Solution Manual For Meeting the Ethical Challenges of Leadership Casting Light or Shadow 8th Edition

Solution Manual For

Meeting the Ethical Challenges of Leadership Casting Light or Shadow 8e Craig E. Jo hnson Lecture Notes Chapter 1-12

Chapter 1: The Leader’s Light or Shadow Learning Objectives 1-1 Defend the importance of examining the dark side of leadership.

1-2 Explain how leaders cast shadows when they fail to meet the six ethical challenges of leadership.

Annotated Chapter Outline I.

A Dramatic Difference/The Dark Side of Leadership i. Limited understanding of leadership: a. Parker Palmer asserts that the difference between moral and immoral leaders is as sharp as light and darkness, or heaven and hell. b. While most people have experienced a positive connotation of leadership, political figures, parents, clergy, and business executives cast as much shadow as they do light. c. As the position gets higher, there is a greater latitude for leaders to do harm. d. Abuses are more likely to occur if leaders refuse to face the dark side of leadership. e. According to Kellerman, limited understanding of leadership overlooks the reality that a great many leaders engage in destructive behaviors. ii. Dark side of leadership: a. Most researchers describe the dark side of leadership using the term “destructive” while others use terms like “toxic,” “bad,” “poor,” “abusive,” “despotic,” and “tyrannical.” b. Destructive leadership includes a wide variety of negative behaviors that range from playing favorites, manipulation, and deception to hostile words to bullying and physical violence. c. Such prolonged actions can harm the organization and/or followers.

d. They subvert organizational goals and damage the well-being and effectiveness of subordinates. iii. Destructive leadership is widespread: a. Every type of group, organization, and society involves negative leadership. b. Both prominent and ordinary leaders can be destructive. iv. Destructive leadership is costly. a. Destructive leaders make their followers and organizations pay a high price. b. Destructive leadership can result in negative outcomes in terms of both work and personal life. v. A little destructive leadership goes a long way: A small increase in the level of destructive leadership may significantly increase deviant behavior among followers. vi. Destructive leadership is passive as well as active. a. Like activity, passivity can also be damaging. b. Passive leaders fail to exercise leadership, and such behavior leads to increased stress levels and conflicts among followers. vii.The harm caused by destructive leadership can be minimized. a. Steps can be taken to reduce its frequency and severity. b. Some of these steps include setting up systems that deter destructive behavior, detecting the occurrence of harmful behavior, and addressing the damage caused by destructive leaders.

II. The Leader’s Shadows i. Functions as leaders: Along with a set of expectations and tasks, leaders take on a unique set of ethical burdens, involving issues of power, privilege, information, consistency, loyalty, and responsibility. ii. Challenges of leadership: a. The way leaders handle the challenges of leadership determines whether they cause more harm than good.

b. Unless being careful, leaders are likely to cast shadow(s).

A. The Shadow of Power i. Foundation for influence attempts: a. Power is the foundation for influence attempts and hence it is central to leadership. b. Some Americans are uncomfortable with the fact that leadership cannot exist without power. c. People become more vulnerable to the shadow side of leadership when they refuse to face up to the reality of power. ii. Sources of power: a. Hard power: use of inducements and threats to get people to go along. b. Soft power: attracting others rather than forcing them or inducing them to comply. c. Soft power is used by leaders when they set a worthy example, create an inspiring vision, and build positive relationships with subordinates. d. Effective leaders achieve their goals by combining hard and soft power into smart power. iii. Coercive power: based on penalties or punishments such as physical force, salary reductions, student suspensions, or embargoes against national enemies. iv. Reward power: depends on being able to deliver something of value to others, whether tangible or intangible. v. Legitimate power: resides in the position, not the person. vi. Expert power: based on the characteristics of the individual regardless of that person’s official position. vii.Referent (role model) power: rests on the admiration one person has for another. viii.

Using multiple power sources: a. Leaders can use more than one source of power. b. For instance, the manager appointed to lead a task force is granted legitimate power to reward or punish, but to be successful, they must

demonstrate their knowledge of the topic, skillfully direct the group process, and earn the respect of task force members through hard work and commitment. c. Leaders may also use a variety of power sources to harm their followers. ix. Limitations of power: a. While Western culture widely accepts the dispensing of rewards, they can be counterproductive if the rewards promote the wrong behaviors or go to the wrong people. b. Positional power is more susceptible to abuse. c. Coercive tactics can potentially damage people, threatening the dignity and the physical and mental health of followers. x. Motivation and dangers of power: a. Leaders must examine their motivation for seeking power and recognize the dangers of wielding power. b. Some leaders seek power for selfish reasons and are corrupted before gaining power. c. Such leaders pose the greatest threat when they move into those roles. xi. Power paradox: a. It describes how people gain power by focusing on others’ needs and advancing the good of the group but lose sight of that fact when they move into leadership roles. b. The power makes them less dependent on others, lose their ability to empathize, focus on meeting their own needs, and engage in more unethical, selfish impulsive behavior, resulting in abuse of power. xii.Cost of tyranny: a. The cost of the tyranny of bad leaders is high. b. Victims suffer low self-esteem, psychological distress, and poorer health. c. They are less satisfied with their jobs and lives. d. They are less productive and are more likely to quit.

e. The work unit becomes less trusting and cohesive, reducing collective performance. f.

xiii.

Workers surrender their personal beliefs, keep a low profile, engage in revenge fantasies, take indirect revenge, challenge the supervisor directly, or bring in outsiders to deal with the abusive leader.

Giving up power:

a. Having power feels good and makes it hard to give up. b. Powerful people attack those they perceive as threats in order to protect their positions. c. They make biased judgments and act on faulty stereotypes. d. They are convinced that they deserve their high status and are more likely to believe that others like them. xiv.

Potential for abuse: a. Greater leadership power results in greater potential for abuse. b. This can be seen in censorship, repression, torture, imprisonment, murder, and starvation. c. Organizations promote centralization of power through top-down structures. d. Such structures emphasize status differences, loyalty, dependence, fear, and obedience while glorifying “tough” bosses and business practices.

xv. Power deprivation: a. Lack of power can lead to a corrupting influence as individuals with limited authority tend to become overly focused on their small sphere of influence, often becoming cautious, defensive, and critical of others and new concepts. b. In severe instances, this frustration can escalate to destructive actions, as exemplified by a group of fast-food workers who tainted drinks served to customers in an act of sabotage. xvi.

Wielding power wisely: a. Leaders must recognize the significance of power and consider what types of power to use and when and for what purposes.

b. Rather than personal needs, they must meet social needs when exercising power. c. Ethical leaders employ power to serve collective goals, not personal interests, demonstrating humility, respect for followers, and a focus on giving. d. They must also be vigilant against the corrupting effects of power imbalance. e. Fortunately, many leaders are using their power responsibly and for noble purposes. f.

They understand that sharing power can prevent abuses and enhance organizational performance.

B. The Shadow of Privilege i. Greater privileges for leaders: a. Leaders typically enjoy more privileges than their followers. b. When the power of the leaders is greater, the rewards they receive will also be greater. c. Around one-third of the nation’s wealth is owned by top 1% of Americans. ii. Abuse by nonprofit leaders: a. Nonprofit leaders are not immune to abusing the privileges that accompany their influential roles. b. Some nonprofit executives earn substantial salaries, with several exceeding $1 million, such as those leading organizations like the World Wildlife Fund, National Urban League, and the Alzheimer’s Association. c. The highest-paying nonprofit sector, primarily in healthcare, includes examples like Kaiser CEO Robert Tilton, who earns over $18 million. d. Notably, hospital CEOs continued to receive bonuses even as front-line workers faced furloughs and pay cuts during the COVID-19 pandemic. iii. Considering questions of privilege: a. While most people would agree that leaders deserve more rewards than their followers because they assume greater risks and

responsibilities, many would also agree that some leaders get more than they deserve. b. Privilege is a significant ethical burden associated with leadership. c. Leaders must give questions of privilege the same careful consideration as questions of power.

C. The Shadow of Mismanaged Information and Disinformation i. Greater access to information: a. Leaders typically have greater access to information within an organization, participate more in decision making, network with other managers, review personnel records, and engage in long-term planning. b. Yet, they must navigate when and how to share information, considering questions like when to disclose their awareness, what information to release, and how to safeguard sensitive data. ii. Temptation to lie: a. Leaders may be tempted to lie or hide the truth. b. Furthermore, leaders can play a significant role in spreading disinformation, including conspiracy theories, climate change denial, and anti-vaccination messages, even when they may genuinely believe in the accuracy of these misleading narratives. iii. Gathering, use, release of information: a. Leaders are also challenged with questions about gathering, use, and release of data. b. About three-fourths of large U.S. companies track employee internet use, log keystrokes, take screenshots of workers’ computer screens, and track e-mails of employees. c. For employees working remotely, surveillance techniques are used to track their activities at home. d. This has raised concerns about invasion of privacy as home surveillance could be a step toward greater police and state surveillance. e. Employers also monitor worker behavior outside the workplace, such as checking whether they place offensive posts on blogs and social networks.

f.

They are also liable for the inappropriate behavior of employees, such as when they send sexist or racist messages using their companies’ email systems.

g. But efforts to monitor employee behavior are sometimes made without employees’ knowledge and are inconsistent with organizational values. h. Organizations also collect information about their customers and clients as well as the general public. i.

Big data is the collection and computer analysis of massive amounts of information that enables leaders to create detailed profiles of us without our knowledge.

iv. Qualities of unethical leaders: a. Deny having knowledge that is in their possession. b. Hide the truth. c. Mislead listeners. d. Fail to reveal conflicts of interest. e. Withhold information that followers need. f.

Release information to the wrong people.

g. Put followers in ethical binds by preventing them from releasing information that others have a legitimate right to know. h. Fail to evaluate the quality of evidence and arguments. i.

Uncritically share disinformation.

j.

Secretly collect information.

k. Employ data to profile and discriminate. l.

Break laws regulating the collection and use of information.

m. Fail to secure data. n. Fail to protect people from inaccurate data. o. Use information solely for personal or organizational benefit. p. Violate the privacy rights of followers and outsiders.

q. Use information to harm followers and the public.

D. The Shadow of Inconsistency i. Leader–member exchange theory (LMX): a. This theory assumes that a leader develops a closer relationship with one group of followers than with others. b. While members of the “in-group” become the leader’s advisers, assistants, and lieutenants, those of the “out-group” carry out the basic requirements of their jobs. c. While in-group members exchange high levels of trust, mutual influence, and support with the leader, out-group members’ communication with the leader is not as trusting and supportive. ii. Impact of situational variables: a. They complicate leader–follower interactions. b. Guidelines that work in normal times may break down under stressful conditions. iii. Ethical burden of consistency: a. With diverse followers, varying levels of relationships, and elements of the situation, consistency can be an ethical burden of leadership. b. Shadows occur when leaders act arbitrarily and unfairly. c. Determining whether a leader casts light or shadow may depend on one’s position as a follower. d. If a person is a team’s star player, then they feel justified taking it easy during practices; if the person is less talented, they may resent the fact that the team’s star player doesn’t have to work as hard as the lesstalented person. iv. Causes of inconsistency: a. Inconsistency arises between what leaders advocate and how they behave. b. Recently, several figures, such as Dennis Hastert, comedian Bill Cosby, and Jerry Falwell Jr. have taken inconsistency to a new level.

c. For example, Bill Cosby criticized fellow African Americans for bad parenting but was convicted of drugging and raping a series of women. d. Inconsistency can also occur in a leader’s relationships with those outside the group.

E. The Shadow of Misplaced and Broken Loyalties i. Weighing loyalties or duties: a. Leaders must weigh loyalties or duties when they make choices. b. Apart from their duties to employees and stockholders, they must also consider their obligations to their families, local communities, professions, the society, and the environment. c. While leaders who focus on the needs of the larger community are noteworthy, those who appear to put their own interests first are condemned. ii. Breaking and misplacing loyalties: a. Loyalties can be broken and misplaced. b. More scorn is reserved for those who betray our trust than for those who misplace their loyalties. c. The most egregious cases of betrayal are cases where adults take advantage of children. d. Loyalty is a significant burden placed on leaders which can make a considerable moral statement.

F. The Shadow of Irresponsibility i. Extent of a leader’s responsibility: a. The breadth of responsibility is a factor that differentiates the role of leader and follower. b. While followers are responsible for their own actions and those of their peers, leaders are responsible for the performance of entire departments or other units. c. However, it is difficult to determine the extent of a leader’s responsibility. ii. Irresponsible acts of leaders:

a. Failing to make reasonable efforts to prevent misdeeds on the part of their followers. b. Ignoring or denying ethical problems. c. Not shouldering responsibility for the consequences of their directives. d. Denying their duties to followers. e. Trying to deflect blame onto others for their misdeeds or the unethical behavior. iii. Corporate scandals: a. Many corporate scandals indicate the impact of the failure of the boards of directors to live up to their responsibilities. b. Comprised largely of friends of the CEO and those doing business with the firm, the boards quickly approved executive pay increases and other management proposals. c. Some board members were interested only in collecting their fees and made little effort to understand the operations or finances of the companies, while other members who were well-intentioned lacked expertise. d. Today, federal regulations want the chair of a corporation’s audit committee to be a financial expert. e. The compensation, audit, and nominating committees must be composed of people with no financial ties to the organization.

Lecture Notes Chapter 2: Stepping In and Out of the Shadows Learning Objectives 2-1 Identify the types of unhealthy leader motivations.

2-2 Explain how the “dark triad” of personality traits contributes to unethical leadership.

2-3 Describe the factors that contribute to faulty ethical decision making.

2-4 Name situational/contextual factors that contribute to unethical leadership.

2-5 Develop strategies for maximizing personal ethical leadership development.

Annotated Chapter Outline I.

Shadow Casters: Unhealthy Motivations A. Unmet Needs i. Maslow’s hierarchy of needs: a. According to Whicker, the motivation of toxic leaders may be tied to Maslow’s hierarchy of needs. b. Maslow identified five levels of need from low to high: a. Physiological (food, water, air). b. Safety (security, predictability). c. Social (belonging). d. Self-esteem (competence and respect). e. Self-actualization (self-fulfillment). c. Trustworthy leaders operate at the highest levels, and through their emotional resources and stamina, they provide support to their followers. d. Toxic leaders experience arrested development due to a sense of inadequacy, and their sole focus is on their security needs. e. Transitional leaders fall between trustworthy and toxic and focus on meeting social needs.

ii. Signs of untrustworthy leaders: a. Maladjusted (poor fits with their positions and organizations). b. Malcontent (continually dissatisfied with themselves, their circumstances and others). c. Malfunction (personal interests take precedence over those of the organization, which then begins to suffer). d. Malevolent (produce fear in others). e. Malicious (vindictive, wishing to harm others who challenge them). f.

B.

Malfeasance (engage in unethical, unprofessional and illegal behavior).

Selfishness i. Self-focused leaders: a. Self-centered leaders take pride in their own achievements but lack empathy for others and struggle to understand different perspectives or learn from their followers. b. They often delegate trivial tasks and prioritize protecting their position and status over collaboration for the greater good. c. Ego-driven leaders tend to dismiss innovative ideas and valuable data from outside their circle of influence. d. Their primary motivation lies in acquiring and wielding power for personal gain, rather than using it for the benefit of others. ii. Goal blockage: a. Goal blockage is a key factor in understanding the impact of selfcentered leadership. b. When self-centered leaders perceive obstacles in achieving their financial, status, or organizational goals, they may resort to deviant and aggressive actions, such as fraud or mistreatment of followers they perceive as hindrances. c. Conversely, when these leaders attain success, they can become complacent, shifting focus towards personal pursuits and neglecting their supervisory responsibilities.

d. Their resources are redirected toward self-serving interests rather than group well-being, driven by overconfidence in their ability to control situations, even when they cannot.

C. Greed i. Focus on making the numbers: a. Greedy leaders are primarily concerned with amassing additional wealth and benefits, regardless of their current holdings. b. Their fixation revolves around achieving financial targets, such as higher sales, increased earnings, or a rising stock price, often disregarding moral considerations. c. This pursuit of financial goals can lead to a scenario where a select few reap advantages at the expense of the majority, casting the shadow of privilege.

D. Lust i. According to Kellerman and Pittinsky, lust describes the drive, hunger, and passion that motivate some leaders and is a psychological drive that produces intense wanting, even desperately needing to obtain an object or to secure a circumstance. ii. Objects of desire: a. Lust for Power: Leaders who lust for power have an insatiable craving to control others. b. Lust for Money: Leaders who lust for money take greed to an extreme. c. Lust for Sex: These leaders are on the constant lookout for sexual gratification, even if it puts their positions and reputations in danger. d. Lust for Success: Leaders lusting for success have an unstoppable, neverending drive to achieve. e. Lust for Legitimacy: Leaders who lust for legitimacy are driven to gain acceptance for previously marginalized groups (e.g., women, gays, Latinas) that have been stigmatized and ostracized by the larger group of which they are a part. f.

Lust for Legacy: Leaders lusting for legacy want to leave something lasting behind that benefits other people.

iii. Dangers of lust: a. Lustful leaders don’t always cast shadows, but they should be aware of what drives them. b. Kellerman and Pittinsky urge leaders to recognize how lust can be dangerous and encourage them to channel their intense drive for good purposes.

II. Shadow Casters: Personality Disorders i. Destructive personality traits: a. Several psychologists believe that unethical behavior stems from destructive personality traits and identify three related traits as the “dark triad” behind the dark side of leadership. b. These three traits are narcissism, Machiavellianism, and psychopathy. ii. Narcissism: a. Narcissism traces its roots back to a Greek fable where Narcissus becomes infatuated with his reflection in a pond. b. Today’s narcissists, like the ancient character, are excessively selfabsorbed and self-assured. c. A moderate level of narcissism is considered normal and beneficial, fostering belief in one’s capabilities and resilience in overcoming challenges. d. Narcissists tend to be confident and outgoing, often emerging as leaders who inspire others with their bold actions and compelling visions. e. High levels of narcissism pose significant risks to both leaders and their followers. f.

Narcissistic leaders engage in unethical behaviors, including seeking special privileges, demanding admiration and obedience, abusing power for personal gain, failing to recognize the contributions of subordinates, claiming more than their fair share, displaying anger, dishonesty, neglecting the well-being of others, and employing an autocratic leadership style.

iii. Hubris syndrome:

a. The hubris syndrome, which incorporates narcissism, is a personality disorder that develops in individuals when they attain high-power positions. b. The term “hubris” originated in Greek mythology, describing excessive pride and defiance of the gods, often leading to tragic consequences like death and destruction. iv. Qualities of hubristic leaders: a. Grandiose sense of self. b. Overestimate their own abilities, power, and chances of success. c. Consider themselves uniquely and eternally qualified to run the company, government, or other organization. d. Consider themselves above the community of humans. e. Consider themselves above the law or the gods. f.

Ignore the ethical dimension of decisions.

g. Pay too much for acquisitions, overdiversify, fail to develop a coherent strategy, underestimate risk, take on too much debt, steal, overestimate the chances that mergers will succeed, make risky investments, and don’t adjust to changing market conditions. v. Machiavellianism: a. Machiavellianism is characterized by a strong self-centered orientation. b. This personality trait was first identified by Richard Christie and Florence Geis in 1970 and is named after Niccolò Machiavelli, who advocated that political leaders should maintain a virtuous public image while using any means, ethical or unethical, to achieve their goals. c. Highly Machiavellian individuals excel in manipulating others for personal gain and possess a realistic understanding of their abilities and the world. d. Similar to narcissists, they engage in self-promotion, exhibit emotional detachment, and are prone to aggressive behavior. vi. Behaviors of Machiavellian leaders:

a. Engage in deception in order to generate positive impressions while they get their way. b. Pretend to be concerned about others. c. Manipulate and at disguise their true intentions. d. Put their groups in danger. e. More likely to engage in unethical practices that put the organization at risk because they want to succeed at any cost. vii.Psychopathy: a. Psychopaths stand out from narcissists and Machiavellians due to their complete lack of conscience, as they do not experience guilt or remorse for their actions. b. They are drawn to organizations by their pursuit of power and wealth, treating the journey to high positions as a game where any tactic is fair play. c. These individuals, characterized by extroversion, energy, and charm, easily infiltrate organizations. d. They lie and manipulate others in their single-minded pursuit of power and prestige. viii.

Destructive behaviors of psychopaths: a. Engaging in fraud. b. Unfairly firing employees. c. Claiming credit for the work of others. d. Using the system to their own advantage. e. Increasing employee workloads. f.

Failing to care for the needs of employees.

g. Exploiting employees. h. Creating conflicts between groups, generating chaos. i.

Bullying and humiliating workers.

j.

Focusing on short-term gain.

k. Disregarding the interests of investors. l.

Damaging the environment.

m. Disrupting organizational communication. n. Partnering with other psychopaths.

III. Shadow Casters: Faulty Decision Making i. Steps for making wise ethical choice: a. Identifying the issue. b. Gathering information. c. Deciding on criteria. d. Weighing options. ii. Causes of problems: a. Unsound assumptions. b. Failure of moral imagination. c. Moral disengagement. d. Lack of ethical expertise.

A. Faulty Assumptions i. Theories about the world: a. Theories about how the world operates involve assessing the outcomes of choices, evaluating risks, and identifying causes. In the business world, leaders often fail to consider all the potential consequences of their decisions. b. They tend to ignore unlikely events, overlook affected parties, believe they can conceal unethical behavior, and underestimate long-term impacts. c. When assessing risks, decision-makers sometimes neglect the role of chance or external factors, such as pandemics, bad weather, or recessions. d. Additionally, leaders and followers may misinterpret risks, downplaying their significance.

e. The perception of causes is crucial because it’s the foundation for determining responsibility and assigning blame or praise. ii. Theories about ourselves: a. Theories about ourselves involve self-perceptions. b. Leaders need confidence to make tough decisions; however, they often have distorted self-images, perceiving themselves and their organizations as superior, immune to disasters, and in control of events. c. Despite their intentions to be fair, leaders tend to favor themselves when making decisions. d. Overconfidence can be problematic, as it leads decision-makers to believe they have all the necessary information, hindering their ability to learn and causing them to interpret new data in line with existing biases. e. Unrealistic self-perceptions put leaders at ethical risk, as they may justify immoral actions, such as theft or intimidation, by claiming it’s necessary for the greater good of the company or country. f.

Additionally, unethical leaders, with the support of their followers, may exclude certain groups from moral considerations, which has historically justified practices like slavery and colonization.

B. Failure of Moral Imagination i. Key to ethical behavior: a. Moral imagination involves recognizing moral issues and options and is key to ethical behavior. b. It works hand in hand with moral reasoning in the decision-making process. ii. Three related components of moral imagination: a. Sensitivity to ethical dimensions of the situation. b. Perspective taking. c. Creation of novel solutions. iii. Ethical reasoning:

a. Ethical reasoning is aided by moral imagination as it allows leaders to step away from their usual mental scripts or schemas and identify the moral elements of events. b. Regrettably, those scripts sometimes overlook the ethical dimension of a situation. iv. Moral reasoning: a. Moral imagination enhances moral reasoning by encouraging the generation of novel alternatives. b. Recognizing our typical problem-solving patterns frees us from their power.

C. Moral Disengagement i. Deactivating self-sanctions: a. Moral decision making has unique features. b. Morality involves determining right and wrong based on personal ethical standards. c. According to Albert Bandura, we frequently deactivate these selfsanctions through moral disengagement. ii. Sense of right and wrong: a. Moral disengagement explains how individuals can hold a clear understanding of right and wrong while still engaging in unethical actions. b. They employ specific mechanisms to convince themselves that their immoral behavior is actually moral, downplay their own responsibility for causing harm, and diminish the value of those affected by their harmful actions. c. This allows them to commit unethical behavior with a clear conscience. iii. Turning Immoral Conduct into Moral Conduct a. Moral justification: a. Moral justification is a form of self-persuasion where leaders rationalize their harmful actions as morally justified and beneficial.

b. For instance, hiding product defects can be defended as necessary to maintain sales, thereby saving the company and jobs. b. Euphemistic labelling: a. Euphemistic language serves to sanitize harmful behavior, making it seem more respectable and diminishing personal responsibility. b. Leaders may also seek exoneration by framing their actions as products of anonymous external forces. c. Additionally, they may use language associated with legitimate enterprises to lend an air of respectability to illegitimate ones. c. Advantageous comparison: a. Contrast is a tactic where unethical or criminal acts are downplayed by comparing them to even worse behaviors, making them seem more acceptable. b. In sports, coaches and players might justify their use of bad language by pointing to more serious violations like fighting with opponents. d. Minimizing harm: a. Individuals are more inclined to forgive themselves for wrongdoing when they admit their involvement in causing harm. b. Consequently, they frequently shift blame onto others to diminish their responsibility for the harm inflicted on others. c. Leaders often distance themselves from illegal activities by choosing to remain “intentionally uninformed.” e. Diffusion of responsibility: a. Diffusing or spreading out responsibility can decrease personal accountability for unethical conduct. b. In large organizations, the division of labor can dilute responsibility, eventually causing harm to employees and organization. f.

Disregard or distortion of consequences: a. Hiding suffering is a strategy employed to ignore the impacts of harmful actions and decrease the chances of self-recrimination.

b. Within organizational hierarchies, executives may remain shielded from the destructive consequences of their decisions. c. They may never visit oppressive overseas manufacturing facilities or, when ordering layoffs, may never directly encounter the distressed employees they have removed from the payroll. iv. Devaluing Victims a. Dehumanization: a. It involves perceiving others as less than fully human, making it easier to mistreat them. b. In extreme cases, it can lead to acts of atrocity like rape and genocide, often fueled by viewing outsiders as savages or fiends. c. Dehumanization can also take subtler forms, where societal factors like urbanization, mobility, and technology make it difficult to establish personal connections with others. b. Attribution of blame: a. Attributing blame is a convenient strategy to rationalize unethical behavior. b. In conflicts, both sides often blame each other, considering themselves blameless. Blaming the victim is also a common approach, as it absolves the wrongdoer of guilt. c. Personal and social forces: a. Moral disengagement is influenced by both individual and social forces. b. Society plays a role in shaping personal standards, such as the belief that cheating or harming innocent people is wrong. c. However, groups and organizations often diminish the consequences of violating these personal values.

D. Lack of Ethical Expertise i. Importance of emotions: a. Emotions are crucial to ethical decision making and action.

b. Ethical theories help us define the problem, highlight key elements of the situation, force us to think systematically, encourage us to view the problem from a variety of perspectives, and strengthen our resolve to act responsibly. ii. Ethical efficacy: a. Lack of expertise undermines our ethical efficacy or the confidence to act ethically. b. Ethical efficacy is the conviction that we have the motivation and skills to make an ethical choice and follow through on it. c. The level of ethical efficacy has a direct impact on moral behavior. d. The lower the sense of ethical efficacy, the less likely we will engage in ethical behaviors.

IV. Shadow Casters: Contextual Factors i. Problem of conformity: a. Conformity can be an issue within small groups, where members prioritize maintaining group cohesion over making well-reasoned decisions. b. This can manifest as pressure on dissenters, avoidance of negative feedback, reluctance to voice disagreements, and defensive behaviors that hinder addressing critical issues. c. Such groups often exhibit unhealthy communication patterns that generate negative emotions and disrupt the rational decision-making process. ii. Shadow lands: a. Organizations can also be shadow lands. b. For instance, payday lenders and rent-to-own furniture outlets have been criticized for taking advantage of the poor. c. Moral behavior can become challenging in such environments. d. However, ethical failure can occur in any organization. e. Some companies prioritize outcomes without specifying ethical means, leaving employees in a moral void.

f.

Others reward unethical conduct or fail to penalize rule-breakers, and their leaders may even punish employees who question company actions and policies.

iii. Importance of socialization: a. Socialization is a significant tool for shaping an ethical climate within organizations. b. It helps employees align with the group and adopt its culture through orientation, training, mentorship, and other methods. c. Loyalty and understanding of the organization are crucial outcomes of this process. d. However, in some cases, socialization can make individuals overlook the ethical consequences of their actions. e. Some organizations deliberately use the socialization process to corrupt new members. iv. Cultural differences: a. Cultural differences can lead leaders to abandon personal codes of conduct. b. For instance, a U.S. corporate manager who opposes bribery might resort to such payments when operating in their adopted country where it is an integral part of the national culture and seemingly the sole means to attain their company’s objectives, despite the company’s ethics code and federal laws prohibiting such actions. v. Toxic triangle: a. The toxic triangle involves destructive leadership as a result of three key factors: toxic leaders, susceptible followers, and conducive environments. b. Susceptible followers can either conform or collude with destructive leaders. c. Conformers do so due to unmet needs, low self-esteem, a sense of belonging provided by the leader, respect for authority, or fear of punishment. d. Colluders actively support leaders out of ambition or shared goals and values.

e. Conducive environments are shaped by instability, perceived threats, cultural values, and the absence of checks and balances. f.

Instability and threats allow leaders to centralize power for restoring order, while weak values and a lack of institutional checks provide destructive leaders with greater autonomy.

