October 20 2018 3245

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timer Asked: Oct 20th, 2018
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Question Description

1,250-word (not including references as word count) count minimum with three scholarly sources in APA format. Q1 and Q3 are straightforward and both can be answered fully using material in the Read and Attend sections.

In Q2, it isn't necessary to focus on Warren Buffet specifically. Instead, look at whether leaders should trust people based on their character or whether leaders should focus more on codes and compliance to maintain an ethical organization. In other words, the question is asking if ethical behavior is primarily due to internal, individual factors, or if ethical behavior is influenced more by external factors.

Q4 is asking something very similar to Q2. Generally, the two questions should reach similar conclusions. If they don't, some additional explanation may be needed. Details about that are in Q4.

Q2 and Q4 will both be stronger with the use of outside sources.

Remember that a total of three sources, including the book, are required for the Complete assignment.

1. Review the habits of strong ethical leaders in Chapter Five. Evaluate yourself on each of those habits, then identify and describe specific areas where you need to change to be a more ethical leader.



2. Read the Chapter Five debate issue on page 138. Clearly state whether you think

1) Warren Buffett is correct in trusting his managers based on their character, or

2) Buffett needs to focus more on ethical codes and compliance.

Explain your answer.



3. “Individuals use different moral philosophies depending on whether they are making a personal decision or a work-related decision” (Ferrell, Fraedrich & Ferrell, 2013, p. 166). Review the moral philosophies described in Chapter Six, and answer the following:

1) Which moral philosophy best describes your personal decision making? Explain using an example from your own experience.

2) Which moral philosophy best describes your work-related decision making? Explain using an example from your own experience.



4. After reviewing the material on white collar crime (pp. 169-172), read the Chapter Six debate issue on page 171. Clearly state whether you think

1) White collar criminals have underlying psychological disorders that encourage misconduct, or

2) White collar crime is the result of weak organizational cultures and codes.

Explain your answer. Note: the question is not suggesting that an underlying psychological disorder is a legal defense for white collar crime.

The second question (Warren Buffett) also looks at whether ethical behaviors come from inside the individual or whether ethical behavior are influenced by organizational codes, culture and compliance.

3) Have you taken similar positions in both Q2 and Q4? If not, explain.

