Corporate Ethics

In my opinion, the manifestation of an ethic is both involuntarily and intentionally reflexive. One that is naturally formed from the dynamic tension that exists between what a person values and the demands that the environment is placing upon those values; and second, one formed out of ego, or a simple conscious belief that a person already knows the difference between right and wrong. For those leading in organizations, the same pattern exists albeit much more complex in terms of aligning one’s existing ethical worldview with the unique norms, attitudes and practices of the organization or corporation. For Dov L. Seidman, business leader and ethics expert, training for ethics should expand beyond a simple seminar or generic HR brief, but should unfold as a habitual practice resulting from daily struggle, discussion and reflection.

In Kenneth R. Thompson’s (2007) interview, Mr. Seidman shares his reasoning behind why a new training paradigm is needed to help organizations and corporations understand, support and engage their people in terms of ethics and compliance. Seidman believes conventional ethics training is flawed because it presumes that people lack a certain instinctual ethic; thereby manifesting a fallacy that, “they need to be trained in something they already know” (Thompson, 2007, p. 79). As an innovator in ethics and compliance management, Seidman promotes his goal to help people reframe the conversation of ethics to engage with it as an approach versus “just making people aware” (Thompson, 2007, p. 80). In other words, Seidman suggests that ethics permeates through, and connects with, every part of our life; therefore, ethical thought should be integrated, discussed openly and applied in practice in every workplace.

Mr. Seidman supports a transition to a more pedagogical approach because the history of ethical thought has been more about “compartmentalization” and less about a way of reasoning through ethical decisions, inspiring and integrating more respectful, appropriate conduct (Thompson, 2007, p. 80). Seidman suggests that education behind ethical thought has dwelled far too long upon generalizing what we should, or should not do; but instead “differentiating the should”, suggesting that ethics transcends rules and laws and needs to be integrated to address many situations and under varied conditions to build better understanding.

In our modern-day “hyperconnected and transparent” world, we certainly share in an excess of varied conditions available to exercise our values, develop our ethic and experience how it aligns with the moral compass of an organization (Thompson, 2007, p. 82). In Thompson’s (2007) interview, Mr. Seidman argues that the global context and its enhanced competitiveness is constraining the urge to make the right decision because it can be very unpopular, dangerous and unprofitable for most organizations (p. 82). While the context is valid as it relates to how the increased market pressures upon organizations to constantly perform inevitably dilutes their moral sense, I personally believe that the global demand for corporate transparency actually provides a greater opportunity for organizations to demonstrate, not shirk, their moral sense, and in turn generate profits on the backs of an extremely loyal culture of clients and customers.

Any decision to move an organization from a strictly compliance-type ethics program towards one that nurtures a process to create a self-governing culture should begin with a corporate culture audit that would “attempt to loosely measure how open the channels are between ethical values stationed at the top, and the actual practices down below” (Brusseau, 2011, p. 439). In our organization, this process of moving towards a “value-based culture” would need to be initiated from the President’s office and executed through leadership within each department (Thompson, 2007, p. 88). Shifting an entire organization’s culture, especially one that is family owned, from a rules-based system to one which intentionally trusts people with the space to honour and build an ethic worthy of themselves, their peers and reports would take time. However, with available opportunities to integrate the organizations core values through print, meetings, social media, awards, synchronizing a new corporate cultural approach to ethical behaviour with individual beliefs would be quite seamless. As Mr. Seidman expressed, “we don’t need to train people on ethics”, we need to train people for ethics; therefore, in the context of our organization, it is my responsibility to inspire an ethic transcending a simple page of the employee handbook to an integrated model spanning every act and thought (Thompson, 2007, p. 79).

Matt

Brusseau, J. (2011). The Business Ethics Workshop. New York: Flat World Knowledge.

Thompson, K. R. (2007). An interview with Dov L. Seidman, CEO of LRN. Journal of Leadership and Organizational Studies, 13(3), 79-91.

Response in Response to Dawn – Blog Post Two

Hello Dawn

Indeed, I had a feeling that someone would challenge the reasoning behind that statement, so thank you for taking the time to reply to my post.

Through some direct experience and years of observations, I have found that taking an interest in the positive development of an individual or group almost always manifests some form of negativity in others. Whether it takes the shape as resentment, envy or even malice, a leader needs to publicly vocalize their position and be prepared to name the negativity for what it is. I included “working against people” as one of the means to achieve important objectives because in the process of changing or transforming people, there is always a need to make an example of, guard against, or repel the forces working to prevent leaders from meeting the needs of their followers. Part of being a transformational leader includes protecting the ground you have gained, which includes those under your wing, ‘against’ individuals seeking to de-rail your influence. Oftentimes, a very public demonstration challenging those individuals communicates and reinforces the leader’s measure of authenticity and their commitment to the goal, visions and growth in others.

Your last question asked about better approaches while facing challenge. Fortunately, transformative leaders have a myriad of approaches at their disposal to best suit the need; therefore, I would continue to empower and guide those individuals that support you, in order that they echo your desires for the group or individuals. Second, accountability discussions held in ‘safe’ environments invite a constructive forum for query and listening, even with those ‘rife with discontent’. Third, honesty is paramount. Those that stand against you, your followers, or the organization goals, need to know that you have the same commitment to their performance achievements and growth as with those that are already on board. Ultimately, change surrounds us on a constant basis; therefore, the key for the transformative leader is to always be the one to stand firm in their convictions and principles no matter what takes place around them, not only for their own protection, but in hopes of communicating stability and the sense of freedom for others to explore their potential.

