Term project ethics ethical business leadership ppt-fall 2016-business policies & ethics (94047)-paf-kiet (city campus)-ethics ethical business leadership

Term Project
Ethical Business Leadership
Submitted To:
Course Instructor: Dr. Abdul Wahab Suri
Course Title: Business Policies & Ethics
Course Code: 94047
Submitted By:
Name of Student: Muhammad Asif Khan
Student ID: MB-2-05-51271
Semester: Fall 2016
Campus: PAF- Karachi Institute of
Economics & Technology (KIET)
–City Campus

What Is Leadership?
•Leaders are first and foremost members of their own organizations and
stakeholder groups.
“Leaders see their constituents as not just followers, but
rather as stakeholders striving to achieve that same common
purpose...”
•Their purpose, vision, and values are for the benefit of the entire
organization and its key stakeholders.
•These follower and stakeholder constituents have their own
individuality and autonomy which must be respected to maintain a moral
community.

What Is Ethical Leadership?
•Ethical leaders embody the purpose, vision, and values of the
organization and of the constituents, within an understanding of ethical
ideals.
•They connect the goals of the organization with that of the internal
employees and external stakeholders (Customers & Community).
•Leaders work to create an open, two way conversations, thereby
maintaining a generous understanding of different views, values, and
constituents’ opinions. They are open to others’ opinions and ideas
because they know those ideas make the organization they are leading
better.

Characteristics of Ethical Leadership?
Following are the ten facets of ethical leaders offer a way to understand ethical
leadership that is more complex and more useful than just a matter of “good
character and values.”
1) Articulate and embody the purpose and values of the organization
“It is important for leaders to tell a compelling and morally rich story, but
ethical leaders must also embody and live the story.”
2) Focus on organizational success rather than on personal ego
•Ethical leaders understand their place within the larger network of constituents
and stakeholders.
•It is not about the leader as an individual, it is about something bigger—the
goals and dreams of the organization.
•Ethical leaders also recognize that value is in the success of people in the
organization.

3) Find the best people and develop them
“Ethical leaders pay special attention to finding and developing the
best people”
4) Create a living conversation about ethics, values and the creation
of value for stakeholders
•There is a fallacy that values and ethics are the “soft, squishy” part of
management. Nothing could be further from the truth.
•In organizations that have a live conversation about ethics and values,
people hold each other responsible and accountable about whether they
are really living the values.
•Making a strong commitment to bringing this conversation to life is
essential to do if one is to lead ethically.

5) Create mechanisms of dissent.
“There must be mechanisms of pushing back to avoid the values becoming
stale and dead”
6) Take a charitable understanding of others’ values.
•Ethical leaders can understand why different people make different choices,
but still have a strong grasp on what they would do and why.
•Ethical leadership is not to prevent people from doing the wrong thing, but
enabling people to do the right thing.
7) Make tough calls while being imaginative.
•Ethical leaders do not attempt to avoid difficult decisions by using an excuse
of “I’m doing this for the business.”
•The ethical leader consistently unites “doing the right thing” and “doing the
right thing for the business.”

8) Know the limits of the values and ethical principles they live
“One issue common to the recent business scandals was that managers
and executives did not understand the limits of putting shareholders
first.”
9) Frame actions in ethical terms
•Ethical leadership requires an attitude of humility rather than
righteousness:
A commitment to one’s own principles, and at the same time,
openness to learning and to having conversations with others who
may have a different way of seeing the world.

10) Connect the basic value proposition to stakeholder support and
societal legitimacy.
•The ethical leader must think in terms of enterprise strategy, not
separating “the business” from “the ethics.”
•Ethical leadership is about “raising the bar,” helping people to realize
their hopes and dreams, creating value for stakeholders, and doing these
tasks with the intensity and importance that “ethics” connotes.
•Ethical leaders speak to us about our identity, what we are and what we
can become, how we live and how we could live better.

Becoming an Ethical Leader
To become an ethical leader, commit to asking yourself the following
types of questions:
• What are my most important values and principles?
• Does my calendar—how I spend my time and attention—reflect
these values?
• What would my subordinates and peers say my values are?
• What mechanisms and processes have I designed to be sure that the
people who work for me can push back against my authority?
• What could this organization do or ask me to do that would cause me
to resign for ethical reasons?
• What do I want to accomplish with my leadership?
• What do I want people to say about my leadership when I am gone?
• Can I go home at the end of the day and tell my children (or a loved
one) about my leadership, and use my day’s work to teach them to be
ethical leaders?