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CHAPTER 5 R I C A R D , A D R I E N N E 9 T S ©Stanislav Bokrach, Shutterstock ETHICAL DECISION2 MAKING AND 4 ETHICAL LEADERSHIP 7 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. CHAPTER OBJECTIVES CHAPTER OUTLINE t To provide a comprehensive framework A Framework for Ethical Decision Making in Business Ethical-Issue Intensity for ethical decision making in business t To examine the intensity of ethical issues as R an important element influencing the ethical decision-making process I t To introduce individual factors that may influence ethical decision making in business t To introduce organizational factors that may influence ethical decision making in business C A R D , t To explore the role of opportunity in ethical decision making in business A t To explain how knowledge about the ethical D decision-making framework can be used to R improve ethical leadership t To provide leadership styles and habits thatI promote an ethical culture E N N E AN ETHICAL DILEMMA* 2 4 7 9 T S Troy Buchanan was in a bind. As a recent graduate of a prestigious journalism school, he had taken a job in the editorial department of Circa Communications, a fast-growing company in the online publications industry. Circa relocated Troy, his wife, and their two-year-old son from the Southwest to Atlanta, Georgia. On arriving, they bought their first home and Individual Factors Organizational Factors Opportunity Business Ethics Evaluations and Intentions Using the Ethical Decision-Making Framework to Improve Ethical Decisions The Role of Leadership in a Corporate Culture Leadership Styles Influence Ethical Decisions Habits of Strong Ethical Leaders Ethical Leaders Have Strong Personal Character Ethical Leaders Have a Passion to Do Right Ethical Leaders Are Proactive Ethical Leaders Consider Stakeholders’ Interests Ethical Leaders Are Role Models for the Organization’s Values Ethical Leaders Are Transparent and Actively Involved in Organizational Decision Making Ethical Leaders Are Competent Managers Who Take a Holistic View of the Firm’s Ethical Culture Understanding Ethical Decision Making and the Role of Leadership a second car. Troy was told that the company had big plans for him. Therefore, he did not worry about being financially overextended. Several months into the job, Troy found that he was working late into the night, and even on his days off, to complete his editorial assignments before the deadlines passed. He knew that the company did not Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 128 Part 3: The Decision-Making Process want its clients billed for excessive hours and that he needed to become more efficient if he wanted to move up in the company. He asked one of his co-workers, Mary Jo, how she managed to be so efficient in completing her editing duties. Mary Jo quietly explained: “Troy, there are times when being efficient isn’t enough. You need to do what is required to get ahead. The owners just want results—they don’t care how you get them.” “I don’t understand,” said Troy. “Look,” Mary Jo explained, “I had the same problem you have a few years ago, but Mr. Hunt [the supervisor of the editorial department] explained that everyone works ‘off the clock’ so that the editorial department shows top results and looks good. And when the editorial department looks good, everyone in it looks good. No one cares if a little time gets lost in the shuffle.” T Troy realized that “off the clock” meant not reporting all the hours required to complete a project. He also remembered one of Circa’s classic catch phrases, “results, results, results.” He thanked Mary Jo for her input and went back to work. Troy thought of going over Mr. Hunt’s head and asking for advice from the general manager, but he had met her only once and did not know anything about her. QUESTIONS | EXERCISES R 1. What should Troy do? I 2. Describe one process through which Troy might Cattempt to resolve his dilemma. 3.A Consider the impact of this company’s approach on young editors. How could working long hours Rbe an ethical problem? D , *This case is strictly hypothetical; any resemblance to real persons, companies, or situations is coincidental. A o improve ethical decision making in business, one must first understand how individuals make ethical decisions in anDorganizational environment. Too often it is assumed that individuals in organizations make ethical decisions in the same way that R they make ethical decisions at home, in their families, or in their personal lives. Within I however, few individuals have the freedom to the context of an organizational work group, decide ethical issues independent of organizational pressures. E This chapter summarizes our current knowledge of ethical decision making in busiN making in organizations. Although it is ness and provides insights into ethical decision impossible to describe exactly how any one N individual or work group might make ethical decisions, we can offer generalizations about average or typical behavior patterns within E on many studies and at least six ethical deciorganizations. These generalizations are based sion models that have been widely accepted by academics and practitioners.1 Based on these models, we present a framework for understanding ethical decision making in the context 2 of business organizations. In addition to business, this framework integrates concepts from philosophy, psychology, sociology, and organizational behavior. This framework should be 4 helpful in understanding organizational ethics and developing ethical programs. 7 9 T ETHICAL DECISION A FRAMEWORK FOR S BUSINESS MAKING IN As Figure 5.1 shows, our model of the ethical decision making process in business includes ethical issue intensity, individual factors, and organizational factors such as corporate culture and opportunity. All of these interrelated factors influence the evaluations of and intentions behind the decisions that produce ethical or unethical behavior. This model does not describe how to make ethical decisions, but it does help one to understand the factors and processes related to ethical decision making. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 129 Chapter 5: Ethical Decision Making and Ethical Leadership FIGURE 5.1 Framework for Understanding Ethical Decision Making in Business Ethical Issue Intensity Individual Factors Opportunity R I C A R D Ethical Issue Intensity , Ethical or Unethical Behavior The first step in ethical decision making is to recognize that an ethical issue requires an individual or work group to choose among several actions that various stakeholders inside or A outside the firm will ultimately evaluate as right or wrong. The intensity of an ethical issue Dmaker.2 Ethical issue intensity, then, can relates to its perceived importance to the decision be defined as the relevance or importance of an ethical issue in the eyes of the individual, R work group, and/or organization. It is personal and temporal in character to accommoI characteristics of the situation, and the date values, beliefs, needs, perceptions, the special 3 personal pressures prevailing at a particular place Eand time. Senior employees and those with administrative authority contribute significantly to intensity because they typically N instance, insider trading is considered dictate an organization’s stance on ethical issues. For to be a serious ethical issue by the government as Nthe intent is to take advantage of inside information not available to the public. Therefore, it is an ethical issue of high intensity E the government’s investigation of sofor regulators and government officials. Consider called “expert-network” firms. These firms try to appear as legitimate consultants, but the government believes they might be providing inside information. Technology companies 2 other innovations that will affect their that are on the verge of new products, patents, or market price are especially targeted by these consultants. However, if investigations show 4 these firms to be legitimate, it is possible that the ethical issues they have raised will not 7 turn out to be of high intensity.4 Under current law, managers can be held liable 9 for the unethical and illegal actions of subordinates. In the United States, the Federal Sentencing Guidelines for Organizations T contain a liability formula that judges use as a guideline regarding illegal activities of corS and managers who were aware of porations. For example, many of the Enron employees the firm’s use of off-balance-sheet partnerships—which turned out to be the major cause of the energy firm’s collapse—were advised that these partnerships were legal, so they did not perceive them as an