Ethical Leadership - Assignment Example

INDIVIDUAL WRITING ASSIGNMENT MGT 3110: Business Ethics and Leadership Development Term, Year ______________________________ Individual Writing Assignment 1. Describe how a responsible business leader can improve the ethical work culture of an organization. Among the factors to consider in your answer, include elaboration on the following: (1) the U.S. Sentencing Commission Guidelines for Organizations; (2) the Organizational Ethics Needs Assessment; and (3) Ethical Leadership Perception Measurement Instrument. A responsible business leader can improve the ethical environment of an organization by institutionalizing a company compliance and ethics system (Petrick & Quinn, 2000, 2001). In the U.S., two significant legal compliance components of a system that focus on preventing criminal misconduct are: the U.S. Federal Sentencing Guidelines for Organizations (USSC, 2000) and the Sarbanes Oxley Act (Desjardins, 2011). The many system components designed to enable responsible conduct in the organization include; the Organizational Ethics Needs Assessment and the Ethical Leadership Perception Measurement Instrument. The United States Sentencing Commission Guidelines for Organizations provide rules that organizations must follow to ensure that they operate within the law. It also outlines the form of punishment that an organization can be given if found guilty of illegal offences. Since organizations cannot be jailed; they can be fined heavily, ordered to compensate and issue public notices of conviction to their victims, sentenced to probation up to a maximum of five years, among others. Some of the offenses that can cause these judgments include; fraud, tax evasion, environmental-waste discharge, food and drug violations, and antitrust offenses (United States Sentencing Commission, 2000). Therefore, a business leader should ensure all employees adhere to the work rules and regulations that prevent the occurrence of such crimes. In order to achieve this, the business leader should also ensure that the organization’s compliance program follow the seven key criteria as outlined in the U.S. Federal Sentencing Guidelines for Organizations. They include; oversight by high profile personnel, maintaining effective communication to all employees, consistent implementation of compliance standards, reasonable steps to prevent the occurrence of similar offences upon their detection, care in discretionary authority delegation, and reasonable steps to achieve compliance. These guidelines enable independence and flexibility of organizations in designing programs that suit their circumstances (United States Sentencing Commission, 2000). Engaging ethical leadership also enables a responsible business leader improve the work environment of an organization. The business leader should understand that positive relationships in an organization are a gold standard and a measure for success. Quality relationships based on trust and respect, and not necessarily agreements are essential for any organization (Brown, Linda & David, 2005). This is because these relationships germinate into essential principles; respect, integrity, fairness, justice, compassion, equity, honesty, and trust. These principles are also referred to the laws of the universe; thus, a business leader who acts in accordance to these laws and lives harmoniously with these principles ensures that human enterprise in the organization flourishes and is sustained (Desjardins, 2011). A business leader should also embrace ethical leadership by embracing the act of service and following the concept of servant leadership. In this scenario, the leader should acts as a servant to others, not as an inferior person; but as an individual who empowers others to achieve attain success by concentrating on the right actions. The business leader should understand the truth of the employees’ interconnectedness to one another, and that through their inclination to serve one another that their combined potential and energy is released for the better good of the organization (Brown et al, 2005). A business leader should understand his Organization’s Ethics Needs Assessment in order to improve the working environment. In doing so, he will be able to know the salient issues affecting the organization. This will give the opportunity to work first on the issues that require urgent attention. Additionally, he will know how to efficiently and effectively handle the ethics issues that are extremely essential. The OENA’s audits should be used to measure the moral progress of the organization at regular intervals. The business leader should then communicate the results to the participating stakeholders so that they can necessary changes can be made. 2. Provide an individual analysis and resolution of a business ethics case in your major or minor field(s) from the pre-selected online list of case options, incorporating both the business ethics case structured format presented in class and the professional functional code/oath of your major or minor field(s). The business ethics case that will be analyzed and resolved in this section will be (The Ethics of Bankruptcy: Jetsgo Corporation) primarily in the disciplinary field of (Name of Disciplinary Field) (Reference Citation and Year). The structured outline format for the business ethics case analysis and resolution will include the following components (Petrick & Quinn, 2001): determination of stakeholder harms, identification and prioritization of ethics issues, pluralistic analysis of moral results, rules, character, context, proposal of a justified, moral resolution after consideration of alternatives, and treatment of the practical application of the proposed resolution. Jetsgo Corporation spoilt its reputation in the manner in which it handled its bankruptcy problem. Michael Leblanc was not genuine to his employees, customers, and even the other organizations with which it conducted business. Leblanc knew extremely well that the airline was not going to operate on Friday, March 11 2005; however, he left the online booking lines open. He was malicious to do that since he knew that his airline was not going to honor the flight. He inconvenienced the airline’s passengers a great deal since most of them were stranded across North America. To make matters worse; the airline closed its operations just when the busy Spring-break holiday was approaching. The airline’s employees were also inconvenienced. Calling them late at night informing them not to report