Ethical Leadership In The Business Intelligence Community - Essay Example

11 June 2007 Ethical Leadership in the Business Intelligence Community Ethical behavior and moral leadership in the business community are too often reflections of the ideal rather than the rule. A moral upbringing can give an individual a base on which to define behavior, and, as long as the individual continues to believe in living and working together for the common good, which is a simplistic definition of an acceptable value system (Papoutsy), ethical behavior is the result. There are specific basic values that have been established over time, not just in America but worldwide. These are integrity, quality, commitment, and innovation (“Core Values”) and are values that define the global corporate identity. Leadership, which establishes the corporate identity, is difficult to delineate in terms of moral leadership, mainly because leadership is about the “influence of individual character and the impact of personal mentoring” (Gini, Structural Restraints, par. 11), while moral leadership is considered a reflection of acceptable organizational values. According to Paul Hoffman, core values are what define individuals while ethics are demonstrated through behavior. Values are constant but ethics are different in different settings, and things are right, wrong, true or false, according to observed behavior. Therefore, in terms of leadership, organizational values should be reflected in leadership behavior and if not, the leader’s commitment to these values is questionable. Organizational failure can be attributed to personal greed over expressed organizational values. Relationship Between Leadership and Ethics When an executive has low ethical standards of behavior, workers feel justified in responding in kind. Therefore, they consider bending the rules to be acceptable and are apt to be late for work, often absent, and three quarters of workers in a survey admitted they did not give the job their “best effort.” In other words, “American workers are as ethical/dutiful in doing their jobs as their bosses and companies are perceived to be ethical/dutiful in leading and directing them” (Gini, par. 2). A decade ago, business ethics were viewed in terms of administrative compliance with rules and regulations to maintain a market share. The situation has changed in a global business community, and companies are beginning to realize they must earn the respect and confidence of their customers (Business Ethics). Ethical behavior in business is under more scrutiny than ever before, mainly because of recent events—9/11, Enron, terrorism and the war in Iraq, along with a devastating economy and an unexpected number of environmental disasters. Unfortunately, these events have not necessarily led to more socially responsible corporate behavior, but the spotlight continues to be on the business world at present. The leadership in American corporations has had to acknowledge the global marketplace and the need to expand their companies to include multinational firms and increased use of information technology (IT). This in turn creates a need to understand the values and ethics of foreign cultures; often quite different from the Puritanical conscience that defines American culture. Leadership in the corporate arena must reflect an understanding of what the public wants and needs, not just how to increase the bottom line. Defining Leadership in the Global Economy It has been necessary in our new world economy to redefine leadership. What is leadership? Why do some people lead and others follow? Is it a learned behavior or is it inherent? Successful leadership happens in an interactive relational context in which an attempt is being made by a group to make a difference to benefit the common good (Lucas et al: Relational Leadership). This is a foundational philosophy that can provide a frame of reference in contemporary organizations, and when leadership embraces this philosophy, all facets of the organization will benefit. Aspects of ethical leadership include the following: 1. Knowledge: Knowing yourself or others 2. Attitudes: Being open to difference and valuing all perspectives 3. Skills: Practicing listening skills, building coalitions, and practicing effective civil discourse. Lucas, Komives, & McMahon To be a participative leader involved with group members, it should be understood that organizational culture must change to involve people with different backgrounds and views, and who may not embrace the dominant cultural norms (Lucas et al). Leadership and the Intelligence Community The intelligence community (IC) in a corporation includes all facets of the company, from its leadership to its lowest level of workers, and uses information technology (IT) to create a positive public image that incorporates a company’s core values. In this respect, leadership determines the core values, and if these values do not meet general public expectations, the company suffers. Heightened consumer and public expectations in a global economy require not just knowing or understanding the ethical rules but exploring the relationship between business and the societal fabric of which it is a part, which recently has been defined as Social Impact Management. According to Samuelson (p. 3), Social Impact Management evaluates three aspects of a business: In societal and business terms, what is the purpose of the company? Are the legitimate rights and responsibilities of multiple stakeholders considered? How is performance and profitability measured? The purpose of a company in a global economy must necessarily be to meet the expectations and values of their customers. Rights and responsibilities of employees and local residents affected by deterioration or decline of natural resources are also an important aspect of Social Impact Management. The final area to be analyzed is performance and profitability, considering intangibles such as reputation and the ability to attract talent, as well as the franchise to operate around the globe (Samuelson). According to Samuelson, the fact is that “most global corporations are quite good at articulating the business case—one, the desire to enter and exit markets with confidence, two, to recruit the best and brightest that our colleges and professional schools offer, three, to create consumers that can afford our products . . . and four, to avoid the reputation pitfalls that accompany departure from global standards and norms for labor and environment” (p. 6, par. 