ethical issue. Although such partnerships were legal at that time, the way that some Enron officials designed them and the methods they used to provide collateral (that is, Enron stock) created a scheme that brought about the collapse of the company.5 Thus, ethical issue intensity involves individuals’ cognitive state of concern about an issue, or whether or not they have knowledge that an issue is unethical, which in turn ©Cengage Learning 2013 Organizational Factors Business Ethics Evaluations and Intentions Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 130 Part 3: The Decision-Making Process indicates their involvement in making choices. The identification of ethical issues often requires the understanding of complex business relationships. Ethical issue intensity reflects the ethical sensitivity of the individual and/or work group that faces the ethical decision-making process. Research suggests that individuals are subject to six “spheres of influence” when confronted with ethical choices—the workplace, family, religion, legal system, community, and profession—and that the level of importance of each of these influences will vary depending on how important the decision maker perceives the issue to be.6 Additionally, the individual’s moral intensity increases his or her perceptiveness of potential ethical problems, which in turn reduces his or her inrelates to individuals’ perceptions of social prestention to act unethically.7 Moral intensity R sure and the harm they believe their decisions will have on others.8 All other factors in I Figure 5.1, including individual factors, organizational factors, and intentions, determine why different individuals perceive ethical C issues differently. Unless individuals in an organization share common concerns about ethical A issues, the stage is set for ethical conflict. The perception of ethical issue intensity can be influenced by management’s use of rewards and punishments, corporate policies, and R corporate values to sensitize employees. In other words, managers can affect the degree to D which employees perceive the importance of an ethical issue through positive and/or negative incentives.9 , not reach the critical awareness level if managFor some employees, ethical issues may ers fail to identify and educate employees about specific problem areas. One study found that more than a third of the unethical situations that lower and middle-level managers face come A from internal pressures and ambiguity surrounding internal organizational rules. Many employees fail to anticipate these issues beforeDthey arise.10 This lack of preparedness makes it difficult for employees to respond appropriately when they encounter an ethics issue. For R example, subprime lenders such as Countrywide Financial failed to educate brokers about the damages of misrepresenting financial Idata to help individuals secure loans. This contributed to widespread organizational misconduct. Organizations that consist of employees E with diverse values and backgrounds must therefore train them in the way the firm wants specific ethical issues handled. Identifying N the ethical issues and risks that employees might encounter is aN significant step toward developing their ability to make ethical decisions. Many ethical issues are identified by E or through general information available to a industry groups “Identifying the ethical firm. Flagging certain issues as high in ethical importance could issues and risks that trigger increases in employees’ ethical issue intensity. The per2 of an ethical issue has been found to have a ceived importance employees might encounter strong influence 4 on both employees’ ethical judgment and their is a significant step toward behavioral intention. In other words, the more likely individuals 7 are to perceive an ethical issue as important, the less likely they developing their ability to are to engage in 9questionable or unethical behavior.11 Therefore, make ethical decisions.” ethical issue intensity should be considered a key factor in the T ethical decision-making process. S Individual Factors When people need to resolve ethical issues in their daily lives, they often base their decisions on their own values and principles of right or wrong. They generally learn these values and principles through the socialization process with family members, social groups, and religion, and in their formal education. Good personal values have been Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Chapter 5: Ethical Decision Making and Ethical Leadership 131 found to decrease unethical practices and increase positive work behavior. The moral philosophies of individuals, discussed in more detail in Chapter 6, provide principles and rules that people use to decide what is right or wrong. Values of individuals can be derived from moral philosophies to apply to daily decisions. However, values are subjective and vary a great deal across different cultures. For example, one individual might place greater importance on keeping one’s promises and commitments than another would. Values could also relate to negative rationalizations, such as “Everyone does it,” or “We have to do what it takes to get the business.”12 Research demonstrates that individuals with destructive personalities who violate basic core values can cause a work group to suffer a perforR to groups with no “bad apples.”13 The mance loss of 30 percent to 40 percent compared actions of specific individuals in scandal-plagued I financial companies such as AIG and Countrywide Financial often raise questions about those individuals’ personal character Cself-interest or in total disregard for the and integrity. They appear to operate in their own law and the interests of society. A Although an individual’s intention to engage in ethical behavior relates to individual values, organizational and social forces also R play a vital role. An individual’s attitudes as well as social norms will help create behavioral D intentions that will shape his or her decision-making process. While an individual may intend to do the right thing, organiza, tional or social forces can alter this intent. For example, an individual may intend to report the misconduct of a coworker, but when faced with the social consequences of doing so, may decide to remain complacent. In this case, social forces have overcome a person’s inA dividual values when it comes to taking appropriate action.14 At the same time, individual D ethical responsibilities in the work values have a strong influence over how people assume environment. In turn, individual decisions can be heavily dependent on company policy R and the corporate culture. I generally varies according to the profesThe way the public perceives individual ethics sion in question. Telemarketers, car salespersons, Eadvertising practitioners, stockbrokers, and real estate brokers are often perceived as having the lowest ethics. Research regardN judgment, intent, and behavior include ing individual factors that affect ethical awareness, gender, education, work experience, nationality, age, N and locus of control. Extensive research has been done regarding the link between gender and ethical decision making. The research shows that in many E aspects there are no differences between men and women, but when differences are found, women are generally more ethical than men.15 By “more ethical,” we mean that women seem to be more sensitive to ethical scenar2 on gender and intentions for fraudulent ios and less tolerant of unethical actions. In a study financial reporting, females reported higher intentions to report them than male par4 ticipants.16 As more and more women work in managerial positions, these findings may 7 become increasingly significant. Education is also a significant factor in the ethical 9 decision-making process. The important thing to remember about education is that it does not reflect experience. Work T experience is defined as the number of years in a specific job, occupation, and/or industry. S that a person has, the better he or she Generally, the more education or work experience is at ethical decision making. The type of education someone has received has little or no effect on ethics. For example, it doesn’t matter if you are a business student or a liberal arts student—you are pretty much the same in terms of ethical decision making. Current research, however, shows that students are less ethical than businesspeople, which is likely because businesspeople have been exposed to more ethically challenging situations than students.17 Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent ri ...
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SIMPLIFIED
School: Boston College

