1. MGT7019-8 Ethics in Business
Week: 2
Compare and Contrast Notions of Ethical Leadership
Lauraly DuBois
Northcentral University
March 13, 2016
Ethical Leadership Graduate Level Mock Course Presentation

2. Ethical Leadership: What is Leadership?
Chemer’s three-factor model of leadership
1. Relationship Development
 Leader communicates on a personal level with
stakeholders building end results based relationships
2. Resource Utilization
 Leader allocates resources competently
in accordance with fluctuating asset requirements
3. Image Management
 Leader maintains a positive reputation through
consistent behaviors expected from others
(Caldwell, Hayes, & Long, 2010)
Trustworthiness
EthicalLeadership
LEADERSHIP
FOUNDATIONS

3. Ethical Leadership: Leaders as Role Models
Ethical Leadership in Role Models
High-Level Leadership Skills Med-Level Leadership Skills Low-Level Leadership Skills
High Job Satisfaction Medium Job Satisfaction Low Job Satisfaction
High Ethical Behaviors Some Ethical Behaviors Unpredictable Ethical Behaviors
Perceive Role Model
as Ethical
May/May Not Perceive Role Model
as Ethical
Does Not Perceive Role Model as
Ethical
Positive Attitudes Some Positive Attitudes Negative Attitudes
(Ogunfowora, 2014; Van Gils, Van Quaquebeke, Van Knippenberg, Van Dijke, & De Cremer, 2015)

4. Ethical Leadership: What is Trustworthiness?
Three-Factor Model of Trustworthiness
Ability
 The comprehensive set of talent, proficiencies
and personal attributes possessed by an individual
enabled to influence others within a specific environment.
Benevolence
 The degree an individual is entrusted and perceived
to have the best intentions while performing actions on
behalf of the organization to those relinquishing their confidence.
Integrity
 The level of reliability granted to an individual based on the
belief their actions will be performed as expected within specific
guidelines.
(Caldwell, Hayes, & Long, 2010)
Perceived
Trustworthiness
-
Continual Assessment
Level of Ethical
Leadership
Ability
BenevolenceIntegrity
History of
Relationship

5. Ethical Leadership: What is Ethical Stewardship?
Organization and Leaders OnlyTraditional Role
•Ethical steward agents only
Organization, Leaders and StakeholdersStakeholder Theory
•Ethical responsibilities at forefront of decision-making
Leaders bridge gap for Organization and StakeholdersStewardship Theory
•Organization missions and profits met to benefit both the organization and stakeholder
Organization, Leaders and StakeholdersContemporary Model
•Incorporating organization’s financial and social practices as a single point of governing responsibility to ensure moral obligations.
(Caldwell, Hayes, & Long, 2010)

6. Ethical Leadership: Relationship between Leadership,
Trustworthiness, and Ethical Stewardship?
Leadership
Ethical
Stewardship
Trustworthiness
(Caldwell, Hayes, & Long, 2010)

7. Ethical Leadership: Preparing Future Ethical Leaders
Establish MBA Candidate Screening & Licensing
 Screening guidelines for students entering the MBA program
 Pass additional licensing exams before obtaining credentials
Evolution of the MBA in academics
 MBA candidates would also be held to these same standards as
 Comprehensive offering of business and corporate legal legislation
 Corporate business case studies and the
Benefits
 Reduce Unethical Corporate Business Practices
 Method of preparing our future leaders for ethical leadership
 Bring up leaders in corporate business fields
Identify, monitor and penalize unethical behavior
 Create new education, licensing requirements and associations
(Congleton, 2014)

8. Ethical Leadership: Calling all Servant Leaders
Servant Leader
Common Core Components
Empowerment and development of people
Display humility
Authentic
Acceptance of all people
Directing others
Steward Leaders
Spear Model of Servant Leadership
Good listening skills Not push others around
Possess empathy Be forward-thinkers
Have healing sense about
them
Good analysts
Stay aware of all matters Good stewards of people
Ability to influence Committed to the growth of
others and public good
(Spears, 2009; Van Dierendonck, 2011)

9. Ethical Leadership: How 7 Leadership Theories Compare to
Servant Leadership Model
Transformational leadership
 Focus on the person through support, encouragement and compassion often transferred from leader to employee.
Authentic leadership
 An open book mentality style of leadership mindful and willing to share self-shortcomings possessing a moral compass continuing to working toward the
improvement of self and others displaying and encouraging authenticity.
Ethical leadership
 Serving others with integrity demonstrating trustworthiness in all behaviors and management choices while maintaining a relationship with those managed.
Level 5 leadership
 Demonstrates fluid humility coupled with strong leadership skills driven to learn from others and seek self-improvement conducive to meeting the needs of
both the organization and employees.
Empowering leadership
 People-centric focused leadership actions valuing employees’ contributions throughout the decision-making process.
Spiritual leadership
 Accentuates an emotional wholeness environment supporting organizational standards while fulfilling the employees’ needs within the workplace bringing
together the values of the organization and employee.
Self-sacrificing leadership
 Sets aside self-serving behaviors and actions without regard to work, recognition or authority received or lost to achieve the betterment of the organization
and employees.
(Van Dierendonck, 2011)

