Leading in a Changing World

Leadership and Ethics

Ethical leadership encompasses various dimensions, including considerate behaviour, honesty, trust in the leader, interactional justice, socialized charismatic leadership, and abusive supervision. However, it should be noted that ethical leadership is not only defined by any of these individual factors. 

There are several positive outcomes associated with ethical leadership in the workplace, including increased job satisfaction, increased emotional commitment, and reduced risk of burnout.

In conclusion, ethical leadership is a significant predictor of various outcomes, including the perceived efficacy of leaders, job satisfaction and dedication among followers, and their inclination to disclose issues to management.

Difference Between Deontological (Rules) With Teleological (Consequentialist)

Teleological ethics evaluates activities based on their consequences. Similarly, the deontological framework of ethics evaluates actions based on their inherent morality without considering other circumstances. The fundamental difference between teleological and deontological ethics is clear. Teleological ethics is consequentialist, while deontological ethics is non-consequentialist. 

Teleological ethics, also known as consequentialism, evaluates the moral worth of an action based on its outcomes or consequences. In contrast, deontological ethics, also called non-consequentialism, assesses an action’s moral worth based on the action itself, independent of its effects. Hence, the abovementioned distinction constitutes the fundamental divergence between teleological and deontological ethics.

The Four “V” Model for Nurturing Moral Leaders. 

The Four V Model of Ethical Leadership examines the internal parts of a leader’s character, such as their beliefs and values, and the outward factors, such as their actions and behaviors.

The 4-V approach centers on value action. Leaders must understand others’ values to develop ethical leadership. Additionally, it is the foundation for modeling. Vision also includes creating meaningful efforts, such as serving others morally. The voice should be recognized as the third factor to express a clear vision and encourage decisive action effectively. Understanding and promoting virtue through wholesome acts and moral behavior is essential (MindTools, 2014).

Ethical Leadership Example.

The 3M Company is an internationally recognized leader in the technology industry and a model of ethical business practices on a global scale. The corporation is committed to operating ethically and transparently, as stated by Michael Duran, 3M’s senior vice president and chief ethics and compliance officer. Our unwavering commitment to absolute integrity has earned us recognition as one of the World’s Most Ethical Companies for ten years.

The fundamentals of honesty and morality. In the meantime, it’s clear that every corporate leader is well-informed and powerfully influenced, so they’ve all agreed to lead the employees. This advice is channeled through the 3M code. Honesty, responsibility, and coworker respect are essential for 3M employees-outstanding achievement and execution results.

Thus, ethical leadership can significantly impact a business’s success in the long run. Ethical leadership management can be effective if leaders set the organization’s moral tone and communicate it clearly and persuasively to all employees.

Unethical Leadership Example: Wells Fargo.

Customers and investors lost faith in Wells Fargo after the bogus account controversy. Customers’ trust in the bank was severely damaged by the news that it had been opening phony accounts in their names without their permission.

Customers and the general public turned on Wells Fargo once the story broke. Customers left in droves, taking their business elsewhere, and the company’s standing among investors took a significant hit.

Wells Fargo makes attempts to regain investor and consumer trust. Customer service, communication, business openness and responsibility, compliance, and ethical programs improved.

Despite these measures, Wells Fargo’s reputation is recovering from the phoney account disaster. Despite public and regulatory scrutiny, customers and investors remain distrustful of the financial institution.

Conclusion

Influential leaders can recognize and respond to many situations but must grasp the subject matter to respond best. Leader development must include deontological and teleological viewpoints, as both are essential to ethical leadership. A deontological perspective prioritizes morality and duty. In contrast, the teleological perspective emphasizes collective well-being and rights and ethics. Strategic leaders with solid values help organizations thrive through innovation. An ethical leader can lead the organization by prioritizing work and showing compassion for the group.

References

Collins, J. (2023, September 11). Leadership Archives – Dr. Jim Collins. Dr. Jim Collins. https://www.drjimcollins.com/category/leadership/

Ethics & Compliance | 3M Compliance in the News. (n.d.). MMM-ext. https://www.3m.com/3M/en_US/ethics-compliance/3m-compliance-in-the-news/

H. (2019, October 17). Difference Between Teleological and Deontological. Compare the Difference Between Similar Terms. https://www.differencebetween.com/difference-between-teleological-and-deontological/#:~:text=of%20an%20action.-,Teleological%20ethics%20determines%20the%20goodness%20or%20badness%20of%20an%20action,between%20teleological%20and%20deontological%20ethics

L. (2023, August 14). The Wells Fargo Fake Accounts Scandal: A Comprehensive Overview. Learnsignal. https://www.learnsignal.com/blog/wells-fargo-fake-accounts-scandal-overview-2/#:~:text=The%20Reputational%20Damage&text=The%20revelation%20that%20the%20bank,from%20customers%20and%20the%20public

Lindberg, C. (2021, September 2). Ethical Leadership Explained by a CEO. Leadership Ahoy! https://www.leadershipahoy.com/ethical-leadership-explained-by-a-ceo/

MindTools | Home. (n.d.). https://www.mindtools.com/a4elmvl/ethical-leadership

Staff, W. (2016, September 20). Wells Fargo CEO Gets Grilling from Congress –Recap. WSJ. https://www.wsj.com/articles/BL-MBB-53538