to duty the next way was not courteous at all. They should have been informed earlier enough to enable them look for employment elsewhere. Leblanc’s lie to the pilots to make them fly the corporation’s planes to Quebec City demonstrated his unethical nature. Lastly, Jetsgo’s business associates such as NAV Canada were not paid all their debts. Jetsgo was malicious to make a hostage payment to NAV Canada just four days before declaring itself bankrupt. This shows that the corporation knew what they were planning to do. The unpaid debts affected NAV Canada’s financial plans. Leblanc’s declaration of bankruptcy was characterized by several unethical practices that should not be emulated by any business. Leaving the online reservation system opening yet he knew that the airline was not going to operate can be termed as an act of fraud. He was fleecing the passengers from their hard-earned money. The white lie he told the pilots was also not necessary. In as much as he had his reasons, he was supposed to be open with them and tell the truth. The lie showed that he was honest; thus, conducting business with him is merely risking. In as much as Jetsgo Corporation was facing financial problems, it could have pressed on till the end of the Spring-break holiday. This is because the busy travelling period could have given it an opportunity to make lots of profits. These profits could have been used to pay some of its debts, as well as conduct thorough maintenance and repair for all its aircrafts. There are high chances that things could have turned around, and the corporation could have saved itself from closing its operations. 3. Describe how the leadership competencies in the Competing Values Framework (CVF) may complement one another if they are fully integrated. Explain the dysfunctions that may arise in business leadership if certain competencies are overemphasized. Illustrate your answer with at least four specific competencies, one from each quadrant, elaborating on the relationship between them. Include a discussion of Figure C.2 (Quinn et al, 2011, p. 335) in your answer. The leadership competencies in the Competing Values Framework (CVF) may complement one another if they are fully integrated demonstrating effective, efficient, considerate, and creative leadership performance (Lawrence, Lenk & Quinn, 2009). However, if certain competencies are overemphasized, as depicted in Figure C. 2, dysfunctional leadership performance, is likely to occur (Quinn, Faerman, Thompson, McGrath, & St. Clair, 2011). The Competing Values Framework assists organizations in pointing out criteria and values for judging work units. These values and criteria call for different action by managers; thus, we use four action imperatives to refer to the complex sets of activities. These imperatives include; Collaborate, Control, Compete, and Create. Collaborate: It appears on the competing values framework’s upper left quadrant. It reflects on the human relations values and is designated by a yellow color. Effectives exhibited in collaborate quadrant depends on creation and sustenance of cohesion and commitment. Collaborators are supposed to encourage respectful and open communication from everyone. Therefore, business managers in this quadrant should have a deep and first-hand understanding of others, as well as oneself (Quinn et al, 2011). This group of people benefits the organization since they develop and mentor individuals, as well as manage groups and lead teams. Collaborators play a significant role in managing conflicts in a way that discourage destructive conflicts; while encouraging constructive conflicts. Control: It appears on the competing values framework’s bottom-left quadrant. It is designated by a red color. Effectiveness in this quadrant is aimed at establishing and maintaining continuity and stability. With regard to control, business managers are supposed to know what is happening in the organization, determine whether everyone is complying with the organization’s rules, and to evaluate whether the organization’s goals are being met. Managers who shine in control are normally recognized for their understanding of tiny details in the organization. Overemphasizing in this imperative may cause a rift between a manger and the employees. Being petty and constantly monitoring employees in the way they work may make them feel like children. This would create a strained relationship; thus, hindering effective communication and the success of the business. Compete: It appears on the competing values framework’s lower-right quadrant. It is designated by a blue color. Increasing and improving the profitability and productivity is the main idea in this quadrant. Therefore, all members of an organization should understand the organization’s mission and what they are expected to do to achieve the mission. Managers who focus on this imperative should have a thorough understanding of organization’s external environment before developing its vision (Quinn et al, 2011). Additionally, managers should communicate the organization’s vision, as well as clarify what is expected of the employees. In order to compete effectively in the current, fast-paced environment; strong work ethics and the ability to make quick decisions is necessary. Therefore, managers who excel in this imperative should be work focused and task oriented. Additionally, they have high motivation, interest, personal drive and energy. This is because this is necessary for motivating employees to increase their production and accomplish the organization’s goals (Lawrence et al, 2009). Create: Finally, the competing values framework’s upper-right quadrant is labeled Create. It reflects on the values of the open system business model. It is designated by a green color. Effectiveness in this imperative is assessed based on the ability to adjust with change and acquire external support. Additionally, it expects managers to adapt to change in an organization for its growth (Quinn et al, 2011). Therefore, managers using the Create imperative are expected to pay attention to the fluctuating environment, identify key trends, and foster innovation. They are also supposed to build their power bases and negotiate agreements before putting their ideas into action. Overemphasizing on this imperative may also bring a business dysfunction if not checked properly. This is because an organization may change to conform to a new trend before it assesses its viability. Sometimes these changes may not survive the market for long, and when it loses grip of the market, it would bring down a business organization that conformed to it. Integrating Collaborate and Control competencies can make an organization extremely effective. This is because, the collaborators work is to train individuals while the controllers ensures there is continuity in the organization (Lawrence et al, 2009). Therefore, if the two are combined, then the organization would exist forever since the collaborators would ensure that the trained people maintain the organization’s continuity. 