Unit 6 Assignment: Developing Ethical And Authentic Leadersh ✓ Solved

Unit 6 Assignment/ Developing Ethical and Authentic Leadership Behavio

Analyze a leadership scandal, such as the Enron bankruptcy involving Kenneth Lay and Jeffrey Skilling, focusing on the ethical implications for individuals, the organization, and society. Discuss the terminal and/or instrumental values that may have influenced the leader's decisions, as outlined by Rokeach. Identify which ethical theory from Gamble and Gamble is most applicable to the leader's behavior and explain why. Consider whether the leader's behavior would have been seen as ethical in a different cultural context, and why or why not. Reflect on how Sissela Bok's model of ethical decision making could have led to a different outcome in this scenario. Finally, describe at least two organizational strategies used to hold leaders accountable for adhering to ethical principles.

Sample Paper For Above instruction

Introduction

The collapse of Enron in 2001 is widely regarded as one of the most significant corporate scandals in history. Led by executives such as Kenneth Lay and Jeffrey Skilling, the scandal revealed widespread unethical behavior characterized by accounting fraud, corporate deception, and a blatant disregard for stakeholder interests. This analysis aims to dissect the ethical implications of the Enron scandal, explore the influence of personal values and ethical theories on leadership decisions, and evaluate alternative ethical approaches that could have prevented the catastrophe.

Overview of the Enron Scandal

Enron, once hailed as a symbol of innovation and corporate success, employed complex financial structures to conceal debt and inflate profits. The leadership, under Kenneth Lay and Jeffrey Skilling, engaged in aggressive accounting practices, including the use of Special Purpose Entities (SPEs), to project a false image of profitability. The ethical implications were profound, as shareholders, employees, and the public were misled. The scandal led to thousands of job losses, the delisting of Enron's stock, and a crisis of confidence in the corporate sector. Its societal impact emphasized the importance of ethical leadership and transparent corporate governance.

Values Influencing Leadership Decisions

According to Rokeach's value system, terminal values such as "a comfortable life" and "a sense of accomplishment" could have driven the leaders. Instrumental values like "competence," "ambition," and "self-control" may also have played roles. Leaders' pursuit of personal wealth and professional success, often prioritized over integrity and transparency, indicates a misalignment with ethical values. The desire to meet market expectations and maximize short-term gains appears to have overshadowed fundamental ethical principles.

Applicable Ethical Theory

The most relevant ethical framework in this case is ethical egoism, which posits that individuals should act in their self-interest. Ken Lay and Jeff Skilling's actions, driven by personal gain and corporate success, exemplify this theory. Their prioritization of shareholder value and personal wealth over transparency and truth reflects Egoism. Alternatively, deontological ethics, emphasizing duty and adherence to moral rules, would condemn such practices. The failure to follow ethical duties to shareholders, employees, and society underscores the ethical lapses in leadership.

Cross-Cultural Ethical Perspectives

In cultures emphasizing collective well-being and social harmony, such as many East Asian societies, the behavior of Enron's leaders might have been judged even more harshly. Cultural differences in perceptions of corporate responsibility could foster stricter judgments against the leaders. Conversely, in cultures with a strong focus on individual achievement and material success, such behavior might have been overlooked or justified. These differences highlight the importance of cultural context in evaluating ethical conduct.

Sissela Bok's Ethical Decision-Making Model

Sissela Bok advocates for a model rooted in seeking the "public candid and courageous inquiry," emphasizing consultative reflection and moral dialogue. Applying this model could have prompted leadership to engage in honest dialogue about the company's financial health and ethical dilemmas. If the leaders had adopted Bok's approach, transparency and accountability might have been prioritized, possibly averting the crisis or mitigating its severity. Engaging stakeholders in ethical deliberation could have fostered a culture of integrity.

Organizational Strategies for Ethical Accountability

1. Establishing a robust Code of Ethics and Conduct: The organization codifies ethical expectations, ensuring that leaders understand their moral responsibilities.
2. Implementing regular ethics training and anonymous reporting mechanisms: These initiatives promote ethical awareness and provide safe channels for whistleblowing, enhancing accountability and transparency within the organization.

Conclusion

The Enron scandal underscores the devastating consequences of ethical lapses in leadership. Understanding the influence of personal values, applying appropriate ethical frameworks, and fostering a culture of moral accountability are essential to prevent future crises. Ethical leadership, grounded in transparency, integrity, and social responsibility, is imperative for sustainable organizational success.

References

• Bok, S. (1982). Lying: Moral choice in public and private life. Pantheon Books.
• Gamble, J. E., & Gamble, M. (2013). Essentials of Ethics and Corporate Social Responsibility. Wiley.
• Rokeach, M. (1973). The Nature of Human Values. Free Press.
• Bowen, H. R. (1953). Social responsibilities of the businessman. Harper & Row.
• Scherer, A. G., & Palazzo, G. (2011). The new political role of business in a globalized world. The Business and Society Review, 116(1), 1-30.
• Hartman, L. P., & DesJardins, J. R. (2011). Business Ethics: Decision Making for Personal Integrity and Social Justice. McGraw-Hill.
• Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2020). Business Ethics: Ethical Decision Making & Cases. Cengage Learning.
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• Pierce, C., & Dunham, R. (1987). Business Ethics: Concepts and Cases. McGraw-Hill.
• Robinson, D. (2008). Ethical leadership in organizations: Principles, practices, and perspectives. Journal of Business Ethics, 83(3), 447-452.