3). Leaders can bring a corporation into the 21st century by acknowledging the need to adopt a philosophy of becoming a participative leader in a group situation, taking into consideration all of the contributions made by the group to improve relationships among the global community. Performance and Profitability In recent years, U.S. businesses have been plagued by corporate scandals that have eroded public confidence in corporate practices and ethics. The companies that have weathered the storm, however, are composed of “uncompromised business ethics, a commitment to sustainable development, a commitment to diversity, an understanding of strategic planning, and unlocking the power of collaboration” (Boyce, quoting Steven Miller, par. 4). These are the factors that will improve business ethics as recommended by Miller’s Framework. Core values, such as honesty, trust, respect, and fairness, are more important now than ever before, and the way in which companies integrate these values defines their business ethics. Business ethics still include a company’s compliance with legal standards and rules and regulations, but the scope has expanded to include all stakeholders—shareholders, customers, business partners, suppliers, the community, the environment, indigenous peoples, and even future generations (BSR staff). Many corporations, especially in the U.S., have strengthened their ethics programs after ethics, governance, and accounting scandals in 2002 (Enron, Adelphia, Tyco, WorldCom, and others) by appointing ethics officers, creating innovative ethics training formats, and setting up ethics help lines. “Cyberethics” Challenges As new tracking and monitoring software continues to come on the market, concerns about consumer privacy, workplace privacy, and on-line marketing to children have emerged, and it has become evident that companies must give customers more choices on the disclosure and use of personal information. An increase in identity theft has made privacy an important issue on a daily basis with the increased corporate use of the Internet. Unfortunately, according to the BSR staff report, there is still little or no connection between ethics, corporate social responsibility, and compliance efforts in U.S. corporations, while in Europe corporate ethics are apt to include human rights, environmental performance, and a company’s role in the community. It is up to leadership to consider all stakeholders in the business arena. Conclusion An overview of business leadership in the world marketplace creates a focus on the diverse areas that must be addressed by corporate leaders in order to restore public confidence. U.S. businesses have lost much of their star power in recent years, as Europe and Asia level the playing field. Even when U.S. companies expand into these areas, they compete rather than collaborate. It is evident that Americans tend to stay within their cultural boundaries, expecting those outside these boundaries to follow their lead. With the erosion of trust in the American marketplace, only those leaders willing to face their weaknesses and build on strength will restore trust. One way to build on trust is through mergers and partnerships, with leadership willing to share and accept knowledge and to consider all stakeholders, not just the executive base. Another is to be more involved in free world trade. Archie Dunham, Chairman of National Associations of Manufacturers, notes that “of the more than 150 active trade agreements in the world today, the U.S. is party to exactly three” (par. 28). It is Durham’s contention that the U.S. must join with the world community to impose multilateral sanctions on countries such as Iraq. The U.S. Congress alone will have little impact. The bottom line in ethical leadership is the need to look outside the company, with the understanding that successful leadership is built on trust and honesty, values that lead to ethical behavior and a higher standard throughout the intellectual community. Following moral tenets based on an acceptable value system will give leadership a way to establish success in a world economy. A good leader cares more about the good of the company and how it benefits the public than individual benefits, especially when its range of stakeholders covers all facets of global concerns. To reiterate, stakeholders include not just executives, employees, and workers, but board members, shareholders, customers, business partners, suppliers, the community, the environment, indigenous peoples, and even future generations. It would take only one area of weakness in this chain to weaken the whole company and target leadership for the problem. Works Cited Boyce, C. “Steven Miller’s Counsel on Ethics and Values.” 24 February 2003. College of Business Communications. 10 June 2007. http://www.business.uiuc.edu/publications/Features/2003.LeightonLecture/ “Business Ethics and Corporate Social Responsibility.” Last Updated 19 May 2005. EnterWeb.org. 10 June 2007. http://www.enterweb.org/ethics.htm Business for Social Responsibility (BSR) Staff. “Overview of Business Ethics.” October 2003. Leading Perspectives. 8 June 2007. http://www.bsr.org/CSRResources/IssueBriefDetail.cfm?DocumentID=48815#top “Core Values.” 2006. John Deere. 9 June 2007. http://www.deere.com/en_US/compinfo/csr/values/index.html Dunham, A.W. “Corporate Ethics and Restoring Public Confidence.” 28 October 2002. Hellenic Communication Service, LLC. 10 June 2002. http://www.helleniccomserve.com/corporateethics.html Gini, A. “Moral Leadership and Business Ethics.” 1996. Academy of Leadership Press. 9 June 2007. http://www.academy.umd.edu/publications/klspdocs/agini_p1.htm#return48 Hoffman, Paul. “Define Your Position: Values, Ethics & Leadership.” September 2006. Ezine Articles. 9 June 2007. http://ezinearticles.com/?Define-Your-Position:-Values,-Ethics-and-Leadership&id=334934 Lucas, N., Komives, S.R., and McMahon, T.R. “Chapter 3: A New Way of Understanding Leadership. 1998.” Exploring Leadership for College Students Who Want to Make a Difference (Jossey- Bass). 8 June 2007. http://www.academy.umd.edu/publications/leadership_education/exploring.htm Papoutsy, C. “Ethics. Whose Values?” 2000. Hellenic Communication Service, LLC. 10 June 2007. http://www.helleniccomserve.com/ethicswhosevalues.html Samuelson, J. “Leadership and Values: Moving Beyond the Ethics Debate.” 22 September 2003. The Aspen Institute. 9 June 2007. http://www.aspeninstitute.org/atf/cf/%7BDEB6F227-659B-4EC8-8F84-8DF23CA704F5%7D/TCBCCC091603.PDF Read More