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CHAPTER FOUR: EXAMINING THE NEED FOR ETHICS IN LEADERSHIP
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requirements and behaviors, which suggests that there are acceptable and unacceptable ways of behaving that serve as a function of philosophical principles (Minkes, Small, and Chatterjee 1999). Ethical behavior is defined as behavior which is morally accepted as
“good” and “right” as opposed to “bad” or “wrong” in a given situation (Sims 1992). Ethics is the code of values and moral principles that guides individual or group behaviour with respect to what is right or wrong. Ethical behaviour is both legally and morally acceptable to the larger community (Trevino 1986). Ethical dilemmas though, are present in uncertain situations, in which different interests, values, beliefs pertaining to multiple stakeholders are in conflict. Narrowly, in an organizational context, ethics can be viewed as a frank conversation about those values and issues most important to stakeholders and to business. In a way, it is a continuous discovery and reaffirmation and evaluation of own values and principles (Freeman and Stewart 2006). Ethical behaviour in organizational context has been most frequently described in terms of ethical standards of senior leaders (CEOs) and the culture to which they substantially contribute (DeGeorge 1986). As such, leaders are supposed to be instrumental in spearheading core values and principles that are aimed at enhancing the effective and smooth running of their respective organisations.
We define leadership as the art of persuading a follower to want to do the things, activities that the leader sets as goals. The role of leaders is therefore in the process of directing the individual’s behavior towards a desired goal. Leadership styles do vary in accordance with personality traits of the individual. Some leaders, particularly charismatic and transformational, have personal power through which they engage employees, whereas others exert the positional and legitimate power (Trevino 1986). Leaders are characterized by different values, attitudes, beliefs, habits and practices and that is to a certain extent dependent upon the organizational, professional or institutional culture. These values constitute the ethical framework that determine the way in which organisations are run.
Leadership signifies a relation between a leader and his followers within a situational and organizational context. According to Rost (1993) leadership is a power and value-laden relationship between leaders and followers/constituents who in turn effect changes that reflect their mutual purposes and goals. Leadership in the context of normative organizational ethics would be defined with regard to how individuals should or ought to behave in an organization. This includes speculations about criteria that define ethical decisions and personality characteristics. Ethical leadership is crucial and vital in providing direction that enables the organization to fulfil its mission and vision and achieve declared goals (Kanungo
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and Mendonca 1996). Ethical leadership is regarded as a key factor in the management of an organization’s reputation in the external environment and in comparison with competitors (Blanchard and Peale 1996; Kanungo and Mendonca 1996).
An organization’s moral health depends upon the standards and the example of the chief executive (Kelly 1990). The CEO’s moral standards cascade down the organization as they are the torch bearers of the organization. As the saying goes, the fish rots from the head, implying that if the CEO is of a questionable moral standing then the moral health of the entire organization will be at stake. According to Hitt senior leadership has two key responsibilities: that is to ensure that ethical decisions are made; and to develop an organizational climate in which ethical conduct is fostered among followers within the organization (Hitt 1990). Thus, it is the strategic duty of senior leadership to ensure that decisions are made as ethically as possible as well as create an environment that engenders subordinates to be ethical in their conduct. Over and above, it is the duty of the senior management to establish ethical values, systems, strategies and channels that can help bolster the ethical health of the entire organization. This therefore contributes to the greater good, an attribute that underpins Ubuntu.
Similarly Velasquez (2012: 2) observed that, broadly ethics is the discipline that examines one’s moral standards or the moral standards of a society to evaluate their reasonableness and their implications for one’s life. In an organization, ethics are the standards and values used to govern one’s activities and decisions. Susan Mullane (2009: 2) provides that, an understanding of ethics begins with an analysis of values, both individual and organizational and effective leaders must be aware of their values, morals and system of ethics and ethical decision making. As such ethics are set principles that guide the organization in its projects and programs, policies and decisions for the business. The ethical choices made by any leader can affect the reputation, productivity and vision of the organization. The regular method in attempting to deal with the ethical responsibilities of leaders has been declaration of codes, strategies and other guidance standards. Every organization therefore, ought to create and utilize a progression of ethical guidelines to get by, in which all staff stick to the organization's shared qualities among its expert structure, and the hence, leaders of the organization benefit from it (Armstrong 2009). The ethics that leaders in an organization use to manage employees may have an effect on the morale and loyalty of workers. The code of ethics leaders use determines discipline procedures and the acceptable behaviour for all workers in an organization (Baporikar 2017: 174). That is to say, when leaders have high
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ethical standards, it encourages workers in the organization (or citizens in the nation) to meet that same level. For example, some African leaders can be hailed for their embodiment of the principle of Ubuntu and sound ethical leadership as their leadership has fully demonstrated their values.
According to Mangena (2011: 112) these leaders include former South African president Nelson Mandela, former Botswana president Sir Seretse Khama and Thomas Sankara, the former president of the Upper Volta (now Burkina Faso) among others. Such great iconic leaders have inculcated some nuances of ethical leadership in their followers. In support of this, Malunga (2009) asserts that as role models, the leader legitimizes his or her relationship by a commitment to such African values as honesty, sincerity, truthfulness, compassion, empathy, dignity and respect for others. At organizational level,
leaders and employees adhering to a code of ethics create an ethical organizational culture. The leaders of a business may create an ethical culture by exhibiting the type of behaviour they would like to see in employees. Organizations can reinforce ethical behaviour by rewarding employees who exhibit the values and integrity that coincides with the company code of ethics and disciplining those who make the wrong choices (http://www.mjminter.co.za/index.php/the- importance-of-ethics-in-organisations/).
A peer review system on ethical behaviour may be an invaluable tool for maintaining high moral standards.