BLAW 400 Ethical Leadership

Being a Leader

“If you want to build a ship, don’t drum up men to gather wood, divide the work, and give orders. Instead, teach them to yearn for the vast and endless sea.” - Antoine de Saint-Exupery

What is Ethical Leadership?

• Emphasis on development of both ethical principals and leadership principals, plus understanding thee symbiotic relationship between the two

• For example, leadership principals often focus on development of virtues, recognition of rights, etc.

Why is leadership important?

• “The leader’s attitude, conscious and subconscious, inevitably becomes the attitude of those (s)he leads” - John Wooden

Sources of Authority

• Authority (the ability to motivate or change how someone acts) can come from various sources:

  • Position/Title (formal authority)

  • Knowledge/Skills (competence theory)

  • Acceptance by others

Boss:

Authority comes from formal authority. May or may not possess other elements of authority. Influences actions by giving orders. Motivates through external rewards/punishments

Leader:

May have formal authority, but has competence/acceptance authority. Influences by creating internal motivation. Consistence focus on demonstrating leadership qualities and ability to bring out the best in others.

Tangible Benefits of Focusing on Leadership

• Lower turnover

  • Studies find positive relationship between transformational leadership and employee retention

  • Some studies indicate that every time a business replaces a salaried worker, it costs 6-9 months of wages

    • Cost of recruiting

    • Retraining

    • Loss of productivity

    • Loss of Morale

• Higher employee creativity/motivation

• Institutional buy-in

Survey of C-Suite executives:

• 91% said culture was either important or very important at their organization

• 92% said improving culture would improve an organization’s value

• 79% said culture is in top 5 of things that make their organizational value

Other ways of measuring

• how much would an organization de-valued inn acquisition context if there is a disconnect in culture?

  • 54% said it would be a deal-breaker

  • 9% said 30%+ discount

  • 14% said 20% discount

  • Only 10% said it would not have an effect

Principles of Leadership

• Pay attention to incentives (and avoid moral hazards)

• Comparison is the thief of joy. If you are looking at others, it should be for inspiration or to help.

• Build strengths. Minimize weaknesses without harping on them.

• Praise in public, criticize in private

• Be honest about your own shortcomings

• Balance oversight with autonomy

• Be aware of the fine line between stretching and snapping

• Productivity stops (or slows way down) if you or the ones you lead are not healthy

• Balance community needs with individual needs

• Create agency and buy-in

• Always seek growth, while remaining in the present moment

• Clearly define values and consistently realign to the values

• Build your own virtues and display them consistently