REFLECTIVE LEARNING JOURNAL ASSIGNMENT HELP
CHANGE IN MY BELIEFS
Business ethics and ethical leadership are sometimes associated with idealistic (nearly utopian) notions. Many think that in present day context, these concepts are not too relevant, and a study of these contexts is highly theoretical, with limited practical applicability. Even I had some doubts about the practical utility of values, morals and ethics in current business setups where competition is fierce, and it is more about “survival of the fittest”. Sometimes, being ethical at workplace puts one at a disadvantage compared to those who are indulging in unethical practices. This is one reason for people (specially youth) to be wary of being ethical, and being considered “ethical”. Considering the immorality of “successful” politicians and businessmen (leaders) which surfaces in media from time to time, the motivation to be ethical is not very high. However, a perusal of the literature, and my reflection based on personal beliefs, has led to an acceptance that ethical leadership is extremely relevant in current business environment. In some ways, ethics are more relevant today than what they were years ago. It does not have to be the highest level idealistic concept, but it surely needs to be appropriate enough so that it can have a positive influence on the members of an organization. I also believe that, though a majority of the effect of leader’s behavior is on the subordinates or followers, a rub-off effect is also there on peers, superiors and external stakeholders. In this journal, I have highlighted the essence of the literature which has influenced my beliefs about business ethics and ethical leadership. I have also put down my thoughts about what I learned and interpreted from the course, and how it may help me in the future.
LITERATURE & REFLECTIONS
Schwartz and Bilsky (1987)
As stated by Schwartz and Bilsky (1987), values are our personal beliefs which we use to realize what is right or wrong. They are cognitive representations of certain universal requirements, and there are eight motivational domains of values, namely, enjoyment, security, social power, achievement, self-direction, being pro-social, restrictive conformity, and maturity. Further, values serve different interests like (individualistic vs. collectivist) and goals (terminal vs. instrumental). Importantly, people discriminate among values according to their specifications of goal types, interests served, and motivational domains. Furthermore, the motivational domains of values are organized dynamically in relation to one another.
Reflection
In an organizational context, it is important to keep in mind that values differ from person to person. They, inter-alia, depend on the motivational needs and individual idiosyncrasies. For example, values may vary with cultural influences and also depend on the cognitive process undergone by the individual in his life. Further, the whole paradigm is dynamic, and people can change with situations. On the other hand, there are some universal values which are acceptable in most social and business environments. So improving the ethical standards of an organization may be easier if the principles or codes formulated are articulated in a manner which makes them appear akin to the universal principles. In case some relatively “radical” ethical code needs to be implemented, special care should be taken to ensure proper communication. In case of unacceptable behavior by any individual member, it is important for the HR personnel (or the disciplining authority) to try to understand the reason for the aberration so that corrective action can be measured and appropriately directed. Basically, a manager needs to make a uniform policy applicable to all. However, framing the policy and its communication needs to keep in mind the internal and external environment.
Bilsky and Schwartz (1994)
As stated by Bilsky and Schwartz (1994), there is a meaningful and systematic association of value priorities with personality variables. Personality traits are typically perceived as description of observed patterns of behavior, while values are criteria used by individuals to judge the desirability of behavior, people and events. Traits vary with individuals in terms of how much of the characteristics are exhibited, while values vary based on the importance associated by individuals to the goals. Values are more internal and traits are external. Importantly, the relationship between values and personality traits are different based on which type of needs are attempted to be satisfied, growth needs (the higher needs like self actualization) or deficiency needs (e.g. health, safety). The motivations related to deficiency needs end after the desired outcome is achieved, while those associated with growth needs continue to be active even after a high levels of satisfaction are achieved. Importantly, values and traits are co-variant if the latter are inferred from behavior patterns aimed a satisfying growth needs (e.g. curiosity, generosity).
Reflection
In organizations, values of individuals may vary based on “what is important for whom?”. For example, differences in values emanating from religion (morals) may be a source of differences. It is also apparent from above that motivating employees based on higher needs can be more effective, and have a more sustained impact than influencing them using deficiency needs.
