Ebbers’s WorldCom
Ethics are the principles and values an individual uses to govern his activities and decisions. In an organization, a code of Ethics is a set of principles that guides the organization in its programs, policies and decisions for the business. The ethical philosophy that is used by an organization to conduct business can affect the reputation, productivity and bottom line of the business (1).
‘Ethics must begin at the top of an organization. It is a leadership issue and the Chief executive must set the example’ –Former Chief Justice Edward Hennessey, Massachusetts Supreme Judicial Court (3).
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1. To what extent where the actions of Bernard Ebbers indicative of leadership, and to what extent did Ebbers
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In addition, there appeared to be no entrenched ethical culture and climate at WorldCom. A strong structured environment that establishes and enforces codes of conducts and legal compliance might have discouraged Ebbers’s lieutenants from following in his footstep (2).
5. Consider the characteristics of the ethical leader in chapter 3. How does such a leader encourage ethical behavior among managers and employees, and at the same time obtain successful organizational results? Could Ebbers have used these characteristics to accomplish his goals at WorldCom?
Ethical leaders espouse moral values, altruism, civic virtue, good citizenship behavior and conscientiousness both in their personal and professional lives. They imbibe the same core values in their followers. They demonstrate moral judgement in their decision making process, influenced by the long term interest of the stake holders. Also ethical leaders hold their followers accountable for their conduct and establish a reward and vicarious learning process for ethical conducts
This paper will first discuss briefly what ethics are and provide the definition for an ethical issue. An ethical leadership issue is identified and explained for this author’s practice area. We will then identify and discuss key strategies for leadership that are pertinent to the ethical issue. Next, empirical evidence which supports the strategies discussed will be analyzed. Then, the impact and importance of the strategies will be stated. The final step will be to provide a conclusion to the reader that summarizes the content and strategies.
Dyck and Neubert (2012) defined ethics as "[A] set of principles or moral standards that differentiate right from wrong". It is a way of determining the morality of any action. It is important that managers adhere to ethical principles that will guide them in making appropriate and ethical decisions for the company. Thus, Roger Berg, being Vice-President of Planning at The Lake Corporation plays a significant role in the company in ensuring that decisions are made without tarnishing management ethics. He must face and weather through the challenges caused by other sources that could put him in ethical dilemma situations and push him to render management decisions violating ethics.
Mostly, how ethics produce effective leaders will stress how good leadership is impossible without ethics. Throughout this paper, the reader will develop an understanding of what is personally required to
Everything in life has a trade off. "Ethics is defined as the moral principles that govern a persons behavior." Ethics is constructed by society, and personal values, the purpose of code of ethics is that it gears all organizational conclusions, creating a groundwork in which all conclusions are drawn. This can benefit to build a sense of barriers through the organization. A well thought out code of ethics can assure a companies standing. Looking at the world of business and ethics, it is clear to see that there are many possible tradeoffs. One can be loyal to the company, and not have the best success, or one can be deceiving and manipulating in order to become rich and successful. The motivation for researching this topic is to see how the
The topic that we choose is “The relationship between Leadership and Ethics”. The term ethics has been defined as inquiry into the nature and grounds of morality or a branch of philosophy of human conduct and determine right and wrong (Ferrell, Fraedrich & Ferrell, 2010). In the other words, it includes study of general nature of moral, specific moral choices, moral philosophy, and rules or standards of governing the conduct of the member of a profession (Ferrell et al., 2010).
In the workplace as well as one’s personal life is essential for ethics to be maintained; often taking the right action is not always the most popular choice. It is important for maintaining an upstanding ethical code of conduct to be a productive individual as well as function as an employee in the workplace.
According to Johnson (2012) leaders are powerful role models, and policies will have a little effect if leaders do not follow the rules they set. In Enron case, corruption and ethical misconduct were deeply embedded in their business culture where profitability was more important than ethics. In this paper, I will address the factors that had led to the development of the culture of profit before principle at Enron. Also, I will create my personal code of ethics that will guide me in my professional and personal decision making and doing the right thing when faced with ethical challenges.
