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Fernando Report Presentation

Leadership plays a significant role in shaping an organization's culture and ethical decision-making. Leaders influence norms and values within a company and can motivate employees towards goals. There are different leadership styles such as transformational, transactional, coercive, and affiliative that impact ethical behavior. Effective leaders display qualities like vision, integrity, and focus. They also influence corporate ethics through clear communication of standards and role modeling ethical conduct.

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85 views25 pages

Fernando Report Presentation

Leadership plays a significant role in shaping an organization's culture and ethical decision-making. Leaders influence norms and values within a company and can motivate employees towards goals. There are different leadership styles such as transformational, transactional, coercive, and affiliative that impact ethical behavior. Effective leaders display qualities like vision, integrity, and focus. They also influence corporate ethics through clear communication of standards and role modeling ethical conduct.

Uploaded by

Roda Jean Fernando
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© © All Rights Reserved
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THE ROLE OF LEADERSHIP IN A

CORPORATE CULTURE
LEADERSHIP

Leadership, the ability or authority to guide and direct others


toward achievement of a goal, has a significant impact on ethical
decision making because leaders have the power to motivate others
and enforce the organization’s norms and policies as well as their
own viewpoints.
 Leadersare key to influencing an organization’s corporate culture
and ethical posture.
A leader must have not only his or her followers’ respect but also
provide a standard of ethical conduct to them.
EXAMPLE:
 Former chairman of Korean electronics giant Samsung Group, Lee Kun-hee,
resigned in disgraced after 20 years on the Samsung board after being
accused of evading $128 million in taxes. His son and heir to the company,
Lee Jae-yong, also resigned from the board. This was only the final in a long
string of corruption charges against Lee. He was also convicted of bribery 10
years ago. Since his resignation, the company has sought to improve its
image.
7 ESSENTIAL QUALITIES OF ALL
GREAT LEADERS
BRIAN TRACY

 VISION
 COURAGE
 INTEGRITY
 HUMILITY
 STRATEGIC PLANNING
 FOCUS
 COOPERATION
The Managerial Role in Developing
Ethics Program Leadership
LEADERSHIP STYLES INFLUENCE ETHICAL
DECISIONS
 Leadership styles influence many aspects of organizational behavior, including
employees’ acceptance of and adherence to organizational norms and values. Styles
that focus on building strong organizational values among employees contribute to
shared standards of conduct. They also influence the organization’s transmittal and
monitoring of values, norms, and codes of ethics.
 In short, the leadership style of an organization influences how its employees act.
 The ethical leadership concept is not only for CEOs, boards of directors, and managers
but can also be fellow employees.
 Ethical leadership by the CEO requires an understanding of the firm’s vision and values,
as well as the challenges of responsibility and the risk in achieving organizational
objectives. Lapses in ethical leadership can occur even in people who possess strong
ethical character, especially if they view the organization’s ethical culture as being
outside the realm of decision making that exists in the home, family, and community.
EXAMPLE:

 Robin Szeliga, former CFO of Qwest, who pleaded guilty for


insider trading, was an excellent community leader, even
serving on a college of business advisory board.
Six (6) leadership styles that are based on
emotional intelligence by Daniel Goleman.
 1. The coercive leader demands instantaneous obedience and focuses on achievement,
initiative, and self-control. Although this style can be very effective during times of
crisis or during a turnaround, it otherwise creates a negative climate for organizational
performance.
 2. The authoritative leader—considered to be one of the most effective styles—inspires
employees to follow a vision, facilitates change, and creates a strongly positive
performance climate.
 3. The affiliative leader values people, their emotions, and their needs and relies on
friendship and trust to promote flexibility, innovation, and risk taking.
 4. The democratic leader relies on participation and teamwork to reach collaborative
decisions. This style focuses on communication and creates a positive climate for
achieving results.
 5. The pacesetting leader can create a negative climate because of the high standards
that he or she sets. This style works best for attaining quick results from highly
motivated individuals who value achievement and take the initiative.
 6. The coaching leader builds a positive climate by developing skills to foster long-term
success, delegating responsibility, and skillfully issuing challenging assignments.
ADVANTAGES OF COERCIVE LEADERSHIP
 Increased productivity
 Improved workplace safety
 Decreased employee deviation
 Improved rule enforcement
 Effective small group management

DISADVANTAGES
 Top-down communication
 Dictation
 Rigid structure
 Rules and regulation
ADVANTAGES OF AUTHORITATIVE LEADERSHIP

 Authoritative leaders bring clarity


 Authoritative leaders provide direction and vision
 Authoritative leaders breed goodwill

 DISADVANTAGES
 Authoritative leaders can appear overbearing
 Authoritative leaders must own their mistakes
ADVANTAGES OF AFFILIATIVE LEADERSHIP

 Positively communicated feedback helps boost staff morale.