Attached.

OUTLINE

1. INTRODUCTION
2. BODY
3. CONCLUSION
4. REFERENCE


Running Head: BUSINESS

Ethical Leadership
Name
Institutional Affiliation
Instructor
Date

BUSINESS

2

Ethical Leadership
Question One
Ethical factors may influence the leaders in the decisions that they make within a
business establishment. The unethical behavior in the workplace is expressible as any action that
is not in conformity with the standards and code of conduct in the corporation. In most cases, the
unethical behaviors occur in the relationships between the employer and the employees. Most
organizations use codes of conducts and compliance or the employees’ characters to maintain
ethical practices in the organization (Fraedrich et al., 2013). However, not every employee can
have their best behavior in the organization. Based on the surrounding and the values of the
individual, ethical behavior undergoes reflection in the moral conduct of the individuals in the
firm. Ethical leadership is describable as the leadership that has an intrinsically direct link with
the respect of dignity, rights, and values of other people in the places of work.
The concepts that an ethical leader use are such as honesty, truth, trust, charisma,
fairness, and consideration. Therefore, it is believable that ethical behavior in the organization
finds its basis on the all-around thinking of the organization which covers the challenges and
issues that the organization faces on a daily basis. To make ethical decisions the leaders need
experience and knowledge in an establishment. According to Warren Buffet, there are seven
habits of a robust moral leader (Sims2009). The first habit an influentially moral leader should
have is a strong personal character. A person endowed with such an attribute is one who does not
waiver or change his or her stand. A person with a strong personality does not give up on the
specific goals that he or she has set. Therefore, they have the propensity to work under extreme
conditions alongside any possible manifestation of opposition and hardship.

BUSINESS

3

An ethical leader should have a habit of having the passion for doing right. This habit is
needed in the leader to have a strong character worth to be presumable by others as being moral;
this is achievable through having stable and controllable emotions. With these inclination...

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