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