4. Elaborate on the ways in which the integrity capacity approach to business ethics and the competing values approach to business leadership complement each other in the development of moral and leadership competencies respectively (with regard to integrity capacity theory, show the parallels of moral results, moral rules, moral character and moral context to the competing values theory emphases on competing, controlling, collaborating, and creating.) and how they contribute to fulfilling the RSCOB strategic mission to develop successful and ethical business leaders. The integrity capacity approach to business ethics (Petrick & Quinn, 2000, 2001) and the competing values approach to business leadership (Quinn, Faerman, Thompson, McGrath, & St. Clair, 2011) complement each other in the development of moral and leadership competencies respectively, as depicted in Figure 1. This integrated development of moral and leadership competencies directly contributes to fulfilling the Raj Soin College of Business (RSCOB) strategic mission to develop successful and ethical business leaders. Petrick and Quinn (2000) define integrity capacity as the collective and/or individual capability for recurring alignment process of moral awareness, discussion, conduct and character that shows balanced judgment that enhances ethical development for moral decision making. Integrity capacity is aimed at cultivating balanced and inclusive judgment that facilitates the handling of competing moral, economic and managerial values. Petrick and Quinn (2000) argues that satisfactory moral, economic and managerial justification of all business judgments should be balanced along four dimensions; rules, results, context and character. This concept disregards tendencies of business leaders justifying their strategic judgments on the basis that they create short term moral and financial results. Therefore, the balanced approach entails an extensive empirical research that demonstrates the ability of business leaders to control process (rules) effectively, achieve goals (results) effectively, generate innovation (context) adaptively, and nurture teamwork (character) humanely. These enable several microeconomic management theories to find their way into the model. These theories include: the internal process theory, which monitors the management of information and control of document; rational theory which stresses on setting goals and maximization of outputs; human relations theory which facilitates consensus building and conflict resolution; and open systems theory which develops recurring creativity and adaptation to external trends. These theories should never be overemphasized or underemphasized since that would distort business judgment (Quinn et al, 2011). Acquiring short term financial breakthroughs by violating external rules or the internal standards of operations or by destroying teamwork trust is no longer considered a grander business leadership performance. Therefore, the corresponding areas of integrity judgment capacity in economic and moral theories include: regulatory capitalism and deontological ethics (rules); investor capitalism and teleological ethics (results); community capitalism and virtue ethics (character); and entrepreneurial capitalism and system development ethics (context) (Quinn et al, 2011). Lack of integrity judgment capacity that shows proficiency in handling moral, behavioral and economic complexities make business leaders accountable for the eroded trust, corrupt environments and the neglected opportunities. On the other hand, ideal business leaders should exhibit coherent unity of action and purpose when dealing with internal and external pressure (Quinn et al, 2011). Using cumulative skills, experience and the senior management teams ability; leaders who have strong business judgment have the capability to balance competing ethical, economic and management considerations in establishing leadership practices and forming policies. Petrick and Quinn (2000) recommend two practices that should be used to equip business leaders with skills of managing integrity capacity as a strategic asset. First, ethics in business education should be treated within the framework of integrity capacity as an essential asset for which business leaders should be held accountable. Secondly, the scope of business leaders’ accountability should be expanded to include regular social, environmental and moral audits followed with public exposé of the results. References Brown, Michael E., Linda K. Trevino & David A. Harrison (2005). “Ethical Leadership: A Social Learning Perspective for Construct Development and Testing,” Organizational Behavior and Human Decision Processes, 97, 117-134. Desjardins, Joseph (2011). An Introduction to Business Ethics. 4th Edition. New York: McGraw Hill. Lawrence, K., P. Lenk, and R. Quinn (2009). “Behavioral Complexity in Leadership: The Psychometric Properties of a New instrument to Measure Behavioral Repertoire,” Leadership Quarterly, 20: 87-102. Petrick, Joseph A. and John F. Quinn (2000). “The Integrity Capacity Construct and Moral Progress in Business,” Journal of Business Ethics, 23, 3-18. Petrick, Joseph A. and John F. Quinn (2001). “The Challenge of Leadership Accountability for Integrity Capacity as a Strategic Asset,” Journal of Business Ethics, 34, 331-343. Petrick, Joseph A. and Robert F. Scherer (2003). “The Enron Scandal and the Neglect of Management Integrity Capacity,” Mid-American Journal of Business, 18 (1), 37-49. Petrick, Joseph A. (2010). “Sustainable Stakeholder Capitalism and Re-designing Management Education: Lessons Generated from the Great Global Recession,” Journal of Corporate Citizenship, 40, 101-124. Quinn, Robert E., Sue R. Faerman, Michael P. Thompson, Michael R. McGrath and Lynda S. St. Clair (2011). Becoming a Master Manager: A Competing Values Approach. Fifth Edition. New York: Wiley. United States Sentencing Commission (USSC) (2000). Guidelines Manual. Washington, D.C.: United States Judiciary. Read More