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business ethics chapter 11

Seven Habits of Strong
Ethical Leaders
strong personal character
have a passion to do right
consider all stakeholders’ interests.
role models for the organization’s values
are transparent and actively involved in decision making
holistic view of the firm’s ethical culture
Coercive leader
demands instantaneous obedience and focuses on achievement, initiative, and self-control. Although this style can be very effective during times of crisis or during a turnaround, it otherwise creates a negative climate for organizational performance.
Authoritative leader
considered to be one of the most effective styles—inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate
Affiliative leader
values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk takin
Democratic leader
relies on participation and teamwork to reach collaborative decisions. This style focuses on communication and creates a positive climate for achieving result
Pacesetting leader
can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take the initiative
Coaching leader
builds a positive climate by developing skills to foster long-term success, delegating responsibility, and skillfully issuing challenging assignment
Transactional leaders
attempt to create employee satisfaction through negotiating, or “bartering,” for desired behaviors or levels of performance
Transformational leaders
strive to raise employees’ level of commitment and foster trust and motivation
Authentic leaders
are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders
Unethical leaders
are usually ego-centric and often do whatever it takes to achieve the organization’s objectives and their own
Apathetic leaders
are not necessarily unethical, but they care little for ethics within the company

Does not listen to employees and does not communicate well

Ethical leaders
include ethics at every operational level and stage of the decision making process
Competing conflict management style
Highly assertive, not very cooperative, believe in winning at any cost, and measure success by how much the other side loses
Avoiding conflict management style
Not effective because they avoid conflict at any cost even if it leads to misconduct, are uncooperative, and are non-assertive
Accommodating conflict management style
Highly cooperative, non-assertive, and give in to the other side even if it means sacrificing their own interests and values
Compromising conflict management style
In between the assertiveness and cooperativeness dimensions, believe best approach to resolving conflicts is for each side to give something up in order to gain something of value
Collaborating conflict management style
Most advantageous, leaders are cooperative and assertive, and leaders collaborate with others to find a creative way to obtain a beneficial solution
Interpersonal communication
is the most well-known form of communication and occurs when two or more people interact with one another

Often difficult to communicate to a superior
Ethical leader must work to reassure employees by balancing the interests of all relevant stakeholders

Nonverbal communication
is communication expressed through actions, body language, expressions, or other forms of communication not written or oral
Nonverbal cues are deemed more reliable that what he or she states verbally
involves paying attention to both verbal and nonverbal behavior
Without listening, communication becomes ineffective
Good listening skills tend to establish credibility and trustworthiness with employees
Leader-follower congruence
occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company
Leader-exchange theory
claims that leaders form unique relationships with followers through social interactions
is the ability or authority to guide and direct others toward a goal.
Ethical conflicts
occur when there are two or more positions on an ethical decision.
emotional intelligence
The most effective ethical leaders possess the ability to manage themselves and their relationships with others effectively

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