Developing Ethical Leader
1) Informal Way
• The first step is to bring life to a conversation about how the
organization benefits its stakeholders and about understanding the
organization’s values. This doesn’t need to be a formal program.
• It could be as elaborate as town hall meetings.
Or
We can simply could have an “ethics” or “stakeholders” moment at
most meetings. Such moments, analogous to “safety moments” at
companies like DuPont, set aside a brief time to raise concerns about
the effects of the meeting on key stakeholders, or on a company’s
values and ethics.
• Equally, the “ethics” moment could elaborate on how the
conversations and decisions of the meeting were aligned with
company values.

Developing Ethical Leader
2) Through Leadership Program
• Many companies have leadership development programs. These
programs need to be strengthened by adding the idea of “ethical
leadership.”
• Executives can develop shared conversations and conceptions of how
“ethical leadership” can be implemented in their particular company.
3) Challenge Meetings
• Executives need to figure out how to have “challenge meetings,”
routine processes where anyone in the organization can raise a
challenge to whether or not the company is living its values, or its
enterprise strategy approach.
• Without the ability to challenge authority, there can be no such thing
as true ethical leadership.

The Road to Ethical, Balanced Leadership
There some suggestions to over-
arching systems approach to
improving ethical practice in
organizations.
These suggestions are grouped
under the headings of various
attitudes and that are appropriate
for CEOs and corporate directors,
organizational tools and initiatives,
and challenges for business
education.

The CEO Perspective
Raytheon’s CEO, Dan Burnham personal in articulating what he
viewed as the responsibility of senior executives:
• Implementing and sustaining ethics programs is important, but
we need to do more.
• Leaders and leaders-to-be need to focus on the desired end
state:
o On the vision for their company.
o On the values and the culture of their company.
• The CEO must be the chief ethics officer of the firm. He or she
cannot delegate integrity.
• CEOs should develop an ‘‘early warning system’’ that identifies
problems and even potential problems.
• If unethical behavior is uncovered, it’s important for CEO to
act swiftly and decisively.

Organizational Tools and Initiatives
Blair Shepherd of Duke Corporate Education is commented on aspects of
developing good organizational tools and initiatives.
He asserted,
• Firms that know what kinds of developmental needs their people have
and are committed to providing those developmental opportunities are
obviously ahead of companies that simply assume that the ‘fit will
survive’—without asking, ‘fit for what?’
• Integrity is probably a more important developmental need than the
ability to understand foreign exchange or transfer pricing.

Organizational Tools and Initiatives
Pfizer’s Mila Baker spoke of ways that ethical leadership can become a
core competency and lever for organizational effectiveness.
• First, it is essential to establish ethical leadership as a strategic
imperative.
• Next, care should be taken to develop a ‘Strategic Ethical
Leadership Agenda’ with as much specificity as possible.
o This agenda should describe actions that demonstrate
commitment and acceptable conduct as well as identify
actions that do not measure up to the values of the firm.

Corporate Governance
•Since the top of the organization sets the tone for leadership throughout
the firm, board of directors should be asked to assume increased
responsibility for developing an ethical corporate climate.
P4 Management Model and Corporate Governance
•It is a modern model for management and leadership in the 21st Century.
•It’s an interpretation of the ‘personality’ of good ethical modern
management and leadership.
•As such it’s not a process or technique-it’s an attempt to
characteristics good modern ethical management and leadership.

Corporate Governance
Probity means honesty, uprightness- it's
from the Latin word probus, meaning
good.
Purpose is a replacement word for the
usual 'Profit‘.
People represent staff, customers,
suppliers, local communities, stakeholders,
etc.
Planet - the world where we live in (in
terms of sustainability, environment,
wildlife, natural resources, our heritage,
'fair trade', other cultures and societies,
etc.)