V. Stepping Out of the Shadows A. Incorporate Your Ethical Development into Your Leader Development i. Assessment: a. Successful developmental experiences provide plenty of feedback that lets participants know how they are doing and how others are responding to their leadership strategies. b. Such feedback can be formal and informal. c. Assessment data provoke self-evaluation and provide information that aids in self-reflection. ii. Challenge: a. The most powerful leadership experiences are those that stretch or challenge people. b. People typically won’t change unless they feel the need to do so. c. Facing difficult and novel experiences, conflict situations, and dealing with losses, failures, and disappointments can challenge leaders and provide opportunities to develop new skills. d. Different types of challenges teach distinct lessons, so leaders need a variety of experiences. iii. Support: a. Leaders also need support because supportive comments can sustain leaders as they work to improve. b. This support often comes from various sources, including family, coworkers, and bosses. c. Additionally, organizations can be supportive by fostering a culture of continuous learning, allocating resources for training, recognizing and rewarding progress, and so on.

B. Adopt a Growth Mindset i. Growth mindset leaders: a. Leaders who are oriented toward growth or learning focus on selfimprovement and set challenging goals focused on what they want to gain from a particular experience. b. They work hard to master the required skills to reach these objectives and recognize that learning means risking failure. c. They reflect by identifying where they fell short, considering what they might have done differently, and taking concrete steps to improve. ii. Fixed mindset leaders: a. These leaders focus on self-enhancement and not on self-improvement. b. They focus more on performance than on learning and seek easy successes, and therefore, they shy away from challenges. iii. Advantages of growth mindset: a. Helps managers to be in developmental assignments and to achieve higher levels of competence. b. Helps employees get more engaged with their work. iv. Suggestions by Dweck: Psychologist Carol Dweck suggests the following: a. Instead of giving up, press on. b. Seek constructive criticism instead. c. Ask: a. “What did I or can I learn from that experience?” b. “How can I use it as a basis for growth?” c. Carry the answers to these questions with you into the future. d. Consider your effort a constructive force that enables you to learn, to meet challenges and to confront obstacles. e. Make a plan to do something you’ve always wanted to do but were afraid you weren’t good at.

C. Think Like an Ethical Expert

i. Novice–expert continuum: a. Narvaez and Lapsley offer the novice–expert continuum as one way to track our ethical progress. b. They argue that the more we behave like moral experts, the greater our level of ethical development. c. Ethical authorities think differently than novices. d. First, they have a broader variety of schemas to draw from, and they know more about the ethical domain. e. Second, they see the world differently than novices. f.

Third, experts have different skill sets.

ii. Learning in well-structured environment: a. Narvaez and Lapsley argue that to become an ethical expert, one should learn in a well-structured environment where correct behaviors are rewarded, along with interactions with mentors, and feedback and coaching. b. One must master both moral theory and skills. c. One must learn how previous experts have dealt with moral problems and how some choices are better than others.

D. Build Your Ethical Competencies i. Three ethical competencies: a. Joseph Petrick believes that we should build three broad types of ethical competencies. b. Cognitive decision-making competence encompasses all the skills needed to make responsible ethical choices. c. These skills include moral awareness, moral understanding, moral reasoning and dialogue, and the resolution of competing arguments and demands. d. Affective prebehavioral disposition competence describes the motivation needed to act on ethical choices. e. Context management competence focuses on creating and shaping moral environments.

ii. Building moral intelligence: Other experts argue that we need to develop competencies that build our moral intelligence. iii. Moral intelligence competencies: a. Moral compass: Our personal reference system, made up of moral standards, values and convictions which guide our ethical decision making and our behavior. b. Moral commitment: Our willingness and ability to make ethical goals a priority and to work toward those goals. c. Moral sensitivity: Our ability to recognize and identify moral issues. d. Moral problem solving: Our ability to decide on an ethical course of action when faced with complex problems and competing values and standards. e. Moral resoluteness: Our capacity to consistently engage in moral behaviors based on our moral standards, overcoming obstacles along the way. iv. Menzel’s moral competencies: a. Menzel identifies five important moral competencies. b. First, as leaders, we should be committed to high standards of personal and professional behavior. c. Second, we ought to understand relevant ethics codes and laws related to our organizations. d. Third, we have to demonstrate the ability to engage in ethical reasoning when confronted with moral dilemmas. e. Fourth, we must identify and then act on important professional values. f.

Fifth, we have to demonstrate our commitment to promoting ethical practices and behaviors in our organizations.

v. Guidelines to demonstrate competence: a. Strengthen our knowledge of ethics codes and standards. b. Strengthen our reasoning skills and the ability to identify difficult ethical situations.

c. Strengthen our problem-solving skills when a variety of moral principles, laws, principles, constituencies and the public interest must be considered. d. Strengthen our ability to advocate for principled decisions. e. Strengthen our self-awareness and consensus-building skills to consider other positions and to work together on solutions. f.

Strengthen our ethics-focused attitudes and commitment.

Lecture Notes Chapter 3: The Leader’s Character Learning Objectives 3-1 Define virtues from a philosophical and psychological perspective.

3-2 Defend the importance of each of the ethical leadership virtues.

3-3 Contrast the two approaches to moral identity.

3-4 Develop a plan for promoting character development.

Annotated Chapter Outline I.

Elements of Character i. Virtues: positive leadership traits or qualities. ii. Historical views about virtue ethics: a. The Chinese philosopher Confucius asserted that virtues are crucial to maintain relationships and fulfil organizational and familial duties. b. Key Confucian virtues are benevolence (treating others with respect and promoting their development), kindness, trust, honesty, and tolerance. c. The Greek philosopher Aristotle argued that ethical decisions result from individual character and distinguished between intellectual virtues and moral virtues. iii. Popularity of virtue approach: a. While exercising virtues helps us to flourish, to live the best life possible, virtue ethics has not always been popular among scholars.

b. It is only recently that many modern philosophers have turned back to the virtue approach. c. This is because of its usefulness in everyday life. iv. Important features of virtues: a. Though they are difficult to develop, once developed they persist over time. b. They shape how leaders see and behave. c. Once developed, they are rarely influenced by the situation. d. They help leaders live better lives. v. Positive psychology: a. It argues that it is better to identify and promote the strengths of individuals rather than repairing their weaknesses. b. Positive psychologists view virtues as morally valued personality traits. vi. Six categories of character strengths: Positive psychologists identify the following six broad categories of character strengths: a. Wisdom and knowledge: cognitive strengths entailing the acquisition and use of knowledge. b. Courage: an emotional strength involving the exercise of the will to accomplish goals in the face of opposition, external or internal. c. Humanity: an interpersonal strength that involves tending to and befriending others. d. Justice: a civic strength underlying healthy community life. e. Temperance: a strength protecting against excess. f.

Transcendence: a strength that forges connections to the larger universe and provides meaning.

II. Key Leadership Virtues A. Courage i. Overcoming fear: Courage means overcoming fear to do the right thing and is typically linked to physical bravery and heroism.

ii. Qualities of courageous leaders: a. Acknowledge the dangers and anxieties. b. Move forward despite the risks and costs. iii. Moral courage: living out one’s personal values even if the price for doing so is high. iv. The #MeToo movement: a. The #MeToo movement encourages women, to reveal their experiences of sexual harassment and violence. b. It was initiated by courageous individuals who refused to remain silent about their experiences and as a result, faced feelings of shame, potential job and career risks, and physical threats and intimidation. c. The #MeToo hashtag has been used by millions worldwide. v. Enduring obstacles: a. Courage can encourage us to endure facing obstacles, like physical disabilities or economic setbacks. b. For example, Ulysses S. Grant embarked on writing his memoirs to rescue his family from bankruptcy but was diagnosed with an inoperable throat tumor shortly after. c. Despite extreme pain, he continued writing, even as his condition deteriorated. vi. Courage for ethical leadership: a. Ethical leaders require courage to navigate the risks of moral action, demonstrating ethical behavior despite the potential danger. b. They resist peer pressure, speak out when customer is hurt, and maintain honesty with investors. c. Even in the face of opposition from superiors and subordinates, they work to establish ethical environments and remain committed to their organization’s mission in challenging and uncertain situations. vii.Practicing Courage: a. Identify times when you did and did not demonstrate courage and what you learned from those experiences.

b. Gradually build up your courage by tackling low-level challenges and then moving on to more difficult ones. c. Train in advance for high-threat situations. d. Seek out courageous mentors.

B. Justice i. Judging and treating others fairly: a. Just individuals employ objective criteria and moral principles in their decision-making process, setting aside personal biases, self-interest, favoritism, and other factors that can obstruct honest judgment. b. They hold the belief that every individual should be granted the same rights, irrespective of their skills and status. ii. Sense of obligation: a. Just individuals have a strong sense of duty and work to nurture healthy relationships. b. They fulfill their responsibilities as part of a team. c. They understand that neglecting their duties poses risks to the group or organization and their followers. iii. Added importance for leaders: a. Since the decisions leaders make impact their followers’ lives, they must make these determinations as fairly as possible. b. Leaders must also set equitable and beneficial rules for everyone. c. Moreover, leaders are responsible for correcting injustice and inequality caused by others. iv. Moral and ethical duties of leaders: a. Moral duty: considering both the needs and interests of the entire group as well as the larger community. b. Ethical duty: carrying out their duties in order to avoid the risk for the group or organization. v. Practicing Justice:

a. Set up equitable hiring, promotion, and compensation processes in your organization. b. Make fairness a criterion for every ethical decision you make. c. Consider everyone (both inside and outside the group) who will be impacted by your decisions. d. Work to guarantee the rights of all followers; address inequalities. e. Look for ways to go above and beyond the minimal requirements of your leader or follower role.

C. Temperance i. Moderation: a. The ability to control emotions and pleasure. b. The key to practicing temperance. ii. Temperance: knowing one’s limits and living within one’s means. iii. Qualities of temperate persons: a. Remain calm despite provocation. b. Take the position between self-disgust/self-denial and self-indulgence. iv. Qualities of intemperate leaders: a. Inability to control anger and rail at subordinates. b. Insatiable desire for money and power. c. Falling victim to need for pleasure. d. Trying to know and control all the activities of the organization. e. Setting unrealistically high goals. f.

Failing to live within the budgets.

v. Practicing Temperance: a. Acknowledge your destructive impulses and the dangers they pose. b. Be alert to “hot buttons” that can cause you to lose control, such as time pressures, irritating coworkers, and criticism.

c. Base decisions on your values and life purpose, not on fleeting feelings. d. Identify an emotion you would like to restrain or express more effectively. Develop a strategy for doing so. e. Don’t obsess over the bad behavior or mistakes of others. f.

Identify your limits and live within those constraints.

D. Wisdom and Prudence (Practical Wisdom) i. Drawing on knowledge and experience: a. Wisdom utilizes knowledge and experience to promote the greater good over both the short-term and long-term. b. This virtue holds particular significance for leaders, as they must make decisions that significantly impact the collective fate of their groups and organizations. ii. Practices of wise leaders: a. Skilled at thinking. b. Demonstrate high emotional capacity. c. Highly collaborative. d. Engaged with their organizations and their worlds. e. Reflective, demonstrating depth. f.

Aspiring.

iii. Prudence: a. A form of wisdom that enables us to discern or select the best course of action in a given situation. b. Governs the others, determining when and how to use other qualities. iv. Qualities of prudent leaders: a. Cautious about the long-term consequences of their choices. b. Do not try to overextend themselves and their organizations. c. Avoid taking unwanted risks.

v. Practicing Wisdom and Prudence: a. Be curious and promote curiosity in your followers. b. Eliminate barriers to creativity. c. Reflect on your life experiences. d. Ask more questions; give fewer answers. e. Adopt a collaborative leadership style. f.

Use case studies to practice making ethical judgments; discuss them with fellow students and colleagues.

g. Exercise caution when initiating major organizational changes. h. Base decisions on data. i.

Always think long term.

E. Compassion (Kindness, Generosity, Love) i. Putting others ahead of self: a. Compassion refers to an orientation that puts others ahead of the self. b. It is a key element of altruism. ii. Qualities of compassionate leaders: a. Value others without accepting anything in return. b. Recognize that they serve the purposes of the group. c. Seek power and exercise influence on behalf of followers. d. Recognize that they have an obligation to outsiders. iii. Concrete action: a. Compassion puts concern for others into concrete action. b. Compassionate leaders observe the suffering of others and feel empathy for their pain. c. Then, they take steps to relieve that suffering. iv. Practicing Compassion:

a. Look for the good in others. b. Imagine how others feel and think (develop empathy). c. Take time to build relationships. d. Highlight individual and cultural diversity in your organization. e. Get involved in volunteer activities. f.

Serve with others to reinforce your commitment to helping.

F. Integrity i. Integrity refers to wholeness or completeness. ii. Qualities of leaders with integrity: a. True to themselves. b. Reflect consistency between what they say publicly and how they think and act privately. c. Live out their values and keep their promises. iii. Lack of integrity: a. Undermines a leader’s moral authority and makes followers watch the leaders’ behaviors closely. b. Breaks the trust and spreads cynicism. iv. Common trust busters in organization: inconsistent messages and behavior, inconsistent rules, blaming, dishonesty, secrecy, and unjust rewards. v. Practicing Integrity: a. Make the truth a moral imperative; seek to be truthful in all situations. b. Publicly admit your mistakes and encourage others to do the same. c. Imagine yourself as a person of integrity and try to behave in ways that lead to this hoped-for self. d. Foster trust through transparency, consistency, and concern for followers.

G. Humility

i. Emergence of the tech CEO: a. The emergence of a new type of tech CEO proves that humility is a key trait of leaders. b. While in the past, CEOs of major technology companies, such as Apple, Microsoft, and Uber, were known to be arrogant and outspoken, the CEOs of today are known as excellent listeners and are willing to work with others. ii. Components of humility: Psychology professors Everett Worthington and Scott Allision propose the following three components to humility: a. Accurate self-appraisal. b. A modest self-presentation to others. c. Oher-oriented, seeking to benefit other people. iii. Impact on ethical behavior: a. Humility strongly influences ethical behavior. b. Humble leaders are less prone to power corruption, excessive privileges, fraud, and mistreatment of followers, as they prioritize serving others and act as role models. c. Their humility fosters collaborative, trusting relationships with followers and makes them receptive to input, which helps avoid trouble for themselves and their organizations. iv. Developing humility: a. Developing humility has become increasingly challenging in a narcissistic era that encourages self-promotion, positive self-esteem, and selfdisclosure on social media. b. In the past, leaders were trained to acknowledge their weaknesses and downplay their achievements. v. Practicing Humility: a. Complete self-assessments that provide you with data about your strengths and weaknesses. b. Acknowledge your character flaws and address them; acknowledge your character strengths and build on them.

c. Solicit feedback and ideas from other leaders and followers; act on that input. d. Serve a higher purpose or goal. e. Practice self-sacrifice.

H. Optimism i. Expectation of positive outcomes: Optimists expect positive outcomes in the future, even during challenging times, and maintain a higher level of confidence compared to pessimists, who expect unfavorable results. ii. Persistence when facing adversity: Optimistic individuals are more likely to persist in the face of adversity, while pessimists tend to resort to wishful thinking and distractions. iii. Essential leadership quality: a. Optimism is a vital quality for leaders as they often face difficulties. b. Leaders who learn from hardships and use them for personal development are better prepared for future challenges. c. Additionally, leaders should assist their followers in effectively handling setbacks and encourage persistence, because doing so will help leaders garner support from their followers. iv. Practicing Optimism: a. Change your thinking. Rewrite pessimistic thoughts into more optimistic ones. b. Set realistic goals that you can attain. c. Ask “What can I learn from this experience?” when facing setbacks. d. Limit the amount of time you spend reflecting on your failures. e. Welcome each day as a gift.

III. Forming a Moral Identity i. Moral identity: a combination of important leadership virtues and our selfconcepts and behavior. ii. Trait theory:

a. Trait theorists assert that individuals with a strong moral identity hold ethical commitments as a core aspect. b. They consistently adhere to moral principles and virtues, acting in alignment with their self-definitions in various situations. c. These individuals are driven to take ethical actions because they seek harmony with their self-definitions. d. For those with a well-established moral identity, to betray their ethical values is to betray themselves. iii. State theory: a. State theorists, or situationists, seek to know how elements of the situation activate our moral identity. b. They argue that we have a variety of identities that are activated based on the context. iv. Ways to promote moral identity: a. Providing opportunities to practice virtues b. Creating positive moral climates where cooperative relationships can flourish. c. Making space for moral discussion and reflection. d. Continuously emphasizing values and mission. e. Encouraging ongoing involvement in the local community. v. Difficulty in developing ethical character: a. Developing moral identity is difficult because our personal demons might overcome our best efforts, making us fail to live up to our ideals. b. We might grow in some areas while lagging in others. c. We may be courageous yet arrogant, humble yet pessimistic, optimistic yet unjust. d. We may be compassionate to family members but cold toward others. vi. Personal and public morality:

a. The poor personal behavior of political, entertainment, and business leaders has raised a debate about personal and public morality. b. Two camps emerge: one asserts an inseparable connection, while the other maintains a distinct boundary between private and public life. c. The latter group allows for disapproval of the private behavior of figures while still enjoying their films, television shows, and music.

IV. Character Building A. Finding Role Models i. Crucial to developing moral character: a. Character development is not solely taught but also caught. b. Observing and imitating exemplary leaders plays a significant role in understanding virtuous behaviors. c. Role models are important for developing high moral character. ii. Idealists have strong moral identities and act out consistent high moral standards, which guide them throughout their lives. iii. Responders, while not motivated by moral principles, act in morally excellent ways when faced with crises. iv. Moral saints take a single virtue to extreme limits, often at personal cost to themselves. v. Moral heroes risk their lives. vi. Moral champions face some risk and personal sacrifice while defending important values. vii.Moral episodes are one-time events that take the form of moral crises or moral confrontations. viii.

Moral crises are dangerous and call for moral heroes.

ix. Moral confrontations aren’t dangerous but pose a high degree of risk. x. Moral processes describe the intentional introduction of morality into everyday life through moral projects and moral work. xi. Moral projects create new, more ethical ways of operating.

xii.Moral work describes the ongoing effort to demonstrate virtue in daily activities.

B. Hearing Stories/Living Shared Stories i. The role of fictional stories: a. Give us opportunities to practice moral reflection and judgment in complex situations before we encounter them in real life. b. Illustrate the vices we want to avoid as well as the virtues we want to develop. c. Reinforce a positive moral message. d. Highly effective in changing or reinforcing our moral beliefs and attitudes. e. Help us understand our possibilities and limits. f.

Help us escape our old ways of thinking and acting and expand our emotional capacity, enabling us to respond more fully to the needs of others.

ii. The role of community narratives: a. Impart values and encourage self-discipline, caring, and other virtues. b. Provide a framework for understanding the world as well as challenge us to act in specified ways. c. The impact of unworthy narratives: promote dark side behavior and force leaders to internalize these pathological narratives. iii. Seven harmful leadership narratives: a. The narratives of pride, greed, and lust. b. The Narrative of Indifference (Sloth): Apathetic leaders neglect followers and lack compassion. c. The Narrative of Anger: Angry leaders see many situations as frustrating and respond with feelings which vary in intensity from irritation to rage. d. The Narrative of Constant Comparison (Envy): Envious leaders desire what others have.

e. The Narrative of Intemperance (Gluttony): Glutton-leaders over consume, overeat, and over work.

C. Learning from Hardship i. Enduring hardships: a. The most admired leaders are often those who have endured the greatest hardships. b. For example, British explorer Ernst Shackleton lost his ship during a disastrous arctic expedition, and Abraham Lincoln oversaw the slaughter of his fellow citizens and the loss of a son. ii. Hardship is a key factor for leadership development: a. Leaders develop the fastest when they encounter situations that stretch or challenge them. b. Hardships are more challenging to people because they are unplanned, are experienced in an intensely personal way, and involve loss. iii. Categories of hardship events: a. Business mistakes and failures. b. Career setbacks. c. Personal trauma. d. Problem employees. e. Downsizing. iv. Learning from experiences: a. Being exposed to a hardship might or might not help us from the experience. b. If a leader is ambitious, then they never get over being passed over for a promotion and become embittered and cynical. c. A notable leader learns from their struggles, keeps pursuing their goals, and successfully adapts their strategies. v. Adaptive capacity:

a. Accomplished leaders are able to learn important principles and skills from their struggles, which enables them to face more complex challenges. b. They see hard times as positive events and tell a different story than their ineffective counterparts. vi. Steps for learning from a failure: a. Identify a significant failure from your professional or personal life and summarize the failure in a sentence. b. Describe how you felt and thought about the failure immediately after it happened. c. Move forward in time to identify any positive outcomes that came out of the failure. d. Identify how the failure changed or shaped you as a person. vii.Grit: a. The motivation to pursue long-term objectives with sustained effort. b. Helps manage hardships. viii.

Perseverance and passion: a. These are the two facets of grit. b. People with grit see achievement as a marathon and have passion for the task, which produces a high level of engagement in the work.

ix. Grit vs. talent: a. When it comes to success, grit is more important than talent because the latter requires practice for improvement. b. One must apply skills developed through effort through additional sustained effort in order to produce achievement. c. Grit is especially for leaders who often direct groups pursuing long-term goals.

D. Developing Habits i. Habits:

a. Repeated routines to foster virtuous behavior. b. Examples: working hard, telling the truth, giving to charity, and standing up to peer pressure. ii. The nature of good habits: Good habits leave a trace or residue that later become a part of our personality and are integrated into our character. iii. Covey’s definition of habit: Stephen Covey defines a habit as a combination of knowledge, skills, and motivation. iv. Leadership development: an “inside-out” process that begins within the leader and then moves outward to affect others. v. Seven habits of effective and ethical leaders: Stephen Covey developed the following list of habits in his book The Seven Habits of Highly Effective People. a. Habit 1: Be proactive: Proactive leaders realize that they can choose how they respond to events. b. Habit 2: Begin with the end in mind: This habit is based on the notion that “all things are created twice.” c. Habit 3: Put first things first: A leader’s time should be organized around priorities. d. Habit 4: Think win–win: Those with a win–win perspective take a cooperative approach to communication, convinced that the best solution benefits both parties. e. Habit 5: Seek first to understand, then to be understood: Ethical leaders put aside their personal concerns to engage in empathetic listening. f.

Habit 6: Synergize: Synergy creates a solution that is greater than the sum of its parts and uses right-brain thinking to generate a third, previously undiscovered alternative.

E. Developing Personal Mission Statements i. Keeping the destination in mind: a. The best way of keeping destination in mind is to develop a mission statement. b. Due to this fact, participants of many management, life, and wellness coaching programs are asked to create personal mission statements.

ii. Considerable questions: Followed questions can be considered when developing a personal mission statement: a. How do you want to be remembered? b. How do you want people to describe you? c. Who do you want to be? d. Who or what matters most to you? e. What are your deepest values? f.

How would you define success in your life?

g. What makes your life really worth living? iii. Possible formats for mission statement: a. “To use [skills] to [positive outcome] for [group of people] with [details].” b. “ I will /action/for/audience/by/skills/to /desired result.”

F. Identifying Values i. Moral compass: a. Our values act as a moral compass that guide us in our journey. b. They provide reference and help us prioritize things and distinguish between right and wrong. c. Worthy values work with our mission statements to develop virtues. d. Identifying the values held by a person requires generating a list from scratch. ii. Career anchors: Edgar Schein identifies the following eight values orientations, which he termed as career anchors. a. Theoretical/Functional: Technically anchored individuals seek to exercise and develop their skills. b. General Managerial Competence: Those drawn to management are generalists. c. Autonomy/Independence: These people want to do things their own way.

d. Security/Stability: Predictability is key to those seeking safety and security. e. Entrepreneurial Creativity: Entrepreneurs are driven to create new products and businesses or to take over and improve existing organizations. f.

Sense of Service/Dedication to a Cause: These individuals enter occupations so that they can live out their values.

g. Pure Challenge: Challenge-anchored people value overcoming obstacles, solving problems, and winning over opponents. h. Lifestyle: Lifestyle individuals want to integrate their careers with their individual and family needs. iii. Life Values Inventory: a. It is a widely used online system developed by Duane Brown and R. Kelly Crace. b. It lists the following values that are essential for self-fulfillment and motivation: a. Achievement: Challenges, hard work, improvement. b. Belonging: Acceptance, inclusion. c. Concern for the environment: Protecting and preserving. d. Concern for others: Well-being of people. e. Creativity: New ideas and creations. f.

Financial prosperity: Making money, buying property.

g. Health and activity: Staying healthy and physically active. h. Humility: Modesty. i.

Independence: Making own decisions and choosing own direction.

j.

Loyalty to family or group: Following traditions and expectations.

k. Privacy: Time alone. l.

Responsibility: Dependability, trustworthiness.

m. Scientific understanding: Employing scientific principles in problem solving. n. Spirituality: Spiritual beliefs, connection to something greater than the self. iv. Cautions in identifying values: a. Don’t put too much importance on materialistic values which results in negative outcomes like lower quality of life, mental and physical problems, low self-esteem, etc.; instead, focus on intrinsic values which are naturally satisfying and promote psychological well-being. b. Translate values into action; resolving dilemmas between choosing between good values requires some standards for determining ethical priorities.

Lecture Notes Chapter 4: Combating Evil Learning Objectives 4-1 Describe the five faces of evil.

4-2 Outline strategies for combatting evil based on each of its five faces.

4-3 Explain how forgiveness can be an important weapon in the fight against evil.

4-4 Identify the benefits and dangers of spirituality in leadership.

Annotated Chapter Outline I.

The Faces of Evil i. Terms such as bad or unethical or criminal are dark, but they don’t describe acts as mass shootings, mass rapes, genocide, torture, and government-sanctioned starvation enough. ii. The concept of evil: a. Some philosophers, social scientists, political scientists, and theologians reject evil as moralistic or religious as well as outdated. b. Others note that the evil label can become a weapon to use against our enemies.

iii. Contemporary Western definitions: a. Evil is treated as extreme destructiveness that inflicts pain and suffering, deprives innocent people of their humanity, and creates feelings of hopelessness and despair. b. The ultimate product of evil is death, as evil destroys self-esteem, physical and emotional well-being, relationships, communities, and even nations.

A. Evil as Idealism i. Most people commit evil because they are convinced that they are doing good. ii. They think that it is their sacred obligation to hurt others, because they are driven by idealism. iii. In idealistic evil, the end, that are presumed to be good, justify the means, despite them being oppressive or violent. iv. Because of this view, what is normally considered morally wrong is deemed acceptable. v. Providing a license to hate: a. In idealistic evil, true believers believe that opponents who appear to be standing in the way of good are evil, and thus have a positive duty to hate them. b. To them, anyone who is not on their side is considered an enemy. vi. Idealistic evil a group phenomenon: a. The group defines the cause or ideal; group members validate the beliefs and actions of each other. b. The group becomes the moral authority, so anyone who leaves the group is considered a traitor, evil, and a greater threat than external enemies.

B. Evil as Terror Management i. Cultural worldviews: a. It is made up of ideas, concepts, and symbols that are socially shared views of reality that provide structure, order and meaning to members of the group.

b. Worldviews offer the hope of life after physical death that endures after biological death. c. Self-esteem comes from living up to group standards. ii. Encountering different worldviews: Encountering different worldviews threatens the security provided by the group’s shared reality, as it no longer provides a buffer against anxiety about death. iii. Focus on defeating opposing worldviews: a. As a reaction to heightened sense of terror, individuals double down and focus instead on defeating the opposing worldview. b. They justify their behavior by exaggerating the good of their side as well as the bad of the other side.

C. Evil as Exclusion i. Moral community, scope of justice: Group members draw a mental circle, with those inside the circle treated with respect and considered deserving of sacrifice, and those outside the circle treated as undeserving or expendable. ii. Mild forms of exclusion: a. Making sexist and racist comments, b. Avoiding homeless people, c. Applying double standards when judging the behavior of outside groups, d. Making unflattering comparisons to appear superior to others. iii. Extreme forms of exclusion: Human rights violations, torture, murder, and genocide. iv. Examples of evil exclusion: a. Executions and mass rapes of citizens during the Ethiopian civil war, b. Torture of terrorist suspects, airstrikes at civilian targets during armed conflicts in Syria and Yemen, c. Expulsion of the Rohingyan minority from Myanmar, d. China’s oppression of the Uyghur people.

D. Evil as Bureaucracy i. It is estimated that wars, genocide, and other violence caused the death of around 200 million people. ii. It is also said that the combination of science and technology caused the 1900s to be destructive. iii. Here, organizational members commit heinous crimes while carrying out their daily tasks as “good,” “responsible” professionals. iv. Hiding evil is easy as many people are not comfortable with the term evil. v. Large organizations diffuse individual responsibility and compartmentalize work; thus, employees don’t feel personally accountable for their acts. vi. Moral inversion: professionals focused on carrying out their duties find it easier to repackage evil actions as good. vii.Often, damage is done to “surplus populations,” those groups that are marginalized. viii.