Ethics are significant for all people, especially for someone in a leadership role. Frequently, some leaders turn to immoral and unethical behaviors and decisions. Defining and applying an ethical decision to a difficult situation can make a huge difference between positive and negative consequences for organizations (University of Oklahoma College of Liberal Arts, n.d.). Ethics in Leadership offers a general idea of applied ethics related to leadership situations in society and organizations. For a leader, it is a challenge to exercise power wisely, without unnecessary selfishness and keeping moral integrity. The study of ethics allows individuals to examine and view ethical issues from several prospectives, identify the problem for a better understanding, and to practice ethical thinking in developing a useful solution (University of Oklahoma College of Liberal Arts,
At the end of the day, the best explanation for fostering an ethical behavior is not a difficult one, but an encouraging approach by the leaders of the organization (Mullane 2009). Ethical behavior is essential and must be reflected in the leaders and shaped by those they led. Ethics-based approaches to leadership believes that the leader is not always the one with all the knowledge. Such an approach believes that the followers are just as important as the leader and that the followers should be the main focus and encouraged. Ethics-based approaches believe the leader should put aside his or her personal interests. The following pages will review some perspectives regarding ethical leadership.
The paper focuses on interviewing a business leader who is seen to apply ethical business practices in the organization they lead with an aim of finding the important elements in ethical leadership. The interview is scheduled for 30 minutes where the interviewer will ask the ethical leader various questions pertaining to ethical leadership. Some of the questions that will be asked include, What is your leadership background? What are the traits of an ethical leader? what are the values of an ethical leader? What is the importance of ethical leadership in a competitive environment? Does ethical leadership affect customer relations? Do you observe ethics while interacting
This broader concept of ethical leadership empowers leaders to incorporate and be explicit about their own values and ethics. The following list provides a framework for developing ethical leadership. It is based on the observations of and conversations with a host of executives and students over the past 25 years, and on readings of both popular and scholarly business literature. Written from the perspective of the leader, these ten facets of ethical leaders offer a way to understand ethical leadership that is more complex and more useful than just a matter of “good character and values.”
“Ethical leadership is leadership that is directed by respect for ethical beliefs and values and for the dignity and rights of others. It is thus related to concepts such as trust, honesty, consideration, charisma and fairness.”
2. How did Ebbers influence his managers and employees to engage in deviant unethical behavior? How could he have used his influence and leadership style to avoid deviant behavior among subordinates?
Ethics are moral principles or values that govern the conduct of an individual or a group.It is not a burden to bear, but a prudent and effective guide which furthers life and success. Ethics are important not only in business but in academics and society as well because it is an essential part of the foundation on which a civilized society is built.
I will examine the importance of personal ethics in leadership and how ethics produce effective leaders in organizations today. The importance of understanding ethics, motivation to act as a role model and developing a plan of action for an organization are discussed because of their importance regarding development of good leadership. These key points suggest personal ethics positively affect leadership and when made a priority for leaders will produce ethical and effective leadership. With so many definitions of leadership, the question evolved from “what is the definition of leadership?” to “what is good leadership” (Ciulla, 2004, p. 13). To develop a system of values one must compile a list of the most important instrumental values and terminal values. These lists are unique to every individual because they are determined by personal importance. Instrumental values, such as honest, helpful, ambitious, responsible, etc. should reinforce terminal values. Once a leader’s means are consistent with desired goals, their value system is unified and they have climbed the staircase from the lobby to the first level of values. The climb from the first floor to the second floor results in a person incorporating principles into their newly developed values. Although values act as the bedrock of ethics, principles are required because alone, “values are far too vague to have much meaning in ethical analysis” (Cooper, 1998, p. 12). Morals are ideals that help us decipher between right