Good Corporate Governance Gives Organizational Benefits
• Competitive Advantage
• Better Staff Attraction and Retention
• Investment
• Morale and Culture:
• Reputation
• Legal and Regulatory Reasons
• Legacy

The Five Pillars Of Ethical Business Leadership

First Pillar: Commitment
•The first pillar is an essential starting point for leaders in business wanting to get a grip
on ethics. This pillar requires a leader to show a wholehearted and public sharing of
their ethical position. Only through a personal willingness to fully engage will each
leader makes an impact within their own organization, let alone play a part on a wider
stage
Action
• Clarify your own values and those of your organization–how well do they match?
• Share agreed values frequently–be seen talking about them and explaining why they
matter so much
• Show you’re willing to exert great effort to get people committed to the core values
and what they mean for each person
• Through your everyday actions demonstrate integrity, fairness and respect of others
• Set in motion structures, procedures and processes to help people understand what’
expected of them when it comes to ethical choices–don’t just delegate, be concerned
with how these are implemented.

Second Pillar: Relevance
• The second pillar guides leaders to ensure ethical concerns connect to
their business–directly or indirectly. A legitimate leadership concern is
therefore:
“How do ethics affect my business?”
• This second pillar therefore encourages a leader to ask:
“Is this ethical choice relevant to our business?”
Action
Using the second ethical leadership in business pillar suggests various
practical actions:
• When facing business choices with an ethical or social implication
ask: does this have relevance to our business now and the long term?

Second Pillar: Relevance
Action
• Check the ethical implications of the company’s goals and business
plans–explore for hidden benefits and unexpected drawbacks.
• Ensure all business decisions pass through an ethical “filter” to assess
the wider impact on people and the planet.
• Seek ways to make a positive, not a negative impact on the operating
environment and “do what’s right.”
• Establish clear ethical guidelines to ensure all stakeholders understand
and subscribe to them.

Third Pillar: Add Positive Value
The third pillar of Ethical Leadership in business prompts leaders to look
for ways to add positive, rather than negative value to what their
companies do.
How can a leader use ethics to add positive value?
• A practical step is to make sure ethics and compliance are integrated
into operational decision making. That is ensures ethics permeates the
culture and drives changes in behavior. A further benefit from this is
to reduce inconsistencies and the impact of silos.
• Another positive leader action is seeking to alter the company mind-
set. Instead of ethics and compliance being seen as a defence against
misconduct, instead it is used to play a vital role in contributing to
high performance.

• Finally, leaders can ensure ethics add positive value by ensuring they help
their company reach beyond education and communication, to affect a
variety of company practices including: Performance appraisals, promotion
and recruiting practices, what is celebrated and rewarded and punished,
customers’ services, and sales training.
ACTION
Here are some basic actions leaders can explore:
• Can ethical issues and concerns be readily discussed in my company without
negative consequences?
• Does my senior management support and practice high standards of ethical
conduct
• Is my organization clearly committed to serving the interests of all its
stakeholders including customers, employees, suppliers and community, not
just shareholders?

ACTION
• Is the behavior of our employees consistent with the organization’s
mission, vision and values?
• When we advance or reward our employees is this based on behavior
that demonstrates our company values?
Fourth Pillar: Influence
•The fourth pillar is about Influence. Basically this prompts leaders to
ask about any particular ethical concern:
“How can we influence through our ethical actions?"

The Starting Point is Values
For leaders wanting to maximize their moral or ethical influence the best
starting point is values. Certain values do have a universal appeal and business
leaders cannot avoid taking them into account. For example:
Courage and integrity—the ability to “do what’s right” even when no one is
looking
Love and Kindness—these show up as an organization “with heart”, where
compassion, kindness and mutual respect guide people in facing ethical
challenges.
Justice and Fairness—these exist for example when individuals feel they
receive a fair return for the energy and effort they expend.
Means matter as much as ends—
Self-Control-- Putting personal motivations aside and acting with objectivity
by doing what is right.

Action
• Identify core values and make sure they suffuse the organization’s
direction and strategy.
• Establish a formal statement of organizational values and provide a
framework of expected behavior.
• "Values must lead and be right up there in a company's mission
statement, strategy and operating plan.
• Ben & Jerry's Ice Cream founders Ben Cohen and Jerry Greenfield
• Review standard operating procedures and performance
measurements—make sure these do not encourage unethical
behavior.
• Lead by example—don’t just talk about values and ethics,
personally demonstrate them
• Use existing capabilities to benefit the wider community in which
the company operates.

