Ethical Leadership Thursday/May 4, 2017 Presented to: 48th Annual Rutgers University Public Purchasing Educational Forum Center for Public Services, Rutgers Continuing Studies Presented by: Judy Young, Executive Director Copyright 2015 Institute for Ethical Leadership (IEL) May not be copied or used without Permission of IEL, Rutgers Business School 1 Introductions: Participants and Presenter Icebreaker Institute for Ethical Leadership, Rutgers Business School RU Center for GOVERNMENT SERVICES Public Purchasing Educ Forum Ethical Leadership April 26 2017 2 1
Judy Young, Executive Director Adjunct Professor McFaul & Lyons Inc. Mini-MBA Getting started An unethical situation you experienced What happened? What did you do? What worked? What did not work? What would you do differently? What did you learn? 2
Institute for Ethical Leadership Rutgers Business School Mission We strengthen ethical leadership to enhance civil society 5 Agenda/Objectives: At the end of this session, participants will: 1. Vote on Ethical Dilemmas 2. Discuss Why Focus on Ethical Leadership? 3. What Influences your Decision to speak up when faced with an Ethical Dilemma? 4. Building an Ethical Leadership Culture 5. Describe a Decision Making Model 6. Discuss Results of your votes Ethical Dilemmas 6 3
How do you vote? Instructions on how to Vote 1. We ll ask you a Question 2. Please write Yes or No 3. You will have 5 seconds to answer the question 4. We ll proceed to the next Question 7 Vote 1. Sharon mentions to you (her manager) that the Mayor is making personal advances towards her. The advances are not welcomed, but Sharon says she can handle it. The Mayor is up for election in November. Do you tell anyone? YES or NO 8 4
2. You screened a group of vendors, you are about to select one vendor who is the lowest price, highest quality. Your brother-in-law is an employee of the vendor you are about to select. Do you hire the vendor? YES or NO Copyright 2009 Institute for Ethical Leadership, Rutgers Business School 9 3. A vendor offers you tickets to a Grants a Football game. Do you accept the tickets. YES or NO Copyright 2009 Institute for Ethical Leadership, Rutgers Business School 10 5
4. You work with a Vendor, and you discover that the Vendor is breaching compliance regulations (this Vendor is the best vendor, low cost/high quality and there is not a second best in the market), do you report the Vendor? YES or NO Copyright 2009 Institute for Ethical Leadership, Rutgers Business School 11 Vote 5. A new business in town says they are a Minority & Woman Business Enterprise that qualifies for diversity metrics. You learn later that is not true. Do you bring it to the attention of the Business? 12 6
Vote 6. Your neighbor is a councilwoman. She will be away during an upcoming snow storm. Thus, she asks you to have the DPW remove snow from her sidewalk Do you ask DPW remove the snow? YES or NO 13 Define Ethical Leadership 14 7
Define Ethical Leadership: Ethical Leadership is the way in which a leader behaves to empower people to build up our civil society. 15 Ethics = Culture The way things are done around here Aspirational behavior What we owe to our customers/stakeholders Compliance Adherence to the bright line standards What is set forth in the contract Enforces minimal behavior 16 8
Why Focus on Ethical Leadership? 17 Why Focus on Ethical Leadership? Non-profits American Red Cross Stevens Institute of Technology Cancer Fund of America Fraud Case Business Enron Madoff BP MF Global GM NFL Ray Rice Volkswagen Government NJ Corruption Sweep NJ Bridge-gate Education Sayreville HS Football Team Penn State Harvard University Rutgers University Journalism Brian Williams 18 9
What influences your decision to speak up when faced with an ethical dilemma? 19 What influences your decision to speak up when faced with an ethical dilemma? Organizational Culture Your Ethics Your Gut Your Financial Situation Your Home Situation You Your Values Your Frame of Reference Past Experiences The Stakes Fear/Courage The Law 20 10
Define Organizational Culture How do you build an Ethical Leadership Culture? 21 Define Organizational Culture: Cultures are comprehensive, incorporated both in the visible: architecture, physical objects, nonverbal behavior - above the surface invisible: thoughts, attitudes, values - below the surface A culture is the total way of life of a people, composed of their learned and shared behavior patterns, values, norms and material objects. Meeting the Ethical Challenges of Leadership Craig E. Johnson Copyright 2015 Institute for Ethical Leadership, Rutgers Business School.. 22 11
Culture 360 degree exercise Copyright 2015 Institute for Ethical Leadership, Rutgers Business School.. 23 Building an Ethical Leadership Culture An ethical organization is made up of a number of components. Each of these ethical organization values are found in each component. People and Processes Leadership Self Regulation External Oversight Clear Policies Culture 24 12
IEL s Decision Making Process for Ethical Dilemmas Re-define as needed 1. How to Recognize Is this or is this not an ethical dilemma? If so Define the ethical dilemma from all perspectives. Test with your Gut, Your Values, Organization Values. This could be an ethical dilemma or business problem Black, White, Gray Is the action illegal? If yes, do not proceed. Illegal what would you do? Report it Authorities, Human Resources, Law 7. Re-affirm the Ethical Issue and the results of the Decision solved, not solved re-define Your Personal Ethics, Values Ethics Culture 2. Clarify the Facts & develop a complete understanding of the ethical dilemma. What influences your decision when faced with an ethical dilemma? 6. Evaluate Consequences of Decision post implementation and engage others 5. Decide & Implement Decision Courage, Involve all who need to be engaged Leadership Meeting the Ethical Challenges of Leadership Craig E. Johnson, SAGE Publications, Inc. 2009 4. Evaluate Alternatives (short/long term effects) 3. Create Alternatives brainstorm options Evaluate effect on various stakeholders/stakeholder analysis Engage others - turn to trusted advisors to discuss (do not decide in a vacuum) Ask Yourself Does it comply with the organization s values? How will this decision make me feel about myself? Will I be proud if it is represented in the media? Does it support my personal values? 25 Discuss Results of your votes Ethical Dilemmas 26 13
Program Summery & Action Planning Based on what you learned during this program One thing you will do differently going forward One thing you learned 27 Sources Brubaker, Dale L., and Larry D. Coble. The Hidden Leader : Leadership Lessons on the Potential Within. Minneapolis: SAGE Publications, Incorporated, 2004. Ethics Resource Center - National Business Ethics Survey: An inside view of private sector ethics. (2007). Arlington: Ethics Resource Center, (p. ix) Gentile, Mary. Giving Voice to Values: How to Speak Your Mind When You Know What s Right. New Haven and London: The McGraw-Hill Companies, Inc., 2010. Howard, Ronald A. & Korver, Clinton D. Ethics (for the real world). Massachusetts: Harvard Business Press, 2008. Johnson, Craig E., Meeting the Ethical Challenges of Leadership - Casting Light or Shadow. California: SAGE Publications, Inc, 2009. 28 14
Thank you! Contact Info: leadership@business.rutgers.edu 973-353-1135 www.business.rutgers.edu/iel Rutgers Institute for Ethical Leadership @RutgersIEL #ethicsmatter Rutgers Institute for Ethical Leadership 15