Case Study & Ethical Leadership: Assessment Answer
Answer:
While conducting the debate, the group believed that Mike believes that a company is ethical if they have good people around in the organization, following good rules and regulations and by making effective decisions. Similarly, Jan who is the CEO of Clean Solutions Inc believed that helping others helps to manage the business properly and builds ethical leadership in the environment. Thus, she offers educational facilities in Guatemala and also provides a job opportunity which helps people to gain self-motivation, self-reliance and self-respect. As Jan strives towards the normative anticipation of being a managerial conscience, promotes her feminist ethical behavior (BLACKMORE, 2013). This depicts the massive power of a woman to change the world. Some groups have debated by saying that Mei-Hua who believed strong and strict ethical code of conducts in the organization helps in leading an ethical business. This also helps an organization in generating profit. Thus she believes that people in the organization should be treated fairly and should adhere to the rules and regulations. This kind of behavior shows that she is showing consequentialist utilitarianism (Price, 2008), where she ensures that society adheres to the ethical code of conduct which would help to maximize the goodness of the society. Discussing the Deshi’s character, the groups believe that he is against ethics. He believes leadership is just about developing better strategies and making the organization profitable. He says that the COCG (Codes of Corporate Governance) acts as a constraints in the business, which stops business man to make money. This attitude of Deshi, can be said to be a consequentialist Egoism, as he is concerned about his own interest and own principles that would take him to a big company from a new graduate starter.
Jan, Mei-Hua and Mike show a transformational normative leadership. As both of them believe that justice, ethics are the values that would help to build up the society in an ethical way (Ciulla, 2014). They are acting like authentic leaders who ultimately believe that ethical performance and standards give intellectual stimulation (Nichols and Erakovich, 2013). Jan and Mike believe that adhering to COCG will lead to profit making. Thus it is necessary to take appropriate actions against the members who fail to adhere to the rules and regulations as per the ethical code of conduct. This indicates that they are at the second level that is the conventional level, according to Kohlberg theory. They believe that individuals should recognize the rules and regulations for the betterment of the society (Lindsley, 2011). They show an interpersonal normative morality. Mei-Hua on the other way shows that ethics depends on the context and situation. This is an ethical dilemma which she is facing. Mei-Hua believes that organizations must advocate COCG for setting up a good example, but as per the need. She thus says that there is nothing wrong in bending the rules and regulations but should be very careful of being caught. On the other hand she strictly believes in adhering to the rules and regulations. This shows that she believes in morality of prescriptive, reversible and unversalizable ethical principles. She is at the post-conventional level of Kohlberg theory (Kohlberg, 2005).
As mentioned that Deshi believes that ethics and COCG act as barrier in business. According to OECD (2004), the role of directors is to act according to the interest of an organization. They need to consider the interest of both, stakeholders and shareholders. By following and promoting the ethical code of conduct, an organization can increase the financial stability in the market and also increase the economic growth. However the COCG does not follow the stakeholder’s theory which states that company should always benefit the stakeholders even if the organization is not performing better or losing its profitability, instead COCG guides the directors to act according to the interest of the whole company. However, Deshi is totally against this role of directors. He is much more interested in making profit instead of following ethical principles. This shows that he is transactional normative leader. His attitude and thinking towards the ethics demonstrates that he focuses on meeting the low-level needs of the followers instead of the terminal values like justice, liberty etc to reach high goals. This also indicates that he is autocratic in nature. He totally falls under the level of pre-conventional where he judges everything based on his needs, perspective and direct consequences (Kohlberg, 2005).
Before concluding, the author would like to say that, COCG is a guideline that organization should follow to avoid external risks. Every individual in the society have different behavior, so ethical leadership may not be everybody’s trait but has to followed for better performance of the organization.
References
BLACKMORE, J. (2013). A feminist critical perspective on educational leadership. International Journal of Leadership in Education, 16(2), pp.139-154.
Ciulla, J. (2014). Ethics, the heart of leadership. 3rd ed. Westport, Conn.: Quorum Books.
Kohlberg, L. (2005). Moral stages and moralization: The cognitive-developmental approach. In M.E. Wilson & L.E. Wolf-Wendel (Eds.), ASHE reader on college student development theory(pp. 549-568). Boston, MA: Pearson Custom Publishing
Lindsley, R. (2011). Constructive developmental theory and programming across cultures.
Nichols, T. and Erakovich, R. (2013). Authentic leadership and implicit theory: a normative form of leadership?. Leadership & Org Development J, 34(2), pp.182-195.
Oecd.org, (2004). OECD Principles of Corporate Governance - OECD. [online] Available at: https://www.oecd.org/corporate/oecdprinciplesofcorporategovernance.htm [Accessed 30 Jan. 2015].
Price, T. (2008). Leadership ethics. Cambridge: Cambridge University Press.
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