The Holocaust: a. German extermination camps would not have been possible without the willing cooperation of civil servants. b. Public officials, by merely carrying out their duties, condemned millions to death.

ix. Administrative evil emerging over time: a. The longer the wrongdoing goes on, the harder it is to stop as members become more invested in the activity. b. Reversing course takes strong, decisive action, but is met by feelings of guilt, shame, and denial by the members.

E. Evil as a Choice i. Series of small, incremental decisions: a. We become good or evil through a series of small, incremental decisions. b. We can’t correct a poor decision by continuing but must go back to where we went wrong and make the other choice.

ii. Our choices reducing our options: a. Every step which increases self-confidence, integrity, courage, conviction also increases one’s capacity to choose the desirable alternative, until eventually it becomes more difficult to choose the undesirable rather than the desirable action. b. If the degree of freedom to choose the good is great, it needs less effort to be chosen.

F. Evil as Ordinary i. The banality of evil: a. A term used when pointing out that the sources of evil are not mysterious or demonic but commonplace. b. Nazi officer Adolf Eichmann who was certified by psychiatrists as “normal,” was responsible for the deportation of millions of Jews to concentration and extermination camps. c. Thousands of ordinary Rwandan Hutus hacked and beat their Tutsi neighbors to death with machetes and other farm implements. ii. Elements turning good people evil: a. Humans have the potential to participate in mass killings and other forms of evil. b. This is evolutionary; a propensity for violence, strong group attachment, and bias against outsiders enabled our hunter–gatherer ancestors to successfully survive. iii. Cultural Factors a. Collectivistic values: Obedience, conformity, tradition, safety, and order overwhelm individual freedom and promote hostility to other groups. b. Authority orientation: It encourages leaders to enjoy their power while simultaneously, encouraging followers to obey their leaders. c. Social dominance: It reinforces hierarchies based on military rank, heredity, wealth, and power. iv. Psychological Factors a. Us–them thinking: It privileges in-groups at the expense of out groups.

b. Moral disengagement: It justifies immoral acts, dehumanizing victims, and using euphemistic terms for evil. c. Blaming the victims: This excuses cruelty by claiming that targets deserve or brought on their suffering. v. Social Factors a. Professional socialization: It promotes cruelty through: a. Escalating commitments to evil, b. Ritual conduct that reinforces discipline and competition, c. Merging of the role and the person making cruelty a part of the individual’s identity. b. Group identification: This promotes intergroup conflict and represses conscience. c. Binding group factors: Through conformity, peer pressure, and affection, it encourages members to participate in collective evil doing. d. Syndrome E: a. It transforms people from nonviolent individuals into killers who repeatedly attack defenseless victims by producing a “cognitive fracture,” where the prefrontal cortex becomes disconnected from the parts of the brain that regulate emotion. b. Symptoms of Syndrome E include rapid habituation, compulsive, repetitive acts of violence, obsessive ideation, diminished emotional reaction, hyperarousal, environmental dependency, group contagion. e. The Stanford Prison Experiment: a. Psychologist Phillip Zimbardo created a mock prison and randomly assigned student volunteers as prisoners and guards. b. Both groups got caught up in their roles, with the prisoners revolting and the guards retaliating, so much that two prisoners suffered significant emotional trauma and had to be immediately released from the experiment. f.

Situational variables in real-life cases: Ordinary people are motivated to do evil when they feel peer pressure to participate in such acts, obey

authority, remain anonymous, are given permission to engage in antisocial behavior, and dehumanize others.

II. Facing Evil i. Viewing evil as idealism: One needs to closely examine the causes we serve and the means we employ to further those causes, remembering that there is no license to hate, no matter how worthy the cause. ii. Viewing evil as terror management: a. It encourages us to examine our worldviews, provides healthier worldviews that are flexible and open to modification, while enabling us to build self-esteem without hurting others. b. It also encourages us to live more authentic lives by replacing dysfunctional cultural standards with our own personal values. iii. Viewing evil as exclusion: a. It highlights the dangers of putting other groups outside our circle of concern. b. Adopting a pluralistic perspective that acknowledges the legitimacy of a variety of groups can help deter moral exclusion at each stage of its development. iv. Viewing administrative evil: a. Combating this form of evil begins with acknowledging that evil exists, periodically stepping back to look at the big picture, being alert to even small ethical missteps, and recognizing the danger of hiding behind professionalism. b. One needs to remember that the goal of administrators is protecting the well-being of vulnerable people. v. Viewing evil as a choice: We need to understand that every moral decision, no matter how insignificant it seems at the time, has lasting consequences. vi. Harmful, complicit, or active bystanders: a. Harmful bystanders actively support evildoers. b. Complicit bystanders don’t intend to support perpetrators, by choosing to ignore these activities they appear to condone them.

c. Active bystanders choose to intervene to end wrongdoing. vii.Increasing the likelihood of action: by: a. Paying close attention to what we see and act even if the need for help is not always clear at first, b. Responding even if the rest of the crowd holds back, c. Engaging with the needs of distant groups suffering in faraway locations, d. Joining with others to take action, e. Supporting governments, nonprofits and other organizations that intervene to stop persecution and violence. viii.

Viewing evil as ordinary: It is a reminder that we all have the potential to become evildoers, and so we must defy and eliminate conditions that promote evil behavior.

III. Making a Case for Forgiveness A. Breaking the Cycle of Evil i. Forgiving than retaliating: Aggressive acts are known to provoke retaliation followed by more aggression; thus, forgiving instead of retaliating can prevent or break cycles of evil. ii. Concept of forgiving controversial: a. Guilty parties might get off without acknowledging they have done wrong or paying for their crimes, b. Forgiveness can be a sign of weakness, and is impossible in some situations, c. Forgiveness can’t be offered until the offender asks for it, d. No leader has the right to offer forgiveness on behalf of others.

B. The Forgiveness Process i. Misconceptions about forgiveness: Forgiveness is not forgetting past wrongs, excusing or condoning harmful behavior, reconciling, reducing the severity of offenses, offering a legal pardon, pretending to forgive as a power move, or ignoring the offender.

ii. Defining forgiveness: A willingness to abandon one’s right to resentment, negative judgment, and indifferent behavior toward one who unjustly injured us, while fostering the undeserved qualities of compassion, generosity, and even love toward him or her. iii. Four-stage model for forgiveness: a. Uncovering phase: A victim may initially deny that a problem exists, but may experience intense feelings of anger, shame, and betrayal. Upon finally acknowledging it. b. Decision phase: The injured party recognizes the price of dwelling on the injury, considers the possibility of forgiveness, and commits themselves to forgiving. c. Work phase: The wronged party tries to understand the victimizer’s background and motivation; absorbing pain is the key to this stage. d. Deepening phase: The wronged party consists of the outcomes of forgiving, such as deeper meaning in suffering, realizing their own need for forgiveness. iv. Forgiveness and well-being: Those who forgive are released from resentments and experience less stress, depression, and anxiety, find it easier to focus, enjoy higher self-esteem, better physical health, and increase the body’s resistance to disease. v. Forgiving appears to absorb or defuse evil. vi. As leaders, we should practice forgiveness when we are treated unjustly by others. vii.At times, we will need to go further and offer forgiveness in the hope of reconciling with a long-standing enemy. viii.

Cable metaphor to explain forgiveness: a. The first strand is moral truth: a. Both parties need to agree that one or both engaged in behavior that was wrong and unjust and caused injury; refusal to admit the truth makes reconciliation impossible. b. Restorative justice: A term to describe legal settings, like truth and reconciliation commissions, that focus on victims instead of on punishing offenders.

b. The second strand is forbearance: a. Moral indignation often fuels new crimes as offended parties take their vengeance. b. Forbearance breaks this pattern and may soften enemies who expect retaliation. c. The third strand is empathy for the enemies’ humanity: Empathy doesn’t excuse wrongs but acknowledges that offender and offended share much in common. d. The fourth strand is commitment: Forgivers must be prepared to live and interact with their former enemies, although initially the two parties might mutually tolerate each other.

C. Seeking Forgiveness i. The Age of Apology: Nearly every week, it appears that a government, business or non-profit leader offers an apology either for their misdeeds or on behalf of the groups they lead. ii. Criticisms from press and public: Firms that fail to apologize can suffer significant reputational and financial damage. iii. Three types of apologies: a. Personal: offered for individual failings and promising a change of attitude and behavior, b. Corporate: admission of the company’s guilt and promises to rectify harm, c. Collective: governmental figures expressing remorse over harming marginalized groups. iv. Apologies being moral acts: In seeking forgiveness, offenders acknowledge that ethical violations have occurred, accept responsibility for the transgressions and pledge to repair the damage. v. Apologizing signals a commitment to the relationship as well as to common values vi. By seeking forgiveness, offenders open the door to reconciliation. vii.Pseudo-apologies or inauthentic apologies:

a. Apologies that fail to live up to their moral obligations, which tends to make the situation worse by further offending victims and trivializing their concerns. b. Here, the offender refuses to admit guilt or appears insincere while ostensibly apologizing. viii.

Apologies exemplifying good leadership: Apologizing signals that leaders put the interests of employees above their own interests. ix. Delivering effective apologies: As leaders who apologize are seen as more transformational, delivering effective apologies is a critical skill for modern leaders. x. Recognition: An authentic apology begins with identifying the specific offenses committed, what the apology is for, what the impact of one’s actions is on the victim, what value was violated, do they need to provide an explanation, etc. xi. Responsibility: The person who is the wrong doer needs to take personal responsibility for the offenses. xii.Remorse: The words “I’m sorry” or “I apologize” or “I regret” should be part of admission of responsibility; they need to be reinforced with the appropriate nonverbal cues that reflect remorse. xiii.

Restitution: a. Making amends helps restore balance to the relationship and signals that one is sincere, and this involves providing adequate reparations. b. Effective reparations are also accessible to victims of harm, indicating that the offender takes full responsibility.

xiv.

Repetition: a. The offender needs to signal their commitment to not repeat the offensive behavior. b. This helps victims overcome their reluctance to forgive.

IV. Spirituality and Leadership i. The link between spiritual values and practices and organizational performance is being studied.

ii. Popular interest in spirituality is also strong, with meditation rooms and reflective gardens in company headquarters and sponsored business and spirituality workshops. iii. Spirituality in the workplace: a. With the corporation having replaced other groups as the dominant institution in society, work takes up increasing amounts of our time and energy. b. Many of us want a higher return on this investment of time and energy, seeking sanctification of work. iv. Factors enhanced by spirituality: a. Commitment to mission, core values, and ethical standards, b. Employee retention, work-life balance, c. Sustainability and social responsibility, d. Morale and satisfaction with rewards, e. Sensitivity to ethical issues, f.

Social support, etc.

v. Spirituality involving transcendence: A striving for something bigger than, or beyond, the self, which can be a higher power or one’s ultimate meaning and purpose. vi. Inner life: Employees have spiritual needs just as they have emotional, physical, and intellectual wants, and they bring the whole person to work. vii.Meaningful work: Workers typically want their labor to be fulfilling and to serve the needs of society. viii.

Community: Organization members desire connection to others, a sense of belonging fosters the inner life. ix. Spirituality in character development: It gives them the courage to persist in the face of obstacles, remain optimistic, demonstrate compassion, learn from hardship, and clarify their values. x. Character traits in spiritual leaders: demonstrating respect for others’ values, treating others fairly, expressing caring and concern, listening responsively, appreciating the contributions of others, and engaging in reflective practice.

xi. Three qualities of spiritual leadership: a. A motivating vision or picture of the future which defines what the organization is and does. b. Hope/faith, the expectation or conviction that the organization will reach fulfill its mission and purpose; and c. Altruistic love, a sense of wholeness, harmony and well-being produced through care, concern, and appreciation for both self and others. xii.Spirituality’s potential dark side: a. Some leaders view spirituality solely as a tool for increasing follower commitment (obedience) and productivity, which increases profits. b. Other leaders try to impose their religious and spiritual views on followers. c. Authoritarian leaders engage in spiritual abuse. xiii.

Abusive tactics in spirituality: a. Overemphasizing spiritual authority and forbidding challenges from followers, b. Demanding unquestioning obedience as a sign of follower loyalty, c. Keeping members apart from outsiders while at the same time, hiding unethical practices from the public, d. Insisting on rigid beliefs and behavior while demanding conformity and perfection, e. Suppressing follower dissent through humiliation, deprivation, and other means, and f.

Using nearly absolute power to engage in fraud, immorality, and other unethical practices.

Lecture Notes

Chapter 5: Ethical Perspectives Learning Objectives 5-1 List the four steps to conducting a utilitarian analysis of an ethical problem.

5-2 Defend the importance of making ethical choices based on duty.

5-3 Explain how justice as fairness theory guarantees equal rights while acknowledging inequalities.

5-4 Demonstrate the importance of altruism for ethical leadership.

5-5 Contrast feminist ethics with male-oriented perspectives.

Annotated Chapter Outline I.

Utilitarianism: Do the Greatest Good for the Greatest Number of People i. Utilitarianism is based on the premise that ethical choices should be based on their consequences. ii. Utilitarianism aims to maximize good for the most people, based on act or rule utilitarianism, which prioritizes the best in specific cases or most contexts. iii. Steps in utilitarian analysis: a. Clearly identify the action or issue under consideration. b. Specify all those who might be affected by the action, not just those immediately involved in the situation. c. Determine the likely consequences, both good and bad, for those affected. d. Make a sum of the good and the bad consequences. iv. Utilitarian reasoning: a. Utilitarian reasoning is often employed when setting public policy: utilitarian principles are a rational basis for making political, judicial and administrative choices. b. Example: a. Debating recreational marijuana legalization involves benefits like reduced prison populations, reduced illegal drug trade, and tax revenue.

b. Costs include cognitive damage, impaired driving, and respiratory system damage. c. Most states ban the drug, despite some states arguing its benefits outweigh costs, due to opposition from the US Senate at the federal level. d. Choice between two negative alternatives: Utilitarian analysis is a method used by decision makers to choose the least costly option between two negative alternatives, thus aiming to minimize the cost.

A. Applications and Cautions i. Applications a. The concept of weighing outcomes is straightforward and practical. a. Utilize your experience in evaluating ethical decisions’ costs and benefits, focusing on outcomes to encourage thoughtful decision making. b. The primary objective of evaluating consequences is to maximize benefits for as many people as possible, so personal interests should not be the primary focus. b. Deterring unethical behavior: a. Ethical misbehavior should be addressed with severe penalties to ensure the potential benefits outweigh the consequences. b. Entire organizations should also be held accountable for their actions. ii. Cautions a. Violation of moral intuitions: a. Utilitarianism is noted to run counter to our moral intuitions. b. Certain actions, including torture, murder, and betrayal, are considered wrong regardless of the substantial benefits they bring. c. Preserving values such as love, human rights, personal dignity, and autonomy is worth it, regardless of the cost. b. Identifying possible consequences:

a. Specifying outcomes is challenging for decision makers who represent diverse constituencies or stakeholders. b. Unanticipated consequences further complicate the choice. c. Utilitarian decision makers may arrive at varying conclusions when faced with the same dilemma. c. Evaluating relative merits: a. Comparing different costs and benefits can be challenging due to the difficulty in evaluating the relative merits of consequences. b. Utilitarianism lacks clear guidelines for benefit distribution, making it easy to confuse the “greatest good” with our own selfish interests.

II. Kant’s Categorical Imperative: Do What’s Right No Matter the Cost i. Kant’s deontological ethics posits that individuals should act morally right, regardless of the consequences, making it the most prominent example of moral reasoning. ii. Deontological ethicists assert that we should make decisions based on our duty, as fulfilling our obligations may conflict with our personal interests. iii. Kant’s theory suggests that what is right for one person is right for all, and certain behaviors are always right, while others are always wrong. iv. Kant emphasized the significance of respecting individuals, a fundamental principle in Western moral philosophy. a. Followers and outside stakeholders should be treated with dignity and respect, their capacity to think and choose for themselves encouraged. v. Kantian principles suggest that modern organizations should operate as moral communities, with members having a significant voice in rules and policies. a. They should be transparent, open to employees, and foster follower autonomy. b. Leaders should prioritize stakeholder interests, protect dissenters’ rights, and resolve disagreements through just means. c. Meaningful work, including a living wage, supports employees’ decision making and promotes autonomy.

A. Applications and Cautions i. Applications a. Being duty-bound: Duty should be a crucial factor in ethical discussions, as it promotes persistence and consistent behavior. b. Two decision-making tools: a. To make a decision, consider if you would want others to make the same choice and if not, reevaluate your decision before proceeding. b. Respect others’ dignity and rights, avoid using them or violating their rights, and instead, respect their freedom to choose for themselves. ii. Cautions a. Critics argue that universal principles should be followed in all situations, and it may be challenging to fulfill promises made to multiple groups. b. Philosophers argue that ethical guidelines like Kant’s are primarily applied to extreme situations, not to the types of decisions we typically make. c. Dismissing emotions: a. Kant dismissed emotion, viewing it as a threat to reason and the exercise of personal autonomy. b. The increasing evidence suggests that feelings and intuitions significantly influence the decision-making process. iii. Ethical Ideology: Consequences vs. Moral Principles a. Relativism: Highly relativistic decision makers prioritize the morality of a specific action based on the circumstances of the situation, disregarding moral absolutes. b. Idealism: a. Highly idealistic people believe that the consequences of moral actions should be positive.

b. Less idealistic individuals are more pragmatic, recognizing that sometimes, harmful consequences may be justified for a greater good. c. Ethical ideology: a. The term used to describe where decision makers fall along the relativism and idealism dimensions. b. Situationists, who prioritize high relativism/idealism, believe that ethical actions should have positive outcomes for all involved, but they do not believe universal ethical principles can be applied across different situations. c. Absolutists, a deontological moral philosophy, aim to make decisions with positive consequences for everyone, guided by universal moral principles. d. Subjectivists, who are pragmatic and high in relativism/low idealism, Subjectivists, guided by egoism and pragmaticism, reject immoral actions despite negative outcomes, focusing on personal gain or loss. e. Exceptionists (low relativism/low idealism) adhere to universal principles but are open to violating them if they cause more harm than good; they follow rule utilitarianism in their moral decisions. d. Ethical ideology influencing moral judgment: a. Absolutists tend to be more conservative. b. Exceptionists are much less critical of moral failures and are more forgiving of their personal moral shortcomings. c. Subjectivists report greater anxiety the more they cheat. d. Situationists more likely respond to organizational injustice with deviant behavior.

III. Justice as Fairness: Guaranteeing Equal Rights and Opportunities Behind the Veil of Ignorance i. Rawls’ principles of justice: a. John Rawls aimed to establish principles for fostering cooperation in a society with equal citizens, while addressing inequalities like status, economic differences, and talent levels.

b. He rejected utilitarian principles as they could potentially disadvantage certain groups and individuals by maximizing benefits for society. ii. Principle of equal liberty: a. Principle 1: Each person has an equal right to the same basic liberties that are compatible with similar liberties for all. b. Certain rights are protected and must be held equally by all members of society. c. These basic democratic rights include: a. The rights of participation. b. Freedom of speech and assembly. c. Freedom of conscience and thought. d. Integrity of the person. e. The right to hold private property. f.

The right to a fair procedure

d. Inequalities and differences: a. Principle 2: Social and economic inequalities are to satisfy two conditions. i.

Principle 2a ensures equal opportunities for office and job qualifications, prohibiting discrimination based on race, gender, or ethnic origin, and ensuring access to necessary training and education.

ii. Principle 2b acknowledges inequalities but emphasizes prioritizing the needs of marginalized groups such as the poor, immigrants, and minorities. iii. Veil of ignorance: Standing behind this veil of ignorance, people would choose: a. Equal liberty for the maximum amount of freedom to pursue their interests. b. Equal opportunity because if they turned out to be the most talented members of society, they would probably land the best jobs and elected offices.

c. The difference principle because they would want to be sure they were cared for if they ended up disadvantaged.

A. Applications and Cautions i. Applications a. Rawls outlines a set of principles to help us act fairly: a. Guarantee basic rights to all followers. b. Ensure that followers have equal access to promotion, training, and other benefits. c. Make special efforts to help followers who have unique needs. b. Reality of inequality: One needs to balance individual freedom with the common good while acknowledging the reality of inequalities. c. Stepping behind veil of ignorance: Excluding social class differences from decision-making can often benefit the least advantaged group, as it allows for a more equitable distribution of resources. ii. Cautions a. Rawls’s theory of justice as fairness is only applicable to liberal democratic societies with justice-promoting institutions, not in “outlaw states” or “burdened societies” unable to establish liberal democracies. b. The varying definitions of justice and fairness can hinder the effectiveness of principles, as what seems fair to one may be unjust to others. c. The “justice as fairness” theory underestimates the challenge of making fair judgments, as removing ignorance alone does not eliminate unfairness due to random variation or noise. d. Philosophers argue that individuals who engage in ignorance may not adopt the same principles as Rawls, instead making decisions based on utilitarian criteria or highlighting specific rights.

IV. Altruism: Love Your Neighbor i. The altruistic approach to moral reasoning, rooted in virtue ethics, emphasizes the importance of helping others, regardless of personal cost, reflecting the highest moral character.

ii. The concept of concern for others fosters healthy social relationships, and society functions more effectively when individuals assist each other in their daily interactions. iii. Researchers have discovered that altruistic behavior is often the norm, not the exception. iv. Altruism is a universal value, promoted in cultures in every region of the world. v. Leaders prioritize the needs of their constituents and exercise influence on their behalf. vi. They may face risks and personal gain, while those seeking personal gain focus on organizational goals and power bases, while others control followers. vii.Forms of leader altruistic behaviors: a. Individual-focused leader altruistic behaviors include providing training, technical assistance, and mentoring. b. Group-focused leader altruistic behaviors include team building, participative group decision making, and minority advancement programs. c. Organizational-focused leader altruistic actions include demonstrating commitment and loyalty, protecting organizational resources, and whistleblowing. d. Societal-focused leader altruistic behaviors include making contributions to promote social welfare, reducing pollution, ensuring product safety, and maintaining customer satisfaction. viii.

Altruism is crucial in enabling individuals to cope with emotional pain, as negative feelings can lead to stress and harm their health and well-being. ix. Stress can negatively impact organizational performance by causing low morale, absenteeism, turnover, gossip, and sabotage. x. Toxin handlers: a. Compassionate individuals who absorb others’ pain, helping them confront and overcome their negative feelings to go forward. b. Individuals are capable of taking on this role in addition to their regular duties due to their high competency in fulfilling their job responsibilities.

c. Toxin handlers face burnout due to emotional and physical stress from colleagues, often unnoticed in organizations, often being filled by leaders. d. Toxin handlers reduce pain in five different ways: a. Listening: Compassionate leaders open their offices, welcome visitors, and allow others to share their stories, providing warmth, empathetic feedback, and respect, making those in pain feel heard and respected. b. Suggesting solutions: Toxin handlers not only listen but also solve problems and provide counseling and advice when necessary. c. Working behind the scenes to prevent pain: Toxin handlers work discreetly within an organization to prevent toxic feelings by secretly transferring employees to better environments or placing struggling new hires with experienced mentors. d. Carrying the confidences of others: Toxin handlers maintain the confidentiality of others, ensuring they feel heard and supported before leaving. e. Reframing difficult messages: Handlers serve as diplomats and translators, removing anger from boss messages and acting as buffers to prevent career damage.

A. Applications and Cautions i. Applications a. Being effective leaders: Effective leadership prioritizes the needs of followers, prioritizing group goals, and empowering them to contribute to the overall health of society. b. Practicing altruistic behavior: Individuals, groups, organizations, and societal leaders should practice altruistic behaviors, be prepared to absorb others’ pain, and consider altruism in decision making. ii. Cautions a. The principle of love of neighbor is challenging to implement due to the world’s needs exceeding our capacity to meet them. b. Extreme altruists generously help others by moving to poverty-stricken countries, giving away possessions, gathering food, allowing homeless

people to live in homes, donating kidneys, and adopting children with disabilities. c. MacFarquar interviewed several of these “radical do-gooders” and found that even they put limits on how much they could help. d. Altruistic behavior can be motivated by guilt, peer pressure, and maintaining a good image, leading some companies to engage in corporate social responsibility (CSR) to enhance their reputations and sales. e. Suspect motives may or may not negate the good done by individuals and organizations. f.

Limited success: Poorly run charitable organizations often overspend on fundraising, salaries, and administration, neglecting their missions or focusing on costly projects.

g. Most philosophers disagree on what constitutes loving behavior.

V. Feminist Ethical Perspectives: Power, Care and Responsibility i. Feminist ethicists emphasize the importance of power, arguing that current structures hinder women and other disadvantaged groups from fully benefiting from society and posing harm. ii. Power imbalances can be identified and addressed to prevent significant damage to many individuals, allowing both men and women to take steps to rectify the situation. iii. Ethic of care: a. The ethic of care emerged as a counter to the traditional male-oriented approach to ethics, emphasizing women’s moral decision making based on caring for others. b. Women embody the ethic of care, which stems from feminist thought, but it extends beyond women to encompass all individuals. iv. Care: value and practice: a. Care unfolds as a process over time in four interconnected phases. b. Caring About is recognizing there is a need and that the need should be met.

c. Taking Care Of is assuming some responsibility for the need and deciding the respond to it. d. Caregiving is directly meeting the need for care, often involves physical work and contact with those in need. e. Care-Receiving is assessing how well the caring needs have been met according to those receiving the care. v. Key components of care ethic: a. Care focuses on the importance of noting and meeting the needs of those we are responsible for. b. Care values emotions: Moral emotions like empathy, sensitivity, and responsiveness should be nurtured, while ethical approaches encourage rational decision making. c. Specific needs and relationships take priority above universal principles. d. Care breaks down the barriers between the public and private spheres. e. Care views people as both relational and interdependent. vi. Impacts of ethics of care. a. The ethic of care would significantly shift national and international priorities, consuming a larger proportion of governmental budgets for child rearing, education, and elder care. b. It would recognize the responsibility of caregivers, increase men taking caregiving responsibilities, and provide more economic, medical, and educational aid to countries with the greatest needs. vii.Ethics of responsibility: a. Specific moral claims on us arising from others whose interests are vulnerable to our actions and choices. b. Ethics of responsibility advocates argue that humans are not autonomous units guided by abstract principles but are interconnected through relationships. c. These relationships bring with them a set of responsibilities, which are often unfairly distributed based on unjust social power. viii.

Appropriate response to responsibilities:

a. Ethical behavior consists of responding appropriately to our responsibilities. b. Morality is not derived from law but is expressive and collaborative, and a close examination of societal responsibility practices reveals several inequities. c. Example: Girls, not boys, are responsible for making themselves look attractive.

A. Applications and Cautions i. Applications a. Identify power imbalances, seek ethical insights from less powerful groups, and practice care and responsibility ethics. b. Our morality should guide actions, improve others’ well-being, and reflect our true beliefs. c. Foster connection by providing care and assuming responsibility, not demanding rights. d. Consider interdependence and elevate caregiver status, especially for female, poor, and minority individuals. e. Avoid separating public and private spaces, promoting care through government and organizational policies. f.

Use both emotion and reason in ethical decisions, gathering information for each situation.

ii. Cautions a. Feminist ethical theory lacks guidelines for determining right or wrong, and decisions are made on a case-by-case basis, as what may be right for one may be wrong for another. b. The theory challenges feminists to balance workloads and addressing exploitation concerns, such as reducing workloads for cancer employees may burden other members. c. Challenges of caregiving: a. Caregiving can be harmful to both caregivers and recipients. b. It’s crucial to prioritize self-care and avoid overdependence.

c. Caregivers should also consider their responsibilities to distant individuals, such as refugees and developing nations.

Lecture Notes Chapter 6: Ethical Decision Making and Behavior Learning Objectives 6-1 Explain the role of logic and emotion in moral decision making.

6-2 Describe the four processes that produce ethical decisions and behavior.

6-3 Analyze an ethical dilemma using one of the four decision-making formats.

Annotated Chapter Outline I.

Ethical Decision Making: Reason and Emotion i. Viewed as a cognitive process: a. As a cognitive process, ethical decision making ignores the emotions of an individual and involves logic and reason for solving the ethical problems. b. This is because feelings could undermine moral reasoning. ii. Challenged for the cognitive approach: a. Advanced scholars like psychologist Jonathan Haidt challenged the cognitive approach to ethical decision making. b. According to Haidt, people follow intuitions to make ethical decisions, which he termed as moral dumbfounding. iii. The Social Intuitionist Model: a. This model reflects Haidt’s approach to ethical decision making. b. As per this model, our intuitions and norms play a great role in moral determinations. iv. Dual process approach: a. As per this approach, there are two separate systems for moral reasoning.

b. In the first one, moral reasoning is fast, emotional, intuitive, and subconscious. c. Other one is opposite to it, which is slower, rational, cognitive and conscious. v. Integrated approach: a. As per this approach, emotions and reasons are closely related to each other. b. Neural networks engage reason and feelings, thus, when moral decision is made, both reasons and feelings are interrelated together. vi. Prioritizing the intuitions: a. On some occasions, we may need to give priority to our intuitions. b. For instance, if volunteers are paid, then that might reduce volunteering. vii.Recording the initial reaction: a. It is a strategy to draw upon both reason and feeling, and it means noting down your first reaction to an ethical situation you faced. b. Use different tools like Decision-Making Formats to test your response. c. Then, in the end, compare your reaction with your decision. d. Your final decision may be your first judgment or different decision. viii.

