DUTY TO ACT IN
ACCORD WITH?
ANSWER: not to refer to custom or history BUT to THINK
CAREFULLY WITH OUR CONSIDERABLE POWERS OF REASON
ABOUT WHAT PRINCIPLES MAKE THE BEST SENSE.
Need not rely on factual or circumstances or empirical
evidence
 Categorical Imperative
Rules every rational being would realise
that they must follow without
exception.
I Ought Never to Act except in such a
Way that I can also Will that my Maxim
should become a Universal Law
Are you Willing to Permit Everyone to
Adopt the Action?
Yes - Moral No - Immoral
 Categorical Imperative
For morally right action, one must
be willing to have everyone act in
the same way, i.e. qualify as a
universal law. [Immanuel Kant]
Additionally, ones actions can only
have moral worth if ones motive for
acting was to do what is right. (no
accidental moral worth allowed)
 Guidance in Dealing with People
People should Never be Treated as a
Means to an End, but as Ends in
Themselves
To Treat people as Ends requires
Respect for Persons
Reject Slavery
Deals with Murder, Rape, etc
How to Deal with Employees?
 Utilitarianism Vs. Deontologism
Utilitarianism - The Ends Justify the
Means
Deontologism - It is the Means which
are Important
 Empirical Universalism
Principles that would be accepted Across all Cultures
Common Values that appear to be held Right around
the World in all Communities
Can be used as Guides when we Interact with People
from Other Cultures
 Empirical Universalism
Boks 3 categories of Basic or Universal Values:
Positive duties concerned with Mutual
Support, Loyalty & Reciprocity
Negatives duties against Harmful Actions e.g.
Violence, Deceit, Torture & Theft
Norms for at least rudimentary fairness &
procedural justice in cases of Conflict regarding
both positive & negative injunctions
 Buddhism
Hurt not others with that which pains yourself The Golden Rule
Christianity
Do unto others as you would have them do unto you
Hinduism
Treat others as you would yourself be treated
Islam
Do unto all men as you would wish to have done unto you
Judaism
What you yourself hate, do to no man
Native American
Live in harmony for we are all related
Sacred Earth
Do as you will as long as you harm no one
Ethical Dilemma
 What is an Ethical Dilemma
An Ethical Dilemma is a Problem, Situation, or
Opportunity that requires an Individual or Group to
Choose among several Wrong or Unethical actions
 Ethical Dilemmas in Business
Conflict of Interest Have two
interests - cannot purse one without having
negative impact on other
A situation in which, whatever choice is made, the
agent commits a moral wrong
Two Types Private Interest
Conflicts with Corporate Business Interest Conflicts
with Public
 Ethical Dilemma Mini Case
A classic, real-life example is provided by
the story of Sophies choice (based on a
true story):

In this story, Sophie is interned at a Nazi

concentration camp. She has two young
children. One day, she is confronted by a
Nazi soldier who offers her the following
choice: He says, I am going to shoot
one or both of your children. You tell me
which one to shoot, or I will shoot them
both. What do you do?
Ethical Test
Ethical Dilemma
A woman was near death from a unique
kind of cancer. There is a drug that might
save her. The drug costs $4,000 per dosage.
The sick woman's husband, Heinz, went to
everyone he knew to borrow the money
and tried every legal means, but he could
only get together about $2,000. He asked
the doctor scientist who discovered the
drug for a discount or that he let him pay
later. But the doctor scientist refused.
 Kohlberg
Kohlberg proposed that moral reasoning, which he
thought to be the basis for Ethical Behaviour,
Develops through Stages.
Moral Developmental Stages

Level 1: PRE-CONVENTIONAL

Level 2: CONVENTIONAL

Level 3: POST-CONVENTIONAL
Moral Developmental Stages
Kohlbergs Stages
Level 1 (Pre-conventional)
Reasoners judge the Morality of an Action by its Direct
Consequences