 Interpersonal conflict is swiftly addressed
 Employees feel like the leader cares about their wellbeing
 Employees experience less stress and higher autonomy
 Quicker emotional recovery from difficult incidents
 Teams are tightly-knit

DISADVANTAGES
 Underperformance tends to be overlooked
 Overlooked underperformance leads to a negative chain reaction
 Avoiding constructive criticism leads to unresolved problems
 The organization’s overall goal may be lost
 The leader avoids uncomfortable situations
 Employees develop an unrealistic emotional dependence on the leader
ADVANTAGES OF DEMOCRATIC LEADERSHIP

 Increased job satisfaction and commitment


 Increased innovation
 Multiple opinions
 Less absenteeism
 More cohesion
 Relationships built on trust
 Higher productivity

DISADVANTAGES
 Slower decision process
 Decreased performance
 Not effective with uneducated employees
 Burdened leaders
ADVANTAGES OF PACESETTING LEADERSHIP

 Business goals are quickly achieved.


 Highlights the competencies of a highly skilled and
experienced team.
 Issues are swiftly addressed.

DISADVANTAGES
 Employees can feel stressed, overwhelmed, and
unmotivated
 Trust is lost
 Work becomes repetitive and boring
ADVANTAGES OF COACHING LEADERSHIP

 People enjoy working with coaching leaders


 Coaching leads to clear expectations
 Coaching gives an organization a competitive advantage
 Coaching can identify weaknesses, and transform them
into strengths

DISADVANTAGES
 Coaching requires a lot of time and patience
 Coaching is difficult
 Coaching is a two-way street
 Coaching without good chemistry can impact progress
TYPES OF LEADERS
 Transactional leaders attempt to create employee satisfaction through
negotiating, or “bartering,” for desired behaviors or levels of performance.
 Transformational leaders strive to raise employees’ level of commitment and
to foster trust and motivation.
Transformational leaders
 Communicate a sense of mission, stimulate new ways of thinking, and
enhance as well as generate new learning.
 Transformational leaders strive to promote activities and behavior through a
shared vision and common learning experience.
 Transformational ethical leadership is best suited for organizations that have
higher levels of ethical commitment among employees and strong stakeholder
support for an ethical culture.
Transactional leaders

 Focus on ensuring that required conduct and procedures are implemented.


 Their negotiations to achieve desired outcomes result in a dynamic
relationship with subordinates in which reactions, conflict, and crisis
influence the relationship more than ethical concerns.
 Transactional leaders produce employees who achieve a negotiated level of
performance, including compliance with ethical and legal standards.
EXAMPLE
When Eric Pillmore took over as senior vice president of
corporate governance at Tyco, after a major scandal
involving CEO Dennis Kozlowski, the company needed
transitional leadership. To turn the company around,
many ethics and corporate governance decisions needed
to be made quickly. The company also needed cross-
functional leadership, improved accountability, and
empowered leaders in order to improve corporate
culture. Pillmore helped install a new ethics program
that changed leadership policies and allowed him direct
communications with the board in order to help
implement the leadership transition.
HABITS OF STRONG ETHICAL LEADERS
 Archie Carroll, a University of Georgia business professor, crafted “7 Habits of
Highly Moral Leaders” based on the idea of Stephen Covey’s The 7 Habits of
Highly Effective People. The adapted Carroll’s “7 Habits of Highly Moral
Leaders” creates “Seven Habits of Strong Ethical Leaders”.
 Ethical leaders need both knowledge and experience to make the right
decision.
 Strong ethical leaders have both the courage and the most complete
information to make decisions that will be the best in the long run.
 Strong ethical leaders must stick to their principles and, if necessary, be
ready to leave the organization if its corporate governance system is so
flawed that it is impossible to make the right choice.
CHALLENGES IN LEADERSHIP

 BEING A LEADER TODAY IS MORE COMPLEX AND DIFFICULT THAN EVER.


REFERENCES
 Ho, L. (2021, September 2). Successful Leadership Style: 6 Types of Leader That
Inspire Actions. Linkedin.https://www.linkedin.com/pulse/successful-leadership-
style-6-types-leader-inspire-actions-leon-ho
 Indeed Editorial Team. (2021, May 24). Coercive Leadership: Concepts,
Advantages and How To Use It. Indeed Career Guide.
https://www.indeed.com/career-advice/career-development/coercive-leadership
 Indeed Editorial Team. (2021, May 24). Coercive Leadership: Concepts,
Advantages and How To Use It. Indeed Career Guide.
https://www.indeed.com/career-advice/career-development/coercive-leadership
 Lindberg, C. (2021, September 30). Affiliative Leadership – What is it? Pros/Cons?
Examples? Leadership Ahoy! https://www.leadershipahoy.com/affiliative-
leadership-what-is-it-pros-cons-examples/
 Stobierski, T. (2019, November 12). 5 Pros & Cons of Authoritative Leadership|
HBS Online - Harvard Business School Online. Business Insights - Blog.
https://online.hbs.edu/blog/post/authoritative-leadership-style

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