The Ethical Leader September 16, 2008

Shirley M. Edwards, PMP

Vice President, Wachovia Corporation

Graduate, PMI Leadership Institute, 2004

PMI Ethics Review Committee, 2007-2009

The Ethical Leader

Why Do I Need to Understand Ethical Leadership?

Based on a study by Kang Lee, PhD at University of Toronto & Victoria Talwar,

PhD at McGill University in Montreal of 172 children between the ages of 6-11:

50% of the children cheated on

a task to get a reward for

giving the correct answer

Among the 50%,

93% lied about cheating

Older children were more

sophisticated in their lies

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The Ethical Leader

Lying is Categorized in Four Basic Groups?

* “Children and Lying”, Susan McGinley, University of Arizona College of Agriculture and Life Sciences

80%

10%

5%

5%

Pro-Social

Self-Enhancement

Selfish

Anti-Social

The Ethical Leader

“But… That’s What Little Children Do,

Right?”

In a study conducted by Dr. Nancy Darling at

Penn State University:

98% of teens reported lying to their parents

Out of 36 topics, the average teen lied to his

parents about 12

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*

The Ethical Leader

“Well, We All Know That Teenagers Lie! So What?”

Children often learn lying

from their parents:

“When adults are asked to

keep diaries of their own

lies, they admit to about

one lie per every five

social interactions, which

works out to one per day,

on average.”

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* “Learning to Lie”, Po Bronson, New York Magazine, 02/10/08

The Ethical Leader

And The Trend Continues…

“Only 25% of employees trusted their chief executives to tell the truth and just 2%

felt business chiefs set a good moral example.”

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* Unethical Statistics Announced At Business Leaders Event, Strategic Management Partners, http://www.consult-smp.com

The Ethical Leader

People are People! How Does All of This Affect Me in The Project Management

Profession?

“Fraud and falsification are highly destructive to market capitalism

and, more broadly, to the

underpinnings of our society…

Our market system depends

critically on trust. Trust in the

word of our colleagues and

trust in the word of those

with whom we do business.”

Alan Greenspan

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The Ethical Leader

How Does Unethical Leadership

Impact My Business?

Unethical Leadership

can negatively impact

an organization’s

bottom line and even worse,

can lead to organizational

failure…

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The Ethical Leader

How Does Unethical Leadership

Impact My Organization?

Unethical Leadership

promotes unethical

behavior across entire

organizations.

Bad Leaders yield

Bad Followers…

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The Ethical Leader

How Does Unethical Leadership

Impact My Employees?

Unethical Leadership

can diminishing our

faith and confidence in

our role models. It

attracts poor performers

and repels high

performers.

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The Ethical Leader

So, Why is Understanding Ethical

Leadership Really Important?

The Value Proposition:

“Ethical leadership honors the

emotional needs of people for

respect and meaning, which are

reflected in ‘quantum leaps in

personal and organizational

effectiveness.’”

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* “Ethical Leadership: Right Relationships and the Emotional Bottom Line”, Desmond Berghofer & Geraldine

Schwartz, Institute for Ethical Leadership

The Ethical Leader

Okay. Then, How is a Leader Different From an Ethical Leader?

What is Leadership? ]

"Leadership is like

follow the leader. You

follow someone

around until they do

something really

stupid and then you

follow someone else.”

Davey Edwards

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The Ethical Leader

What is “Ethical Leadership”?

“Ethical leadership is

knowing your core values

and having the courage to

live them in all parts of

your life in service of the

common good.”