10. Stakeholder Perceptions of CSR:
Are they faking it?
Stakeholder and Society – Perceptions of Authenticity – Trust Factors
Corporate Character
Corporate CSR Governing
Tactics
Corporate Community
Involvement
CSR Addresses Stakeholder
Needs
CSR Intentions
CSR Level of Distinction
CSR Link to Society
CSR Motivations
CSR Supports Corporate
Strategy
CSR Stability, Transparency and Responsiveness of the Acts
(Mazutis & Slawinski, 2015)

11. Ethical Leadership: Learning from Others
Bendigo Case Study
Bendigo Bank located in Bendigo, Australia
 An example of proactive social responsibility practices
 Ethical stewardship and leadership
 Identified a need in their local community and began building housing
 Provided business models for community growth
 Created the Community Enterprise Foundation for community improvement and growth
 Corporate social responsibility using ethical leadership and stewardship
 Reaches organizational economic and financial goals while creating a healthy community.
(Ethics in Business, 2009)

12. Ethical Leadership: Learning from Others
The Body Shop Case Study
The Body Shop natural-based and ethically-sourced beauty products in the United Kingdom
 Mission to sell ethically-sound products and provide benefits for society
 3 core values economic success, stakeholder fulfillment, and social and environment change
 Community event participation from employees
 Created and distributed economic models for helping those in need
 Integrating corporate social responsibility actions as their common core values.
 Later acquired by L’Oréal accused of greenwashing intentions after acquiring The Body Shop many
believed as a cover up of recent bad publicity from the L’Oréal organization
(Ethics in Business, 2009)

13. Ethical Leadership: What Have We Learned?
Chemer’s three-factor model of leadership: Relationship Development, Resource Utilization, Image Management
Ethical Leadership in Role Models: Leadership Skill Level Impacts
Three-Factor Model of Trustworthiness: Ability, Benevolence, Integrity
Steward Leadership: Traditional Roles, Stakeholder theory, Stewardship Theory, Contemporary Model
Relationship of Leadership, Trustworthiness, Ethical stewardship: Affected by Actions, Benefits and Covenants
Preparing Future Ethical Leaders: Establish MBA Candidate Screening & Licensing
Common Core Components of Servant Leadership
Links between Leadership Theories and Servant Leaders
Stakeholder and Society Perceptions of Authenticity and Trust Factors
Case Study of Proactive Corporate Social Responsibility
Case Study of Integrated Organizational and CSR Core Values
Leadership
Role Model
Trustworthiness
Ethical Stewardship
Relationships
Preparing Leaders
Servant Leadership
Leadership Links
Authenticity
Bendigo Bank
The Body Shop

14. References
Caldwell, C., Hayes, L., & Long, D. (2010). Leadership, trustworthiness, and ethical stewardship.
http://search.proquest.com.proxy1.ncu.edu/docview/757110543?accountid=28180
Congleton, A. (2014). Beyond Business Ethics: An Agenda for the Trustworthy Teachers and Practitioners of Business. Journal of Business Ethics, 119(2), 151-172.
Ethics in Business. Video. N.p., (2009).
http://proxy1.ncu.edu/login?url=http://digital.films.com/PortalPlaylists.aspx?aid=6281&xtid=33436&loid=19939%20
Koczor, N. (2012). Corporate social responsibility and its effect on image and reputation: The case of L’Oréal and its acquisition of The Body Shop.
http://run.unl.pt/bitstream/10362/9559/1/Koczor_2012.pdf
Mazutis, D., & Slawinski, N. (2015). Reconnecting Business and Society: Perceptions of Authenticity in Corporate Social Responsibility. Journal of Business Ethics, 131(1), 137. doi:10.1007/s10551-
014-2253-1
Murphy, P. (2009). The relevance of responsibility to ethical business decisions.
http://search.proquest.com.proxy1.ncu.edu/docview/365453640?accountid=28180
Ogunfowora, B. (2014). It’s all a matter of consensus: Leader role modeling strength as a moderator of the links between ethical leadership and employee outcomes. Human Relations, 67(12), 1467.
doi:10.1177/00187
Spears, L. C. (2009). Servant Leadership. Leadership Excellence Essentials, 26(5), 20.
Van Dierendonck, D. (2011). Servant Leadership: A Review and Synthesis. Journal of Management, 37(4), 1228. doi:10.1177/0149206310380462
Van Gils, S., Van Quaquebeke, N., Van Knippenberg, D., Van Dijke, M., & De Cremer, D. (2015). Ethical leadership and follower organizational deviance: The moderating role of follower moral
attentiveness. The Leadership Quarterly, 26190-203. doi:10.1016/j.leaqua.2014.08.005