Ethical Leadership - Learning Objectives

• Define & explore the benefits of ethical leadership

• Become familiar with some of the key concepts and theories of
ethical leadership
• Reflect on your own experience of (un)ethical behaviour and
actions
• Gain an awareness of how ethical and unethical behaviours are
created
Reflection
• What behaviours are required of ethical leaders?
• What are the consequences if they don’t behave?
• What does it look like when a leader acts and behaves
ethically?
• What does it look like when they don’t act and behave ethically?
• What formal and informal processes, behaviours an actions
have you experienced that could lead or have led to unethical
behaviour?
• When and where is unethical behaviour likely to occur?
Cognizant Affects – Decision Making Considerations

“Which option will produce the

most good and do the least
harm?”
Utilitarian Approach

“Does this action respect the rights

of the individuals and not treat
them simply as a mean?”
Kant’s Categorical Imperative
Why is Ethical Behaviour Important - The
Cost of Enabling Unethical Behaviour?
• Incivility:
• 48% intentionally decreased work effort
• 47% intentionally decreased time at work
• 38% intentionally decreased quality of work
• 80% lost work time worrying about the incident
• 63% lost time avoiding the offender
• 66% said their performance declined
• 78% said their commitment to the organisation declined
• 12% said they left the organisation as a result of their treatment

Pearson & Porath, 2010

What is Ethical Leadership? (Thornton, 2009)

Today:
• Responsible corporate citizenship
• Transparency of communication
Historically • Protecting the environment
• Honesty • ‘Cost’ of labour
• Integrity • Holistic well-being of employees
• Fairness
• Following rules and laws
• Being true to your values
Tim Cook - Ethical Leadership
Ethics in the Workplace – Concepts & Theories
Concept Theory Definition Impact
Ethical Fading Messick Ethical aspects of a decision disappear from Focusing on resolving financial
view issues or maximizing benefit, and
"forget" about ethics
Moral Disengagement Tenbrunsel Restructure reality in order to make actions Minimize personal responsibility for
seem less harmful than they actually are harm, and devalue victims

Groupthink Janis A deterioration of mental efficiency, reality Destructive to effective thinking

testing, and moral judgment that results from
in-group pressures

Moral muteness Bird & When people witness unethical behaviour and Diminishes the importance of
James choose not to do or say anything about it. ethical issues, and impedes learning

Obedience to authority Milgrim People trying to please those in charge Abusive use of power/authority
Obedience to Authority
“If a frog is dropped in hot water it
supposedly jumps out. But if a frog
is placed in cold water that is then
heated the frog doesn’t feel the
gradual change in temperature
and gradually dies.

The frog doesn’t notice the

increase because of a sensory
failure, it senses not absolute
temperature but changes in
temperature.”

Eugene Volokh – The Mechanisms of the Slippery Slope

 Gradual Changes in Temperature – When Positive
Messages Create Unethical Outcomes

1. Commitment 3. Having a 4. Staying

2. Excessive
to meeting competitive focused on a
optimism
deadlines mindset goal

6. Wanting to
5. Sticking to a
please higher-
budget
ups

Gebler, 2013
Ethical Leadership Framework
• Ethical leadership = Leader's good character
• Reality is more complex
• Overwhelmed by the complexity of situations
• Commit to positions which 'later' prove unethical
• Subtle effects on ethics due to team culture go unnoticed
• Lack of framework
Leadership Capability Framework

Wood, 2009
Knowledge Based Model of Leadership
• Leaders influence and engage through 4 mechanisms
• Actions and questions
• Communication
• Systems and processes
• Culture
• Allow leaders to project ethics on individuals and orgnisations

Knowledge Based Model of Leadership - (Wood, 2009)

Leadership Capability Framework

Wood, 2009
Background
• In 2017, at the time of the Australian Marriage Law Postal
Survey, Folau said he would not support gay marriage after the
Australian rugby union publicly pledged their support for same
sex marriage

• On 4 April 2018, in a post made on Instagram, when asked

what God's plan for homosexuals was, Folau replied "HELL..
Unless they repent of their sins and turn to God."Folau was
criticised for his unpopular views.
 The Aftermath
• ARU CEO, Raelene Castle, said, "we accept his position, though we
do not agree with his views. He will not be sanctioned."
• SOS Hydration revoked its sponsorship. MD Andrew Shaw said,
“SOS supports inclusiveness and welfare of all athletes.”
• Qantas stands by ARU and honours its sponsorship agreement.
Qantas is a major Australian brand that supports same sex marriage
in Australia.
• Maria Folau posted a message supporting his post. NZ Netball CEO
responded, "this is not a matter for Netball New Zealand to comment
on."
• Folau has continued to publicly express his beliefs
 Breakouts
• Group 1: Australian Rugby Union CEO Raelene Castle
• Group 2: Qantas CEO Alan Joyce
• Group 3: SOS Managing Director Andrew Shaw
• Group 4: Netball New Zealand CEO Jennie Wyllie

• Do you agree with the position they have taken/ not taken? Have they
acted ethically? What would you do in their shoes?

• Use the Mechanism of Ethical Leadership (Wood 2009) work through the
case study from the perspective of the stakeholder your group has been

• You have 10 minutes to discuss. Each group will have 2 minutes to report
back, followed by a 2 minute round up from Syndicate A
Salient Reflection
• Where does your ethical leadership compass point?
• In times of crisis have you stayed true to your ethical compass?
• When was the last time you challenged unethical behaviour and did
you challenge it ethically?
References
• Bird, Frederick B., and James A. Waters. 1989. “The Moral Muteness Of
Managers.” California Management Review 32 (1): 73-88.
• https://www.theaustralian.com.au/sport/rugby-union/rugby-australias-support-
for-israel-folau-divides-sponsors/news-
story/30104fd3c59b513b3a9fc6600703d184 Retrieved 04/05/2018
• http://www.starobserver.com.au/news/national-news/rugby-australia-folau-
divided-sponsors/168076 Retrieved 05/05/2018
• http://www.newshub.co.nz/home/entertainment/2018/04/israel-folau-explains-
why-he-said-gay-people-are-going-to-hell.html Retrieved 05/05/2018
• https://www.stuff.co.nz/sport/netball/103187958/netball-nz-boss-says-maria-
folaus-support-of-husband-not-a-distraction-to-silver-ferns Retrieved 10/05/2018
• Wood, Robert. 2009. "Ethical Leadership Framework." University of Melbourne
(https://cel.edu.au/our-research/ethical-leadership-framework)
Action Steps For Effective Ethical Leadership
Freeman, Harrison & Wicks, 2007:
• Articulate and embody the purpose and values of the
organisation
• Focus or organisational success rather than ego
• Find the best people and develop them
• Create ongoing conversation about ethics
• Create mechanism of dissent
• Take a charitable understanding of others values
• Make tough calls while being imaginative
• Know the limits of the values and ethical principals
they live
• Frame action in ethical terms
• Connect the basic value proposition to stakeholder
support and societal legitimacy