Theme 1: Leadership and Ethics

How do we define ethical leadership? The meaning of ethics can be defined as standards, qualities and convictions that characterize the correctness of a behavior, whereas leadership can be defined as a process that directs or influences others to achieve a desired goal. Ethical leadership is the demonstration of proper behavior through individual actions and connections and the advancement of such conduct to subordinates through two-way communication along with decision making (Barnes and Doty, 2010).

Ethical leadership can be divided into two components. First, ethical leaders must act and settle on choices ethically, as must ethical people in general. But, secondly, ethical leaders should likewise lead ethically including the ways they treat individuals in daily communication, in the ways they empower, and in the directions in which they direct their organizations or associations or activities (Ctb.ku.edu, 2016)

The video below explains ethical leadership:

There are two main common main moral theories namely Deontological Theories and Teleological Theories.

Deontological Theories

Based on deontological theories; despite the outcome of an act is good, some acts are always wrong. In deontological theories actions are determined as ethical or unethical in view of the action or the purpose of the actor. (Gülcan, 2007). This theory gives focuses on the execution itself. Deontological perspective emphasized on duty where the consequences is unrelated to the action itself. An act is correct or wrong is determined by its qualities or characteristics rather than its outcomes (Karaoğlu, 2006). Hence, in simpler terms, deontological theories are very duty-based.

Teleological Theories

Teleological Theories focus on the outcomes of an activity (Gülcan, 2007). Teleological moral theories search for ethical goodness in the consequences of our conduct and not the conduct itself. The goodness of an action is dependent on the outcome of this action (Karaoğlu, 2006). Based on this theory, all rational human conducts are considered teleological in the sense we evaluate the methods of achieving an objective. Therefore, teleological theory is very goal oriented.

Here’s a fun video which could explain both the theories clearly.

 

4-V Model of Ethical Leadership

For individuals who aspire to become leaders in order to make a difference, one must embrace the inner core values of oneself and also the outer commitment to the common good (www.ethicalleadership.org, 2016). The 4-V serves as a framework that that’s connects both the internal and external values for the advancement of ethical leadership.

The 4-Vs of this framework are Values, Vision, Voice and Virtue.

Values	Ethical Leadership starts with a comprehension of and responsibility to our individual core values.
Vision	Vision is the capacity to outline our activities
Voice	The procedure of articulating our vision to others in a valid and persuasive way.
Virtue	Virtue is cultivated by committing to virtuous behavior and understand that we are an example of what we practice.

(Kar, n.d.)

ETHICAL LEADERSHIP

One business that inspired me as an ethical business leader is Richard Branson. Richard Branson has always been a strong advocate of ethical leadership. Richard Branson practices in stakeholder management (Weiss, 2014).  In year 2014, Richard Branson allowed the employees to take unlimited in hopes of boosting their morale, productivity and creativity (Pyne, 2014); however, with the condition that their absence will not affect the business (Baer, 2014). Besides that, in year 2015, he revealed a plan for parents who worked for the company for four years and above are entitled to a year of maternity leave with full salary pay (Bishop, 2015). Judging from his actions, it’s obvious that Richard Branson is an epitome of ethical leadership.

Other than that, Virgin Group founded by Richard Branson has launched 3 non-profit organizations namely the Virgin Green Fund, Virgin Earth and Virgin Green Fund (Examiner.com,2012). In year 2007, Virgin Earth came up with a plan to reward $27 million to the best invention of a method to reduce greenhouse gases, subsequently improve the Earth’s climate (Weiss, 2014).

“Train people well enough so they can leave, treat them well enough so they don’t want to.”

– Richard Branson. (Virgin.com, 2014)

 

UNETHICAL LEADERSHIP

On contrary, an example of unethical leadership can be represented by Martin Shkreli, founder and former chief executive of Turing Pharmaceuticals. His most unethical business practice includes, for the sole purpose of personal benefit, skyrocketing the price for a lifesaving AIDS drug named Daraprim, from $13.50 per tablet to $750 per tablet despite the drug’s long standing existence of 62 years (Dishman, 2015).

Martin Shkreli was recently arrested for a separate matter involving security fraud charges where he owed IRS over $4.5 million in taxes (Creswell, Clifford and Pollack, 2015).

Conclusion

Using Virgin Group as a model, it is evident that practicing ethical leadership goes a long way as it builds trust, respect and a healthy climate within a company or organization which subsequently leads to the success.

 

 

References

Baer, D. (2014). nside Richard Branson’s Decision To Give Virgin Employees Unlimited Vacation Read more at http://www.businessinsider.my/richard-branson-unlimited-vacation-netflix-policy-2014-9/#Jo2pM8umU2HWhyeE.99. [online] http://www.businessinsider.my/. Available at: http://www.businessinsider.my/richard-branson-unlimited-vacation-netflix-policy-2014-9/?r=US&IR=T#CbOEzVKvfA7CZrJ8.97 [Accessed 4 Feb. 2016].

Barnes, C. and Doty, J. (2010). The Army Ethic. Military Review.

Bishop, K. (2015). Richard Branson offers paternity leave—for a year!. [online] CNBC. Available at: http://www.cnbc.com/2015/06/11/richard-branson-offers-dads-paternity-leave-for-a-year.html [Accessed 3 Feb. 2016].

Creswell, J., Clifford, S. and Pollack, A. (2015). Drug C.E.O. Martin Shkreli Arrested on Fraud Charges. [online] Nytimes.com. Available at: http://www.nytimes.com/2015/12/18/business/shkreli-fraud-charges.html?_r=0 [Accessed 5 Feb. 2016].

Ctb.ku.edu, (2016). Chapter 13. Orienting Ideas in Leadership | Section 8. Ethical Leadership | Main Section | Community Tool Box. [online] Available at: http://ctb.ku.edu/en/table-of-contents/leadership/leadership-ideas/ethical-leadership/main [Accessed 14 Feb. 2016].

Dishman, L. (2015). The 10 Best And Worst Leaders Of 2015. [online] Fast Company. Available at: http://www.fastcompany.com/3054777/lessons-learned/the-10-best-and-worst-leaders-of-2015 [Accessed 4 Feb. 2016].

Examiner.com, (2012). A Company Profile: Virgin. [online] Available at: http://www.examiner.com/article/a-company-profile-virgin [Accessed 1 Feb. 2016].

Gülcan, N. (2007). Some Ethical Approaches in Business. [online] Available at: http://icongfesr2011.tolgaerdogan.net/documents/internatonal_presantations/KIN17.pdf [Accessed 28 Jan. 2016].

Kar, S. (n.d.). Ethical Leadership: Best Practice for Success. Journal of Business and Management. [online] Available at: http://www.iosrjournals.org/iosr-jbm/papers/ICIMS/Volume-1/14.pdf [Accessed 2 Feb. 2016].