Incorporating intuition in ethics training: Organizations should incorporate emotion or intuition into the group’s ethics training for improving the ethical behavior of their employees. ix. Organizing activities: a. Organizations should organize activities for building social skills such as self-awareness, empathy, and moral reasoning abilities. b. Managers should be well trained for identifying the human dimension of the decisions they make as well as for drawing on emotional images to motivate employees.

II. Components of Moral Action i. Development of four component model:

a. James Rest developed the four-component model of moral behavior by starting backwards from the end product, moral action. b. After this, steps were defined to produce such behavior. c. Four psychological sub processes are moral sensitivity (recognition), moral judgment, moral focus (motivation), and moral character. ii. Communication and critical thinking skills: a. Ethical decisions can be made and implemented through communication and critical thinking skills. b. Managers must have the ability to articulate their reasoning, convince other leaders, and work with others to put the choice into place.

A. Component 1: Moral Sensitivity (Recognition) i. Moral sensitivity refers to recognizing the presence of an ethical issue: a. Moral sensitivity is necessary because it helps in recognizing the moral problem. b. Failure to do so would lead to losses. c. For example, Ford Motor decided not to fix the defective tank on Pinto automobile because saving money was more important than human lives. ii. Requirements of problem recognition: a. To recognize a problem, we must consider how our behavior affects others, identify possible courses of action, and determine the possible actions and their consequences. b. If we know how our actions would impact others, we would be more sensitive to negative effects of our decisions. c. In this way, we can easily predict the outcomes of each decision taken by us. iii. Ethical fading: a. Sometimes, people think ethical situation as something legal which cannot be avoided like taking bribe for growing business. b. People failing to recognize the ethical issues are reluctant to use the words, values, right, wrong, justice to describe their decisions.

c. They keep silent and assume that they are following ethics. This process is called ethical fading. iv. Moral attentiveness: a. It is a trait that describes the amount of attention individuals pay to the moral dimension of experiences and events. b. When we are less attentive to morals, our sensitivity to ethical issues is reduced, conversely, when we are high in moral attentiveness, we don’t cheat and have a stronger belief in organizational ethics. v. Two types of moral attentiveness: a. Perceptual moral attentiveness: considers intuition and tends to notice mortality in everyday life. b. Reflective moral attentiveness: considers conscious reasoning and tends to notice ethics when making choices. vi. Steps to enhance ethical sensitivity: a. Recognizing the ethical dimension of daily decisions and events. b. Taking ethics coursework and ethics training. c. Routinely reflecting on ethical issues. d. Actively listening and role-playing. e. Imagining other perspectives. f.

Using posters, pictures signs, purpose statements and other ethical primes to subconsciously activate moral awareness.

g. Stepping back from a situation to determine whether it has moral implications. h. Using moral terminology to discuss problems and issues. i.

Avoiding euphemisms.

j.

Refusing to excuse misbehavior.

k. Accepting personal responsibility. l.

Practicing humility and openness to other points of view.

m. Making an issue more salient.

vii.Steps to build moral intensity: a. Illustrating that the situation can cause significant harm or benefit to many people. b. Establishing that there is social consensus or agreement that a behavior is moral or immoral. c. Demonstrating probability of effect, that the act will happen and will cause harm or benefit. d. Showing that the consequences will happen soon. e. Emphasizing social, psychological, physical, or psychological proximity with those affected by our actions. f.

Proving that one person or a group will greatly suffer due to a decision.

B. Component 2: Moral Judgment i. Cognitive Moral Development a. Lawrence Kohlberg’s view: a. As per Harvard psychologist Lawrence Kohlberg, individuals progress through a series of moral stages, with each stage being more advanced than the previous one. b. Kohlberg proposed three levels of moral development; level by level, people become less self-centered and understand the values of morality. c. Every level is divided into two stages each. b. Level I: preconventional thinking: a. Level I is preconventional thinking, which is the primary level. b. Stage 1: This is most common among children who obey their elders to avoid punishment. c. Stage 2: In this stage, individuals believe in fair deal, they follow rules to meet their interests. c. Level II: conventional thinking: a. Under this level, individuals are dependent on others for deciding how to act.

b. Stage 3: Under this stage, individuals take decisions to meet expectations of people they respect, such as parents, friends, and siblings. c. Stage 4: Individuals respect whole society by following rules at work. d. Level III: postconventional or principled thinking: a. It is the most advanced type of ethical thinking. b. Stage 5: People focus on needs of the entire group and make sure that rules and laws are followed. c. Stage 6: People follow universal principles that guide their behavior.

Principles such as justice, equality, and human dignity are followed. d. Kohlberg notes that less than 20% of American adults never reach Stage 5, and no one reaches Stage 6. e. Criticism of Kohlberg’s theory: a. Critics argue that the foundation of Kohlberg’s model applies more to societal issues than to individual ethical decisions. b. They also argue that as opposed to the notion that people go through a hard series of moral stages, a person can engage in many ways of thinking about a problem, regardless of age. f.

Response to critics: a. Scholars who studied under Kohlberg replaced hard stages with developmental schemas, which are the networks of knowledge for encountering new situations or information. b. This “neo-Kohlbergian” approach states that decision makers rely on more sophisticated moral schemas as they develop.

g. Personal interest: a. It is the least sophisticated moral schema of the neo-Kohlbergian approach. b. At this level, people focus on what they gain or lose in an ethical dilemma, without considering the needs of the society. h. Maintaining norms schema:

a. This is the second level of the moral reasoning. b. People at this level follow rules and laws and ensure that regulations apply to everyone. c. They also believe that a clear hierarchy exists with carefully defined roles. i.

Postconventional schema: a. It is the most advanced level of moral reasoning. b. At this level, people believe that moral obligations must be based on shared ideals, without being biased, and must be open to testing and examination.

j.

Defining Issues Test (DIT): a. Rest developed Defining Issues Test (DIT) for measuring moral development. b. Steps involved in this test include responding to ethical scenarios, choosing statements that best reflect the reasoning used to come up with choices, and giving score to statements that correspond to three levels of moral reasoning. c. The results of DIT reveal that moral reasoning increases with age and education.

k. Insights by cognitive development models: a. Contextual variables play a vital role in shaping ethical behavior. b. Moral reasoning is promoted by education. c. It is better to take a broader perspective. d. Moral principles produce superior solutions. ii. Ethical Blind Spots a. Unconscious distortions: a. Unconscious distortions lead to unethical choices. b. These are called ethical blind spots that cause individuals to favor behaviors that they normally condemn.

b. Overestimating Our Ethicality/Believing in Our Moral Superiority: a. According to some studies, we overestimate our intelligence, competence, and ethicality, while underestimating other people’s performance, but we fall short of our projections. b. We are ignorant about our ignorance, which is termed as DunningKruger Effect. c. Since we believe in our inherent goodness, we tend to harshly punish others who fall short as well as put our needs ahead of that of the group. c. Forgiving our own unethical behavior: a. Sometimes, psychological tension is built in us to behave ethically. b. Cognitive dissonance is built when we fall short of our ethical standards, and thus our “want self” overcomes our “should self.” c. When our actions don’t match with self-images, we either change our behavior or excuse what we’ve done. d. We tend to make selective recall by remembering events in a way that supports our decisions. d. In-group favoritism: a. We favor individuals who are from our nationality, neighborhood, religion, social, class, etc. b. This encourages us to forgive their unethical behaviors when we benefit from the choices they have made. c. When those in power give resources to members of their in-groups, they discriminate against those who are different from them. e. Implicit prejudice: a. It is an implicit or invisible form of prejudice where individuals tend to associate things that usually go together. b. Examples of such things include rich people and expensive cars, thunder and rain. c. But such associations are not always true: Not all rich individuals have expensive cars, and thunder doesn’t always bring rain.

f.

Judging based on outcomes, not the process: a. When we judge someone, we see their results. b. If the result is good, we consider them successful and vice versa. c. Poor decision making gives unethical results.

g. Acknowledging the blind spots: It is important for us to acknowledge the blind spots and admit that that we aren’t as ethical and unbiased as we believe. h. Steps to combat ethical distortions: a. Publicly commit yourself to an ethical course of action ahead of time. b. Focus on the moral principles involved in a choice rather than on the immediate benefit you might receive. c. Put yourself in environments that challenge your implicit stereotypes. d. Include a wider variety of people in the decision-making process. e. Audit your organization to determine if it is trapped by in-group biases and eliminate programs that perpetuate the hiring and promotion of those of similar backgrounds. f.

Step behind the veil of ignorance to make more equitable choices.

g. Evaluate the quality of the decision-making process, not the outcome.

C. Component 3: Moral Focus (Motivation) i. Focusing on choices: a. After deciding the best course of action, the decision makers should focus on their choices. b. There is often a conflict between moral values and other significant values. c. For example, an accountant who wants to do the right thing by reporting illegal accounting practices at the organization will also consider the desire to keep their job.

d. Many times, there is a significant gap between moral judgment and moral action. ii. Developing moral potency: a. Sometimes our thoughts are different from the actions we do. b. This thought-action gap can be addressed by developing moral potency, which implies a psychological state consisting of moral ownership, moral courage, and moral efficacy. iii. Moral ownership: a. It occurs when individuals believe that teams, organizations, and communities are extensions of themselves. b. This obligates them to behave in an ethical manner. c. For example, a project manager considers the status reports of their team as a sign of their own ethicality. iv. Moral courage: provides impetus to act despite outside pressures or adversities. v. Moral efficacy: a. This implies leaders’ ability to carry out the plan of action. b. A manager may suggest that a high-performing salesperson should be fired for submitting bogus expense reports, but they may not go ahead if there is no support from top company leaders. c. To develop moral efficacy, work upon difficult ethical issues and debrief them to evaluate responses. vi. Moral hypocrisy: a. Individuals might follow ethical processes but engage in hypocrisy which involves favoring things for themselves. b. For instance, an individual might agree with a fair distribution of assignments but assign themselves the most desirable task, and undesirable tasks to others. vii.Importance of rewards: a. People will give high priority to ethical values when they are rewarded through promotions, raises and public recognition.

b. Moral motivation drops when the reward system reinforces unethical behavior. viii.

Emotions: a. Emotions play an important role in moral motivation. b. Positive emotions encourage people, whereas negative emotions lower motivation level.

ix. Moral emotions: a. Triggered even when a person does not have a stake in a situation. b. Example: feeling of sympathy upon seeing a picture of refugee living in a camp. x. Other-condemning moral emotions: anger, disgust and contempt, that are triggered by unfairness, betrayal, immorality, cruelty, poor performance, and status differences. xi. Self-conscious emotions: shame, embarrassment, and guilt that encourage us to follow the rules and social norms. xii.Other-suffering emotions: sympathy and compassion that are triggered when we see suffering and sorrow of our friends, family, and community. xiii.

Other-praising (positive) emotions: gratitude, awe, and elevation that open us up to new relationships and opportunities.

D. Component 4: Moral Character i. Positive Virtues: Positive virtues like courage, humility, optimism, and compassion and justice contribute to moral actions. ii. Self-control: a. Self-control is an individual’s ability to regulate their behavior or characteristic. b. It involves overriding selfish impulses to do right things. c. Self-control is correlated with positive outcomes like higher grades, better relationships, etc. d. Lack of self-control results in unethical behavior like cheating, theft, fraud, etc.

iii. Ego Depletion: a. Self-control can be weakened through exertion. This is termed as ego depletion. b. The factors that result in depletion of self-control are fatigue, negative feelings, conflict, demanding tasks, etc. c. Building in recovery period can allow self-control to recover its strength. iv. Duty Orientation: a. Individuals driven by duty take decisions based on their loyalty to the group. b. Duty orientation is made up of three dimensions: duty to members, duty to mission, and duty to codes. c. Duty to members involves supporting your team members by sacrificing your own goals. d. Duty to mission involves working dedicatedly for achieving the mission of the organization. e. Duty to codes involves working as per the rules and norms of the group. f.

Formal codes of ethics relate to rules that must be followed inside and outside the organization.

III. Decision-Making Formats i. Making better ethical choices: a. The decision-making guidelines can help to take better ethical decisions. b. There are four ethical decision-making formats. ii. Following a systematic approach: Following a logical approach helps teams and individuals to define the problem, gather information, apply ethical standards, evaluate alternative courses of action, and follow through the choices.

A. The Four-Way Method i. Moral disengagement: a. According to ethics expert, Richard Kyte, any decision-making format must address the problem of moral disengagement.

b. Moral disengagement is about agreeing that what is normally wrong is really right. ii. Partial disengagement: a. It is about focusing on those principles that support our position. b. Partial disengagement makes it difficult to understand and listen to someone with a different ethical framework. iii. The four-way method promotes different ways of thinking: Each stage of the model addresses one thinking mode. iv. Truth: a. This mode focuses on knowing the real facts and context of the situation. b. People should know what the facts, relevant laws, organizational/company policy, and pertinent professional standards are. v. Consequences: a. Utilitarianism is the second thinking method. b. Some questions to be considered are who are to be affected, how are they going to be affected, and most beneficial/ least harmful solution for them. vi. Fairness: a. The perspective of the other party should be considered and taken care of. b. Equality should be maintained. c. Respect them and make a fair process for resolving the dilemma. vii.Character: a. This type of thinking highlights the individuals. b. The motivation of the actor and the outcome of the act are considered. c. The points to be reflected upon are the virtuous enactment of the proposed solutions, checking if the proposed actions make the agent

less or more virtuous, and the effective implementation of proposed solutions to build trusting relationships.

B. Balance Sheet i. Advantages (Pros): a. Identify barriers to moral reasoning. b. Leads to ethical group discussion. c. Include different ethical theories such as Kantianism, utilitarianism, and justice theory. d. Highlights character. e. Help in implementing decisions. ii. Disadvantages (Cons): a. Difference about facts. b. Contradictory views of consequences and fairness.

C. The Foursquare Protocol i. Developed by Stephen Goldman: a. This format was developed by Stephen Goldman in which procedures or protocols are defined to reach conclusions. b. This help in making choices for product safety, conflicts of interests, employee misconduct, etc. ii. Ensures fairness of decisions: Following the protocol ensures that decisions are reached fairly. iii. Protocol Element 1: Close Description of the Situation. (Dig into the Facts.) a. Gathering data and identifying relevant facts: a. The first step in ethical decision making is digging into the facts. b. It is important to determine the issue, gather all the information, and relate them to each other to identify the problem. iv. Protocol Element 2: Gathering Accumulated Experience in Similar Situations.

(Examine Individual Reactions to Past Solutions.)

a. Gathering past experiences: a. To solve any problem, it is important to draw upon organizational history. b. The past experiences with similar problems should be looked at. c. Similar cases should be treated in the same way. b. Responding to the issues: a. The way you respond to the issue shapes the group’s ethical culture. b. For example, excusing those who bully others now will allow for more cases of bullying in the future. v. Protocol Element 3: Recognize the Significant Distinctions Between the Current Problem and Past Ones (Gauge Similarities with Past Situations.) a. Recognizing distinctions: a. Find the important differences between the current situation and past incidents. b. Ignore the insignificant differences. b. Separating good from average: The ability to recognize significant and insignificant differences separates good ethical decision makers from the average ones. vi. Protocol Element 4: Situating Yourself to Decide. (Analyze Your Decision-Making Process.) a. Analyzing the decisions: Three factors are considered for making decisions: if there is any self-interest involved that might impact a judgment, imagining oneself to be at the receiving end of a decision, and determining what moral instincts are trying to convey. b. Balancing between intuition and reason: a. For making the best choice, it is important to maintain balance between the intuition and reason. b. Do not under or over emphasize either of them. c. Test the choice you make through the application of ethical principles like utilitarianism.

D. Balance Sheet i. Advantages (Pros): a. Justice and fairness. b. Priority to individual situations. c. Situates the decision maker. d. Importance to self-interest. e. Incorporates both intuition and reason. ii. Disadvantages (Cons): a. Undervalues ethical values and principles. b. Ignore the insignificant. c. Self-interest may influence the decisions.

E. Five Timeless Questions i. Focusing on gray area problems: a. The five timeless questions model focus on gray areas which have no right or wrong answers and require careful judgment and hard choices. b. To solve gray area problems, leaders should utilize their managerial skills and adopt a humanistic perspective. ii. Developed by Joseph Badaracco: a. Harvard business professor Joseph Badaracco has developed five questions to help leaders deal with the human side of gray problems. b. The questions, which draw insights from history’s greatest thinkers like Jesus, Aristotle, Buddha, etc., form a humanistic philosophy of management and leadership. iii. Question 1: What Are the Net, Net Consequences? a. Considering the consequences: a. Consider every effect of your possible choices. b. Don’t think about the bottom line only.

b. Following a right process: To analyze the consequences: a. Stop and look for more information. b. Consult others. c. Select the right people with the right expertise. d. Use a decision-making format or decision tree for optimal solution. iv. Question 2: What Are My Core Obligations? a. Following the obligations: a. Obligations or duties to one another should be considered. b. Look beyond economic concerns and follow social responsibility. b. Generating new perspectives: a. Use your imagination to develop new perspectives to the problem. b. Meet the people who will be affected by your choice and get their perspectives. v. Question 3: What Will Work in the World as It Is? a. Considering the realities: This question invokes consideration of organizational realities and recognizes the reality of human nature, which includes a mix of desirable and undesirable qualities. b. Learning about power in organization: a. Think carefully about how power operates in your organization and consider the interests of each party. b. Be modest and humble. c. Adapt to situations and take advantage of opportunities when they arise. d. Assert the power and authority, when necessary. vi. Question 4: Who Are We? a. Decision-making context: This query highlights the decision-making context and must be asked only after answering the first three questions.

b. Knowing the vision and mission: a. It is essential to see things in a larger context. b. Your decisions must reflect the vision and mission of your organization. c. Consider how your decisions fit into the organization’s goals. vii.Question 5: What Can I Live With? a. Making a comfortable choice: a. This query highlights that there is no one right answer to a gray area problem, and hence individuals are likely to be hurt. b. Therefore, the goal is to make a choice you can be comfortable with. b. Tempered intuition: a. What constitutes a reasonable solution depends largely on “tempered intuition,” i.e., considered reflection based on character and experience. b. When you come across a complex moral dilemma, first pause and then take time to ponder the first four questions. c. Make a trial choice and see if you could live with that in the future and think about how you might explain the choice to someone. d. Finally, make the decision, communicate the decision, and move forward, recognizing that the choice has to be adjusted if needed.

F. Balance Sheet i. Advantages (Pros): a. Recognizes the “messiness” of ethical problems faced by leaders and the need for sense making. b. Draws upon prominent thinkers and traditions. c. Blends management with humanism, reason, and intuition. d. Acknowledges painful realities. e. Emphasizes the importance of making the choice.

ii. Disadvantages (Cons): a. Temptation to favor one question over another. b. Lacks specifics. c. Makes high demands on decision makers.

G. The Moral Brief i. Concise outline of major components: a. A moral brief, which is an outline of important components, requires decision makers to follow a systematic process to a problem. b. Professor Ronald Nash introduced the moral brief to help make ethical determinations. c. This would help them to access important data. ii. Ethics as a conversation: As a conversation, ethics focus on three languages: our background beliefs, our moral character, and moral principles. iii. Surrounded by 10 questions: The moral brief is structured around these 10 questions: a. What are the central moral issues in your dilemma? b. What are the conflicts in your case that make it an ethical dilemma? c. Who are the major stakeholders in your dilemma? d. What are some foreseeable consequences of the possible choices in your dilemma? What are some foreseeable principles? e. What are some viable alternatives to ethical courses of action in your dilemma? f.

What are some important background beliefs you should consider in your dilemma?

g. What are some of your initial intuitions and feelings about your dilemma? h. What choices would you make if you were to act in character in your ethical dilemma?

i.

What does your profession’s code of ethics say regarding the relevant moral issues in your dilemma?

j.

What is your decision in the dilemma, and do you have any afterthoughts?

H. Balance Sheet i. Advantages (Pros): a. Define the problem in detail. b. Follows integrative approach. c. Includes reason, intuition and emotion. d. Encourages broad consideration of stakeholders. e. Follows professional codes of conduct. f.

Identify the difficulty of moral decision making.

ii. Disadvantages (Cons): a. Consumes time. b. Requires significant application and interpretation. c. Could be unsatisfying.

Lecture Notes Chapter 7: Exercising Ethical Influence Learning Objectives 7-1 Develop guidelines for the ethical use of the six influence tools.

7-2 Describe strategies for resisting unethical influence attempts.

7-3 Outline steps for counteracting disinformation.

Annotated Chapter Outline I.

Ethical Issues in Influence i. Leading: influencing and modifying the followers’ attitudes and behaviors in order to help groups reach their goals.

ii. The key for leaders: how to exercise influence in an ethical manner. iii. Important moral choice for leaders: selecting the appropriate tactic that helps determine whether they brighten or darken the lives of their followers.

A. Framing i. Sense making: a. It is a crucial task for leaders, as it aids in making ethical decisions and interpreting events like mergers, acquisitions, market corrections, new competitors, organizational changes, tax reform, and cyber hacks. b. Leaders often use framing to make sense or meaning. ii. Creating mental picture of world: Leaders use framing to create a mental image of the world, encouraging followers to accept their frame or interpretation, which influences actions by focusing on specific elements of a situation while ignoring others. iii. Emphasis on moral/ethical values: Moral framing emphasizes values such as respect for individuals, honesty, fairness, concern for the poor, and societal obligations. iv. Ethical blindness: a. Leaders often overlook moral issues due to their disregard for ethics, leading to unethical decisions. b. They often assume profit maximization is morally right, relying on the law to determine ethical or unethical actions. c. This narrow perspective can blind them to the ethical dimensions of their choices. v. Ways to overcome ethical blindness: a. Adopt flexible framing. b. Adopt a variety of frames. c. Take the perspective of stakeholders. d. Encourage dissent to surface other perspectives. e. Look outside the organization to identify emerging ethical issues.

vi. Ethical framing can positively impact the moral performance of organizations and followers. vii.The responsibility of leaders: a. Use ethical terminology to interpret the situation. b. Tie frames into the firm’s ethical codes and values. viii.

Disagreements from others: a. Frames are frequently subject to disagreement, with others offering alternative interpretations. b. Fellow leaders and followers might reject the existence of a moral dimension in a situation, opting for a pragmatic frame centered on cost or efficiency. c. Alternatively, they might present a competing moral frame, a common occurrence in debate about public policy issues.

B. Impression Management i. Attempting to control one’s images: a. Impression management tells how people try to control the images others have of them through their behaviors. b. Though it is part of human interaction, it is particularly important in the context of leadership. ii. Prototypes: images of ideal leaders that followers have; the closer a person is to the ideal, the more likely they are to be selected as a leader and their influence is accepted. iii. Use of taxonomies: a. Researchers employ taxonomies to examine key dimensions of impression management. b. A commonly studied category system categorizes self-presentation into five types, each involving specific behaviors aimed at creating distinct desired images. iv. Five types of self-presentation: a. Ingratiation: Appearing likeable and attractive through flattery, compliments, doing favors, and expressing similar attitudes.

b. Self-promotion: Appearing competent through, for instance, discussing awards, skills, and other achievements. c. Intimidation: Appearing threatening through threats, harassment, punishment, and other means. d. Exemplification: Appearing moral and dedicated by telling the truth, accepting responsibility for failure and going above and beyond what’s required. e. Supplication: Appearing needy or dependent to secure help through claiming, for example, inexperience and a lack of knowledge. v. An ethically troubling concept: a. Some people find impression management ethically troubling due to its potential for immoral ends. b. They value integrity and see role-playing as insincere, as leaders may have to disguise their true feelings. c. However, impression management is not entirely eliminated, as others form impressions of us, even if we don’t consciously realize it. vi. Judging the morality: a. Ethical impression managers prioritize group needs and goals, using impression management to convey accurate information, build positive relationships, and facilitate good decisions. b. Unethical impression managers subvert group wishes, send deceptive messages, undermine relationships, and distort information, leading to poor conclusions and decisions. vii.Considerations for leaders: a. Ensure that you aren’t unfairly influenced by those who are skillful at self-presentation. b. Use objective criteria, such as, standardized metrics and questions in hiring and promotion decisions. c. Don’t play favorites. d. Confront careerists. e. Tie their success to how well they cooperate in a group.

f.

Swiftly penalize lies on resumes, falsely claiming credit for achievements, and other deceptive impression management tactics.

g. Create an impression management (IM) climate that encourages authentic self-presentation. h. Encourage followers to use impression management to serve the collective needs of the group.

C. Compliance Gaining i. Verbal tactics: Compliance-gaining strategies are the verbal tactics used by leaders and others to achieve immediate objectives by convincing targets to comply with requests. ii. Rational persuasion: Offering factual evidence, explanations, and logical arguments to illustrate that a proposal or request will attain task and organization objectives. iii. Apprising: Explaining how compliance with a request will benefit the target. iv. Inspirational appeals: Generating enthusiasm by appealing to values and ideals; arousing emotions. v. Consultation: Soliciting support by seeking suggestions for improvement; asking for input when planning an activity, strategy, or change. vi. Collaboration: Providing resources and assistance if the target complies with the request. vii.Ingratiation: Generating positive feelings by the use of flattery and praise before or during the request; expressing confidence in the target’s ability to fulfill a difficult request. viii.

Personal appeals: Appealing to feelings of loyalty and friendship when asking for something. ix. Exchange: Providing something the target wants in return for compliance; trading favors; promising to reciprocate later or to share the benefits when the job is completed. x. Coalition tactics: Enlisting the help of others or the support of coworkers to convince the target to go along with the request. xi. Legitimating tactics: Claiming the right or authority to make a request; aligning the request with the organization’s rules, policies, and traditions.

xii.Pressure: Demanding, threatening, checking up; persistent reminders. xiii.

Power base of the tactic: a. Hard power tactics, such as legitimating and pressure, are based on coercion and force, exerting more control over situations and giving less freedom to resist. b. They often gain compliance but can be harmful to leader–follower relations and are more susceptible to abuse. c. Soft power tactics, such as rational exchange, inspirational appeals, collaboration, and consultation, rely on attraction and positive relationships and pose less danger. d. However, hard power strategies may be necessary for ethical goals and can also support illegitimate requests. e. Exclusive reliance on soft tactics can lower team performance.

xiv.

Influence tactic ambidexterity: a. Effective and ethical managers employ a range of influence tactics, demonstrating influence tactic ambidexterity. b. They rely on soft tactics to foster trust and commitment, but also employ harder tactics when necessary.

D. Communication of Expectations i. The Pygmalion effect: Leaders’ expectations can significantly influence followers, as individuals often fulfill the expectations placed on them, a phenomenon known as self-fulfilling prophecy or the Pygmalion effect, named after the prince in Greek mythology. ii. Operation of the Pygmalion effect: a. The Pygmalion effect is observed across diverse settings. b. Examples include patients experiencing improved outcomes due to the belief in the efficacy of placebos, military personnel meeting expectations labeled as high potential, and teachers’ high expectations correlating with enhanced student test scores. iii. The Golem effect: It states that positive expectations can enhance performance, while negative expectations can decrease it.

iv. Deception: a. The Pygmalion effect raises a number of ethical dilemmas, including deception. b. Leaders are deceived into believing that certain subordinates have more potential than others, even though there is no evidence to support this claim. c. This deception can be justified as the organization benefits from the superior work of high performers, but it also demonstrates disrespect and undermines trust. v. Ability grouping: a. Ability grouping is problematic as companies often fast track certain employees, focusing on high-potential individuals who receive special training and mentorship. b. This results in the Pygmalion effect, where the fortunate few benefit, while others suffer from the Golem effect. c. This can lead to reduced expectations and discouragement for average or low performers. vi. Alternative to deception, ability grouping: a. Communicating high expectations in groups or organizations promotes ethical behavior, encourages everyone to do their best, and provides a more just alternative to deception and ability grouping. b. Strategies for improving organization-wide performance must aim to build follower self-efficacy or self-confidence. vii.Ways to build follower self-efficacy: a. Breaking down tasks into manageable segments and providing followers with the time to practice their skills. b. Delivering constructive suggestions about how to improve performance or how to carry out tasks. c. Modeling the desired skills, positive thinking and how to deal with failure. d. Verbal persuasion backed with reasons why the follower will succeed.

viii.

Adopting the Pygmalion leadership style: When adopting this type of leadership, leaders must: a. Tap into the positive values of your organization to communicate high expectations. b. Use organizational changes as opportunities to offer assurance and encouragement to build positive expectations in cases of uncertainty and anxiety. c. Strive to eradicate the Golem effect by expecting more of low achievers. d. Train other managers to make them aware of the power of Pygmalion and how they might use this knowledge to boost performance. e. Train followers so they, too, know how expectations operate. f.

