Download Ethical Theory

Leadership
Chapter 14 – Leadership Ethics
The Smartest Guys in the Room (2004)
 McLean and Elkind
 The tale of Enron is a story of human
weakness, of hubris and greed and
rampant self-delusion; of ambition run
amok; of a grand experiment in the
deregulated world; of a business model
that didn’t’ work; and of smart people
who believed their next gamble could
cover up their last disaster—and who
couldn’t admit they were wrong”.

Can we do better?

We Applaud Athletic Perfection!
◦ Seek to train/execute a skill to its highest level

We Pursue Academic Excellence!
◦ Engage in the rigorous pursuit of truth &
knowledge (“higher learning”).

Yet settle for Moral Mediocrity!
◦ Homogenize & diminish ethical virtue to a
broad road, where all paths lead to Rome.
What Underpins Our Ethics?
Ethical World Views
Closed Worldview System
Open Worldview System
Meta Physical
Meta Physical
Physical
Physical
Physical
Atheistic
Agnostic
Theistic
Ethics, Religion and Philosophy
Atheistic View
1.
2.
3.
A Closed System
Science Rules
Human Determination
is Authority
Nothing from Outside
Earthly Paradigm
Matters
1.
2.
3.
Implications for
Source of Authority
Decision Making
Moral Behavior
Ethics, Religion and Philosophy
Theistic View
Deistic Influence
1.
2.
An Open System
Allows for phenomena
outside the physical
world
This influence partially
or completely
determined moral
standards
1.
2.
3.
Implications for
Source of Authority
Decision Making
Moral Behavior
Leadership Ethics Description
Definition & Theory

Ethics
◦ Is a derivative of the Greek word ethos, meaning
customs, conduct, or character
◦ Is concerned with the kinds of values and morals an
individual or society ascribes as desirable or
appropriate
◦ Focuses on the virtuousness of individuals and their
motives

Ethical Theory
◦ Provides a system of rules or principles as a guide in
making decisions about what is right/wrong and
good/bad in a specific situation
◦ Provides a basis for understanding what it means to be
a morally decent human being
Leadership Ethics Description
Ethics & Leadership

Has to do with what leaders do and who
leaders are

It is concerned with the nature of the
leaders’ behavior and their virtuousness

In any decision-making situation, ethical
issues are either implicitly or explicitly
involved

What choices leaders make and how they
respond in a particular circumstance are
informed and directed by their ethics
Ethical Theories

Two Broad Domains: Theories about leaders’
conduct and about leaders’ character
Ethical Theories
CONDUCT
Teleological Theories: focus on
consequences of leaders’ actions, results
 Three different approaches to making
decisions regarding moral conduct 
◦ Ethical egoism (create greatest good for the
leader)
 Closely related to transactional leadership theories
 Example: leader takes a political stand on an issue
for no other reason than to get re-elected
Ethical Theories
CONDUCT

Teleological Theories, cont’d.

Three different approaches to making decisions regarding
moral conduct -
◦ Utilitarianism (create greatest good for greatest
number)
 Example: leader distributes scarce resources so as to
maximize benefit to everyone, while hurting the fewest;
preventive healthcare vs. catastrophic illnesses
◦ Altruism (show concern for best interests of
others)
 Authentic transformational leadership is based on
altruistic principles
◦ Example: the work of Mother Theresa, who gave her entire
life to help the poor
Ethical Theories
CONDUCT

Deontological Theories: duty driven, for
example, relates not only to consequences
but also to whether action itself is good
◦ Focuses on the actions of the leader and
his/her moral obligation and responsibilities to
do the right thing
 Example: telling the truth, keeping promises,
being fair
Ethical Theories
CHARACTER

Virtue-based Theories: about leader’s
character
◦ Focus on who people are as people
 Rather than tell people what to do, tell people
what to be
 Help people become more virtuous through
training and development
 Virtues present within person’s disposition, and
practice makes good values habitual
◦ Examples: courage, honesty, fairness, justice,
integrity, humility
Centrality of Ethics to Leadership

Influence dimension of leadership
requires the leader to have an impact on
the lives of followers

Power and control differences create
enormous ethical responsibility for
leader’s

Respect for persons – sensitive to
followers’ own interests, and needs

Leaders help to establish and reinforce
organizational values – an ethical
climate
Principles of Ethical Leadership
 Ethics - is central to
leadership because of:
– The process of influence
– The need to engage
followers to accomplish mutual
goals
– The impact leaders have on
establishing the organization’s
values