Mayer et.al. (2012)
As mentioned by Mayer et. al. (2012), there are three building blocks of ethical leadership viz. being an ethical example, treating people fairly (moral person), and actively managing morality (moral manager). Ethical leaders encourage good behavior, and discourage unethical behavior by subordinates. Moral identity of the leaders motivate them to be responsiveness to the needs and interests of others. Moral identity has two dimensions, symbolization (the public aspect) and internalization (the private expression of the identity). Those with high level of symbolization are likely to demonstrate their possession of moral traits through moral actions. Those high on internalization are likely to correct and punish unethical behaviors. They also look at the means to the end, rather than accomplishment alone. Social learning theory suggests that appropriate behavior is learned through a role-modeling process. Observation of others behavior is an important part of this learning. The role models need to be believable and attractive. In organizations, superiors are the obvious role models. The authors contend that following positive interpersonal behavior of ethical leaders can reduce individual unethical behavior and reduce interpersonal conflict. Furthermore, ethical leadership mediates the relationship between leader’s moral identity and unit outcomes. So moral identity, in itself is not sufficient to have positive impact on the organization. What is important is that the leaders should actively practice ethical behavior and influence others to follow suit.
Thus, the importance of ethical leadership should not be underestimated, and HR practices should be built around a paradigm which is supportive of ethical leadership. For example, selection methods should assess a managerial candidate’s integrity or moral development. Further, regular ethics training will also help in reinforcing the desired messages. Exploring ways and creating a supportive environment in the organization to reinforce or activate leaders’ moral identities is likely to promote ethical behavior.
The study concluded that for moral and practical reasons, organizations are interested in decreasing the unethical behaviors and relationship conflicts. Further, leaders can play a pivotal role in reducing such negative outcomes. Also, it is important for leaders to actively model ethical behaviors and use mechanisms (reward & punishment) to influence subordinate behavior. Thus, companies which take care to hire ethical leaders and / or train ethical leaders are more likely to create ethical work environments, and reduce relationship conflict.
Reflection
It is important for a business leader (at any level) to demonstrate ethical behavior (symbolization), and also actively manage the moral behavior of subordinates (internalization). It is important to be believable by “walking the talk” and not setting utopian ideals. This will help them become role-models for the subordinates. Once that happens, the responsibility of the leaders increases even further. Further, the selection processes should be conducive to get talent of high moral standards, and those on board (at all levels) should be imparted ethical training regularly. For example, there could be quiz contests (with small prizes) on the organization’s code of ethics. This can be a not-so-serious method of percolating ethics into individual minds. Importantly, all parts of the organization should be in sync so that the overall environment is conducive to ethical behavior.
Derr (2012)
As per Derr (2012), ethics can be used to provide leaders with guidelines to help promote them as good role models for the subordinates. Importantly, ethics can be taught with tailor made methods . A code of ethics can provide guidelines to employees in situations involving moral dilemma, though the code is sometimes considered general rather than specific. Ethical leadership strives to motivate ethical behavior in employees by the display of thoughts, values, attitudes and good behavior of the leaders. Trust, effective two-way communication, integrity, honor, fairness, respect, customer focus, result-orientation and risk-taking are some characteristics of ethical leadership. Transformational leaders influence followers through a collective vision, and by motivating them to focus on organizational goals rather than personal goals. This promotes values such as honesty, loyalty, and fairness, justice, equality, and human rights. Transactional leaders influence followers by controlling their behaviors through mechanisms like rewards & corrective actions. Importantly, employee’s attitudes are influenced more by the actions and attitudes of higher level executives than the lower level superiors. Organization’s reputation and the morale of the employees improves if the organization is ethical. Employees are not solely motivated by monetary aspects of the job, and tend to be more loyal. Unethical behavior can decrease the value of the organization. Further, organizational ethics standards and leadership education can benefit a company by promoting a culture and environment that is perceived as fair and equitable. It helps build community respect for the organization.
Reflection
It is important to have a code of ethics in place, and ethics can be taught through tailor-made methods. Considering the importance and nuances of ethics, it is important to have specialists handing the ethics issue, rather than handing it over to the HR desk. The ethical principles help in practicing transformational leadership, while the processes / mechanisms to implement the codes help in the practice of transactional leadership. Both are important. Enhanced loyalty of employees reduces attrition rates has its own positive effects on the efficiency and effectiveness of the organization. Furthermore, a positive public perception of the organization has advantages. Organizations may be perceived as less risky if it is thought to be highly ethical. For example, cost of debt funds may be relatively lower for such companies
Hernandez and Sitkin (2012)
As mentioned in Hernandez and Sitkin (2012), ethical climate is defined as perceptions shared by organizational members regarding the events, practices, procedures and behaviors that are expected and get rewarded & supported. Leaders can influence follower cognition by shaping the way followers think about moral justifiability. They can also affect the moral reasoning of a group through their own principled reasoning.