Fight ethnic and religious stereotypes that produce Golem effects.

g. Don’t let a past record of failure shape your expectations of new followers. h. Rely on personal observation of the new followers. ix. Insulating from negative expectations: a. It is possible to use the Galatea effect to insulate ourselves from the negative expectations of our leaders. b. This concept suggests that high self-expectation results in high performance. c. High expectations encourage us to exceed expectations, even when leaders expect little from us. d. This can lead to leaders raising their expectations on us, and we can also encourage followers to be their own Galateas. x. Ethical issue with self-fulfilling prophecy: a. Setting low expectations can hinder followers’ potential, while setting high expectations is unrealistic and unjust. b. However, leaders can convince followers to achieve beyond their dreams. xi. Considerations regarding setting goals:

a. One group of followers might see some goals as realistic, while another group might not. b. Specific goals are more effective than vague ones. c. Goals must be challenging but achievable, and leaders must reward followers when they make progress toward objectives. d. Leaders must also provide continuous feedback to clarify expectations and mark progress toward the goal.

E. Argumentation i. Importance of argumentation for leaders: a. Leaders use arguments to influence others who take a different stance on controversial issues. b. To be successful, they must build a strong case for their positions while also refuting arguments of those taking alternative positions. c. Small groups often have argumentative leaders who generate higherquality solutions, while supervisors defend their own ideas and argue on behalf of subordinates in organizations. ii. Argumentation vs. verbal aggressiveness: a. Argumentation is constructive focuses on ideas where speakers make their assertions with evidence and reasons and defend their positions with the overall goal of reaching the best solution for the group. b. Conversely, verbal aggressiveness is destructive and hostile communication that attacks the self-concepts of others instead of (or in addition to) their stands on the issues. c. Ethical argument builds on the recognition of this difference. iii. Aggressive tactics: Competence attacks, character attacks, insults, teasing, ridicule, maledictions, profanity, physical appearance attacks, threats, and nonverbal indicators expressing hostility. iv. Positive outcomes of argument: a. Higher ratings are given to argumentative supervisors in organizations, leading to higher salaries and career satisfaction for these leaders.

b. Organizational leaders give higher performance reviews to argumentative subordinates. v. Impact of lacking argumentative competence: a. Increased chances for leaders and others to engage in verbal aggression. b. Chances to fall back on insults, competence attacks, and other unethical tactics. vi. Stating the controversy in propositional form: a. This helps identify the sides that people are likely to take on this issue while clarifying where one stands on the issue. b. It also helps to learn what kind of information one needs to gather. c. Propositions of fact deal with what happened in the past, present, and future. d. Propositions of value deal with issues of right or wrong. e. Propositions of policy deal with proposed courses of action. vii.Inventing arguments: a. Carefully examine the proposition and develop a case either for or against the proposal. b. Consider the nature and extent of the problem, who or what is to blame for the situation, possible solutions as well as the best resolution, and the consequences. viii.

Presenting and defending position: a. Begin by stating what you want others to accept. b. Back up your claim with examples, personal experience, testimonials from others, and statistics. c. Supply reasons or logic for your position. d. Structure your argument using problem–solution; comparative advantage; and ideal solution. e. End your presentation with a summary.

f.

Supplement your position with further evidence if it comes under attack.

ix. Attacking other positions: a. Identify the weaknesses in the evidence and reasoning of the other party while also identifying the shortcomings of your own arguments in order to eliminate them. b. Look for fallacies of evidence and reasoning in your own position as well as in the positions of others. x. Faulty Evidence: a. Unreliable and biased sources. b. Sources lacking proper knowledge and background. c. Inconsistency. d. Outdated evidence. e. Evidence that appears to support a claim but does not. f.

Information gathered from secondhand observers.

g. Uncritical acceptance of statistical data. h. Inaccurate or incomplete citation of sources and quotations. i.

Plagiarism.

xi. Faulty Reasoning: a. Comparing two things that are not alike. b. Drawing conclusions based on too few examples or examples that aren’t typical of the population. c. Believing that the event that happens first always causes the event that happens second. d. Arguing that complicated problems have only one cause. e. Assuming without evidence that one event will inevitably lead to a bad result. f.

Using the argument to support the argument.

g. Failing to offer evidence that supports the position. h. Attacking the person instead of the argument. i.

Appealing to the crowd or popular opinion.

j.

Resisting change based on past practices.

k. Attacking a weakened version of an opponent’s argument. xii.Managing interpersonal relations: a. Prevent arguments from deteriorating into verbal aggression. b. If others aren’t as skilled in argument as you, emphasize equality and what you have in common. c. Let other participants finish their thoughts and deliver your messages in a calm voice at a moderate pace.

F. Negotiation i. Influencing those who actively disagree: a. Negotiation refers to influencing those who actively disagree. b. It aims to reach a settlement satisfying both sides by engaging in backand-forth communication. ii. Mix of compatible, incompatible interests: a. Negotiations involve a mix of compatible and incompatible interest. b. Parties needing to share a common goal or be divided by at least one issue to reach an agreement, or they won’t negotiate. iii. Leaders engaging in negotiation: a. Leaders, across various domains, actively participate in negotiation. b. This includes project management team leaders negotiating assignments, corporate purchasing agents determining prices with suppliers, CEOs and boards negotiating acquisitions, legislators discussing bill features for passage, and small business owners negotiating lease agreements with commercial property companies.

iv. Three categories of ethical issues in negotiation: the choice of tactics, the distribution of benefits, and the impact of the settlement on those who are not at the bargaining table. v. Deceit involved in ethical dilemmas: a. Bargainers face ethical dilemmas in negotiations, with many involving forms of deceit. b. While some argue that deception is acceptable since both parties anticipate it in negotiations, not everyone understands the rules of negotiation. c. Cooperative negotiators operate under different assumptions and cultural differences, complicating the understanding of rules. d. Deceit reflects self-centeredness and shows disrespect for the other party’s worth. vi. Ways to promote honesty in other parties: a. Seek to reduce the defensiveness that arises out of mutual suspicion by being trustworthy and by being willing to trust. b. Build a sense of mutual benevolence or concern. c. Look for similarities, socialize with the other party, and hold prenegotiation sessions in neutral locations. vii.Ways to display trust: a. Break the negotiation process into stages as demonstrating trust in one step makes it easier to trust in the next stage. b. Keep your promises, provide information, and stand behind your claims. c. Place the negotiation in a broader context. d. Remind the other party that dishonesty in the current negotiation will impact future negotiations. viii.

Tactics to identify unfaithful negotiator: a. Ask probing questions to reveal otherwise undisclosed information. b. Phrase questions in different ways.

c. Force the other party who is evasive to tell an outright lie or to back down from the falsehood. d. Test the other party by asking a question to which you already know the answer. e. Call attention the fact that you believe the other party is bluffing or lying. f.

Ignore the deception if it is only a minor part of the negotiation.

ix. Distribution of negotiation outcomes: a. Unequal settlements are often deemed unfair. b. While it is difficult to determine exactly what is fair, a good start involves ensuring that all sides benefit. c. The structure of the bargaining process can be problematic, violating norms of reciprocity. d. When the bargaining table is uneven, additional effort must be made to ensure that the process is conducted as fairly as possible. x. Impact of bargainers’ decisions: a. Their decisions can negatively impact outside groups. b. To overcome the potential damage of a settlement, we must always remember the interests of outside stakeholders and consider the legacy we want to leave behind. xi. Approaches to negotiation: a. Distributive: negotiators adopt a win–lose approach, assume that they are locked in a battle over a fixed “pie” or value, and view any gains by one party as coming at the expense of the other party. b. Integrative: negotiators adopt a win–win approach, are convinced that the pie can be expanded and that both parties can benefit, and view negotiation as joint problem-solving sessions. xii.Principled negotiation model: a. A widely used integrative problem-solving approach that encourages negotiators to take a win–win approach while protecting themselves from being victimized.

b. Developed by Harvard negotiation experts Roger Fisher, William Ury, and Bruce Patton. xiii.

Four steps of principled negotiation: a. Separate the people from the problem. b. Focus on interests, not positions. c. Invent options for mutual gain. d. Insist on objective criteria.

II. Resisting Influence i. Ways to resist unethical influences: a. Ensure that your judgments aren’t unfairly swayed by skillful impression managers. b. Be prepared to resist the power of low expectations. c. Respond with argumentative competence when faced with verbal aggression. d. Refuse to be victimized when negotiators attempt to take advantage on you. ii. Impact of accepting unethical influence: a. Engaging in unethical and illegal activities. b. Hiring the wrong employees. c. Paying too much for goods and services. d. Giving to unworthy causes. e. Undermining the organization’s mission and values. f.

Taking unnecessary risks.

iii. Illusion of invulnerability: overestimation of or overconfidence about one’s ability to resist influence. iv. Acknowledgement of being victimized: a. When we acknowledge that we can be victimized, we will become more alert and thus our resistance increases.

b. This recognition is crucial because persuaders often take advantage of mental shortcuts to exert unethical influence. v. Automatic “click, run” responses: a. These refer to intuitive shortcuts used by persuaders to exert unethical influence. b. These are important given that technology increases the pace of life, making it impossible to carefully evaluate every piece of available information. c. They help us handle information overload and save time. d. When we recognize the triggers that activate our click-run responses, we are able to take a critical look at persuasive attempts and avoid costly missteps.

A. Reciprocation (Give-and-Take) i. The obligation to repay others: a. Reciprocation refers to the obligation to repay others and is a universal norm encouraging cooperation. b. People feel obligated to respond kindly to the help they have received from others. c. Reciprocation has a long-lasting power. ii. Rejection then retreat: a. A variation of give-and-take in which persuaders make an extreme request and then back off, asking for less. b. Small request is perceived as a concession and, thus, targets most often comply with it. c. The follow-up request appears more reasonable than the first one. iii. Negative outcomes of reciprocity norm: a. Results in disastrous decisions. b. Produces unwanted debts. c. Triggers unequal exchanges.

iv. Ways to resist reciprocity’s power: a. Turn down the initial favor. b. Determine if the offer is genuine or not. c. Turn the tables on unethical influencers.

B. Liking i. Factors determining liking: a. Physical appearance. b. Similarity. c. Compliments. d. Contact and cooperation. e. Association. ii. A powerful force: Liking is so powerful that we cannot resist it easily. iii. Ways to cope with liking: a. Determine if the liking is justified. b. Focus on the merits of the deal.

C. Social Proof i. Looking to others for guidance: a. In many social situations, we often rely on others to guide our actions. b. Uncertainty amplifies the impact of social proof, as individuals often seek guidance from others when they lack the necessary understanding of a situation. c. This helps account for the fact that many people act as passive bystanders. ii. Social proof helps bind members, who may be isolated and uncertain how to act, to extremist groups and religious cults. iii. Ways to resist social proof:

a. Don’t rely solely on what others are doing but look to other sources of evidence. b. Recognize counterfeit evidence of social proof. c. Be wary of fake online reviews. d. Recognize that there is “pluralistic ignorance” that can lead to wrong conclusion.

D. Authority i. Benefit of obeying authority: enables organizations, communities, and societies to coordinate their activities. ii. Impact of blind obedience: It can be disastrous, such as nurses obeying the misguided directives of doctors. iii. Ways to overcome authority’s influence: a. Ask, “Is this authority truly an expert?” b. Consider the person’s credentials as well as the relevance of the credentials to the issue. c. Consider the trustworthiness of the source.

E. Scarcity i. Scarce opportunities as more valuable: a. The scarcity principle suggests that opportunities that are scarcely available are perceived as more valuable. b. Scarcity is fueled by the difficulty of obtaining difficult things and our heightened motivation for the thought of losing something over the prospect of gaining similar value. ii. Influence with newly scarce items: a. The scarcity principle exerts the most influence when items or information are newly scarce. b. For example, when newly granted rights to traditionally oppressed groups are restricted, the dispossessed tend to rebel. iii. Ways to overcome scarcity trigger:

a. When faced with such trigger, calm down and proceed with caution. b. Remember that function, not scarcity, brings value.

F. Commitment and Consistency i. Results from desire for consistency: a. Commitment and consistency is a mental shortcut that results from one’s desire to appear consistent with previous choices and actions. b. Consistency decreases the need for careful thought as well as the likelihood of regret after deciding. c. Commitments play a crucial role in consistency; once a commitment is made, remaining consistent is important. ii. Foot-in-the-door strategy: using small commitments to leverage bigger ones. iii. Active, demanding, public commitments: a. These are the most powerful triggers. b. For example, Hell Weeks at colleges involve harsh conditions for initiates, such as snowy conditions, beatings, and dark rooms, which not only strengthens their loyalty but also encourages future pledges to undergo similar hardships. iv. Attitude internalized via commitment: When an attitude is internalized through commitment, it is highly resistant to change. v. Positive outcomes of commitment trigger: a. Increased contributions to charities. b. Opportunities to recruit more volunteers. vi. Ways to overcome commitment trigger: a. Avoid dangerous consistency. b. Let the exploiter know you are aware of their methods. c. If you feel a momentary doubt about your decision, ask, “Would I make the same choice again?” If not, then don’t make the decision in the first place.

G. Unity

i. Feeling “at one”: a. We are most susceptible to influence from individuals who share our identity, such as ethnic group, family, religion, political party, friendship circle, sports fan base, region, or nation. b. Their actions impact our self-esteem and make us feel “at one,” with our identities merging with theirs. ii. Means of fostering group unity: by acting together though celebrations, music, joint work projects, and other means. iii. Negative outcomes of unity trigger: a. Leads to double standards, discrimination, dehumanization, and other harm. b. Prompts us to excuse fellow group members who engage in misbehavior. iv. Ways to overcome unity trigger: a. Expand the circle of “we-ness” by caring for, interacting with, and acting together with members of other groups as well as by promoting shared identity. b. Refuse to excuse the unethical behavior of fellow members by announcing a zero-tolerance policy for major violations or repeated minor violations.

III. Counteracting Disinformation i. Fostering resistance to influence: a. Leaders must not only resist unethical persuasive attempts but also encourage their followers to do the same. b. Fostering resistance to influence is crucial in today’s world because persuaders can quickly spread disinformation and attract followers through the web. ii. Conspiracy theories: a. These suggest that important harmful events are secretly caused by powerful groups or individuals.

b. Modern theorists use the internet and social media platforms to recruit new adherents to their explanations of their harmful acts. iii. Problems with conspiracy theories: a. They reduce trust in the government, the media, the military, schools, and other institutions. b. They increase the chances of violence because they identify evil actors. c. They cause high risk of unjustified harm because these theories are typically false. iv. Denying science and believing conspiracy: a. People denying science have much in common with people who believe in conspiracies. b. Like believers of conspiracies, science deniers contest prevailing wisdom and often have conspiratorial assertions. c. Denying science can result in the same tragic results as supporting harmful conspiracy theories. v. Building resistance to disinformation: a. Introduce followers to the influence triggers. b. Promote critical thinking skills. c. Help the group recognize good and bad logic and evidence. d. Identify and refute the particular faulty arguments and proof used by conspiracy theorists, pseudoscientists, and other sources of disinformation. e. Be transparent, sharing as much information as possible about decisions, events, and policies. f.

Empower followers through treating them justly.

Lecture Notes

Chapter 8: Normative Leadership Theories Learning Objectives 8-1 Contrast transformational, pseudo-transformational, and transactional leadership.

8-2 Define authentic leadership.

8-3 Clarify the relationship between ethics and aesthetic leadership.

8-4 Describe the three dimensions of paternalistic leadership.

8-5 Explain the importance of service to ethical leadership.

8-6 Illustrate what it means for a leader to be a moral person and a moral manager.

8-7 Contrast relational leadership with the other six normative leadership theories.

Annotated Chapter Outline I.

What’s Ahead i. Leadership theories: transformational leadership, authentic leadership, aesthetic leadership, benevolent paternalism, servant leadership, ethical leadership, and relational leadership. ii. Theories: a. Key to the study of any discipline, including leadership. b. Organize knowledge in a field. c. Explain the association between key concepts and variables. d. Help scholars and practitioners make predictions about effective strategies. iii. Two categories of theoretical approaches: a. Descriptive leadership theories: describe how leaders act. b. Normative leadership theories: tell leaders how they ought to act; explicitly built on moral principles; provide guidelines for ethical leader behavior.

II. Transformational Leadership: Raising the Ethical Bar i. Transactional vs. transformational leaders:

a. While transactional leaders appeal to lower-level needs of followers such as food, shelter, and acceptance, transformational leaders appeal to higher-level needs such as esteem, competency, self-fulfillment, and self-actualization. b. Transactional leaders exchange rewards in return for the followers’ obedience and labor, whereas transformational leaders change the very nature of their groups. ii. Moral commitments: a. These remain as the core of the transforming leadership. b. In transforming leadership, people engage with others in a way that leaders and followers raise each other to higher levels of motivation and morality. iii. Qualities of transforming leaders: They focus on terminal values like liberty, equality, and justice, are guided by universal ethical principles, feel obliged to the group, treat followers with respect, sacrifice for followers, empower others, focus on shared goals, engage in higher-level moral reasoning, have greater integrity, and foster corporate social responsibility. iv. Qualities of transactional leaders: They emphasize instrumental values like responsibility, fairness, and honesty, take a utilitarian approach, judging the morality of actions based on results, use power and position to convince followers to comply, aim to protect own interests, and tend to be controlling than empowering. v. Active transactional leaders: They engage in contingent reward and management by exception, provide rewards and recognition contingent on followers’ reaching their objectives, specify standards and the elements of acceptable performance, and discipline followers when they fall short. vi. Passive-avoidant or laissez-faire leaders: They wait for problems to arise before taking action or avoid taking action and fail to provide goals and standards or to clarify expectations. vii.Idealized influence: Transformational leaders become role models for followers who admire, respect, and trust them, put the needs of their followers above their own, and their behavior is consistent with the group values and principles. viii.

Inspirational motivation:

a. Transformational leaders motivate by providing meaning and challenge to the followers’ tasks. b. They simulate team spirit, are enthusiastic and optimistic, and help followers develop desirable visions for the future. ix. Intellectual stimulation: a. Transformational leaders stimulate innovation and creativity by encouraging followers to question assumptions, reframe situations, and approach old problems from new perspectives. b. They solicit solutions from followers, rather than criticizing mistakes. x. Individualized consideration: a. Transformational leaders act as mentors to foster personal development and provide learning opportunities and a supportive climate for growth. b. Their coaching and mentoring are tailored to the individual needs of the followers. xi. Inclusion of transactional element: The transformational leader utilizes contingent reward and management by exception, in addition to idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. xii.Positive results of transforming leadership: a. These leaders are usually more successful than transactional leaders. b. Followers are more committed, build stronger bonds with colleagues, work harder, go beyond their duties, and persist in cases of obstacles. c. Teams and organizations utilizing this form of leadership achieve higher quality, greater profits, more student learning, improved service, military victories, and better win–loss records. xiii.

Negative result of transforming leadership: Some leaders might use transformational strategies to reach immoral ends. xiv.

Authentic transformational leaders: a. Motivated by altruism and marked by integrity. b. Raise awareness of moral standards and create ethical climates.

c. View followers as ends in themselves and allow freedom of choice to followers. d. Promote cooperation and harmony. xv. Pseudo-transformational leaders: a. Self-centered. b. Encourage dependency and manipulate followers in order to reach their own goals. c. Inspire followers but fall short on idealized influence, intellectual stimulation, and individualized consideration. d. Promote competitiveness, conflict, envy, greed, anger, and deception.

A. Applications and Cautions i. Applications a. Start small: a. Transformational leadership, which aims to elevate morality and improve performance in organizations, can be intimidating at first. b. However, it can be beneficial for anyone, as it can be influenced by lower-level transformational leaders, regardless of their modest role. b. Employ the full range of leadership behaviors: These behaviors include the following: a. Exerting positive influence by engaging in the behaviors demonstrating idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. b. Being prepared to penalize those who fall short of performance standards or break the rules, rewarding those who reach their objectives, etc. c. Recognize the universal appeal of transformational leadership: a. Transforming leadership proves to be effective in enhancing follower and organizational performance in a variety of cultures. b. Global Leadership and Organizational Behavior Effectiveness (GLOBE) Research Project found that nine transformational

attributes were universally associated with effective leadership: motive arouser, foresight, encouraging, communicative, trustworthy, dynamic, positive, confidence builder, and motivational. ii. Cautions a. Equating success with transformation: a. To writers and researchers who focus on what works than on what is right, transformational leadership equates with successful or effective leadership. b. They are less concerned with whether leaders foster higher moral standards or whether transforming tactics are ethical. c. Transformational leaders are not made immune to ethical temptations. b. Leader centric: a. Transformational theorists focus more on leaders while downplaying the followers’ contributions. b. Critics of transformational leadership argue that followers are as equally important to the success of a group as leaders. c. They also note that leadership doesn’t reside in any one individual but is exercised by the group as a whole. c.

Fosters dependency: a. Focusing too much on the leader can lead to dependency and undermine shared decision making and consensus. b. If followers consistently seek leader’s guidance, they will not act independently. c. Leaders may experience an overinflated sense of their own worth, which can lead to the temptation to cast shadows.

d. Racially biased: Transformational leadership theory has been accused of contributing to systematic racism, based on assumptions based on White privilege and a White perspective on the world.

III. Authentic Leadership: Know Yourself and to Your Own Self Be True

i. Authentic Leadership Theory (ALT): It suggests that authenticity is the principle behind all forms of positive leadership, promoting sustainable and ethically sound organizational performance. ii. Four components of authenticity: a. Self-awareness: being conscious of, and trusting in, our motives, desires, feelings, and self-concept. b. Balanced processing: remaining objective when receiving information. c. Internalized moral perspective: regulating our behavior according to our internal standards and values, not according to what others say. d. Relational transparency: presenting the authentic self to others, openly expressing true thoughts and feelings appropriate for the situation. iii. Characteristics of authentic leaders: They acknowledge the ethical responsibilities of their roles, recognize and evaluate ethical issues, take moral actions thoroughly grounded in their beliefs and values, and draw on their courage and resilience to carry out these tasks. iv. Trigger events: a. Critical incidents that are crucial for the development of the moral component of authentic leadership. b. Can be positive or negative. c. Help leaders develop a clearer sense of who they are, including their standards of right and wrong. d. Helps leader build moral knowledge to make better choices when facing future ethical dilemmas. v. Training and education: Trainers and educators may help leaders develop their moral capacity by: a. Encouraging them to think about the consequences of their decisions. b. Enhancing their perspective taking through discussion and training. c. Exposing them to common moral dilemmas to help them recognize the ethical issues they will face in their jobs. d. Building their belief in their ability to follow through on choices.

e. Helping them develop strategies for adapting and coping with new ethical challenges. f.

Pairing them with moral leaders so they can observe authentic behavior firsthand.

vi. Positive effects of authentic leadership: a. Authentic leadership has positive ethical effects on followers, fostering self-efficacy, hope, optimism, and resilience. b. It leads to higher follower performance, commitment, organizational citizenship behavior, satisfaction, and effort. c. Trust is engendered by authentic leaders, which in turn leads to higher organizational productivity and performance. d. The positive effects generalize across cultures, reducing follower stress and insecurity while increasing job satisfaction, trust, safety, performance, and willingness to report organizational wrongdoing. vii.Collaboration among leaders and followers: a. Authentic followers reinforce leaders’ authentic behavior and enhance their self-knowledge. b. They foster transparency, self-awareness, and moral behavior, promoting healthy relationships and collaboration. c. Authentic leadership and followership thrive in organizations that provide necessary resources, encourage learning, treat members fairly, and set clear goals and performance standards.

A. Applications and Cautions i. Applications a. Recognize the significance of authenticity for both leaders and followers: Authentic leadership, incorporating values, moral perspectives, virtues, and character, is argued to be effective, ethical, and contribute to long-term organizational success. b. Develop the four components of authenticity: develop self-awareness, maintain objectivity when receiving information, rely on internal standards and values, and openly present yourself to others.

c. Foster authenticity in others through your example and the training strategies. ii. Cautions a. Overstates the significance of authenticity: a. Authenticity, a crucial element of ethical leadership, is debated as it may not be the sole source of positive leadership. b. There may be other, undiscovered, or multiple sources of ethical leadership, and authenticity may be overrated, as inauthentic leadership is more common and effective. b. Assumes one “self”: ALT theorists believe in one true “self,” but some argue that we have multiple “selves” influenced by elements of the situation, and that important aspects like life goals, values, and strengths and weaknesses change over time. c. Equates authenticity with morality: a. ALT theories suggest self-awareness correlates with morality, but some leaders’ core values may encourage destructive behavior. b. Expressing one’s true self can lead to undesirable consequences. d. Authenticity can be defined as a personal characteristic or as a perception: a. Authenticity, while tied to personal traits, is a product of perception rather than personal beliefs. b. Leaders must project an authentic image to be successful, but this may lead to inauthentic behavior and misleading followers.

IV. Aesthetic (Beautiful) Leadership i. Meanings constructed based on feelings: a. The Greek word aesthetic refers to “feeling through physical perceptions.” b. Emotions are generated from our sensory encounters with people, events, objects, and settings, which in turn help us construct meanings. ii. Emphasis on sensory, emotional dimension:

a. The aesthetic perspective views organizations as stages, with leadership as an art rather than a science. b. Leaders use dramatic elements, design, and orchestration to transform visions and programs into reality, bringing diverse individuals together to achieve worthy goals. iii. Ethics integral to aesthetic leadership: a. Ethics is integral to aesthetic leadership, as ancients believed aesthetics served humankind. b. Aesthetic and moral judgments overlap, with the most ethical action being the most aesthetically pleasing. iv. Artistic practices boosting moral reasoning: a. Set aside preconceived notions or ideas. b. Look deeply. c. Take a “second look.” d. Be present in the moment. e. Be engaged but detached. f.

Let the imagination play.

g. Take a holistic view. h. Act with courage. v. Three components of beautiful leadership: a. Mastery: An ethical, beautiful leader is competent and possesses the necessary skills and abilities to perform in a given moment. b. Coherence: The beautiful, ethical leader is authentic, acting in a way that is consistent with their message and purpose. c. Purpose: The beautiful leader serves the best interests of the community and improves the human condition.

A. Applications and Cautions i. Applications a. Adds to our understanding of other leadership theories:

a. The recognition of leadership’s physical or sensory dimension enhances our understanding of leadership and provides insights into other leadership theories. b. Aesthetics significantly influences authentic leadership, as followers determine a leader’s authenticity through their physical interactions with them. b. Followers play a central role: Aesthetic leadership addresses the leadercentric weakness of many leadership methods, focusing on follower audiences to determine transformational and authentic leaders. c. Become an artful leader: a. Since followers make attributions about leaders’ motives and effectiveness, leadership must be viewed as a performing art. b. Leadership performances must reflect mastery, coherence, and purpose. c. Functioning as an artful leader requires one to serve high moral purposes and demonstrate practical wisdom, courage, and other virtues. d. Make aesthetic judgments: Beauty must be used as a standard for judging the performances of other artist–leaders. e. Decide like an artist: a. When making ethical decisions, act like an artist, letting your imagination play and taking a holistic view. b. Be intentional when faced with moral dilemmas, focusing on being fully present and engaging fully. c. Gather first-hand information from sensory experiences. ii. Cautions a. Ignores the rational dimension of leadership: Leadership’s aesthetic aspect should not be overlooked by ignoring its rational aspects, as success requires understanding organizational operations, making wise decisions, and engaging in strategic planning. b. Definitions of beauty vary: The adage “Beauty is in the eye of the beholder” may not always be applied to followers, as they may not always agree on the same standard of beauty.

c. Performances can be dishonest: Viewing leadership as performance can lead to deceit, as leaders can conceal their true intentions and manipulate audiences.

V. Benevolent Paternalism: Caring for the Whole Person i. Popular in collectivist, patriarchal cultures: Paternalism is prevalent in collectivist, patriarchal cultures like the Middle East, Asia Pacific, and Latin America, where leaders act like father figures, combining authority with concern for followers and modeling ethical behavior. ii. Dimensions of paternalistic leadership: a. Authoritarianism: leader behaviors that demand obedience and exert control. b. Benevolent: leadership behaviors that demonstrate concern for individual followers both on and off the job. c. Morality: behaviors that demonstrate the leader’s personal virtues. iii. Benefits of demonstrating the virtues: Demonstrating authoritarianism, benevolence, and morality builds legitimacy and creates respect for, and identification with, the leader. iv. Independent functioning of the dimensions: a. Studies using the threefold division of paternalism show that ethical leaders downplay authority and control, demonstrating concern for followers as whole persons. b. Authoritarianism leads to negative outcomes, while benevolence generates positive outcomes. v. Outcomes of benevolent paternalism: a. Greater job satisfaction and organizational commitment. b. Identification with the leader and the team. c. Higher creativity. d. Better decision making. e. Increased task performance. f.

