1. Leadership & Ethics
Ethical Behavior
Trustworthiness Respect Responsibility
James Crawford
James Crawford
jcrawford71@cox.net
jamescrawford10@skype
www.linkedin.com/in/jamesacrawford

3. What, then, is Ethics?
Ethics is two things. First, ethics refers to well-founded standards of right and wrong that
prescribe what humans ought to do, usually in terms of rights, obligations, benefits to
society, fairness, or specific virtues. Ethics, for example, refers to those standards that
impose the reasonable obligations to refrain from rape, stealing, murder, assault,
slander, and fraud. Ethical standards also include those that enjoin virtues of honesty,
compassion, and loyalty. And, ethical standards include standards relating to rights, such
as the right to life, the right to freedom from injury, and the right to privacy. Such
standards are adequate standards of ethics because they are supported by consistent
and well-founded reasons.
Secondly, ethics refers to the study and development of one's ethical standards. As
mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it
is necessary to constantly examine one's standards to ensure that they are reasonable
and well-founded. Ethics also means, then, the continuous effort of studying our own
moral beliefs and our moral conduct, and striving to ensure that we, and the institutions
we help to shape, live up to standards that are reasonable and solidly-based.
Source: http://www.scu.edu/ethics/practicing/decision/whatisethics.html

4. Ethical Decision Making Framework
Ethical Issue
Intensity
Factors
Individual Factors
Organizational
Organizational Ethics or Unethical
Factors Behavior
Business Ethics
Evaluations and
Opportunity
Intentions
Source: Ferrell, O., Fraedrich, J. , Ferrell, L. (2008). Business Ethics. Ethical Decision Making and Cases (7 th
ed.). Houghton Mifflin Company. Boston.

5. Ethical Decision Making
Individual Organizational
Opportunity
Factors Factors
• Education • Corporate • Immediate
• Nationality Culture Job Context
• Age • Ethical
• Locus of Culture
Control • Obedience to
Authority
Source: Ferrell, O., Fraedrich, J. , Ferrell, L. (2008). Business Ethics. Ethical Decision Making and Cases (7th
ed.). Houghton Mifflin Company. Boston.

6. Leadership in a Corporate Culture
“Leadership, the ability or
authority to guide or direct
others toward achievement of
a goal, has a significant
impact on ethical decision
making.”
Source: Ferrell, O., Fraedrich, J. , Ferrell, L. (2008). Business Ethics. Ethical Decision Making and Cases (7th
ed.). Houghton Mifflin Company. Boston.

7. Leadership Traits for Ethical Decision Making
Trustworthiness
Respect
Responsibility
Fairness
Caring
Citizenship
Critical Thinking:
Can a leader make ethical decisions
without these traits? Explain.
Source: http://josephsoninstitute.org/MED/index.html

8. http://www.1000ventures.com/business_guide/crosscuttings/leadership_values-based.html

9. Leadership Styles
Critical Thinking: Which style is most effective?
Least effective? Why?
Source: http://www.gp-training.net/training/leadership/results.htm

10. Source: http://www.1000ventures.com/business_guide/crosscuttings/shared_values.html#GE%20Values%20Guide

11. Transactional Leadership vs. Transformational Leadership
Spark Question:
Can transformational leadership be unethical?
Source: http://www.theahriproshop.com/ss.html

12. 7 Habits of Strong Ethical Leaders
1.Ethical leaders have strong personal character.
2. Ethical leaders have a passion to do right.
3.Ethical leaders are proactive.
4.Ethical leaders consider stakeholders' interests.
5.Ethical leaders are role models for the organization's
values.
6.Ethical leaders are transparent and actively involved in
organizational decision making.
7.Ethical leaders are competent managers who take a
holistic view of the film's ethical culture.
Source: http://www.ar.cc.mn.us/gallop/S08%20Chapter%20Summaries/Chapter%205.pdf

13. Strong Personal Character
Source;
http://www.google.com/imgres?imgurl=http://1.bp.blogspot.com/_y8ag4VGcCHo/Sul0oeAM7zI/AAAAAAAACr8/T9lwZaHmErA/s200/lbj.jpg&imgrefurl
=http://mikecorthell.blogspot.com/2009_10_01_archive.html&usg=__JVyp9UGL1o6PdlkqWq1Y_apWGp4=&h=176&w=200&sz=12&hl=en&start=110&
zoom=1&tbnid=u5kjzOnsO9NLaM:&tbnh=137&tbnw=159&prev=/images%3Fq%3DEthical%2BLeaders%2Bbefore%2B1960%26um%3D1%26hl%3Den
%26sa%3DN%26biw%3D1260%26bih%3D632%26tbs%3Disch:10%2C3034&um=1&itbs=1&iact=hc&vpx=371&vpy=204&dur=1859&hovh=140&hovw=1
60&tx=31&ty=167&ei=pnWATJTMDJH4sAO9tIDXBA&oei=g3WATILWFYr0swPJtNHVBA&esq=7&page=7&ndsp=20&ved=1t:429,r:1,s:110&biw=1260&
bih=632

14. Ethical Leaders Passion to do What's Right
Source: http://ethisphere.com/?s=questionnaire

15. Ethical Leaders are Proactive
Source: http://www.pacrao.org/docs/resources/writersteam/EthicalBehaviorforTodaysWorkplace.pdf
http://www.emeraldinsight.com/journals.htm?articleid=839319&show=html

16. Ethical Leaders Consider Stakeholder Interests
Source: http://www.ethicsmanagement.info/content.php?pagina=4&type=0

17. What An "Ethical Organization" Looks Like
Source: http://www.asc-csa.gc.ca/eng/publications/comptrollership-dec2003.asp

18. Challenges Facing Ethical Leaders
 Corporate Culture
 Communication Style
 Organization Direction
 Decision Making
 Feedback Mechanisms
Source: http://ezinearticles.com/?How-Are-You-Handling-The-Five-Biggest-
Challenges-Facing-Managers-and-Business-Owners-Today?&id=285712

19. Spark Question: How much emphasis
does your firm place on CSR?
Source: http://www.research-live.com/talk-normal/4001001.bloglead

20. The world has been utterly transformed in recent years by a
phenomenon affecting us all, what we call globalization.
Although there was a time when it was possible for citizens of
one country to think of themselves as owing no obligation to
the people of other nations, admittedly that was long ago.
Today national borders have less meaning as issues of trade,
environment, and health, along with incredible technological
advances of the last century, have left us with a legacy of
connectedness we cannot ignore.
Spark Question:
Assume you’re the leader of a
Transnational Corp. What is your
organizations policy for global ethics?
Source: http://www.cceia.org/resources/transcripts/164.html

21. Employee Pilfering
Source: http://www.stoutsecuritysolutions.com

22. “Spark” Questions
The following practice questions are designed to spark your thinking
about leadership and ethics. They are intended to inspire you to think
creatively about the topic. The goal is that your insights with these
questions will lead to greater discussions and written papers.
1. What is the most significant influence on ethical behavior in your
organization?
2. Describe the conditions that prohibit or encourage ethical behavior in
a firm.
3. How does obedience to authority hinder ethical development?
4. Are transactional or transformational leaders more equipped to lead
an ethical organization?