Interestingly, the moral development of the leaders is influenced by ethical climate and attitudes of the group. Further, leader’s behavior is most effective when his decisions are accepted by the followers. Ethical leadership can also be defined as the demonstration of normatively appropriate conduct through actions and inter-personal relationships, and the promoting such conduct by followers through two-way communication, reinforcement and decision making.
A leader’s ability to influence is also dependent on characteristics of the followers (e.g. obedience). Followers try to influence the leaders to behave more ethically, though this involves personal and political risks for followers. The level of legitimacy gained by a leader in his relationship with the followers is also a major factor in determining his effectiveness. It is also important to note that the followers can have a negative impact on the leaders and cause them to deviate from their chosen path. This is especially true for leaders who are more corruptible and susceptible to sycophancy and flattery. So the follower’s intentions also matter.
Reflection
It is important to create an ethical climate, and ideas and thoughts of the followers (subordinates) should be considered while making decisions. Sometimes, these can provide clues about the state of affairs of the organization. If leadership is commanded rather than demanded, then subordinates are more open to following. So a manager should aim a widespread acceptability, while maintaining ethical principles which he intends his employees to imbibe. One should also consider that not all subordinates will be equally responsive, as the “extent” of following depends on individual traits also. Managers should be able to discourage sycophant behavior by subordinates.
Küng, Leisinger and Wieland (2010)
At a larger level, as mentioned by Küng, Leisinger, Wieland (2010), the global financial crisis of 2007 had its roots in unethical behavior by many individuals and poor corporate ethics. Many of the actions which led to the crisis may have been legal, but were unethical. So law alone is not always enough to prevent unethical behavior. “A failure of moral virtues” was at the core of the failure of the markets and institutions. Importantly, “ethic is not just the icing on the cake”, but involves moral “action”.
Reflection
Unethical behavior can have widespread negative impact on organizations and society as a whole. The financial crisis of 2007 was a classic example where unethical behavior by corporates and individual lead to tremendous damage to the world economy. Ethics is increasingly relevant in today’s world than it was years ago. This is because now the competition for resources is much higher, which may force people to resort to unethical practices to achieve organizational or individual goals. Ethics is more about self control rather than being regulated by rules and law.
SUMMARY OF THOUGHTS
I now believe that for the organization to succeed in the long term, it is imperative that the leaders and decision makers at all levels are ethical, and there is a high level of harmony in the organization. The reduced level of friction (resistance, inter-personal conflicts), and better image of the organization can make it more efficient and effective. Further, ethical principles and organizational values bring a sense of uniformity in the organization about what behavior & practices are acceptable.
I intend to keep all the above reflections in mind whenever I take up the role of a manager. It will help increase my acceptability, increase my effectiveness, and hence help me achieve my career progression goals as well. Finally, it will give me satisfaction if I can achieve success based on ethical principles.
References
Bilsky, Wolfgang and Schwartz, Shalom H (1994), Values and personality, European Journal of Personality, 1994, Vol.8, pp.163-181, http://strandtheory.org/images/Schwartz_Value_Theory.pdf
Derr, Cammi L (2012), Ethics and Leadership, Journal of Leadership, Accountability and Ethics, vol. 9(6) 2012, pp. 66-71, http://www.na-businesspress.com/JLAE/DerrCL_Web9_6_.pdf
Hernandez, Morela and Sitkin, Sim B (2012), Who is Leading the Leader? Follower Influence on Leader Ethicality, Behavioral Business Ethics: Shaping an Emerging Field, http://faculty.washington.edu/morela/Hernandez%20%20Sitkin%20(Beh%20Bus%20Ethics%20Chapt%202012).pdf
Küng, H, Leisinger, K and Wieland, J (2010), Manifesto, Global Economic Ethic, Consequences for Global Businesses, http://courses.collegeforadultlearning.com.au/media/doc/Global_Economic_Ethic_Manifesto.pdf
Mayer, David M, Aquino, Karl, Greenbaum, Rebecca L and Kuenzi, Maribeth (2012), Who Displays Ethical Leadership, and Why Does It Matter?, An Examination Of Antecedents And Consequences Of Ethical Leadership, Academy Of Management Journal 2012, Vol. 55, No. 1, pp. 151–171, Http://Dx.Doi.Org/10.5465/Amj.2008.0276
Schwartz, Shalom H and Bilsky, Wolfgang (1987), Towards a universal psychological structure of human values, Journal of Personality and Social Psychology, Vol 53(3), Sep 1987, 550-562. doi: 10.1037/0022-3514.53.3.550