More organizational citizenship behavior.

g. Heightened work motivation and engagement. h. Greater trust in the leader. i.

Enhanced follower self-esteem.

j.

Positive ethical climate.

k. Enhanced home life.

A. Applications and Cautions i. Applications a. Draw ethical insights from non-Western thought: a. The Benevolent Paternalistic Leadership theory, originating in the East, is now being tested with Western audiences. b. This approach emphasizes the significance of seeking ethical insights beyond Western perspectives. b. Care for the follower as a whole person: a. Benevolent leaders prioritize others, treat them with dignity, and prioritize their followers. b. Compassionate leaders care for their followers as a whole person, leading to better follower responses and increased leadership effectiveness. c. Practice benevolent behaviors: Fostering compassionate tendencies involves enhancing self-awareness of values and motives, while striving to pursue one’s mission and find meaning in work. d. Promote benevolent workplaces: Foster benevolent ethical climates by rewarding benevolent behaviors, promoting shared purpose, offering counseling and other resources, fostering relationships, and recruiting compassionate employees. ii. Cautions a. Negative connotation of paternalism and benevolence: a. Many people associate paternalism with authoritarianism, fearing that they will lose their autonomy under benevolent paternalistic leadership.

b. Scholars express concern over leaders manipulating followers through benevolent acts and blurring the line between work and personal lives. b. Leader centric: a. Benevolence, a concept attributed to leaders, can be influenced by their followers, with compassionate followers potentially fostering the development of compassionate leaders. b. However, the role of followers is unclear, and leader acts on followers. c. Still under development: a. The theory of benign paternalistic leadership requires further investigation to understand its interplay and interaction. b. The ideal leader should be authoritarian while demonstrating virtue and concern for followers. c. Further studies are needed to determine if Western followers respond well to compassionate leaders who care about the whole person.

VI. Servant Leadership: Put the Needs of Followers First i. Origin of term “servant leader”: a. Greenleaf, a former AT&T researcher and consultant, coined the term servant leader in the 1970s to describe a leadership model that prioritizes followers’ concerns. b. He later founded a center to promote this model, which has been adopted by many businesses, nonprofit organizations, and community leadership programs. ii. Premise of servant leadership: a. Servant leadership emphasizes the importance of prioritizing the needs of followers over one’s own. b. Leaders should be judged by what happens in their followers’ lives. c. This approach shifts focus from self to others. iii. Elements of mind shift:

a. Viewing and treating followers as adult partners. b. Viewing trust as a gift and a choice. c. Viewing others through the lens of freedom and potential. d. Practicing humble inquiry over telling. iv. Stewardship: a. Servant leaders act on behalf of others, entrusting them with special duties and opportunities. b. They protect and nurture their groups, building a sense of community and promoting high ethical standards. c. They ensure their communities serve the larger community. d. They maintain accountability for results, achieving their objectives through collaboration and persuasion. v. Obligation: a. Servant leaders provide followers with financial stability, adequate tools, clear institutional values, a healthy culture, civility, freedom to express themselves, and understanding of organizational programs. b. They may sacrifice their interests to meet followers’ needs, while also demonstrating maturity, self-worth, belonging, responsibility, accountability, and equality. vi. Empowerment: Servant leaders prioritize equity in power distribution, empowering followers through information sharing, delegation of authority, and encouraging talent development, while also considering the equitable distribution of rewards. vii.Emotional healing: Servant leaders assist followers and organizations in recovering from disappointment, trauma, hardship, and broken relationships by being empathetic, skilled listeners, and creating a supportive environment for emotional healing and restoring a “sense of wholeness.” viii.

Elevating purpose: Servant leaders serve worthy missions, ideas, and causes, striving to fulfill a high moral purpose and understanding their role in the process, making work more meaningful for both leaders and followers. ix. Support for servant leadership:

a. Servant leadership, initially anecdotal, has been empirically tested, with over 100 journal articles published in a four-year period. b. It has been linked to positive attitudinal, behavioral, and performance outcomes across various fields, including business, education, nursing, sales, and marketing. c. Although accepted across different cultures, the dimensions and effects of servant leadership vary.

A. Applications and Cautions i. Applications a. Focus on followers: a. Servant leadership is based on altruism, a crucial aspect of ethical leadership. b. It requires commitment to prioritize others, reducing the likelihood of casting shadows. c. Approaching leadership roles with the desire to serve is more effective. b. Act as a steward: Leaders should act out of stewardship and obligation, promoting followers’ growth and community interests, remembering followers’ responsibilities, and sharing power, privilege, and information. c. Encourage servant leadership: Leaders must select and develop servant leaders with a servant mindset, recruiting them and providing them with training in employee care and development for positive organizational outcomes. d. Cultivate self-awareness: Servant leaders listen to themselves as well as to others, engage in self-reflection, and acknowledge the significance of spiritual resources. e. Pursue elevating purposes: Leaders prioritize ethical purposes that bring meaning and fulfillment to work, ensuring every act of leadership has a moral dimension. ii. Cautions a. Seems unrealistic: Servant leadership is often met with cynicism when presented, as it has not garnered universal approval.

b. May not work in every context: a. Skepticism about servant leadership may arise from a misunderstanding that service implies weakness. b. Servant leaders must be tough, and sometimes reprimanding or firing is the best way to serve. c. However, it can be challenging to implement in certain situations. c. Poses the danger of serving the wrong cause or offering unwise service: a. Misplaced goals can hinder servant leaders and followers. b. To effectively serve, leaders must combine their desire with careful reasoning and value clarification. c. They must also provide wise service, as failure to do so can worsen situations. d. The term servant carries a negative connotation: The term “servant leadership” may be hindered by negative connotations, suggesting a shift towards related concepts like altruism and the virtues of concern and compassion.

VII. Ethical Leadership: Moral Persons and Moral Managers i. Premise of ethical leadership theory: Ethical leadership theory acknowledges executive leaders’ crucial role in the success of organizational ethics efforts and the need for systematic study of the ethical dimension of leadership by social scientists. ii. Definition offered by theorists: Through their research program, Michael Brown and Linda Trevino defined ethical leadership as the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision making. iii. Builds on social learning theory: a. The investigators use social learning theory to explain how ethical organizational leaders influence followers. b. Social learning theory suggests that people learn by observing and then emulating the values, attitudes, and behaviors of legitimate, attractive, and credible people.

c. Ethical leaders build on this foundation, as they are seen as legitimate, credible, and attractive in their authority positions. iv. Focus on ethics, rewards, punishments: a. Moral leaders prioritize ethics over tasks and profits by regularly communicating values, mission, and corporate standards. b. They reinforce follower learning through rewards and punishments, ensuring clear distinctions between acceptable and unacceptable actions. v. Positive results of ethical leadership: a. Followers feel more satisfied and committed to their organizations, are less likely to engage in deviant behaviors, believe that their organizations are effective, and have creativity, innovation and willingness to share information. b. Top executives boost the ethical performance of supervisors and middle managers, and eventually followers’ satisfaction and commitment. c. Ethical leadership increases organizational trust levels, thereby improving organizational performance and increasing profitability. d. Ethical CEOs encourage their companies to engage in socially responsible behavior. e. Spouses of followers report higher family satisfaction.

A. Applications and Cautions i. Applications a. Act as a positive role model: Hold to high personal moral standards, demonstrate concern for others, and treat followers justly and with respect. b. Ethical leadership is more than good character: Ensure that followers know that you care about ethics. c. Make ethics a top organizational priority: Regularly communicate about the significance of ethics and values, create a code of ethics, provide ethics training, and so on.

d. Reward ethical behavior and punish misconduct: Reward ethical followers while punishing those who engage in sexual harassment, theft, deception, and corruption. e. Recognize that ethical leadership can be highly effective: Ethical leaders appear to be more effective than their unscrupulous counterparts. ii. Cautions a. Disputes about normatively appropriate behavior: a. Observers debate the definition of “normatively appropriate” behavior in ethical leadership. b. It is not clear who determines this and how appropriate behavior varies across settings. b. Concerns about the validity of the Ethical Leadership Scale: Critics argue that the Ethical Leadership Scale fails to accurately measure the moral person/moral manager construct, ignoring crucial elements of ethical leadership. c. Doesn’t adequately explain how ethical leadership influences followers: a. The social learning theory is debated as it may not fully explain how ethical leaders influence followers. b. Ethical leaders may encourage high performance in exchange for positive treatment, or increase employee identification with the organization, leading to increased motivation. d. Good (ethical) leadership could produce bad (undesirable) results: Followers might become less likely to engage in organizational citizenship behaviors when their leaders tend to be highly ethical.

VIII.

Relational Leadership: Putting Connection First i. Focus on connections: a. Relational theorists do not focus on people who lead and follow, but on the connections they establish with each other. b. Thus, organizations include relationships and leadership emerges when members influence each other. ii. High vs. low quality connections: High quality connections are life-giving, characterized by positive energy, positive regard, and active engagement, while

low quality connections are life-depleting and corrosive, taking physiological and emotional tolls on participants. iii. Qualities of relational leaders: a. Recognize the primacy and value of relationships. b. Understand context. c. Highlight human development and mutual well-being. d. Involve the whole person. iv. Ways to develop new leaders: a. Modeling: Model the meaning of care through positive relationships, feedback, accountability, and integrity. b. Dialogue: Demonstrate the meaning of respecting other communicators while enhancing the ethical understanding of both parties. c. Practice: Develop relationship building skills that create healthy longterm connections. d. Confirmation: Confirm or affirm the worth of developing leaders to bring out the best in them.

A. Applications and Cautions i. Applications a. Act on the importance of moral connections: Relationships can cast light (be life giving) or cast shadow (be life denying). b. Seek the best for others and the environment: Because our conversations and connections have ethical importance, we must practice our relational skills and seek to live well with other people, other creatures and the environment, guided by an ethic of care. c. Take a wholistic approach to ethical decision making: Consider the context and the needs of others; tap into emotions and intuitions of yourself and others. d. Don’t wait to be appointed leader: Once can emerge as a leader by acting like a leader. ii. Cautions

a. Conceptual confusion: Relational leadership is an umbrella construct encompassing various approaches related to connection, ranging from entity perspectives, which explain personal leadership skills, to constructionist perspectives, which highlight how actors work together to construct leadership, with many relational approaches falling somewhere in-between. b. Needs more ethical development: Relational leadership theory is descriptive rather than normative, with investigators primarily focusing on describing it rather than exploring its moral implications. c. Over emphasizes relationships: Ethical leadership requires understanding both connections and individuals, as overemphasizing relationships can lead to a disregard for individual leaders’ decisions and actions.

Lecture Notes Chapter 9: Building an Ethical Small Group Learning Objectives 9-1 Describe the features of small groups.

9-2 Develop strategies for fostering individual ethical accountability in groups.

9-3 Outline steps for improving team performance on the five elements of ethical group interaction.

9-4 Formulate a plan for avoiding each of the moral pitfalls of small groups.

9-5 Identify the duties and competencies of collaborative/integrative leaders.

Annotated Chapter Outline I.

What’s Ahead i. Fostering individual ethical accountability: Leaders should promote individual ethical accountability among group members, encouraging cooperation, avoiding destructive behaviors, and reducing social loafing to create groups that positively impact participants’ lives. ii. Avoiding moral pitfalls: Ethical leaders ensure ethical group interaction and help the group avoid moral pitfalls.

iii. Leading diverse groups: Ethical leaders know how to lead diverse groups that tackle community problems. iv. Parker Palmer’s definition of leaders: people with an unusual degree of power to create the conditions, either good or bad, under which other people live and move and have their being.

II. The Leader and the Small Group i. Working in small groups: a. Leaders often work in small groups because teams of employees make important organizational decisions. b. Senior executives spend over two days a week in committees, task forces, and other small-group settings. c. Leaders may also be responsible for groups outside of work. ii. A common purpose or goal: Groups consist of individuals working toward a common goal, fostering a sense of belonging or shared identity. iii. Interdependence: The success of any individual member is dependent on the collective contribution of all group members. iv. Mutual influence: Group members influence each other by giving ideas, listening, agreeing or disagreeing, and so on. v. Ongoing communication: Members regularly interact either face-to-face or electronically in virtual teams. vi. Specific size: a. The size of small groups ranges from 3 to 30. b. Adding a third member makes a group more complex than a dyad, and the group members have to manage multiple relationships. c. The maximum size for a small group is typically twenty, as maintaining interpersonal relationships becomes more challenging as membership increases beyond this number. vii.Brightening lives of group members: Leaders must create groups that brighten the lives of members and others by encouraging ethical responsibilities, promoting ethical interaction, preventing moral pitfalls, and bringing diverse groups together to create public value.

III. Fostering Individual Ethical Accountability i. Pursuing shared goals: Group members have a moral duty to cooperate toward shared goals, but many act selfishly or competitively, neglecting the needs of teammates, despite this seemingly basic requirement for teamwork. ii. Features of cooperative groups: a. These groups more willingly accept difficult tasks and persist in the face of difficulties, retain more information, engage in higher-level reasoning and more critical thinking, generate more creative ideas, tactics, and solutions, transfer more learning from the group to individual members, are more positive about the task, and spend more time working on tasks. b. They also foster positive relationships, reduce absenteeism and turnover, increase commitment and satisfaction, and improve psychological health and social and communication skills among members. iii. Ways to achieve shared goals: a. Emphasizing the moral responsibility members have to cooperate with one another. b. Structuring the task so that no one person succeeds unless the group succeeds. c. Ensuring that all group members are fairly rewarded. d. Providing feedback on how well the group and individuals are meeting performance standards. e. Encouraging individuals to help each other complete tasks. f.

Setting aside time for process sessions, where the group reflects on how well it is working together and how it might improve.

iv. Disruptive behaviors of difficult members: a. Aggressor/Dominator: hostile toward those who disagree; interrupts; picks fights; tries to dominate the group. b. Blocker: stubborn, tears down other ideas without offering alternatives; reintroduces topics that were previously decided.

c. Recognition Seeker/Stage Hog: brags; constantly seeks attention; monopolizes the discussion; wants the spotlight. d. Isolate: withdraws from the group; acts indifferent and uninvolved; refuses to participate in the group discussion. e. Slacker/Clown: horses around; tells inappropriate jokes; diverts the group from its task through humor. f.

Zealot: fanatic, out to convert the rest of the team to a particular cause; won’t drop a proposal that has been rejected by the group.

v. Ways to deal with disruption: a. Refuse to encourage bad behavior. b. Don’t let the aggressor dominate the discussion. c. Model constructive communication and encourage the team to do the same. d. Listen and ask questions instead of trying to one up the recognition seeker with brags of your own or trade insults with aggressor. e. Use the productive conflict tactics and emotional intelligence abilities to confront the difficult member. f.

Encourage this individual to take on a task or maintenance role in place of the destructive one.

g. If you can’t jettison the difficult person, minimize their interaction with the rest of the team. vi. Task roles: roles that help the group accomplish its assignment by giving and seeking information and opinions, and coordinating team assignments. vii.Maintenance roles: roles that create and maintain group cohesiveness though praise, peace, and encouraging other members to participate. viii.

Social loafing: the tendency for individuals to reduce their efforts when placed in groups; can range from shouting and rope pulling to generating ideas, rating poems, writing songs, and evaluating job candidates. ix. Considerations regarding social loafing: a. Women, individuals from Eastern cultures, and ethics-oriented students show a reduced likelihood of decreasing their efforts.

b. In contrast, members of virtual teams are more prone to social loafing as they can easily conceal their lack of activity. c. Social loafing may be attributed to factors such as a perception of individual efforts having minimal impact, shared responsibility, and challenges in identifying and evaluating individual contributions in a group setting. x. The collective effort model: a. Developed by Steven Karau and Kipling Williams. b. Suggests that people will be willing to exert effort on a collective task only to the degree that they expect their efforts to be instrumental in obtaining outcomes that they value personally. xi. Three factors deciding group motivation: Motivation decreases if any of the following three factors is low. a. Expectancy: how much a person expects that their effort will lead to high group performance. b. Instrumentality: the belief that one’s personal contribution and the group’s collective effort will bring about the desired result. c. Valence: how desirable the outcome is for individual group members. xii.Negative effects of social loafing: a. Norms for fairness or justice are violated. b. Victims are less likely to cooperate, may slack off for fear of being seen as “suckers,” and develop a negative attitude about teamwork. c. Members will not give their best effort, thereby losing the advantages of being in a small group. xiii.

Steps to minimize social loafing: a. Highlighting the significance of the group’s task. b. Evaluating the inputs of individual members. c. Keeping the size of work groups. d. Making sure that each person makes a unique and important contribution to the task.

e. Providing meaningful assignments that are intrinsically interesting and personally involving. f.

Emphasizing the collective group identity.

g. Comparing the group’s output to objective standards. h. Offering performance incentives. i.

Fostering a sense of belonging.

IV. Promoting Ethical Group Interaction i. Encouraging productive communication: Leaders must foster productive communication patterns that enable establishing positive bonds and ethical decision making among members. ii. Behaviors promoting ethical interaction: improving comprehensive and critical listening; cultivating a safety climate; raising emotional intelligence; engaging in productive conflict management; and building a cohesive group.

A. Improving Listening Performance i. Comprehensive listening: a. Comprehensive listening is essential for understanding and retaining messages. b. It helps in making high-quality group decisions by recognizing and supporting others, signaling their value, and encouraging them to share their thoughts and ideas. ii. Critical listening: a. Critical listening involves evaluating message content, logic, language, and persuasive attempts to identify strengths and weaknesses. b. It helps individuals in groups analyze the arguments of other members to determine an ethical course of action. iii. Barriers to comprehensive, critical listening: a. In group discussions, we may lose focus or be afraid to offer feedback due to fear of rejection. b. The content of discussions can make listening difficult, and ethical issues can generate strong emotional reactions due to deeply held values and beliefs.

c. Reaching an agreement becomes more challenging as we don’t understand the other person’s position but are more committed to our point of view. iv. Avoid interruptions: a. Allow the speaker to finish before you respond or ask questions. b. The speaker may address your concerns before they finish, and you can’t properly evaluate a message until you’ve first understood it. v. Seek areas of agreement: Take a positive approach by searching for common ground. vi. Search for meanings and avoid arguing about specific words: Stay focused on what speakers mean; don’t be distracted if they use different terms than you do. vii. Ask questions and request clarification: a. Others group members might also get confused and will appreciate more information. b. However, asking too many questions can give the impression that you’re trying to control the speaker. viii.

Be patient: Since you can process information quicker than speakers can deliver it, use the extra time to reflect on the message instead of focusing on your own reactions. ix. Compensate for attitudinal biases: Set aside the biases based on personal appearance, age differences, and irritating mannerisms in order to focus on the message. x. Listen for principles, concepts, and feelings: Try to understand how individual facts fit into the bigger picture, without overlooking nonverbal cues. xi. Compensate for emotion-arousing words and ideas: Overcome your knee-jerk reactions to labels such as socialist, antifa, white supremacist, and terrorist, and strive instead to remain objective. xii.Be flexible: Acknowledge that others’ views may have merit, even though you may not completely agree with them. xiii.

Listen, even if the message is boring or tough to follow. A boring comment made early in a group discussion may later turn out to be critical to the team’s success.

B. Cultivating a Safety Climate i. Psychological safety: a. It refers to a group environment where members feel comfortable expressing their thoughts and feelings, including negative ones, without fear of punishment for questioning, challenging the group’s decisions, admitting mistakes, proposing unconventional solutions, or giving tough feedback. b. Psychological safety enhances team performance by promoting collaboration, engagement, and learning, while failing to speak up can lead to tragic consequences. ii. Team leaders must follow the following ways to cultivate a safety climate. a. Be accessible and approachable. b. Acknowledge the limits of their knowledge. c. Demonstrate fallibility. d. Invite participation. e. Highlight failures as learning opportunities. f.

Use direct language.

g. Set boundaries. h. Hold members accountable.

C. Raising Emotional Intelligence i. The negative impact of envy: a. Envy is a feeling of resentment, hostility, frustration, inferiority, longing, and ill will toward others who are envied. b. This is common in organizations and teams, where members often compare each other. c. Envy leads to reduced efforts, missed meetings, and less satisfaction, ultimately resulting in a less unified and successful team. ii. Elements of emotional intelligence (EI): awareness and management of personal emotions and recognizing and exerting influence on the emotions of others.

iii. Addressing three levels of emotions: a. High EI teams address three levels of emotions: individual, within the team, and between the team and outside groups. b. At the individual level, they recognize distractions, disrupting behavior, and provide support. c. At the group level, they engage in self-evaluation to determine their emotional states. d. At the organizational level, they discover and meet the needs of other teams while supporting their efforts. iv. Using role modeling: a. Effective leadership involves raising team EI through role modeling. b. Leaders must display appropriate emotions, avoid hostility, be sensitive to group moods, and lead in confronting emotional issues. c. Modeling these behaviors is crucial for establishing healthy emotional norms or habits within the team.

D. Engaging in Productive Conflict i. Substantive (constructive) conflict: a task-related process in healthy groups in which members examine and discuss ideas. ii. Positive outcomes of substantive conflict: a. Accurate understanding of the arguments and positions of others in the group. b. Higher-level moral reasoning. c. Thorough problem analysis. d. Improved self-understanding and self-improvement. e. Stronger, deeper relationships. f.

Creativity and change.

g. Greater motivation to solve the problem. h. Improved mastery and retention of information. i.

Deeper commitment to the outcome of the discussion.

j.

Increased group cohesion and cooperation.

k. Improved ability to deal with future conflicts. l.

High-quality solutions that integrate the perspectives of all members.

iii. Affective (relational/destructive) conflict: a. Rooted in personal relationships between group members, it often leads to escalating hostilities through name-calling, sarcasm, threats, and verbal aggression. b. This poisoned environment results in members being less committed to the group process, sacrificing in-depth discussion for immediate resolution, and distancing themselves from the decision. iv. Negative outcome of affective conflict: A decline in reasoning that produces an unpopular, low-quality, and often unethical solution. v. Degeneration of constructive conflict: a. Constructive conflict can escalate into affective conflict when discussing hot topics involving competing values, beliefs, and interests. b. Members may view disagreement as insults or threats, leading to anger and frustration. c. Task-oriented conflicts may persist without resolution. vi. Ways to encourage substantive conflict: a. Lay down some procedural ground rules before discussion begins. b. Highlight the fact that conflict about ideas is an integral part of group discussion and caution against hasty decisions. c. Encourage individuals to stand firm instead of capitulating and remind them of the importance of cooperation and emotional intelligence. d. During the discussion, make sure that members follow their conflict covenant. e. Stop to revisit the ground rules when necessary. f.

If the discussion gets heated, encourage followers to reflect on their initial emotional reactions in order to cool down.

g. Help them to reframe the interaction from “I’m right and you’re wrong” to genuine inquiry. h. Using argumentative competence skills, be prepared to support your position. i.

Challenge and analyze the arguments of others as you encourage them to do the same.

j.

If members get stuck in a battle of wills, reframe the discussion by asking questions.

k. Ask participants to develop new ways to describe their ideas and have them to step back and revisit their initial assumptions in order to find common ground. l.

After the decision is made, ensure that the team and its members will continue to develop their conflict management skills.

m. Debrief the decision-making process to determine whether the group achieved its goals; work on repairing relationships that might have been bruised during the discussion; and celebrate or remember stories of outstanding conflict management.

E. Building a Cohesive Team i. A high degree of unity: Cohesive groups exhibit high degree of unity, strong ties, and high commitment among members, leading to improved performance and increased satisfaction with their team experience. ii. Goal setting: a. During group formation, identify the team’s overall goal, outlining subgoals and personal goals. b. This process strengthens motivation to achieve collective and individual objectives. c. Create action plans, outline ways to achieve goals, and assess progress. d. Sub-goals should be revisited and assessed throughout the group process. iii. Role clarification: Facilitate team communication and understanding of responsibilities among members, allowing for negotiation and adjustment of duties as the group evolves over time.

iv. Problem solving: As a group, identify and resolve major problems during discussions and enhance goal setting, planning, and critical thinking skills of participants. v. Interpersonal relations: a. Set aside time for a group check-in at the beginning of meetings and/or schedule separate social gathering. b. Model caring, supportive communication by expressing appreciation and sharing compliments. c. Demonstrate empathy for the perspectives of other group members. d. Give words of encouragement, provide assistance when needed, and show that you trust group members. vi. Dangers of cohesion: a. Can result in moral exclusion that justifies harming outsiders. b. May encourage members to engage in extreme behaviors on the team’s behalf.

V. Avoiding Moral Pitfalls A. Groupthink i. It refers to groups that put unanimous agreement ahead of reasoned problem solving, and such groups are ineffective and unethical. ii. The negative effects of groupthink: Groups fail to consider all the alternatives, gather additional information, reexamine a course of action when it’s not working, carefully weigh risks, work out contingency plans, and discuss important moral issues. iii. Examples of groupthink: the invasion of Iraq, the decision to launch the Challenger and Columbia spacecraft, cover up of sexual abuse at Penn State, groups of state legislators who submitted false lists of electors in order to change the 2020 presidential election results, and those who fell victim to NXIVM. iv. Signs of Overconfidence: a. Illusion of invulnerability: Members are overly optimistic and prone to take extraordinary risks.

b. Belief in the inherent morality of the group: Participants ignore the ethical consequences of their actions and decisions. v. Signs of Closed-Mindedness: a. Collective rationalization: Group members invent rationalizations to protect themselves from any feedback that would challenge their operating assumptions. b. Stereotypes of outside groups: Group members underestimate the capabilities of other groups, thinking that people in these groups are weak or stupid. vi. Signs of Group Pressure: a. Pressure on dissenters: Dissenters are coerced to go along with the prevailing opinion in the group. b. Self-censorship: Individuals keep their doubts about group decisions to themselves. c. Illusion of unanimity: Because members keep quiet, the group mistakenly assumes that everyone agrees on a course of action. d. Self-appointed mind guards: Certain members take it on themselves to protect the leader and others from dissenting opinions that might disrupt the group’s consensus. vii.Increase in risk of groupthink: a. Groupthink risk increases when teams with members from similar backgrounds are isolated, are under stress, and follow a leader who pushes a particular solution. b. Self-directed work teams (SDWTs) are particularly vulnerable due to strict time limits, isolation, undertrained members, and potential failure. c. The need to function cohesively may blind them to ethical dilemmas and lead to groupthink. viii.

Suggestions for reducing groupthink: a. Avoid expressing a preference for a particular solution. b. Divide regularly into subgroups and then bring the entire group back together to negotiate differences.

c. Bring in outsiders to challenge the group’s ideas. d. Avoid isolation, keeping in contact with other groups. e. Role-play the reactions of other groups and organizations to reduce the effects of stereotyping and rationalization. f.

Once the decision has been made, give group members one last chance to express any remaining doubts about the decision.

g. Solicit ideas from group members without offering your opinions. h. Ensure that the group adopts a decision-making format before discussing an ethical problem. ix. Devil’s advocate technique: a. This technique involves an individual or subgroup criticizing a group’s decision, highlighting potential issues with the group’s assumptions, logic, evidence, and recommendations. b. The team then gathers additional information and adopts, modifies, or discontinues the proposed course of action. x. The dialectic inquiry method: It involves a group developing a solution, followed by identifying underlying assumptions, and then developing a counterproposal based on different assumptions.

B. Defensive Routines i. Repeated behaviors to protect team: Defensive routines are repeated patterns of behavior designed to protect a team, often unnoticed by members, making them difficult to detect due to lack of discussion. ii. Common defense mechanisms: a. Denial: A group dismissing reality. b. Repression: A team dealing with anxiety by holding back its emotions, thoughts, and concerns about the commitment of a fellow group member. c. Blaming outsiders for the problems of the team. d. Resisting change: Trying to implement a sensible solution generates hostility because innovations threaten the status quo.

iii. Negative outcomes of defensive routines: They keep teams from reaching their potential, cover over ethical lapses, prevent learning, and allow destructive conflicts to fester. iv. Ways to combat defensive routines: a. Encourage the team to engage in “tough,” fact-based reasoning to overcome denial of external reality. b. Caution the team if it appears to be displacing responsibility to outsiders instead of taking accountability for its shortcomings. c. Shift the focus from blame to learning from mistakes and errors. d. Ask what (not who) was the underlying cause of the fault or problem; determine how the group can change how it operates so that it doesn’t have this problem again. e. Probe to see why members are resistant to proposed changes. f.

Bring in an outside facilitator or use a case study or scenario if members are reluctant to open up.