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* “Ethical Leadership”, Center for Ethical Leadership, http://www.ethicalleadership.org

The Ethical Leader

Ethical Leaders:

“Articulate and embody the purpose and values of the organization

Focus on organizational success rather than personal ego

Find the best people and develop them

Create a living conversation about ethics, values and creation of value for

stakeholders

Create mechanisms of dissent

Take a charitable understanding of others’ values

Make tough calls while being imaginative

Know the limits of the values and ethical principles they live

Frame actions in ethical terms

Connect the basic value proposition to stakeholder support and societal legitimacy”

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•“Developing Ethical Leadership”, R. Edwards Freeman & Lisa Stewart, Institute for Corporate Ethics

The Ethical Leader

Standards of Excellence Followed by Ethical Leaders:

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* “Five Standards of Excellence Practiced by Ethical Leaders”, Laurie Haughey, Workforce Management Online, 11/03

Ethical

Communication

Collaboration

Succession

Planning Tenure

Quality

The Ethical Leader

What Truly Differentiates an Ethical Leader?

Steven Covey describes eight “Laws of the Universe” that form the principles

upon which Ethical Leadership is based:

1. Trust

2. Respect

3. Integrity

4. Honesty

5. Fairness

6. Equity

7. Justice

8. Compassion

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The Ethical Leader

Do you have a clearly defined “Code of Conduct”?

“Ethics codes should be seen as providing limits to the means that may be

employed to achieve organizational aspirations, but otherwise freeing the moral

imagination to reach for them.”

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*“Ethics, especially Organizational Ethics, and how it relates to economics and politics”, May 2003,

www.ethicaledge.com

The Ethical Leader

What are the Components of Your “Code of Conduct”?

PMI “Code of Ethics & Professional Conduct” Key Categories:

Vision & Applicability

Responsibility

Respect

Fairness

Honesty

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The Ethical Leader

How Can You Embrace Ethical Leadership?

Operating Modes of Ethical Leadership

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* “The role of Leadership in Organizational Integrity, and five modes of Ethical Leadership”, Kenneth W. Johnson,

http://www.ethicaledge.com, 7/16/05

Inspiration

Facilitation

Persuasion

Manipulation

Coercion

The Ethical Leader

What Questions Do Ethical Leaders Ask to Solve Problems?

“What are the consequences of alternatives on those who will be affected?

Who has rights in the situation that you must respect? Golden Rule

What messages do you want to send about your values and the values of your

organization?

What’s going to work? Will it accomplish your purpose?”

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* Interview of Professor Joseph Badaracco, John Shad Professor of Business Ethics at Harvard Business School,

David Rosenbaum, CIO Magazine, 05/24/06

The Ethical Leader

What Would The ULTIMATE Ethical Leader Ask?:

“Is it legal?

Does it comply with our workshop rules & guidelines?

Is it in-sync with our North Pole values?

Will I be comfortable, guilt-free or even jolly if I do it?

Does it support our goals, commitments and mission?

Would I do it to my family or friends?

Would I be perfectly okay with someone doing it to me?

Would the most ethical individual I know of do it?”

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* “The Leadership Secrets of Santa Clause: How to Get Big Things Done in Your ‘Workshop’ All Year Long”, The

Walk the Talk Company, 2003

The Ethical Leader

How Can You Self-Assess Your Ethical Leadership

from a Professional Perspective?

“What are my most important values and principles?

Does my calendar (how I spend my time and attention) reflect those values?

What would my subordinates and peers say my values are?

What mechanisms and processes have I designed to be sure that the people

who work for me can push back against my authority?

What could this organization do or ask me to do that would cause me to resign

for ethical reasons?

What do I want to accomplish with my leadership?”

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* “Developing Ethical Leadership”, R. Edwards Freeman & Lisa Stewart, Institute for Corporate Ethics

The Ethical Leader

How Can You Self-Assess Your Ethical Leadership

From a Personal Perspective?

“What do I want people

to say about my leadership

when I am gone?

Can I go home at the end

of the day and tell my

children (or a loved on)

about my leadership, and

use my day’s work to teach

them to be ethical leaders?”

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* “Developing Ethical Leadership”, R. Edwards Freeman & Lisa Stewart, Institute for Corporate Ethics

The Ethical Leader

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Trust

Knowledge Authority

Purpose

Leadership

Ethical

Leadership

QUESTIONS & ANSWERS?

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