Is Leadership Essential to the Development of Ethical Decision Making in Modern Organisations

Is leadership essential to the development of ethical decision making in modern organisations

Introduction

This essay will highlight the importance of leadership in the role of ethical decision-making in today’s modern organisations. It will cover the following parts of the ethical decision making process, the characteristics from a moral person and a moral manager’s point as well as the difference gender plays in making for more ethical decisions.

Ethical Decision Making Process

To develop ethical decision-making, one is submitted to two factors to ultimately cement their decision. The factors comprise of individual characteristics and situational characteristics. Both of these will help to influence the individual to engage their form of ethical awareness and judgement that then defines their ethical action. The first step of the process is awareness where the individual correlates the issue with ethical overtones and recognizes it. The second step will bring about judgement to the dilemma that culminates in internal or external forces in helping decide the course of action. Finally, with the two steps taken into consideration, the action will be carried out by the individual.

Individual Characteristics/Moral Person

The Kohlberg model is a theory formed to determine people’s cognitive moral development leading to the ethically right action. Stage 3 of Kohlberg’s model emphasizes on external influence to help guide the individual in their thinking. This would mean that guidance would come from peers that the individual look up to and trust. Take for example, Chris who faces an ethically bound problem at work. Since he looks up to and values the opinion of his boss who is on good terms with him, he is more likely to sort out his opinion to cement his overall decision. Most people are part of a social hierarchy that looks to each other for validation and the stage 3 of the model can be widely applied to most people who look to other people for dependence and expected social decisions. (Trevino & Nelson 2011, p 80)  This applies to many people in today’s workplace environment. With an essential leader that you can depend on and trust to advise you in the right direction, you are susceptible to making a more ethical decision.

Similarly, another characteristic that we can look to is an individual’s locus of control. With an external locus of control, the employee will be more likely to perform according to the superior’s whims. Someone with an internal locus of control will be more responsible for his or her own actions to make the ethical decision. Whereby their superiors can shape someone with an external locus of control to determine the difference between right and wrong as the locus of control can be shifted over time. (Trevino & Nelson 2011, p 85) By showing Chris the correct way to deal with the problem, his boss can help advise him on how this will affect his future obstacles and take responsibility for them. This move thus makes sure that leadership is integral in helping the employee realize ethical decision-making.

Moral Manager

A higher position on the working hierarchy creates influence. The social learning theory talks more in detail regarding this fact. A manager can bring greater conduct to his or her employees through proper and ethical actions. Experience can be created through input and output. Input through direct coaching by the superiors and output through astute observations of how a leader conducts themselves. By having a great leader, one can strengthen the entire organisational structure by directing influence properly. (Bandura 1986, p 207)

Essentially we are talking about moral managers playing as an effective role model to those in the lower organisational hierarchy. Without a capable role model however, employees will be forced to learn based on their own experiences and own moral judgements. Their decisions might be flawed and because there is no role model for them to model after, they would use this decision as a base to decide future decisions. However, through pure observation of what the leaders are doing at the top, social learning can be applied and ethical decisions can come out of this. (Brown & Harrison 2005, p 119)

Does gender differences make for more ethical decisions

With an increasing number of women entering the workforce and establishing leadership positions, the change in the role of women is more than ever prevalent. With women as leaders, there is a general perception that they are often much more ethical than their male counterparts. (Jackall, 1998) The possible answer to why this is the case for female leaders are that females are much more empathetic as compared to their male counterparts. With empathy as a huge factor into their decision-making, it correlates with leading by example and making sound ethical decisions. (Gilligan, 1982)