C. Escalation of Commitment i. It refers to the tendency of continuing to pursue a failed course of action. ii. Factors driving escalation of commitment: a. Psychological bias: Group members want to avoid loss and to complete what they started. b. Self-enhancement: the need to look good: Group members find it hard to admit failure publicly because doing so threatens their identity or suggests that they are incompetent. c. Sunk costs: Sunk costs can encourage teams to become overly optimistic, and decision makers believe that they can control events that are outside their influence. d. Risk seeking: Group interaction can magnify the tendency to take risks because responsibility for the choice is dispersed among group members. iii. Ways to prevent escalation: a. Adopt a doubting mindset.

b. Encourage group members to anticipate the regret they will feel if they fail. c. Conduct a “premortem” right before committing to an important decision. iv. If the team gets locked into failed course of action, the leaders must follow these steps: a. Recognize that there is a problem. b. Reexamine the prior course of action. c. Search for alternative courses of action. d. Plan an exit strategy. v. Steps to navigate the process: a. Don’t ignore negative feedback or external pressure. b. Hire an external auditor. c. Don’t be afraid to withhold further funding. d. Look for opportunities to redefine the problem. e. Manage impression. f.

Prepare your stakeholders.

g. Deinstitutionalize the project.

VI. Group Leadership for Public Value i. Integrative or collaborative leadership: a. It involves bringing diverse groups together to promote the common good or public value. b. Success depends on the combined efforts of representatives from many different sectors of society. ii. Qualities of integrative leaders: a. They recognize when the situation requires combined action and then bring the right groups together to tackle the problem.

b. They act as facilitators and are more concerned about decision making than on promoting a particular solution. c. They keep the group focused on the task, mediate conflicts, promote healthy communication, and elicit commitment to the project. iii. Behavioral competencies of leaders: a. Stakeholder identification and assessment. b. Strategic issue framing. c. Relationship development with diverse stakeholders. d. Convening working groups. e. Facilitating mutual learning processes. f.

Inducing commitment.

g. Facilitating trusting relationships among partners.

Lecture Notes Chapter 10: Creating an Ethical, Inclusive Organizational Climate Learning Objectives 10-1

Distinguish between the five primary types of ethical climates.

10-2

Summarize the six signs of healthy ethical climates.

10-3 Explain how the five climate-building tools can be used to create ethical organizational climates.

Annotated Chapter Outline I.

Ethical Climates i. Ethical climate: a. An organization, like a tribe, develops its unique culture through its members’ language, stories, beliefs, assumptions, ceremonies, and power structures.

b. Organizational culture shapes ethical responses, values, norms, and guidelines, influencing members’ beliefs and decision making, and is shaped by the unique ethical challenges faced by each organization. ii. Five primary climate types: a. Instrumental climates follow ethical egotists, who make decisions based on selfish interests that serve individuals and their immediate groups and organizations. b. Caring climates emphasize concern or care for others. c. Law and order climates are driven by external criteria like professional codes of conduct. d. Rules climates governed by the organizational policies, rules, and procedures. e. Independence climates give members wide latitude to make their own decisions. iii. Leaders should understand their organization’s unique ethical orientation, as each climate type presents unique challenges. iv. Instrumental organizations may overlook others’ needs, care ethic leaders may overlook rules, law and order cultures may rely on external standards, and those playing by organizational rules may be blind to societal norms. v. Self-interest poses the greatest threat to ethical performance. vi. Instrumental climates have high rates of immoral behavior; Caring climates have employee loyalty and contentment; Rules climates don’t encourage attachment to the organization.

II. Signs of Healthy Ethical Climates A. Inclusion i. Factors contributing to an increasingly diverse society: Globalization, immigration, gender equality, civil, gay, and disability rights. ii. Diversity initiatives recruit, train, retain, and promote diverse members while reducing biases, practices, and systems that act as barriers to diversity. iii. Inclusion means helping all members feel valued and engaged, no matter their racial, ethnic, gender, sexual orientation, or physical abilities.

iv. Diversity and inclusion (D&I) efforts: a. Diverse organizations gain market share, generate higher returns, boost reputations, and retain talent. b. Ethical leaders prioritize dignity, respect, and every voice, ensuring everyone’s voice is heard and valued. v. Leaders in inclusive organizations: a. Inclusive leaders are crucial in creating inclusive organizations, embedding inclusion into processes, and promoting inclusive practices. b. They address individual, relational, and system levels, demonstrating humility, curiosity, courage, self-understanding, and emotional stability. c. They recognize that they don’t have all the answers but seek to understand diverse perspectives and incorporate them into everyday behaviors. vi. Inclusive leadership at personal level: Leaders should take responsibility for their learning and actions, seek diverse advisors, explore their identity and cultural orientation, challenge assumptions, and be bold in addressing exclusion for organizational learning. vii.Inclusive leadership at relational level: a. Leaders should mentor and be mentored, accept diverse work styles, recognize intergroup fault lines, and revise norms to address bias. b. They should provide tools to help diverse teams address conflict, involve diverse perspectives, consider blind spots, and increase alignment and commitment to shared outcomes across organizational groups. viii.

Inclusive leadership at system level: Leaders should create a clear business case for valuing differences, develop an inclusive culture, be explicit about norms, address exclusionary structures, review policies, provide educational opportunities, create an accountability system, and provide incentives for best practices.

B. Virtuousness i. Ethical organizations and individuals exhibit high moral character, while virtuous organizations strive for moral excellence, people aspiring to do their best. ii. Attributes of organizational virtuousness:

a. Virtuousness has positive human impact by fostering better relationships, meaningful work, and personal development. b. Virtuousness embodies moral goodness. c. Organizational virtue results in social betterment, improving the lives of others. d. Virtuousness has both amplifying and buffering effects. a. Amplifying describes how individual virtuousness generates positive consequences that escalate over time, creating a positive spiral. b. Buffering describes how high organizational character protects individuals and organizations from trauma and stress. iii. Enablers of organizational virtuousness: Clarity, congruency, feasibility, supportability, transparency, discussability, and sanctionability. iv. Traits of virtuousness: Warmth, empathy, integrity, conscientiousness, courage, zeal. v. Highlighting different virtues: a. American companies tend to emphasize courage while European businesses feature their integrity and empathy. b. Retailers and pharmaceutical firms want to be seen as empathetic, while banks and petroleum companies project courage. vi. Beneficial, practical effects of virtuousness: Virtuous organizations foster a positive work environment, resulting in lower stress levels, improved physical and mental health, improved self-identity, higher employee satisfaction, innovation, customer retention, and profitability.

C. Trust i. Organizational trust: The collective set of positive expectations members hold about the intentions and behaviors of other stakeholders, which are based on their experiences and interactions as organizational members. ii. Qualities of trust: a. Trust binds group members together, fostering collaboration and communication; lowering costs; reducing turnover; encouraging organizational learning, innovation, and work effort; and generating employee satisfaction and commitment.

b. High-trust organizations prioritize decision making, efficiency, productivity, and profitability, fulfilling their moral obligation to protect the rights and interests of members and outsiders. iii. Dimensions of collective trust: a. Competence: the collective perception that leadership is effective, and that the organization can survive. b. Openness: the belief that management shares information and is sincere. c. Concern reflects caring and empathy. d. Reliability describes perceptions of consistent and dependable behavior. e. Identification is the feeling of affiliation and association with the organization. iv. Three pillars of trust: a. Habits of ability: choosing to deliver on promises. b. Habits of integrity: choosing to be honest when faced with ethical decisions. c. Habits of benevolence: choosing to share the good news about the organization, its vision. v. Moral repair: a. Moral repair restores trusting interpersonal relationships as well as trust in organizational standards and duties. b. Organizational members must take accountability for their actions and acknowledge and address the wrong or harm they have done. vi. Responsibility of organization leaders: Organization leaders have a responsibility to reinforce collective standards, to make sure that individual violators are accountable for their actions, and to acknowledge the harm or injustice done to victims.

D. Justice i. Distributive justice: The principle that ethical organizations aim to distribute resources and benefits fairly, including job opportunities, promotions, pay, office space, and time off.

ii. Procedural justice: Describes how allocation decisions are made, marked by consistency, lack of bias, accuracy, representation, correction, and ethics. iii. Interactional justice: Describes how members feel treated by authority figures. iv. Perceptions of justice on attitudes: Organizations with just environments are more satisfied, committed, trusting, and accepting of authority, leading to moral behaviors like helping others and reporting ethical violations. v. Perceptions of injustice on attitudes: Unfair treatment leads to increased withdrawal behaviors, absenteeism, and quitting, as well as dark-side behaviors like harassment and incivility, and less ethical reporting to management. vi. Strategies for promoting justice: A well-structured pay and benefits system, clear explanations of resource allocation, performance appraisal based on jobrelated criteria, employee involvement in decision making, fair treatment of employees, honesty in layoffs and firings, follow-through on ethical violations, and public apologies and compensation for injustices.

E. Structural Reinforcement i. Monetary and nonmonetary reward systems: a. Monetary rewards should be used cautiously, as they can attract individuals with the sole objective of wealth, leading to immoral behavior. b. Leaders should emphasize the organization’s social purpose and values, deemphasizing money as a motivator, and ensure desired moral behaviors are rewarded. ii. Performance and evaluation processes: a. Setting ambitious performance goals can lead to dishonest behavior, so leaders must ensure goals are achieved ethically, with transparency and prohibition of false promises, disclosure of debts, and kickbacks in performance appraisal forms. b. Ethically insensitive monitoring processes can lead to the unnoticed and unpunished occurrence of illegal and immoral behavior, causing followers to believe leaders condone and expect such actions. iii. Decision-making rights and responsibilities: a. Ethical conduct is enhanced when workers are accountable for ethical decisions and have the authority to respond.

b. Leaders in ethical organizations empower followers, but knowledge-rich employees are often excluded or lack the power to implement their choices. iv. Corporate governance: a. The boards of directors need to guarantee that top leadership establishes a culture of integrity and compliance, produce accurate financial statements and other disclosures about the firm’s performance, and oversee the firm’s compliance program and tracking any significant compliance issues. b. Effective boards consist of independent, knowledgeable members actively involved in the organization, gathering information, and preventing groupthink by welcoming dissent rather than punishing those who threaten group cohesion.

F. Organizational Citizenship i. Stakeholder focus: a. Organizational stakeholders might include shareholders, suppliers, competitors, customers, creditors, unions, social activists, governments, local communities, the general public and society. b. Organizational leaders have an ethical obligation to consider all groups with an interest in their policies and operations, as they have intrinsic value and should be treated justly. ii. Corporate social responsibility: a. CSR describes the activities of companies and other organizations aimed at improving the welfare of society. b. Companies benefit from CSR efforts, attracting loyal customers, improving employee commitment, and making them attractive employers. c. CSR behaviors promote altruism, dignity, and justice. iii. Sustainability or environmental care: a. Sustainable organizations prioritize environmental protection by reducing emissions, using recycled materials, creating less toxic products, reducing oil consumption, and purchasing from eco-friendly

suppliers, continuously improving their practices to ensure future generations’ protection. b. Responsible corporate citizens engage in “triple bottom line” accounting, evaluating their success based on financial results, social performance, and environmental performance. iv. Corporate (CEO) activism: a. In corporate activism, firms and their CEOS take moral stances on socialpolitical issues, and thus reinforce corporate values, particularly their firms’ commitment to diversity. b. Taking social positions in the US’s polarized political climate is risky, as it can alienate investors, customers, and employees, costing companies funding, sales, and workers. c. Activist CEOs can mitigate speaking out risks by adhering to public statements, aligning issues with company values, and staying committed to long-term commitments.

III. Climate-Building Tools A. Discovering and Communicating Purpose and Core Values i. Organizational purpose: A purpose statement should inspire members by focusing on why the group exists. ii. Asking the “Five Whys”: a. A Japanese engineer developed this method to identify root causes of problems and correct them, while also revealing the group’s purpose. b. To understand one’s organization’s mission, describe its activities and ask why they are important five times; this brings one closer to the group’s core mission. iii. The Benefits Game: a. The organization’s purpose can be determined by identifying its benefits, such as increasing livability, providing reliable transportation, boosting the economy, reducing traffic congestion, and cutting carbon emissions. b. By answering the question many times, the organization can better understand its purpose.

iv. Purpose: an organizational anchor: The purpose should ensuring that your goals, plans, expansion efforts, buildings, and products remain constant despite changes in other elements of your organization. v. Core values: They serve as the organization’s guiding principles. vi. Communication channels: a. Once the organization’s purpose and core values are identified, utilize both formal and informal communication channels to effectively communicate these to both members and external groups. b. Formal channels are officially recognized and recorded by the organization, such as websites, recruitment materials, annual reports, and stockholder meetings. c. Informal channels are not part of the organization’s official records. a. Rituals are repeated patterns of behavior that occur at regular intervals. b. Stories play a significant role in communicating shared values by narratives via meetings, intranet videos, blogs, and social media posts. vii.Codes of Ethics a. Compliance, Integrity and Anticorruption: Accuracy of corporate finances and financial reporting, employee records and expense reports, bribes, political contributions. b. Conflicts of Interest: Gifts and gratuities, political activity, outside employment, family members, disclosure of financial interests. c. Employee, Client and Vendor Information: Maintaining records and information, privacy and confidentiality, disclosure of information. d. Employment Practices: Workplace harassment, equal opportunity, diversity, fair treatment of staff, work-family balance, discrimination, fair labor practices, illegal drugs and alcohol, use of organization property and resources, proper exercise of authority, employee volunteer activities, romantic relationships with coworkers, incentives and recognition systems. e. Environmental Issues: Commitment to sustainability, employee health and safety.

f.

Ethics and Compliance Resources: Ethics advice helpline, reporting procedures, anonymous/confidential reporting hotline, summary of investigations process, anti-retaliation policy and protections for reporters, accountability and discipline for violators, Ombuds program.

g. Internet, social networking and social media: Internet and social network use at work, prohibited sites and content, policies regarding posts about company, work products or coworkers, online relationships between managers and their reports. h. Relationships with third parties: Procurement, negotiating contracts. i.

Criticisms of formal ethics statements: a. Codes are often vague, unreliable, and designed for public relations purposes. b. They don’t enhance ethical climate or behavior, often become the final word on ethics, and can’t be applied across cultures or situations. c. They lack enforcement provisions, prioritize organizational needs over societal ones, and often go unrewarded.

j.

Benefits of formal ethics statements: a. A code describes an organization’s ethical stance both to members and to the world. b. A formal ethics statement can improve the group’s image while protecting it from lawsuits and further regulation. c. Referring to a code can encourage followers and leaders to resist unethical group and organizational pressures. d. A written document can have a direct, positive influence on ethical behavior.

B. Preventing and Eliminating Destructive Behaviors i. Sexual harassment: a. A form of aggression based on biological sex, gender identity, or sexual orientation. b. Quid pro quo harassment involves coercing targets into providing sexual favors for job retention or promotion.

c. Hostile work environment harassment involves demeaning comments, threats, bribes, and sexual assault, causing physical and psychological harm. ii. Discrimination: a. Putting members of selected groups, such as women, minorities, disabled employees, older workers, and homeless people, at a disadvantage based on stereotypes and prejudice. b. Antidiscrimination laws have led to subtle workplace discrimination, including microagressions, dismissal of achievements of people of color and women, avoidance of low-status groups, and promotion of similar backgrounds. iii. Incivility: a. Rude or discourteous actions that disregard others and violate norms for respect. b. Incivility reduces employee job satisfaction, task performance, motivation, loyalty, performance, creativity, and willingness to cooperate. iv. Aggression: a. Deliberately trying to hurt others or the organization itself. b. Such behaviors can be categorized along three dimensions: physical– verbal, active–passive, or direct–indirect. c. Aggression causes significant harm to individuals and organizations, causing stress, poor health, fear, depression, and decreased job commitment. d. It negatively impacts organizational performance, productivity, absenteeism, and turnover. v. Corruption: a. Abusing organizational positions and authority for personal benefit or to benefit the work unit or organization. b. Corruption is a slippery slope where unethical actions by a few individuals can become part of an organization’s culture and ethical climate.

c. Successful bribery, often encouraged by leaders, can be stored in organizational memory, leading to future corruption. vi. Rationalizations defending one’s behavior: a. Corrupt individuals defend their actions through rationalizations like denying harm, forced conformity, and group loyalty. b. Leaders must set ethical expectations and punish offenders to prevent their actions from affecting the organization. vii.Creating zero-tolerance policies: Such policies promote civility, prohibit aggression, sexual harassment, discrimination, and unethical practices such as customer deception and kickbacks. viii.

Obeying guidelines: Zero-tolerance policies may not be effective if leaders don’t adhere to their rules and if leaders believe they are exceptions to the rules. ix. Constant monitoring for possible violations: a. Top leaders may hide destructive behavior, such as bullying and disrespect toward superiors. b. Ethical leaders actively seek feedback, conduct 360-degree reviews, and provide channels for reporting misbehaviors. c. They take immediate action to prevent isolated issues from becoming part of the organization’s culture. x. Moving quickly when standards violated: Ethical leaders must intervene to prevent incivility, aggression, and discrimination, as failure to do so can lead to victims not coming forward and perpetuating discrimination. xi. Addressing the underlying factors: Ethical leaders screen potential employees for destructive behavior and eliminate situational triggers like unpleasant working conditions, job stress, oppressive supervision, perceived injustice, and extreme competitiveness.

C. Ethical Socialization Processes i. Socialization: a. The process of individuals transitioning from outsiders to organizational members, learning their roles and absorbing information about the organization’s culture.

b. Newcomers’ anxiety in a new environment encourages ethical behavior instruction, shaping their values for their careers. c. As they become established members, they communicate and model important behaviors to future generations. ii. Anticipatory socialization: It begins before an individual joins a new organization or organizational unit and is shaped by past work experiences, friends, families, and other factors. iii. Encounter socialization: It takes place after newcomers begin their membership, and has formal training and orientation sessions designed to integrate newcomers into the organization. iv. Metamorphosis socialization: It marks the end of the transition to organizational life, where the individual has mastered basic skills and knowledge and is considered a group member.

D. Ethics Training i. Benefits of training sessions: Training sessions for experienced employees can heighten sensitivity to moral danger signs and barriers to inclusion, reduce destructive behaviors, foster trust, promote organizational integrity, reinforce shared purpose and values, and clarify ethical standards and expectations. ii. Focuses on the organization’s unique ethical problems: a. Organizations face unique ethical issues, with accountants and sales professionals facing different challenges. b. To foster inclusion, organizations should provide examples and equip trainees with tools to address these issues, ensuring diverse groups are represented. iii. Taps into the experiences of participants: a. Trainees are encouraged to reflect on their values, decision-making strategies, moral moments, and inclusion. b. They are asked to provide dilemmas and insights, and then become instructors, teaching each other and receiving feedback to manage their dilemmas. iv. Actively engages participants:

a. Organizations must focus on dyadic, small-group, and large-group discussions, introducing case studies, and engaging participants’ emotions. b. Training spaces must be adapted to various teaching strategies, such as using videoconferencing for remote meetings. v. Measures progress: a. Process evaluation measures the effectiveness of training activities by determining how many participated, what knowledge and skills they gained, and whether they were satisfied with the experience. b. Outcome evaluation determines how well the training program as a whole achieved its desired results. vi. Reinforces the organization’s purpose, values and standards: Training sessions should promote the group’s ethical climate by highlighting inclusion, purpose, core values, ethical heroes, code of ethics, and reporting systems. vii.Is integrated into the entire curriculum: Integrating ethics instruction into an organization’s training increases the likelihood of moral concerns becoming part of the organization’s fabric.

Lecture Notes Chapter 11: Meeting the Ethical Challenges of Leadership in a Global Society Learning Objectives 11-1

Summarize the shadows cast by leaders in a global society.

11-2 Link the four cultural values classification systems to differences in ethical decision making and behavior.

11-3 Explain how the five climate-building tools can be used to create ethical organizational climates.

Annotated Chapter Outline I.

The Dark Side of Globalization

i. Globalization, facilitated by multinational corporations, international travel, the internet, immigration, and satellite communication systems, has led to increased cultural diversity both within and between nations. ii. Pros and cons of globalization: a. Free trade creates wealth through international markets, lowers costs, and increases freedom of movement. b. However, proponents overlook its costs, increasing wealth gap, greed, and environmental destruction. c. Global capitalism encourages profit over ethical values, and repressive governments use technology to oppress citizens. d. Citizens feel threatened by immigration. iii. Pushback against globalization: a. Globalization’s high costs have led to protectionism, nationalist fervor, divisions, democracy decline, and strict immigration limits. b. Addressing the dark side of global society can prevent ethical abuse and reduce its cost.

A. The Global Shadow of Power i. The modern world’s increasing interdependence, facilitated by markets, communication systems, computers, and financial institutions, allows leaders’ actions to impact the rest of the world. ii. For example, Vladimir Putin’s invasion of Ukraine led to increased food, global gas, and heating oil prices, leaving millions of Ukrainians becoming refugees. iii. Ethical leadership in multinational contexts must consider the potential consequences of decisions, such as climate change, as decisions by governments and businesses contribute to global warming. iv. Globalization leads to concentration of power, increasing the risk of abuse: a. China has accused sub-Saharan Africa of using its economic influence to subjugate poor African nations. b. Corporations have significant economic power; they manipulate governments, pressuring countries to relax regulations, lower taxes, and avoid prosecution for criminal acts.

c. Apple has used subsidiaries in low-tax countries to reduce its tax bill.

B. The Global Shadow of Privilege i. Globalization is causing an increase in income inequality, leading to chronic hunger, malnutrition, and shorter life spans for millions of people, particularly in the poorest nations, which lack basic healthcare and face higher mortality rates. ii. Privileged nations consume more, leading to environmental damage through logging, oil drilling, and mineral extraction. a. This disproportionately affects the disadvantaged, like Congolese cobalt miners who cannot afford products like cell phones and electric cars. b. Cobalt mining also makes farming impossible.

C. The Global Shadow of Mismanaged Information i. Deceit on the international stage: Nations often engage in economic and military spying, deceiving their adversaries, with industrialized businesses exploiting consumers in economically struggling regions. ii. Withholding information: a. Global leaders withhold information on safety and environmental hazards, limiting sharing of data with foreign nationals. b. Rich countries are also guilty of extracting information from poor countries and giving little in return, citing national security reasons.

D. The Global Shadow of Inconsistency i. Economic and social disparities in multinational firms and nonprofits make it challenging for leaders to consistently act. ii. Issues include fair wages, working conditions, safety standards, drug sales, pollution regulations, and the standard of living for expatriates working for NGOs in other nations. iii. Global leaders often neglect the needs of disadvantaged workers in developing countries, focusing on safety and environmental issues in overseas locations, and allowing privileged lives among the poor.

E. The Global Shadow of Misplaced and Broken Loyalties

i. In an integrated world, traditional loyalties are eroding, leading to environmental damage, poverty, hunger, and income gaps due to leaders’ duty to consider their duties to non-natives. ii. Broken loyalties and shattered promises of globalization have left citizens betrayed, with special interests receiving favored treatment and many left behind. iii. The global economy often creates more economic losers than winners, as seen with the “Rust Belt” and the shifting of manufacturing jobs to Southeast Asia.

F. The Global Shadow of Irresponsibility i. To make reasonable efforts to prevent followers’ misdeeds: Leaders can establish ethical climates by clearly stating organizational values, communicating these values to all branches through print and electronic media and training programs, letting business partners know about standards, and translating ethical behavior into performance standards and then evaluating followers based on those criteria. ii. To acknowledge and address ethical problems wherever they occur: a. Global leaders often deny responsibility for followers’ misbehavior, while subcontractors often face blame for low wages and poor working conditions. b. Responsible firms must supervise their contractors and suppliers. iii. To shoulder responsibility for the consequences of their directives: Global leaders’ efforts to eliminate sweatshops can lead to unintended negative consequences, such as exploiting workers with long hours and low wages. iv. To admit their duties to followers: Multinational leaders have obligations to their followers, regardless of citizenship, ethnicity, or cultural background, and to their communities, including providing adequate wages and safe working conditions. v. To hold themselves to the same standards as followers: Leaders impose global values, rules, and codes of conduct on their organizations, ensuring consistent standards for diverse followers and ethical leaders who live up to these guidelines.

II. Cultural Differences and Ethical Values A. Defining Culture

i. Culture: a. The total way of life of a people, composed of their learned and shared behavior patterns, values, norms, and material objects. b. Culture is created, learned, shared, and dynamic. ii. Common values among ethnic groups and nations allow for the classification of cultures based on their value orientations, explaining ethical differences and predicting moral responses. iii. Cautions to the classification systems: a. All categories are gross overgeneralizations. b. Scholars may categorize the same nation differently and have not studied some regions of the world. c. Political and cultural boundaries aren’t always identical. d. Cultures are dynamic; a society may alter its ethical priorities over time.

B. World Values Survey i. Traditional vs. secular-rational values: a. Traditional values emphasize religion, family, authority, and national pride. and reject certain behaviors like abortion, divorce, and suicide. b. Secular-rational values focus on rules and clear distinctions between right and wrong. ii. Survival vs. self-expression values: a. Survival values prioritize economic and physical security, often resulting in ethnocentric behavior and cultural resentment. b. Self-expression values prioritize autonomy, political participation, quality of life, environmental protection, acceptance of diverse groups, and societal decision making. iii. Different cultural clusters: a. Traditional/survival societies include Morocco, Jordan, Bangladesh, and Zimbabwe. b. Traditional/self-expression societies include the United States, much of Latin America, and Ireland.

c. Secular-rational/survival societies include Russia, Ukraine, Bulgaria, and Estonia. d. Secular-rational/self-expression countries include Sweden, Norway, Japan, Germany, Switzerland, Slovenia, and the Czech Republic. iv. Security: primary driver of values: a. Insecure individuals prioritize survival in agrarian economies and economic uncertainty. b. Prosperous societies shift toward secular values and freedom of selfexpression. v. Importance on self-expression: a. Modern societies prioritize self-expression, but cultural history and religion can influence values. b. Survival values are more prevalent in former Communist Eastern European nations. c. Religion is a major factor that can weaken or promote self-expression. vi. Revolt against globalization: Insecurity drives globalization revolt, as residents of wealthy and poor nations turn to authoritarian leaders to protect themselves from declining incomes and an influx of immigrants. vii.Authoritarian reflex: The strategy of people, upon survival being insecure, tending to close ranks behind a strong leader, forming a united front against outsiders. viii.

Emancipatory values: Freedom of choice and equal opportunity, empower people to exercise freedoms and trigger movement toward democracy.

C. Programmed Value Patterns i. Power Distance a. Power differences vary across cultures. b. High-power distance cultures accept inequality as part of the natural order, while low-power distance cultures, like Ireland and New Zealand, are uneasy with large wealth, power, privilege, and status gaps. ii. Individualism versus Collectivism

a. Individualistic cultures prioritize the needs and goals of individuals and their immediate family, viewing themselves as independent actors. b. In contrast, collectivistic cultures prioritize the desires of the larger group, stressing connection and value. c. In a collectivistic society, decisions about education may be made by family or village, with limited resources often leading to limited access to education. iii. Masculinity versus Femininity a. In highly masculine cultures like Venezuela and Italy, men are expected to be decisive, assertive, and materialistic, while women are encouraged to serve and care for family and society. b. Feminine cultures, like Finland, Denmark, and the Netherlands, blur gender roles. iv. Uncertainty Avoidance a. Indicators measuring the orientation: Anxiety level, widely held attitudes about rules, and employment stability. b. High uncertainty avoidance cultures: a. Societies like Greece and Portugal are anxious about uncertainty, relying on written rules and authority directives. b. They are prone to prejudice because they follow the credo “What is different is dangerous.” c. They are generally more corrupt, and their citizens are more likely to look to formal codes and policies for ethical guidance. c. Low uncertainty avoidance cultures: a. Societies like Ireland and Sweden are more comfortable with uncertainty, taking risks, and trusting their own judgments. b. They follow the credo “What is different is curious” and are more tolerant of strangers and new ideas. c. They generally punish socially irresponsible firms. d. Collectivistic vs. individualistic societies:

a. Collectivistic societies prioritize the well-being of in-group members, often leading to lies to protect privacy. b. They encourage sharing of knowledge, while individualistic societies often resist gender equality. c. Women are seen as an outlier in collectivistic societies, where payoffs are common to meet community obligations.

D. Project GLOBE i. Project GLOBE (Global Leadership and Organizational Behavior Effectiveness). ii. In-Group Collectivism a. In-group collectivism refers to the pride societal members take in their small groups, families, and organizations, differing from Hofstede’s collectivism dimension. b. Members of in-group collectivist societies have high expectations of others, while countries with low scores have different expectations. iii. Assertiveness a. Assertiveness refers to a culture’s emphasis on toughness, competition, and competitiveness. b. Countries like Spain, the US, Sweden, and New Zealand value high assertiveness, while Sweden and New Zealand rate low. iv. Future Orientation a. Society’s focus on future-oriented activities like planning and investing (Singapore, Switzerland, Netherlands) rather than immediate gratification (Russia, Argentina, Poland) is a key factor in societal development. v. Performance Orientation a. Society’s reward system for performance improvement varies across countries. b. Singapore and the US value training and initiative, while Italy and Argentina prioritize loyalty, belonging, and family over performance, avoiding feedback and competition. vi. Humane Orientation

a. Humane orientation in cultures encourages altruism, kindness, fairness, and generosity, with high support for vulnerable groups in countries like Malaysia and Ireland. b. Governments prioritize societal good over property protection, while former West Germany, Spain, and France prioritize self-enhancement and independence. c. Differences in values can lead to ethical conflicts. a. In-group collectivism encourages hiring friends and family members, while future-oriented individuals prioritize saving and investing. b. Competition, power, and personal advancement are favored in assertive, performance-oriented groups, while harmony, cooperation, family, and concern for others are valued. c. Humane societies prioritize societal concerns over property rights, while assertive cultures focus on shareholders, profits, and results. d. Common ethical ground: a. GLOBE researchers found that transformational leadership characteristics, such as motivation, foresight, and trustworthiness, are admired across cultures. b. Character, integrity, altruism, collective motivation, and encouraging and empowering help create positive, people-oriented leadership that respects others’ rights and dignity.

