The Ethical Leader Within
The Ethical Leader Within
Six Essential Skills for
Leading and Living
Mick Ukleja, Ph.D.
President, LeadershipTraQ
Teens View of Business Leaders
12%
Ethical
39%
Unsure
Unethical
48%
Source: Junior Achievement / Deloitte, Excellence Through Ethics 2005 Survey
Teens View of Business Leaders
In the real world,
successful people
do what they have
to do to win even if
others consider it
cheating.
Source: 2004 survey conducted by the Josephson Institute of Ethics
of 2,400 high school male athletes
Trust in the Sports World
30% of surveyed
high school level
male athletes
approved of using
a stolen playbook…
Source: 2004 survey conducted by the Josephson Institute of Ethics
of 2,400 high school male athletes
The Legacy…
 Sarbannes-Oxley enacted
 Americans have lost trust
European’s Trust has Eroded
Trust in
Business
43%
35%
Trust in
Government
36%
25%
2001
2003
2001
2003
Source: Trust Barometer Survey, Edelman Public Relations, 2003
Perception of Media
Americans think that journalists are …
•
•
•
•
•
•
•
Sloppier
Less professional
Less moral
Less caring
More biased
Less honest about mistakes
Generally more harmful to
democracy
…then they did in the 80s
Source: Journalism.org, State of the Media survey, 2004
Trust in Politics
POLITICAL PARTIES
LEGISLATURE
Political parties were
perceived as the most
corrupt institutions...
legislature or parliament
was second
Source: Global Corruption Barometer, 2005
The Ethical Leader Within
Achievement Is On The Rise
We’ve seen a steady increase in
the degree to which achievement
is a motive for managers and
executives, while power as a
motivation has dropped.
ACHIEVEMENT
AFFILIATION
POWER
1988
Source: Roper Center for Public Opinion Research, University of Connecticut
2005
The Ethical Leader Within
Creativity Is On The Rise, But …
At the same time, public trust in
big corporations has sunk as the
relentless focus on results has
led to unsavory behavior on the
part of some executives.
PATENTS
189,536
Percentage of survey
respondents expressing
a great deal of
confidence in
big business
11
7
68,315
1997
Source: U.S. Patent and Trademark Office
2003
The Ethical Leader Within
Rise in the Achievement Motive
Coincides with Increases In …
•
•
•
•
Economic Growth
Innovation
Cheating
Cutting Corners
-David McClelland
The Achieving Society
The Dark Side of Goal Setting
Professor Ed Lawler:
If you make the carrot big
enough and the target just
into the unachievable
range, people will be
motivated to cheat.
The Ethical Leader Within
“Everything that every effective leader does is
sandwiched between action on the ground and
reflection in the abstract. Action without
reflection is thoughtless; reflection without
action is passive. Every leader has to find a
way to combine these two mind-sets—to
function at the point where reflective thinking
meets practical doing.”
- Henry Mintzberg
MIT Professor
The Ethical Leader Within
Two Types of Leaders
• Transformational Leaders:
– Getting the desired outcomes by encouraging personal
change in the follower
• Transactional Leaders:
– Getting desired outcomes by encouraging compliance
using external resources as an exchange
The Ethical Leader Within
Ethical Leadership
• Ethical Knowledge
- Codes, rules, knowing right from wrong
• Ethical Courage
- Execution in the midst of pressure
• Ethical Conduct
- Behavior that aligns with knowledge
Dr. Ned Hill,
Dean of Marriott School of Management
Brigham Young University
The Ethical Leader Within
Embrace A Purpose
The Ethical Leader Within
Embrace A Purpose
“Point of view is worth 80 IQ points.”
Marvin Minsky
Professor of E.E. and C.S., M.I.T
pioneer in artificial intelligence
The Ethical Leader Within
Embrace A Purpose
Former TYCO CEO, Dennis Kozlowski on
his philosophy of hiring …
“I hire them same as me -- smart, poor,
and wants to be rich.”
Source: Business Week 2001
“The Most Aggressive CEO”
The Ethical Leader Within
Embrace A Purpose
Enduring Success …
“A collection of activities viewed
affirmatively by you and those you
care about, now, throughout your life,
and beyond.
Source: Laura Nash & Howard Stevenson
“Just Enough: Tools for Creating Success in Your Work and Life”
The Ethical Leader Within
Embrace A Purpose
“A sailor without a destination has
trouble discerning a good wind from
an ill wind.”
- Seneca
The Roman Thinker
The Ethical Leader Within
Thoughts For Today’s Students …
• Have a firm grasp on your personal values.
– What are your non-negotiable values?
• In exploring your career opportunities:
– What are the organization’s values?
– How does the leadership live these values?
– How does my boss live these values?
• Then ask yourself:
– How do these answers compare with your personal
values?
The Ethical Leader Within
Embrace A Purpose
Test Your Excuses
The Ethical Leader Within
Test Your Excuses
Ethics
No lying
No cheating
No stealing
Conduct
No whining No complaining No excuses
- Coach John Wooden
The Ethical Leader Within
Test Your Excuses
“It’s not the first time you do something
that gets you into trouble … it’s the
second.”
Source: The Film ‘Double Indemnity’
Actor, Fred MacMurray
The Ethical Leader Within
The truth is incontrovertible. Panic may
resent it. Ignorance may deride it. Malice
may distort it but there it is.