Matt

Blog Post One

In the video titled, What is Ethical Leadership? (2013), the presenter describes the broad role that ethics plays upon an individual’s leadership behaviour, perspectives, choices and reasoning; however, since “people vary in their capacities for moral judgement and behaviour”, organizations particularly, need to signal their specific priorities for ethical behaviours through their leaders. Most specifically for individuals, morality is a vital factor in a leader’s degree of authenticity and their ability to influence and impact others; however, because “people vary in their capacities for moral judgement and behaviour”, the moral implications are dependent upon either a lack of leadership behaviour, poor leadership behaviour, or good leadership behaviour (BuildingCapacity [Poster], 2013). Additionally, a reciprocal process of moral influence may often develop with the follower depending on the how the leader, or the organization expresses themselves, their beliefs or principles.

According to Avolio & Gardner (2005), the various components of authentic leaders, including self-awareness and a “positive moral perspective” have been identified as the primary mechanism in which leaders influence and develop their followers (p. 325). Although ‘leading by example’ is key, the example may not always be positive. In my own experience, a lack of, or aloof leadership behaviour which is void of any moral consistency, leaves followers in a vacuum of mistrust which may develop into unhealthy collective behaviours within the organization. Poor leadership behaviour that is grounded from a basis of immorality would at least provide some clarity in terms of the leader’s ethical foundations. Within a context of poor leadership, followers would at least have a something to identify, and compare to, their own relationships and sense of moral direction. In these circumstances, leaders do not last very long since they “fail to elicit the personal and social identification required to secure follower trust and commitment” (Avolio & Gardner, 2005, p. 319). Finally, the moral implications of good leadership lead to outcomes of greater transparency between, and with followers, reciprocity of values, respect, trust and an environment which nurtures positive change in others.

In life, we make decisions out of what we value and values inform ethics: therefore, since an ethic can be anything, the morality that underpins how I execute decisions, would help enable my organization to grow, flourish with a standard of behaviour that positively impacts our effectiveness. Shaping a culture that achieves a “relational authenticity with followers” (Avolio & Gardner, 2005, p. 318) sets a moral tone for all organizational processes, especially those that involve our clients who place their trust in our ability to serve their needs. Based upon my experience, like a moth to a flame, the degree of authenticity and transparency with followers in an organization directly correlates with the depth of trust in client relationships.

Matt

Avolio, B. J., & Gardner, W. L. (2005). Authentic leadership development: Getting to the root of positive forms of leadership. The Leadership Quarterly, 16, 315-338.

BuildingCapacity [Poster]. (2013, March 29). What is ethical leadership? Retrieved November 2018, from You Tube: https://www.youtube.com/watch?v=ks2QGoIq5nA

Blog Post Two

In the article titled Transformational Leadership…., Wang et al. (2011) synthesize their findings from 25 years of research revealing the clear contrasts of leader/follower relationships between the often more direct and traditional style of transactional leadership with the charismatic and affective elements of transformational leadership, and its tendency to be a “robust predictor of desirable performance outcomes across situations” (p. 253). In other words, the more frequently a leader or manager connects with followers via their emotions, values or standards, the better the development in follower attitude and motivation, subsequently enhancing greater personal empowerment and organizational performance.

In my experience, managing is often a delicate balance between choosing whether to work through, with, or sometimes even against people, as a means to achieve important objectives for the organization.  For managers that wish to model leadership after their own values and philosophies, the main implication of this article indicates that a transformational leadership model can be trained for, and greatly enhanced within environments that “involve teamwork and collaboration” (p. 253). Additionally, by taking responsibility for promoting and enhancing a transfomational leadership style, organizations will benefit with followers with “higher standards of moral responsivity” (Northouse, 2016, p. 177).

With most sales-driven organizations still placing a heavy emphasis upon incentive and reward-based transactional styles of managing to achieve task performance, the study reveals that there is better predictability in performance for both teams and individuals when led from a transformational style of leadership. When applied in practice, this information reinforces one’s confidence that this style is accessible and can be learned. Second, it underscores the importance in creating a supportive environment as a means to incubate the same transformational characteristics in followers.

When comparing a home’s walls, floors and doorways with the public ethical practice of a leader, the degree to how “plumb” both are, depends almost entirely on the fortitude and strength of the foundation. Principles such as respect and service to others, along with a sense of justice, honesty and a commitment towards building up community are several of the key principles that forge this foundation. In his book titled Leadership, Peter G. Northouse (2016) defines these very principles below (p. 341).

  1. Respect Others – treat others as ends in themselves and never a means to ends.
  2. Serve Others – placing the interests of others ahead of your own to contribute to the common good, or goal.
  3. Shows Justice – treat all followers equally, individually and collectively as a community.
  4. Manifest Honesty – representing reality as fully and completely as possible.
  5. Build Community – intentionally searching for ways to align individual and societal goals.

All 5 principles exist to “set the moral tone” for the group, or organization (BuildingCapacity [Poster], 2013); however, I believe that respect for others, and building community, stand out apart from the other principles in terms of a leaders’ desire to communicate their authenticity. A heart that is centered on serving others with justice and honesty captures all the key components of respect as basic rights. Second, the very basis of transformational leadership involves working to “move the group toward a common good that is beneficial for both leaders and followers”; therefore, in terms of the common goal, building community with intentionality evolved into a manifestation of all other principles combined.

Matt

BuildingCapacity [Poster]. (2013, March 29). What is ethical leadership? Retrieved November 2018, from You Tube: https://www.youtube.com/watch?v=ks2QGoIq5nA

Northouse, P. G. (2016). Leadership: theory and practice (Seventh ed.). Los Angeles: Sage Publications.

Wang, G., Oh, I.-S., Courtright, S. H., & Colbert, A. E. (2011). Transformational leadership and performance across criteria and levels: A meta-analytic review of 25 years of research. Group & Organization Management, 36(2), 223-270.