Fifth Pillar: Means not Just Ends
•The fifth pillar requires a focus on means and not just ends.
This is when a leader shows concern with how their
organization achieves its goals, not just the goals.
•The fifth Pillar says "how we get there" is just as critical as
"where do we want to go"--the actual destination.
•The implication is the need to build relationships to release
the energy and creativity of people inside and outside the
organization.

Fifth Pillar: Means not Just Ends
ACTION
• Regularly review how goals are achieved in terms of acceptable
norms, not just the goals themselves.
• Look beyond the financial bottom line to assess the social,
environmental, economic and ethical implications of what the
company does.
• Avoid over reliance on formal governance measures to stay ethical,
check the effectiveness of the culture--"how we do things round
here".
• Involve all stakeholders in staying ethical, seeking their full
engagement in being a responsible company.
• Seek to bring consistency and transparency to the company's
decision making process.

How to Become More Ethical Business Leader
Strategy 1: Make Sure to Walk the Talk
Strategy 2: Find Your Mantra
Strategy 3: Avoid Self-Serving Pitfalls
Strategy 4: Do Not Go at It Alone

Leader’s Behaviour
• You Inspire Others to Be Ethical
• You Are Always on Stage
• You Communicate with Care
• You Admit Your Mistakes
• You Inspire Ethical Team Work
• You Run an Ethical Operation
• You Have Guiding Principles

The Challenge of Ethical Leadership
•Ethics, values, leadership, and trust are timely issues of immense
importance to executives attempting to recover from a substantial
downturn in the national and global economies.
•After a brief review of the context, we can find several leaders from the
ranks of senior executives and academic and human resource
development specialists who will describe largely in their own words
their perspectives on and approaches to mediating the epidemic of
unethical behavior incorporations.
•Individually, these leaders’ comments are insightful and pragmatic.
Collectively, these observations from the basics of a systemic approach
to the challenges of ethical leadership and suggest some responses that
offer potential for raising the level of ethical behavior in organizations.

Is Ethical Behavior Profitable for Businesses?
•Reports Curtis Verschoor, author of the study ‘‘Corporate
Performance is closely Linked to Strong Ethical Commitment.’’
•The report reveals that the excess value a company provides its
shareholder over the total amount of their investments increases
significantly when an ethics code is clearly stated by accompany.
•The report found that in the 87companies where an ethics code was
clearly stated, the average market value added (MVA) was 2.5 times
larger than the average of companies not mentioning a code of ethics or
conduct.
•For the 47 companies expressing an extensive commitment to an ethics
code, the MVA was three times that of the other companies not
expressing an ethics code.

Business Leaders Share How They Solved The
Biggest Moral Dilemmas Of Their Careers

1) Sallie Krawcheck, Chair of Ellevate Network and
Ellevate Asset Management
•Weeks after Krawcheck took over running Merrill Lynch’s wealth
management division, in the fall of 2009, she was told that the Stable
Value Fund, a financial product Merrill had sold in 401k plans, wasn’t
actually so stable.
•There were two options, one of which was to say tough luck to the Wal-
Mart employees who owned the Stable Value Fund," says Krawcheck. Or
to put money in, in order to increase the fund's value.
The lesson: Know what your indicator is. My indicator has always been
my stomach. When my stomach starts to hurt, I know that something’s
wrong.

2) Binta Niambi Brown, CEO And Cofounder of Fermata
Entertainment Ltd. And Lawyer
•At the time, her partner wasn’t reachable and Brown had a choice
to make: either tell her client and risk losing the deal, or keep quiet
until the papers were signed. She chose to tell the client. It was
early in my career," she says.
•"Even if the deal had been blown up for good, honest reasons
rooted in decent integrity and morality, there’s always the fear that
you’re going to become the associate whose deal blew up, and now
everybody’s talking about how the senior person wasn’t around and
you’re being Goody Two-shoes and you ruined the deal.“
The lesson: Sometimes the things we think could really hurt us or
embarrass us end up being the things that become our shining, most
glorious moments.