Stage One: Obedience and Punishment

Stage Two: Individualism, Instrumentalism, and

Exchange (Obtain Reward)
Heinz Dilemma
Stage One (Obedience):
Heinz should not steal the medicine, because
otherwise he will be put in prison.
Pre-conventional level
Stage One (Obedience Orientation)

Individuals focus on the Direct Consequences that

their Actions will have for themselves.
Heinz Moral Dilemma
Pre-conventional Level
Stage Two (Self-Interest):
Heinz should steal the medicine, because he will be
much Happier if he saves his wife, even if he will
have to serve a prison sentence.
Kohlbergs Stages
Stage Two (Self-Interest Orientation):

What's in it for me (WIFM) position. Right behaviour

is defined by what is in one's own best interest.
Kohlbergs Stages
Level 2 (Conventional)
People who Reason in a Conventional Way judge the morality of
actions by Comparing these Actions to Social Rules and
Expectations.

Stage Three: Interpersonal Concordance ("Good boy/girl or Belong

& Be Accepted)

Stage Four: Law and Order (Obey Rules & Regulation)

Heinz Moral Dilemma
CONVENTIONAL LEVEL
Stage Three (Conformity):
Heinz should steal the medicine, because his wife
expects it.
Conventional level
Stage Three (Conformity
Orientation)

Individuals seek Approval from

Other People. They judge the
morality of actions by evaluating
the Consequences of these actions
for a Person's Relationships.
Heinz Dilemma
Stage Four (Law-and-Order):
Heinz should Not Steal the medicine, because the
Law prohibits stealing.
Conventional level
Stage Four (Law-and-Order Mentality).
In stage four, individuals think it is important to Obey
the Law and Conventions of Society.
Kohlbergs Stages
Level 3 (Post-conventional)
(Most people do not reach this level of moral reasoning)

Stage Five: Human Rights (Make & Keep Promise)

Stage Six: Universal Ethical Principles (Principled

Conscience)
Heinz Moral Dilemma
Stage five (Human Rights):
Heinz Should Steal the medicine because saving his
wife is More Important than obeying the law.
Post-conventional level
Stage Five (Human Rights Orientation)
People have certain principles to which they attach
more value than laws, such as human rights.
An action is wrong if it Violates certain Ethical
Principles.
Laws that Do Not promote general Social Welfare
should be Changed
Post-conventional level
Stage six (Universal Human Ethics):

Heinz should steal the medicine, because Saving a

Human Life is a More Fundamental Value than
respecting the property of another person.
Post-conventional level

Stage Six (Ethical Principle Orientation).

Moral reasoning is based on the use of Abstract
Reasoning using Universal Principles.

(People rarely, if ever, reach stage 6 of Kohlberg's

model)
Levels of
Personal Moral Development
Ethical Test
 6 possible Guidelines for Making Ethical
Decisions in Organisations

1. Is It Legal Test
2. The Utilitarian Principle
3. Kants Categorical Imperative
4. Light of the Day
5. The Golden Rule
6. Ventilation Test
 Is It Legal Test?
Ethical

Quadrant II Quadrant I
Codification
Ethical and Illegal Manifestation Ethical and Legal

Corporate
Illegal Legal
Decisions

Quadrant IV Quadrant III

Unethical and Illegal Unethical and Legal
Unethical
 Ethical Tests
1. Is It Legal?
I Ethical - Legal
II Ethical - Illegal
III Unethical - Legal
IV Unethical Illegal

I and IV Easy
II and III Difficult
 Ethical Tests
2. Benefit Cost Test
Do the Benefits exceed the Costs to
whomsoever they accrue?

3. Categorical Imperative
Are you Willing to Allow Everyone to Practice
the Proposed Action or Do you Want to be a
Special Case?
 Ethical Tests Business Ethic
4. Light of Day Test What would
s: My Life in
Headlines
be your reaction if the action were brought
(1 min.)

out into the open for public scrutiny?

5. Do Unto Others Test Golden

Rule - If you would like others to do the
same to you - passes the test
 Ethical Tests
6. Ventilation Test Seek out
Others views. Discuss the 5 tests with them.
If others feel it is OK - Passes the Test