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BUMGT5970 Leadership Topic 6 – Ethical considerations

Learning Objectives and Topics
Course Learning Outcomes (Wk 6) Key Topics (Wk 6)
• K3. Interpret influences on leadership styles
through variables including culture and
gender
• K4. Appraise leadership approaches
contextualised by the different organisational
situations and settings
• S1. Assess the multifaceted nature of
leadership in Australia and internationally
• S2. Evaluate the effectiveness of leadership
styles in various workplace contexts and
scenarios
• S3. Critically analyse and report on
theoretical developments in leadership
understanding with regard to current research
and practical applications
• S4. Communicate leadership learning through
a variety of formal and informal channels
• S5. Reflect on one’s own leadership skills in
the workplace or comparable settings
• Values and ethics
• Emerging ethical issues
• Strategies for dealing with ethical
issues
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Values and ethics
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Federation Business School
Values
Values have been described as the beliefs about how to behave
and what goals are important to achieve in life.
Our values become more fixed as we grow older.
A key question is ‘How does my work help me fulfil my personal
values?’
Also ‘What do I do if my personal values are in conflict with those
of my colleagues or the organisation generally?’
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Differences across generations
One argument is that as we grow older our organisational
values change. Thus:
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Stage Current age Dominant work values
1.
Protestant 55-75 Hard work, conservative, loyalty
to organisation
2 Existential 45-55 Quality of life, nonconforming,
seeks autonomy, loyalty to self
3 Pragmatic 35 – 45 Success, achievement, ambition
4 Generation X Under 35 Flexibility, job satisfaction,
balanced lifestyle, loyalty to
relationships
Federation Business School
Where do our values come from?
• Parents
• Religion
• Neighbourhood
• Friends
• Colleagues
• Etc
• Are they specific to specific cultures?
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Hofstede’s 6 Cultural Dimensions
Hofstede ran a study on cultural values in the firm IBM with employees across 70 countries and
identified 6 main ‘dimensions’ which help to understand the similarities and differences across
cultures.

  1. Power distance – the way a society distributes power and handles inequality amongst its people
  2. Individualism vs Collectivism – loose social frameworks where individuals take care of their
    immediate responsibilities, through to close social frameworks where there are expectations
    people will look after each other
  3. Masculinity vs femininity – (not about preference for gender, but ways of life) masculinity
    preferences include achievement, assertiveness, material goods, and femininity preferences
    include cooperation, caring for others and quality of life
  4. Uncertainty Avoidance – how comfortable a society is with uncertainty and ambiguity – how does
    a society deal with the unknowns of the future, and people’s attitudes towards rules
  5. Long vs Short-term orientation – a society’s relationship with the past and the future. Long-term
    values education and the role in shaping the future, short-term values tradition and views change
    with suspicion
  6. Indulgence vs restraint – indulgence refers to freedoms, enjoyment, a restrained society
    suppresses fulfilment of needs and wants and has strict social norms.
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    Federation Business School
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    Federation Business School
    Implications for leadership
    Why is it important for leaders to recognise and understand
    cultural differences?
    • Be aware of your own values
    • Recognise cultural differences
    • Be aware of cultural convergence
    • Be aware that your values will help shape organisational
    values
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    Federation Business School
    Ethical issues
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    Federation Business School
    Ethics
    Ethics are the code of moral principles and values that govern
    the behaviour of a person or group with respect to what is right
    or wrong:
  • lies between the domains of codified law and free choice
  • no specified laws
  • based on shared principles and values
  • obedience is to unenforceable norms and standards
  • disagreements and dilemmas about proper behaviour often
    occur
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    Federation Business School
    Ethical dilemma
    An ETHICAL DILEMMA occurs every time a manager must choose
    whether or not to pursue a course of action which, although offering
    the potential of personal and/or organisational benefit, is also
    unethical and/or illegal in the broader social context. A popular
    ethics check might contain the following key questions:
  1. Is it legal?
  2. Is it balanced? Fair to all concerned?
  3. How will it make me feel about myself?
  4. If published in the newspaper? If my family knew about it?
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    Federation Business School
    Emerging ethical issues
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    World Business Council for
    Sustainable Development (2019),
    https://youtu.be/dI367bzlGKA
    The World Business Council for
    Sustainable Development is a great
    resource if you would like to read more
    about sustainable development and
    emerging ethical issues for business
    leaders.
    This clip focuses on commitments to
    human rights, with Microsoft CEO Brd
    Smith talking about his company’s
    commitment to human rights issues.
    Federation Business School
    Strategies for dealing with ethics
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    Federation Business School
    Approaches to ethics (1)
    Utilitarian
    Decisions are made on the basis of their outcomes or consequences
    Moral or ethical behaviours are those that produce the greatest good for the
    greatest number of people
    Individualism
    Acts are moral or ethical when they promote the individual’s long term
    interests
    Moral rights
    Human beings have fundamental rights that cannot be taken away by an
    individual’s decision; respect for rights e.g., to privacy, free speech, due
    process
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    Federation Business School
    Approaches to ethics (2)
    Justice approach
    Moral or ethical decisions must be based on standards of equity, fairness
    and impartiality
    • distributive justice (evaluation of the outcomes or results of the business
    relationship)
    • procedural justice (process and activities that produce the outcomes or results)
    • compensatory justice (justice concerned with restoring to persons what they lost
    when harmed by a second party)
    The final influencing factor is decision ideologies which include idealism –
    the degree to which a person believes that ethical behaviours always result
    in favourable outcomes; and relativism – degree to which someone believes
    that moral rules are situational.
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    Federation Business School
    Approaches to ethics (3)
    Trevino, et al (2000:134) suggest the moral person
    becomes the moral manager when they:
    • serve in the organisation as a role model of ethical
    conduct in a very visible way;
    • communicate regularly and persuasively with employees
    about ethical standards, principles and values; and
    • they reward employees fairly.
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    Federation Business School
    Case Study: Australian Cricket
    See the links in Moodle to the film for this week, and some
    questions to help to focus on important leadership and
    ethical decision making topics in the film.
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    Federation Business School
    References
    Sarros, J.C. and Santora, J.C. (2001). Leaders and values:
    a cross-cultural study. Leadership and Organization
    Development Journal, 22(5), 243-248.
    Trevino, L.K., Hartman, L.P. and Brown, M. (2000). Moral
    person and moral manager: how executives develop a
    reputation for ethical leadership. California Management
    Review, 42(4), 128-142.
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