3) Scott Gerber, CEO of The Gerber Group
•When Gerber found out that one of his employees was clocking in his
wife who wasn’t actually showing up until three hours later, the company
immediately fired the employee.
The lesson: Loyalty and longevity still matter at some companies.
4) Laurie Peterson, Founder of Build & Imagine Toys
•When Peterson started working for big toy companies more than 10
years ago, she wanted to get young girls excited about science.
Somewhere along the way, she forgot her mission and found herself—
like most in the industry—advocating for toys catering to boys simply
because they’re more profitable.

4) Laurie Peterson, Founder of Build & Imagine Toys
•The thinking was that if we design it for boys, then girls will just play
too," she says. But if we do the reverse and design it for girls, we don’t
know if boys will play. The thing to do was, by default, design the toys
for boys.
•I found that to be morally not right, but I absolutely advocated what I
thought was right for the business, to lead with boys, because we found
that to be a more sound business decision," continues Peterson. "There I
was, year after year, representing this position that the best business
decision we can make is to design toys for boys. I was never my
authentic self because of that."
The lesson: You need to be the change you want to see.

5) Kathryn Minshew, CEO And Cofounder of The MUSE
•Minshew’s toughest ethical decision involved firing a company they had
signed on to do business with. "They'd already paid us for the Muse
recruiting product, but were treating our team so badly during on
boarding that it just didn't feel like how I wanted to do business," recalls
Minshew.
•To make it worse, they were really nice to me. It was just the junior staff
they treated poorly.
The lesson: I think backing your team in situations like that is really
important, but it's not always easy. Especially when you're early stage.

6) Anthony Soohoo, Cofounder And CEO of Dot & Bo
•During my time as a product manager on Apple's PowerBook team, we
were gearing up to launch a new product. As part of testing, we had
found that a very small sample size was flawed and could be harmful.
•I was under tremendous pressure to make a decision on whether or not
to hold off bringing the product to market. And there were good
arguments on both sides.
The lesson: Trust your gut to do the right thing for the customers. When
there is a difficult decision to make, make it based on what would create
long-term value instead of gaining the short-term win. That lesson has
remained with me throughout my career.

7) Trae Bodge, Spokeswoman And Senior Editor Of
Retialmenot.Com And Cofounder of Beauty Brand Three Custom
Specialists
•When Bodge started her company Three Custom Color
Specialists back in the '90s, there were very few products for
women of color. And there was a reason why:
oCreating makeup for darker skin tones was more costly.
The lesson: If you’re looking at your bottom line as a
company, part of that equation should be, am I catering to all
consumers? And yes, certain shades will be more profitable
and certain shades will be less profitable, but there’s a middle
ground there. It’s a mistake from a PR and customer service
perspective not to cater to all consumers

Development of Business Incubator Company

•The basic purpose to develop the company is to provide workspace, coaching,
and support services to potential entrepreneurs at early-stage of businesses.
• Our core objective is to encourage and support the rural area population male
and female (domestic women) to take initiative and commence their own
venture though effectively utilizing the available resources and their skills.
•We are committed to create a diversified value chain through effectively
developing the Micro Level Enterprises with the help of these entrepreneurs
and provide value to our customer with affordable price and the pride to
contribute toward a social cause.
This success of the venture will allow us to transform it in to the:
“Entrepreneurial Development Incubator Company”

Entrepreneurial Development Program:
•Selection of the high potential individuals those who has an ability and
they keen to commence their professional career as an entrepreneur.
•They must be hard working and able to interact with the people highly
social can work under stress.
•They must be able to develop and lead team.
•They will be continually monitored and all the necessary assistance will
be provided to them whenever required.
•They will encourage supporting others for the development of their own
ventures.
•They will encourage supporting others for the development of their own
ventures.

Entrepreneurial Development Program:
•All the new ventures (Micro Level
Enterprises) will be develop on the basis
of BOTT (Built Operate Train & Transfer).
•A comprehensive education and training
program will be inaugurate to fully equip
them with the appropriate knowledge skills
and abilities to run their own venture in
their respective area of interest and ease to
doing business in their respective locality.

Question
&
Answers

Thank You!

Term project ethics ethical business leadership ppt-fall 2016-business policies & ethics (94047)-paf-kiet (city campus)-ethics ethical business leadership

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