Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
Lecture Notes
Chapter 8
Leadership Ethics
Organizational Ethics: A Practical Approach (3rd ed.)
The Role of Ethical Leaders
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•Ethical leaders are critical to the ethical performance of any
organization
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•Organizational members look to leaders as role models and follow their
example (social learning theory)
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•Ethical leaders function as
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•Moral persons (behave ethically)
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•Moral managers (create ethical organizational cultures)
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•Unethical leaders fail as moral persons and/or moral managers
The Ethical Challenges of Leadership
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•The Challenge of Power: abuse, concentration of power
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•The Challenge of Privilege: wide gap between haves and the have nots
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•The Challenge of Responsibility: accountability for follower behavior
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•The Challenge of Information Management: access to and release of
information,;information gathering tactics
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•The Challenge of Consistency: determining how to treat followers fairly
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•The Challenge of Loyalty: balancing loyalty to a variety of groups
The Shadow Side of Leadership
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•Failure to meet the ethical challenges of leadership leads to
misbehaviors—the dark or shadow side of leadership
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•Four approaches to the nature and origins of destructive leadership:
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•Bad leadership
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•Toxic leadership
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•Destructive leadership
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•Sel5sh leadership
Bad Leadership
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•Bad leaders are ine6ective or unethical or both ine6ective and
unethical
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•Seven types of bad leaders
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•Incompetent leaders—lack motivation or ability to be e6ective
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Rigid leaders—competent but in7exible
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•Intemperate leaders—lack self-control
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•Callous leaders—uncaring or unkind
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•Corrupt leaders—put self interest above public interest
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•Insular leaders—ignores the welfare of outsiders
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•Evil leaders—commit atrocities
Steps to Overcoming Bad Leadership
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•Limit your tenure as leader
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•Share power
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•Don’t believe your own hype (favorable publicity)
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•Get real and stay real (live in reality)
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•Compensate for your weaknesses
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•Stay balanced (don’t be a workaholic)
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•Remember the mission of the organization
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•Stay healthy
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•Develop a personal support system
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Be creative (don’t get stuck in the past)
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•Know and control your appetites
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•Be self-re7ective
Toxic Leadership
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•Definition: toxic leaders engage in destructive behaviors and
demonstrate dysfunctional characteristics like avarice, arrogance and
insatiable ambition
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•Recognize the early signs of toxicity
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•Do I in7ict harm on my enemies and organizational members?
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•Do I demonstrate disdain for others?
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•Do I avoid my old acquaintances and colleagues?
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•Do I keep my own counsel or take advice from close advisors?
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•Do I use other to do my dirty work and then get rid of them?
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•Have I begun to mistreat the lowest or weakest members of the
group?
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•Have I begun to engage in excess?
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•Have I become evasive?
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•Do I blame others?
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Am I acting in self-interest?
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•Do I attempt to disguise unethical behavior as noble and
altruistic?
Destructive Leadership
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•Definition: unhealthy leadership aimed at subordinates, the
organization, or both
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•Types of leadership behavior:
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•Constructive: serves the interests of the organization and
followers (most common)
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•Tyrannical: achieves organizational objectives at the expense of
subordinates
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•Derailed: anti-organization and anti-subordinate
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•Supportive-disloyal: benefit followers at the cost of the
organization
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•Laissez-faire: passive, inactive
Types of Sel5sh Leadership
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•Impulsive
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•Often extraverts
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Fill sel5sh desires
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•Often silence critics
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•Narcissistic
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•Highly self-absorbed
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•Engage in unethical behaviors to satisfy personal wants
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•Pursue unrealistic visions
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•Machiavellian
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•Skilled at manipulating others for their own ends
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•Deceptive
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•Often less qualified to lead
Combating Sel5shness
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•Look for sel5sh tendencies in ourselves
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•Keep sel5sh individuals from assuming leadership roles
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•Curb sel5sh tendencies in current leaders
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•Build in checks and balances
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•Hold leaders accountable
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Hold performance reviews
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•Confront unethical behavior
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•Encourage employee development and succession planning
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•Create a culture of honesty and collaboration
Normative Leadership Theories
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•Definition: leadership theories that tell leaders how to act ethically
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•Encourage sel7ess behavior
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•Theories
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•Transformational Leadership
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•Servant Leadership
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•Authentic Leadership
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•Benevolent Paternalistic Leadership
Transformational Leadership
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•Transactional leadership = based on exchanges between leaders and
followers
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Contingent reward (rewards based on performance)
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•Management-by-exception (punishing poor behavior)
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•Passive-avoidant (inactive)
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•Transformational leadership = powerful and inspiring
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•Idealized influence (serve as admired role models)
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•Individualized consideration (act as coaches and mentors)
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•Inspirational motivation (provide meaning and challenge)
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•Intellectual stimulation (foster creativity and innovation)
Servant Leadership
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•Premise : leaders should put the needs of followers first
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•Servant leadership themes
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•Person-centered/altruistic
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•Promotes equity or justice
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•Rests on ethical character
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•Incorporates stewardship (being entrusted with positions and
organizations)
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
Authentic Leadership
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•Premise : authenticity is the “root construct” underlying all forms of
positive leadership
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•“Know thyself” and “To thine own self be true”
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•Components of Authentic Leadership:
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•Self-awareness—knowing and trusting the self
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•Balanced processing—remaining objective in the face of
feedback (positive and negative)
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•Internalized moral perspective—regulating behavior according to
internal values and standards
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•Relational transparency—presenting the authentic self to others
Trigger events—dramatic events that promote the development of
authentic leadership
Benevolent Paternalistic Leadership
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•Paternalistic leaders act like father (mother) 5gures who treat their
employees as extended family
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•Popular in collectivist, high power distance cultures
Craig E. Johnson, Organizational Ethics, Third Edition
Instructor Resource
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•Draws from Confucian tradition
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•Characteristics of benevolent leaders
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•Focus on needs of employees
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•Set a high moral standard through high character