E. Moral Foundations Theory i. Psychological systems of morality: a. Mental foundations in humans enable successful group living, but cultures shape these systems, emphasizing specific values. b. Similar to taste buds, cultures develop unique cuisines emphasizing different tastes. ii. Care/harm: a. All species are sensitive to suffering, and humans sympathize for outsiders. b. Groups generally approve of those preventing or alleviating suffering, but compassion varies across cultures due to other moral foundations.

iii. Fairness/cheating: a. Reciprocity is crucial for cooperation and alliance formation, preventing exploitation. b. All cultures have virtues related to justice and fairness, but some societies value individual rights and equality, while others do not. iv. Loyalty/betrayal: a. Trust among in-group members is crucial for human survival, leading to virtues like patriotism, loyalty, and heroism. b. Some societies, like Japan, value in-group cohesion, with subgroups emphasizing loyalty. v. Authority/subversion: a. Hierarchy is a common practice in both primate and human groups. b. Leaders are often expected to exhibit wisdom and deference, and those who reject authority face punishment. vi. Purity/degradation: a. Disgust is a human emotion that protects the body from disease transmission through contact with contaminants. b. It also has a social dimension, particularly for outsiders, deformities, and lower social classes, who are disapproved of. vii.Individualizing foundations focus on the protection of individuals and their rights, like care and fairness. viii.

Binding foundations focus on protecting the group or community by promoting group solidarity, self-sacrifice, and respect for hierarchy, like loyalty, authority, and purity. ix. Moral foundations play a significant role in shaping ethical attitudes between liberals and conservatives in the United States. a. Liberals prioritize individualizing values, while conservatives prioritize binding values. b. For example, liberals value autonomy and sanctity, while conservatives prioritize authority.

c. Liberals support social justice and harm, while conservatives prioritize authority and defund the police. d. These differences highlight the complex interplay between moral foundations and ethical attitudes.

III. Facing the Challenges A. Confronting Attitudinal Obstacles i. Ethnocentrism: a. The tendency to see the world from our cultural group’s point of view. b. Ethnocentrism, a process of acculturation, involves a group’s adaptation to their culture’s perspective, enabling them to unite and withstand external threats. ii. Problems due to high ethnocentrism: a. Inaccurate attributions about the behavior of those who differ from us. b. Greater distrust in diverse workplaces. c. Expressions of disparagement or animosity. d. Reduced contact with outsiders. e. Less tolerance for religious differences. f.

Indifference and insensitivity to the perspectives of members of marginalized groups.

g. Pressure on other groups to conform to our cultural standards. h. Justification for war and violence as a means of expressing cultural dominance. iii. Examples of ethnocentrism: a. Colonial powers imposed their values and systems on occupied lands, looting wealth and treating native peoples as inferior. b. Missionaries equated Christianity with Western lifestyles, converting indigenous children. c. Today, France defends French language, and the Taliban in Afghanistan uses harsh punishments imposing its interpretation of the Koran.

iv. Stereotyping: a. The process of classifying group members according to their perceived similarities while overlooking their individual differences. b. Perceptual biases exacerbate stereotypes, blaming external factors for failures and internal factors for success. c. When evaluating low-status groups, we attribute their failures to external forces, while when they succeed, we attribute their incompetence to their laziness, low intelligence, or poor character. v. Prejudice: a. The disrespectful attitude toward or negative judgment of groups or individuals on the basis of their group membership. b. Prejudice is a universal emotion characterized by stereotypes, negative feelings towards a group, and the perception of significant differences in values or threats. vi. Blunting the impact of patterns: a. Mastering ethnocentrism, stereotyping, and prejudice is unlikely due to their deep human roots; however, recognizing these patterns can reduce their impact. b. Acknowledging cultural differences, focusing on factual information, and valuing equality can help reduce stereotypes and prejudice, ultimately reducing prejudicial behavior. vii.Dignity and integrity: a. We maintain our own dignity by confronting prejudices and respecting others’ views. b. Modeling dignity positively influences the group, as morally inclusive language and disputing prejudiced statements reduces attacks. c. However, not speaking out can perpetuate hostile atmospheres. viii.

Cosmopolitanism: a. Cosmopolitans believe that since we live in a global society, we should consider ourselves citizens of the world rather than of one particular nation-state.

b. Cosmopolitanism is based on three elements: individualism, universality, and generality. c. They adopt a humanistic, altruistic approach to globalization, valuing all individuals regardless of location, status, or background, promoting global justice and human rights.

B. Finding Common Moral Ground i. Ethical relativism: a. There are no universal moral codes or standards; each group or society is unique. b. Thus, members of one culture can’t pass moral judgment on members of another group. c. Ethical relativism may seem appealing at first, as it simplifies decision making and avoids ethnocentrism. d. However, it faces challenges as shared standards are essential for global problem-solving and condemning popular leaders, and may not be based on universally accepted norms. ii. Evidence of ethical common ground: Evidence of ethical common ground comes from universal standards that have enabled members of the world community to punish crimes against humanity and to create international regulatory bodies. iii. Declarations of Human Rights a. Universal Declaration of Human Rights: a. Human rights are granted to individuals based solely on their status as persons. b. The articles in the declaration text outline the prohibition of slavery, torture, cruel treatment, arbitrary arrest, detention, and exile, as well as the rights to freedom of movement, thought, conscience, religion, opinion, living standards, and education. b. The Cairo Declaration on Human Rights in Islam: a. The Organization of Islamic Cooperation criticized the UN document’s influence on Judeo-Christian and secular thought, arguing it couldn’t be applied to Muslim states.

b. The original Cairo Declaration upheld UN rights but didn’t support women’s rights or non-Muslim rights. c. A revised version focuses on women’s rights, but still restricts freedom of religion, assembly, and speech. c. Bangkok Declaration: Published by the Association of Southeast Asian Nations (ASEAN), the statement includes freedom from slavery, human smuggling, or trafficking; the right to seek asylum; right to paid leave for working mothers; and the right to health care. iv. A Global Ethic a. Three universal principles: a. First, every person must be treated humanely regardless of language, skin color, mental ability, political beliefs, or national or social origin. b. Second, the Golden Rule: what you wish done to yourself, do to others. c. Third, seek peace and justice. b. Ethical directives or imperatives: a. Commitment to a culture of nonviolence and respect for all life. b. Commitment to a culture of solidarity and a just economic order— do not steal, deal fairly and honestly with others. c. Commitment to a culture of tolerance and truthfulness. d. Commitment to a culture of equal rights and partnership between men and women—avoid immorality, respect and love members of both genders. v. The Caux Principles a. Based on twin ethical ideals: a. The Japanese concept of kyosei, which refers to living and working together for the common good. b. The Western notion of human dignity, the sacredness and value of each person as an end rather than as a means to someone else’s end.

b. Principle 1. The responsibilities of corporations: Beyond shareholders toward stakeholders: Corporations are obligated to enhance the lives of all stakeholders, including employees, shareholders, and suppliers, and extend their efforts to local, national, regional, and global communities. c. Principle 2. The economic and social impact of corporations: Toward innovation, justice, and world community: Foreign companies should not only generate employment and wealth but also improve social conditions like education, welfare, and human rights through innovation, resource wise use, and fair competition. d. Principle 3. Corporate behavior: Beyond the letter of law toward a spirit of trust: Businesses should uphold honesty, transparency, integrity, and commitment to promises to facilitate international business and contribute to the global economy. e. Principle 4. Respect for rules: Beyond trade friction toward cooperation: International firm leaders must uphold both international and local laws to mitigate trade wars and facilitate the free movement of goods and services. f.

Principle 5. Support for multilateral trade: Beyond isolation toward world community: Firms should support international trading systems and agreements and eliminate domestic measures that undermine free trade.

g. Principle 6. Respect for the environment: Beyond protection toward enhancement: A corporation should prioritize sustainable development and reduce wasteful use of natural resources to protect and improve the physical environment. h. Principle 7. Avoidance of illicit operations: Beyond profit toward peace: Global business leaders must prevent their organizations from engaging in prohibited activities like bribery, money laundering, terrorism support, drug trafficking, and organized crime. i.

Role of leaders: Treat customers and employees with dignity, honor the trust of investors, create relationships with suppliers based on mutual trust, engage in just behavior with competitors, and work for reform and human rights in host communities.

vi. Universal Virtues a. Identifying common character traits:

a. Psychologists discovered universally honored virtues in ancient cultures like China, Southeast Asia, and Greece. b. They examined texts from Confucianism, Taoism, Buddhism, Hinduism, Athenian Greece, Judaism, Christianity, and Islam. b. Six key virtues: a. Courage: the ability to overcome fear is always more prized than cowardice. b. Justice: a standard for protecting notions of fairness. c. Humanity: doing more than what’s fair; unreturned kindness; altruistic behavior. d. Temperance: control over excess; self-regulation and self-control. e. Transcendence: connection to something beyond the self; belief in a meaning or purpose larger than the self. f.

Wisdom: good judgment and advice about important matters.

IV. Making Ethical Choices in Culturally Diverse Settings A. Integrative Social Contracts Theory i. Integrative Social Contracts Theory (ISCT): a. Based on the idea of social contracts, agreements that spell out the duties of institutions, communities, and societies. b. Macrosocial contracts are broader and lay the foundation for how people interact with one another. c. Microsocial contracts govern the relationships between the members of specific groups, such as local towns, regions, nations, companies, and professions. d. Community contracts are considered authentic or binding if members of the group have a voice in the creation of the norms. ii. Moral free space: A degree of latitude for communities to create their own rules; these norms should be respected whenever possible. iii. Hypernorms: Universal principles that take priority when global principles clash with community standards.

iv. Steps of the ISCT guidelines: a. Identify all relevant stakeholders or communities. b. Determine whether these communities are legitimate. c. Identify authentic norms. d. Determine whether the norms are legitimate. e. Resolve any conflicts between legitimate norms.

B. HKH Model i. What is the Questionable Practice (QP) in this situation? In the initial stage of HKH decision making, managers identify cultural differences between MNE norms and local culture norms, labeling the disparity questionable, requiring a clear understanding of the conflict’s nature. ii. Does the QP violate any laws that are enforced? The QP should be discontinued if it violates laws of the home country or the host country. iii. Is the QP simply a cultural difference, or is it also a potential ethics problem? A QP is a cultural difference that doesn’t cause harm and appears legitimate for a worthwhile outcome, but can be an ethical issue if it violates universal principles. iv. Does the QP violate the firm’s core values or code of conduct, an industry-wide or international code to which the firm subscribes, or a firmly established hypernorm? Compliance-driven firms conform to local rules, while integritydriven firms prioritize corporate values and international guidelines, judging local practices accordingly. v. Does the firm have leverage (something of value to offer) in the host country that allows the firm to follow its own practices rather than the QP? a. Integrity-driven companies can adapt to local customs without violating core values by offering significant benefits like jobs, cash, training, and new technology. b. This allows them to resist unethical practices and negotiate without violating core values, such as promoting women to positions of organizational authority. vi. Will market practices in the host country improve if the firm follows its own practices rather than the QP in the host country marketplace? A company with leverage must conform to local customs or exit the market, but if it has it, it must

improve conditions in their countries, promoting respect for individuals, honest business practices, and environmental concerns.

C. Metaethics Lens i. Metaethics lens: a way of thinking focused on systematically gathering data and taking the total person, the total situation, and the total cultural system into account. ii. Analyzing multiple levels: a. We need to analyze interpersonal, community, organizational, and societal levels when faced with cross-cultural ethical dilemmas. b. Developing creative solutions, rather than limiting decisions to two options, enhances understanding of one’s value system and the cultural perspective of the other party.

Lecture Notes Chapter 12: Ethical Crisis Leadership Learning Objectives 12-1

Summarize the leader’s responsibilities in each of the three stages of a crisis.

12-2

Describe the seven components of ethical crisis management.

12-3

Identify the ethical demands of extreme leadership and ways to meet these challenges.

Annotated Chapter Outline I.

Crisis: An Overview i. Crisis: a. Any major unanticipated event that poses a significant threat. b. They are rare (making them difficult to prepare for); generate a good deal of uncertainty (their causes and effects are unclear); and are hard to resolve (there is no set formula for determining how to act). ii. Stress at the individual level: Crisis stress hinders ethical management due to cognitive impairment, narrow focus, and ignoring important information. iii. Stress at the organizational level: Crisis leads to decision-making authority delegation, limited access to diverse viewpoints, and time constraints, subverting

ethical reasoning and creative problem-solving, and increasing the risk of overlooking stakeholder needs. iv. Need for typologies. a. Leaders must adapt their strategies to different types of crises, such as product safety or ocean storms, to better prepare for and respond to them. b. However, dealing with crises in an increasingly complex, interconnected society is becoming increasingly challenging. v. Ten categories of crises: a. Public perception: negative stories about the organization’s products, personnel, or services; negative rumors, blogs, social media posts, and websites. b. Natural disasters: tornadoes, hurricanes, mudslides, wildfires, blizzards, earthquakes, volcano eruptions. c. Product or service: product recalls, data breaches, food-borne illnesses, concern about products and services generated by the media. d. Terrorist attacks: bombings, hijackings, abductions, poisonings, and cyber attacks. e. Economic: cash shortages, bankruptcies, hostile takeovers, and accounting scandals. f.

Human resource: workplace violence, strikes, labor unrest, discrimination, sexual harassment, school and workplace shootings, theft, and fraud.

g. Industrial: mine collapses, nuclear accidents, fires, and explosions. h. Oil and chemical spills: tanker and railway spills, and pipeline and well leaks. i.

Transportation: train derailments, plane crashes, truck accidents, and multivehicle pileups.

j.

Outside environment: collapse of financial systems, rising fuel prices, deregulation, nationalization of private companies, and mortgage crisis.

vi. Typology grouping crises into clusters:

a. Victim cluster: the organization is seen as a victim of the crisis. b. Accidental cluster: the organization unintentionally causes the crisis. c. Preventable crisis cluster: the organization knowingly puts people at risk, acts inappropriately or violates the law or regulations.

II. The Three Stages of a Crisis A. Stage 1. Precrisis i. Precrisis: a. The period of normalcy between crisis events. b. Organizations may overconfidently handle risks, leading to reduced funding for backups, disaster drills, and training, increasing the likelihood of another crisis. ii. Barriers to crisis prevention: a. Complacency: Human biases such as decision making and judgment errors, institutional failures such as organizational breakdowns in processing information, and special interests imposing burdens in order to benefit themselves and opposing reform efforts. b. Ignoring or downplaying these signs and those who bring the warnings generally results in disaster. c. Examples: explosions in Beirut, Lebanon, floods in the Himalayan villages, the COVID-19 pandemic, etc. iii. Developing strategies for managing crises: a. Crisis management experts offer a variety of strategies for recognizing danger signs. b. To pick up on warning signals, organizations must continually scan the environment, looking outward and inward. iv. Continual scanning of the environment: a. External scanning: organizational leaders survey broadcast media, Facebook, Twitter, blogs, websites, government reports, opinion leaders, and other sources to identify potential dangers.

b. Internal scanning: identifying danger signs coming from those who have an ongoing relationship with the organization, like customers, suppliers, and donors. v. Actively seeking weaknesses: Troubleshooting involves identifying potential weaknesses that could harm an organization, often through brainstorming a list of potential crises, such as floods, campus shootings, student protests, or faculty strikes. vi. Issues that threaten an organization: Organizations may face threats due to long-term political, social, and ethical trends that emerge as issues. vii.Issues management: a. Identifying emerging issues through the environmental scanning described earlier as well as through engaging with stakeholders. b. Stakeholder engagement involves respecting and engaging with diverse groups, including hostile ones, to raise concerns and serve as an early warning system for emerging issues. viii.

Determining the significance of issues: a. Assessing the significance and potential impact of each issue, evaluating its probability and magnitude. b. High-priority issues require strategies, and proactive steps can transform threats into opportunities.

ix. Developing a crisis management plan: The plan should include such details as a list of key members of the public and how to notify them, members of the crisis management team, contact information for media outlets, strategies for communicating via social media, and background information on the organization. x. Benefits of proper crisis preparation: a. Crisis-ready organizations are less likely to experience unexpected threats, suffer significantly less damage if such events do strike, and recover much more quickly. b. Proper crisis preparation can keep us from abandoning our moral principles. c. Retaining widely shared moral principles: Human life is intrinsically valuable, and everyone’s life has equal value.

xi. Making triage decisions: a. In disaster situations, responders often lack resources to meet all victims’ needs, leading to triage in medical emergencies. b. They prioritize treatment for those most likely to survive, excluding vulnerable groups like the elderly and those with chronic conditions. c. Emergency personnel can avoid triage decisions when preparation is done in advance, relying on the same moral values that guide their decisions during normal times.

B. Stage 2: Crisis Event i. The trigger event: a. A crisis begins with a trigger event, such as an explosion, and ends when it is resolved. b. It triggers strong emotions, confusion, and significant harm to people, property, and the environment, resulting in significant press coverage. ii. Recognizing occurrence of a crisis: a. Ethical leaders first recognize that a crisis has occurred and persuade others that the group is in grave danger. b. However, this is not easy, with many people in power downplaying the risk, as seen in the COVID pandemic. iii. Implementing the CMP: a. Leaders recognize a crisis and implement the CMP, mobilizing crisis management teams for immediate threats. b. They focus on damage control, redeploy resources, and collaborate with emergency personnel and external groups. iv. The leader taking primary responsibility: a. The leader should be the spokesperson in emergencies, in order to prevent misinformation and conflict. b. Ethical leaders prioritize information needs of affected individuals and ensure immediate response to crises, recognizing the importance of being present for their followers.

C. Stage 3: Postcrisis

i. Investigation and analysis: Group members identify faults, blame, and prevent recurrence, while ethical leaders salvage group legitimacy, help members learn, and promote healing during a recovery period. ii. Rebuilding the organization’s image: a. The best approach to rebuilding an organization’s image depends on the crisis and the group’s history. b. If the crisis was preventable, admit responsibility, offer compensation, and take corrective action like improving safety procedures or recalling products. c. Denying truthful accusations can damage the reputation. iii. Retrospective sense making: a. Looking for causation, determining what members overlooked and identifying faulty assumptions and rationalizations that contributed to the disaster. b. Such processing broadens the group’s base of knowledge and gives it more options for responding in the future. iv. Reconsidering structure: Making major changes in leadership, mission, organizational structure, and policies as a result of the disruption caused by the crisis. v. Vicarious learning: a. Drawing from the experiences of other groups and organizations, both good and bad. b. Some organizations illustrate what not to do, while others serve as exemplary role models. c. Promoting healing: d. In the postcrisis stage, leadership promotes healing by explaining the crisis, identifying causes, and taking corrective actions. e. Forgetting feelings of stress and anxiety is easier with preventive measures. vi. Ethical leaders honor crisis heroes and mark important anniversaries.

vii.Discourse of renewal: A natural process focusing on the future and opportunities created by crises, such as protection, new projects, cooperation, and a stronger sense of purpose.

III. Components of Ethical Crisis Management A. Assume Broad Responsibility i. Ethical crisis leadership is based on responsibility, requiring leaders and followers to accept their moral responsibilities and take responsibility for their actions, as society grants them significant freedom for decision making. ii. Moral behavior is crucial in preventing crises, as immoral leaders often lead to scandals. iii. Eliminating these behaviors reduces exposure and creates ethical organizational climates with low risk of failure. iv. Crisis leaders foster ethical behavior, combat complacency, biases, and institutional weaknesses, and invest resources in identifying, preventing, and managing trouble spots. v. They also assign groups, invest in computer security, conduct disaster drills, and create CMPs. vi. Leaders have an ethical duty to mitigate harm caused by deceptive advertising, fraud, or industrial accidents in crises, and a swift response is crucial. vii.Leaders have a duty to prevent future crises by rebuilding the group’s image, helping members learn from the crisis, and promoting healing after the immediate danger has passed. viii.

Crises expand a leader’s ethical obligations, forming new stakeholder groups and involving the public, while existing stakeholders take on added importance due to the threat posed. ix. Leaders may need to go to extraordinary lengths to address the needs of victims, in addition to broadening their concern.

B. Practice Transparency i. Transparency is crucial for democratic societies, requiring governments to disclose tax spending, audited financial statements, and annual reports from corporations. ii. It allows citizens to make informed choices and prevents abuses of power and privilege.

iii. Transparency is essential for personal freedom and healthy relationships between individuals, organizations, and communities. iv. Transparency is a leader’s commitment to openness, avoiding mismanagement of information. v. It involves sharing information about policies, compensation, values, and political positions, characterized by respect, integrity, and candor. vi. Role of ethical leaders involves stakeholders in identifying the information they need, disclose information in a useful and understandable form, truthfully communicate the reality of a subject or event, and share bad as well as good news, such as when earnings are down, and construction plans have to be shelved. vii.Transparency enhances crisis preparedness and trust, reduces unethical behavior, and helps identify immediate threats like product or service issues and environmental concerns. viii.

Organizations perceived as open and trustworthy by stakeholders and the public are more likely to recover their legitimacy quickly after crises, reducing damage to their image. ix. Maintaining transparency in a crisis: a. Transparency during a crisis is challenging due to privacy concerns, potential lawsuit disadvantages, proprietary information, uncertainty in determining action, potential offending stakeholders, and the need to commit too soon. b. These factors make it difficult for organizations to maintain transparency and effectively manage crises, despite the right to privacy, security, and control of certain information. x. Strategic ambiguity: a. Communicators are deliberately vague, which allows them to appeal to multiple audiences. b. Strategic ambiguity can be used for moral purposes, but should be justified when uncertainty arises or proprietary concerns arise. c. Appropriate in early crisis situations, when information is scarce, ambiguous messages are less justified later when more data is available. xi. Avoiding stonewalling:

a. Uncooperative communication designed to hinder or redirect the flow of information. b. Swift response, detailed information, honesty, and prioritizing the needs of victims over organizational assets in crisis situations are extremely important. xii.Manner of criticism: Manner refers to the form of the communication, which needs to be truthful, sincere, timely, voluntary, sure to address all stakeholders, and in the proper context. xiii.

Content of criticism: Content clearly acknowledges wrongdoing, accepts full responsibility for what happened, expresses regret for the offense, the harm done, and failure to carry out responsibilities, identifies with the injured parties, asks for forgiveness, seeks reconciliation with injured parties, fully discloses information related to the offense, offers to carry out appropriate corrective action, and offers appropriate compensation.

C. Take Decisive (Heroic) Action i. Heroic crisis leaders take decisive action in disasters, despite potential criticism and blame, driven by the belief that doing something is better than nothing, even with slim chances of success. ii. Strategies used by heroic leaders: a. The Stand-Off: Heroic leaders may deliberately provoke conflict in order to address an underlying or hidden crisis. b. The Gamble: Crisis leaders often face no win situations, having to be the deciding vote when deciding between “two evils.” c. Systematic Use of Luck: Prolonging the crisis event in hopes that the situation will change due to events outside the leaders’ control. d. The Gambit: Involving trading off one resource to gain something else. e. Order of Magnitude: Leaders using this tactic try to “get ahead of” the crisis by ramping up the magnitude of the response.

D. Demonstrate Care and Concern i. Demonstrating concern has practical and ethical benefits, as it draws public condemnation. ii. Leaders and organizations should act compassionately for image, financial, and ethical reasons, not just for meeting observers’ expectations.

iii. Altruism is crucial in crisis situations, as it encourages meeting the needs of those threatened, regardless of their status. iv. Post-traumatic stress disorder is common, and triggering events like mass shootings can cause surprise, anger, fear, and disbelief for everyone involved. v. Ethical leaders address the emotional and spiritual demands of crises by maintaining constant communication, calming fears, helping followers regain focus, emphasizing community, arranging counseling, and fostering hope while honoring the past for group healing. vi. The care ethic is applied to crisis management, fostering preparation and addressing concerns. vii.It encourages individuals to take complaints seriously, identify danger signs, and voice concerns, often going beyond legal or fairness requirements.

E. Engage the Head as Well as the Heart i. Moral leaders, possessing both strategic and ethical rational thinking, are highly mindful and responsive to ethical crisis management, demonstrating a balance between care and compassion. ii. First-class noticers are adept at detecting flaws, deception, and contradicting beliefs, while ethical leaders take personal responsibility for not anticipating crises and blaming external forces. iii. Collective mindfulness is the key to creating high-reliability organizations HROs that rarely fail even though they face unexpected events. iv. Being preoccupied with failure, reluctant to simplify, sensitive to operations, commitment to resilience, and deference to expertise.

F. Responding from a Strong Moral Foundation i. During a disaster, managers must make quick decisions without guidance. ii. Preparation, which includes training, planning, and instilling corporate values, increases the likelihood of wise choices among individuals. iii. Ethical response during a crisis is crucial as it allows individuals to adapt to specific challenges, prioritize damage control, and help victims, rather than focusing on profit, ensuring the group’s future. iv. Ethical responses necessitate employees’ empowerment to act independently, knowing both the moral course of action and their choices.

G. Build Resilience i. Resilience: The collective ability to bounce back from a crisis. ii. Key attributes of self-resilience: a. Rebounding/reintegration: ability to move on in a positive direction after adversity. b. High expectancy/self-determination: a sense of purpose; conviction that barriers can be overcome; not feeling overwhelmed by hopelessness or extreme challenges. c. Positive relationships/social support: healthy connections that provide communication and assistance. d. Sense of humor: ability to make light of adversity and the self, which encourages coping and moderates intense emotional reactions. e. Self-esteem/self-efficacy: high self-worth; confidence in the ability to respond to challenging circumstances. iii. Leaders fostering resilience: a. Transformational leadership behaviors foster subordinate resilience by encouraging shared values, inspiration, intellectual stimulation, and individualized consideration. b. Idealized influence, inspiration, intellectual stimulation, and individualized consideration build self-efficacy, enabling effective crisis response and increased investment in problem-solving. iv. Features of resilient organizational cultures: a. Psychological safety: To feel safe, people must be free to ask questions, experiment, and admit mistakes without fear of being seen as ignorant or incompetent. b. Deep social capital: Deep social capital is built over time on respectful, face-to-face interactions based on honesty and trust. c. Diffused power and accountability: Resilient organizations disperse influence and accountability instead of being managed top-down. d. Access to broad resource networks: Resilient firms develop relationships with suppliers, neighboring businesses, and other groups that they can draw upon when faced with a traumatic event.

IV. The Ethical Demands of Extreme Leadership i. Groups operating in crisis environments: First responders, mountain climbers, combat units, Special Weapons and Tactics (SWAT) teams, wildlife photographers, skydivers, and search and rescue teams. ii. Extreme competence in extreme settings: a. Competence involves not only knowledge of the domain but also the ability to make quick ethical choices in constantly changing, ambiguous circumstances. b. Extreme leaders exhibit resilience, demonstrating coping strategies for group members, and utilizing physical stamina to overcome obstacles and make ethical decisions. iii. Character beyond normal expectations: a. Character is crucial in life-and-death situations, especially in extreme settings where ethos is required. b. Ethos drives extreme leaders to risk injury and death, sacrificing for others. iv. Critical components of ethos: a. Courage: Extreme leaders choose to put themselves in danger and take on more than their fair share of risks. b. Optimism: Successful leaders offer hope that keeps the group going. c. Integrity/Authenticity: Followers in high-risk situations want consistent leaders who are transparent about the challenges facing the group. d. Loyalty: Extreme leaders are intensely loyal to their followers, constantly looking out for their welfare. e. Caring: In order to perform under dangerous conditions, followers must be convinced that their leaders genuinely care for them. f.

Humility: Many extreme leaders live modestly.

v. Core values and personal purpose: a. Ethical leaders prioritize their core values and personal purpose, which are crucial in navigating danger.

b. Defining these values allows them to live out their principles, while clarifying their personal purpose encourages risk-taking. c. Self-awareness comes through self-reflection. d. Extreme leaders possess a sense of agency, enabling them to be proactive and take on challenges. e. Moral agency is based on self-efficacy, which is built through realistic training, such as soldiers, pilots, and astronauts. vi. Respect for human rights: a. The principle of necessity: Military and police forces only use lethal force or creating risk for others when there is no other option. b. The principle of proportionality: Soldiers and law enforcement personnel should use just as much force as needed to accomplish the mission while preserving the rights of those affected by the mission c. The principle of immunity: law enforcement personnel shouldn’t intentionally harm those who don’t pose a threat.