- Winston Churchill
The Ethical Leader Within
Test Your Excuses
Former WorldCom CFO, Scott Sullivan, to
the court upon entering his guilty plea …
“I know what I did was wrong. It was a
misguided attempt to save the
company.”
The Ethical Leader Within
The Chicken Delight Story
The Ethical Leader Within
Embrace A Purpose
Test Your Excuses
Harness Your Moods
The Ethical Leader Within
What are some ethical dilemmas you have
encountered as a student?
The Ethical Leader Within
Harness Your Moods
Point:
You let your moods harness you
rather than you harnessing your
moods
The Ethical Leader Within
Harness Your Moods
Self-awareness
Self-management
The ability to read
your own emotions
and accurately
assess your own
personality
The ability to keep
destructive emotions
under control
The Ethical Leader Within
Harness Your Moods
The relationship between pressure and
ethical conduct … a study on traffic red
light violations.
•
9% are committed by people on vacation
•
13% occur on the way home from work or school
•
24% occur on lunch hours when employees are
doing errands or going out to eat
•
41% occur when drivers are on their way to school
or work
The Ethical Leader Within
Embrace A Purpose
Test Your Excuses
Harness Your Moods
Insist on Integrity
The Ethical Leader Within
Trust in Our Future Leaders
70% of surveyed
undergraduate
students admit
to cheating
Source: The Center for Academic Integrity, 2005
The Ethical Leader Within
Insist on Integrity
Belief
The
Integrity
Gap
Behavior
Matching our belief system to our actions
(the external with the internal)
The Ethical Leader Within
Insist on Integrity
Psycho-neuro-immunology
Growing in integrity strengthens our immune system.
The Ethical Leader Within
Insist on Integrity
Do The Right Thing …
Do It Right …
Do It Right Now!
- The Bonita Bay Group
The Ethical Leader Within
Insist on Integrity
Winning with integrity isn’t easy …
Winning without it is impossible.
The Ethical Leader Within
Embrace A Purpose
Test Your Excuses
Harness Your Moods
Insist on Integrity
Cultivate Trust
What is Trust?
•
Different than
integrity
•
Can be a feeling
or a perception
•
Natural
The Ethical Leader Within
Cultivating Trust
Trust equals …
Keeping simple agreements
plus
Doing no harm
Whom do we Trust?
Most Trusted
Least Trusted
Sources: Trust Barometer Survey, Edelman Public Relations, 2003 ; Trust Index, Golin /
Harris, 2003; Editorial, Evening Standard 3/17/2004
The Ethical Leader Within
Cultivate Trust
Tylenol Incident of 1982
Primum non nocere = Above all, do no harm
Why is it Hard to be Trustworthy?
 Credibility takes time
to build… but can dissolve
in an instant
 Dual messages can
devalue trust
Charles Handy’s 7 Rules of Trust
TRUST…
1. is not Blind
2. needs Boundaries
3. demands Learning
4. is Tough
5. needs Bonding
6. needs Touch
7. needs Leaders
Source: Charles Handy, Harvard Business Review
The Ethical Leader Within
Cultivate Trust
2003 National Business Ethics Survey …
•
Only 43% of employees with three years or less in
companies report ethical/legal issues.
•
69% of employees with more than three years in
companies report ethical/legal issues.
Source: Ethics Resource Center
Repairing Broken Trust
•
•
•
•
Figure out what happened
Assess the damage
Own up to the mistake
Identify and communicate
remedial actions
Source: The Trusted Leader, Robert Galford & Anne Drapeau
The Ethical Leader Within
Embrace A Purpose
Test Your Excuses
Harness Your Moods
Insist on Integrity
Cultivate Trust
Self-differentiate
The Ethical Leader Within
Self-differentiate
Maturity equals …
The willingness to take responsibility for
your own emotional being and destiny.
The Ethical Leader Within
Self-differentiate
Two Driving Forces in Life
The forces for togetherness
versus
The forces for separateness
The Ethical Leader Within
Self-differentiate
Field Theory
Source: Kurt Lewin
The Ethical Leader Within
Self-differentiate
The Asch Study
A
Exhibit 1
B
C
Exhibit 2
Source: Solomon Asch
The Ethical Leader Within
Talk about an experience in
which you wished you would
have acted outside of the
emotional force field.
The Ethical Leader Within
It is often easier to list the reasons for
doing the wrong thing than for choosing
to do the right thing. More often than not,
the only reason for doing the right thing is
that it is the right thing.
- Marianne Jennings
Ethical Leadership is an Inside Job
Dan Vasella:
“Temptation is all around us. An
individual can be corrupted and if
you are not careful and suspicious
of your own strength, then you will
fail.”
“I truly believe my ability to keep
shareholders’ faith in our
company depends, in the end,
not on whether I make the
quarter, but on who I am, what
my guiding principles are, my
behavior.”
Source: Fortune Magazine, 11/18/2002
The Ethical Leader Within
“Values always decay over time.
Societies that keep their values alive
do so not by escaping the
processes of decay, but by the
powerful process of regeneration.
To assist in that rediscovery is one
of the tasks of leadership.”
- John Gardner
“Leadership”
The Ethical Leader Within
E mbrace A Purpose
T est Your Excuses
H arness Your Moods
I nsist on Integrity
C ultivate Trust
S elf-differentiate
The Ethical Leader Within
“Equipping people with the
transformational power of
ethical leadership.”
- Ukleja Center for Ethical Leadership
Mission Statement