In this blog, I would and demonstrate my thought about ethical leadership in the organisation, where two principles area of ethics and one model of leadership would be involved in this discussion, together with relevant examples.
Regarding to the first principle, Deontological or known as rules refers to the evidence of actions that taken by someone, not to the consequences of their actions (Ethical Leadership In Business, 2017). For example, all the employee of Pepsico is required to behave correspondingly with the principles of Conduct of the organisation; politically, all employess and Board of Directors of the company required to obey all laws in promoting the company’s position relative to government authorities and in making political contributions. The company would be deemed as ethical if the members of the company following the listed regulations regarding to politic. In other words, so as long as the company is following certain rules, they would be viewed as ethical. Another example is code of conduct of business gifts, where employees are prohibited from giving, offering, or receiving any gift that may cause unfair advantage, especially cash gifts (Pepsico, 2017). From these examples can be seen that employees would be considered as ethical if they act accordingly with the code of conducts of the organisation by not receiving gifts in a form of cash.
Whereas the second principle is Teleological or consequentialist, this principle relates to the consequences or the end result of an action. The more good result an act produces, the better or more right that act (Bbc.co.uk, 2017). As a result, the actions that being performed by someone would be perceived as ethical if the actions that carried out contain more positive consequences than negative consequences. For example, Casino, a gambling centre where it seems unethical according to the law, nevertheless, the power of bringing economic benefits for the governing tribes would lead that industry to be seem as ethical to operate. Moreover, Casino appear to be ethical because it could generate happiness and minimising unhappiness. On the other hand, the example of Enron Corporation, American energy, commodities, and service company was found out that the CEO of the company was hiding the financial losses of the trading business and other operations where this company was considered as unethical because the corporation does not disclose the true information to public and contributes many disadvantages to other parties, especially to the stakeholder of the company.
In addition, the fundamental of these principles based on someone’s value (one of the model of leadership). Other than value, there are another three model of leadership, which are voice, vision, and virtue (Center for Ethical Leadership, 2017). However, in this blog only 1 model that would be discussed. Values is about someone’s ideas as to what is right, good or desirable and influence behaviour, perception and motivation (Ethical Leadership In Business, 2017). That values are form through various factors, such as from the environment where they live, area of study or education that they are studying, level of education they have, and so forth. From the value that someone has, it would then determine they way they behave and how responsible they are.
All in all, could be concluded that the way people perceive of someone’s behaviour would significantly depend on someone’s value or believes. Additionally, the principles that we discussed earlier would also take part in helping determining whether someone’s actions are ethical or unethical. If someone believe more to the compliance with rules would seem ethical then it refers to the first principle. However, if they believe more to the consequences of the actions then it relates to the second principle. There is no right or wrong in come to a decision about ethical or unethical actions because every person has different values or believe.
Bbc.co.uk. (2017). BBC – Ethics – Introduction to ethics: Consequentialism. [online] Available at: http://www.bbc.co.uk/ethics/introduction/consequentialism_1.shtml [Accessed 3 Feb. 2017].
Center for Ethical Leadership. (2017). Concepts and Philosophies. [online] Available at: http://www.ethicalleadership.org/concepts-and-philosophies.html [Accessed 4 Feb. 2017].
Investopedia. (2016). Enron Scandal: The Fall of a Wall Street Darling. [online] Available at: http://www.investopedia.com/updates/enron-scandal-summary/ [Accessed 4 Feb. 2017].
http://www.pepsico.com. (2017). Pepsico Global Code of Conduct. [online] Available at: https://www.pepsico.com/Assets/Download/CodeOfConduct/English_GCOC_2014.pdf [Accessed 3 Feb. 2017].