Leadership & Ethics- Research Paper

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A FISH ROTS FROM THE HEAD DOWN – RUSSIAN PROVERB

Leadership & Ethics- Research Paper



Table of Contents

Introduction3
Hypothesis5
Sampling6
Major Results & Findings7
Conclusion14
Works Cited17

Introduction

With the collapse of major corporations like Enron, Tyco International, WorldCom and the like, corporate corruption and mismanagement has been in the forefront of some of the major issues that corporate organizations have to overcome and manage. With this research paper, my aim is to review and present three scholarly journals that highlight the impact that leadership can play on the ethical performance of an organization. Firstly, in the “Cultural & Leadership Predictors of Corporate Social Responsibility Values of Top Management: A GLOBE Study of 15 Countries”, the study states, that with the spread of globalization, it has become imperative to understand managerial values that guide their actions. The authors suggest that the three main dimensions of managerial values that are relevant to the study of CSR are: shareholder/owner values where the aim is to maximize profits, stakeholder relations which refers to ethical and positive relations towards employees, consumer groups and the like and thirdly, community/state welfare which is based on the principle of public responsibility. In a more in-depth analysis the study explores the correlation of societal culture factors such as institutional collectivism, in-group collectivism and power distance on the above three managerial values that impacts managerial decision making. Furthermore, the paper proposes that visionary leadership and integrity enhances corporate social responsibility (CSR) values on moral and ethical grounds.

Secondly,” The Association Between Ethical Leadership & Employee Outcomes – The Malaysian Case” will help understand the value in gaining employee commitment and trust through effective ethical leadership skills. This article studies the impact of ethical leadership on the employee outcomes in areas such as organizational commitment and trust. A micro study was done on the country of Malaysia which has experienced a tenfold increase in corporate crime over the last 15 years. From the study one gathers that the main reason for such an exponential increase in such crimes is due to fact of the failures on part of corporate leadership to act ethically in their decision making process.

Lastly, with “Leadership Styles & the Moral Choice of Internal Auditors” I will examine how an employee’s self interest and management leadership guides their ethical decision making. This study plays close attention to one set of an organization’s workers - the Internal Auditing professionals, in order to understand the how their choice in making ethical decisions are subjective to various factors , one of them being leadership. The primary viewpoint of this study indicated that an auditor’s decision making is enhanced by the leaders who adopt a standard achievement oriented leadership style and when they see clear benchmarking, fair performance assessment and growth opportunity. In conclusion, this can be held true for any employee within an organization.

Hypothesis
According to the GLOBE study, there were three main hypotheses that the researches proposed. The first hypothesis testing was split in two parts wherein, they proposed that “societies stressing institutional collectivist values will have a positive relationship with stakeholder’s relations and community/state welfare CSR values while societies stressing in-group collectivist values will only have a positive relationship with shareholder relations CSR values (Waldman et al).”

The second theory states that cultures that have a high power distance tend to have low CSR values (Waldman et al). Lastly, visionary leadership and integrity on part of CEO’s, adds variance to the prediction of followers (stakeholders) CSR values that go...
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