ethics, social responsibility & leadership. ethics ä the moral evaluation of decisions based on...
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Ethics, Social Responsibility & Leadership
Ethics
The moral evaluation of decisions based on commonly accepted principles of behavior; the evaluation results in an action being judged right or wrong.
Factors Affecting Ethical Decision Making
Moral Values deontology teleology
Opportunity codes policies rewards/punishment
Significant Others management peers
Suggestions for Improving Ethical Behavior
Offer training programs which independently and explicitly address specific treatment of ethical issues.
Limit the opportunity to engage in unethical behavior by providing a well-developed structure and system of checks and balances, including explicit penalties for unethical behavior.
Let employees know what penalties the company imposes on those who engage in unethical behavior.
Recognize how the behavior of co-workers and superiors can influence the behavior of other employees in the organization.
Develop a code of ethics or ethical policies that are widely communicated and enforced.
In larger organizations, develop an ethics committee to address new issues and help establish and evaluate existing codes and policies.
Eliminate the “bad apples”. Source: Ferrell, O.C. and Gareth Gardiner (1991), In Pursuit of Ethics, USA: Smith Collins.
Social Responsibility
Social responsibility is an organization’s obligation to maximize its positive impact and minimize its negative impact on society.
Community Relations
Green Marketing
Understanding Social Responsibility and Ethics in a Global Business Environment
Self-Reference Criterion unconscious reference to one’s own cultural values, experiences, and
knowledge as a basis for decisions
Foreign Corrupt Practices Act makes it illegal for U.S. companies to pay bribes to foreign officials,
candidates, or political parties bribery vs extortion vs lubrication
International Environment no local law local practices condone a certain behavior favored company is one that “does what is necessary”
Tough-Minded Management and Social/Ethical Responsibility
Continuum of Managerial Authority The Tough-Minded Manager:
Accepts that risks must often be taken and that conflict is inevitable in making tough choices;
Understands that short-run losses may be inevitable and unavoidable to achieve long-run success;
Believes that the best long-run approach to business is integrity; Is aware that ethical problems may arise in the workplace, and of how ethical
decisions are usually made in the workplace; Has reached a level of moral development where economic self-interest is not
paramount, and where persona ethical values are important; Has learned that trust is the glue that holds business relationships together; Believes strongly that maintaining self-esteem and self-respect outweighs material
gain. Source: Ferrell, O.C. and Gareth Gardiner (1991), In Pursuit of Ethics, USA: Smith Collins.
Integrating Ethics & Social Responsibility into Marketing Strategy
A Planning Model
Leadership Defined
Leadership is any behavior that develops or uses power to influence other peoples’ behavior. It is used by management to achieve enthusiastic, willing, zealous participation of followers to accomplish the organization’s objectives.
Leadership Styles
Research has shown that managers have a tendency to use thesame leadership behaviors or process regardless of the peoplethey are trying to influence or the specific situation. This isreferred to as your default style. It is important to recognize thatno one leadership style is best, rather a mix of styles dependingon the people and the situation provide the best results. Basedupon the work of David McClelland and work by fellowresearchers at McAer and Company, six leadership stylesemerge as follows:
Coercive: Managers with this style tend to expectimmediate compliance with their directions and solicit verylittle to no input. They manage by controlling subordinatestightly and tend to influence with discipline.
Authoritative: Managers who use this style are often referredto as "firm but fair." They tend to manage by providing clearinstruction, soliciting some input (while leaving no doubt as towho is boss), monitoring behavior, and motivating with bothdiscipline and rewards. They see influence as a key part of themanager's job.
Affiliative: Managers with this as their dominant leadershipstyle tend to feel people come first and tasks second. They seethe manager's job as one of maintaining a pleasant workingenvironment and providing job security and other benefits. Theywant to be liked and they tend to provide little direction,especially feedback about unsatisfactory performance.
Authoritative: Managers who use this style are often referredto as "firm but fair." They tend to manage by providing clearinstruction, soliciting some input (while leaving no doubt as towho is boss), monitoring behavior, and motivating with bothdiscipline and rewards. They see influence as a key part of themanager's job.
Affiliative: Managers with this as their dominant leadershipstyle tend to feel people come first and tasks second. They seethe manager's job as one of maintaining a pleasant workingenvironment and providing job security and other benefits. Theywant to be liked and they tend to provide little direction,especially feedback about unsatisfactory performance.
Democratic: These managers are known for their participative style. Theytend to believe that individuals and groups function best when allowed towork together and, therefore, tend to feel that close supervision or verydetailed instructions are not necessary. Democratic managers tend to holdmany meetings, they reward adequate performance, and they dislikedisciplining employees.
Pacesetting: These managers like to perform technical activities as wellas manage. They have very high standards for themselves and expect the
same of others. These managers usually expect their employees to develop a
keen sense of personal responsibility. They often have little concern for
interpersonal relations and may reassign work if employee ability or
willingness hampers performance.
Coaching: Managers using a coaching style see themselves as
developing their employees and have high standards of performance. They
delegate authority and allow followers flexibility in setting goals and
completing tasks. They provide strong support when needed.
Democratic: These managers are known for their part icipative style.They tend to believe that individuals and groups function best whenallowed to work together and, therefore, tend to feel that closesupervision or very detailed instructions are not necessary. Democraticmanagers tend to hold many meetings, they reward adequateperformance, and they dislike disciplining employees.
Pacesetting: These managers like to perform technical activit ies aswell as manage. They have very high standards for themselves and
expect the same of others. These managers usually expect their
employees to develop a keen sense of personal responsibility. They
often have little concern for interpersonal relations and may reassign
work if employee ability or willingness hampers performance.
Coaching: Managers using a coaching style see themselves as
developing their employees and have high standards of performance.
They delegate authority and allow follo wers flexibility in sett ing goals
and completing tasks. They provide strong support when needed.
Leadership Styles Summary
Coercive "do it or else"
Authoritative "firm but fair"
Affiliative "good buddy"
Democratic "let's vote"
Pace Setting "follow me"
Coaching "developer,delegator"
Leadership Style Advantages and Disadvantages
CoerciveAdvantages Short term efficiency - fast
Clear line of authority - know who is in charge and desired action is usually taken
Disadvantages: Most people don't like it Inhibits employee growth and development May lead to high staff turnover
AuthoritativeAdvantages Efficient
Clear who is in charge A way of exercising power without intimidation
Disadvantages Not conducive to personal growth and developmentSome people may not like it Could lead to turnover
AffiliativeAdvantages: Keeps people happy (short term)
Allows people freedom
Disadvantages: Change is avoided and beco mes a source of conflict
Low productivity
Decisions may not be in the best interest of the
organization
Little encouragement for personal growth
DemocraticAdvantages: Involves people
Opportunity for personal and organizational growth
Disadvantages: Time consuming Losers may sabotage organizational goals Majority decisions aren't always in best interest of
the organization
Pace &SettingAdvantages: Can be very productive (short term)
Works well with committed followers
Disadvantages: Doesn't work well with unwilling or unable followers Followers may not follow Problem in absence of the pacesetter
CoachingAdvantages: Encourages growth and development
Long-term productivity
People respond well
Disadvantages: Time consuming
Costs are high if you have turnover due to the
development investment that is lost
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