BMAL 770 - Research Paper in Ethics

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Research Paper: Ethics 1 Research Paper in Ethics Assignment: How do Ethical Leaders Promote Ethical Organizational Culture and Impact Organizational Performance? Dyjuan Washington School of Business, Liberty University BMAL – 770: Ethical Leadership Dr. David Hussey August 7, 2022 Author Note Dyjuan R. Washington I have no known conflict of interest to disclose. Correspondence concerning this article should be addressed to Dyjuan R. Washington

Research Paper: Ethics 2 Email: drwashington3@liberty.edu Abstract Leaders are the drivers of the direction of an organization whether it be positive or negative. How do Ethical Leaders Promote Ethical Organizational Culture and Impact Organizational Performance? Leaders build culture and healthy workplace environments through applying basic principles and values consistently in an ethical manner. Organizational culture dictates the manner in which personnel respond and react when faced with ethical dilemmas. Organizational values and culture are established when the company is formed and usually founded on the ethics of its creator. Workplaces are no longer stable, and many businesses face ethical dilemmas frequently which cause them to use change management skills and try to implement basic changes from within to prevent massive retention issues (Bahadori et al., 2021). Having a clear organizational strategy based in good biblical ethics and establishing a plan to implement organizational strategies can lead to all the success any chief operating officer is looking for. Keywords: Ethics, Values, Retention, organizational culture

Research Paper: Ethics 3 Introduction When learning ethics, we must start at the beginning and that is with God and the Bible (Koukl, 2017, pg38). The Bible and the word of God embodies ethics and highlights morality throughout the word. The ten commandments and early laws are written within the framework of a commitment to God but are standards outlining what this morality is. “All Scripture is breathed out by God and profitable for teaching, for reproof, for correction, and for training in righteousness, that the man of God may be competent, equipped for every good work” ( King James Bible , 1769/2017, 2 Timothy 3:16-17). God’s prophets of the Old Testament tell the stories of what happen to those who reject his word and all those who follow a path of unrighteousness and injustice and commending those who live moral lives. “Ethical leadership emphasizes morality as a key personal and professional trait, focusing specifically on trustworthiness, credibility, care, fairness, and role modeling” (Karim & Nadeem, 2019). Ethical leadership means that people behave in accordance with a set of principles and values recognized by most as a solid foundation for the common good. These include integrity, respect, trust, fairness, transparency, and honesty. The connection between organizational culture and ethics is that the organizational culture gives employees a set of values to fall back on when faced with ethical dilemmas. When the leader’s values and ethics match with organizational culture and values, it leads to high organizational performance. The ethical atmosphere within the organization plays a vital role in how organizational excellence is accomplished. When leaders provide a workplace environment that nurtures commitment and trust, offers optimistic leadership, and builds a high quality of workforce that leads to good organizational performance.

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Research Paper: Ethics 4 This research will look into what ethical leaders are, how ethics and ethical leadership shape organizational culture and the impacts the ethical leader has on organizational performance. What is an Ethical Leader? Ethical leadership is a set of guiding rules, laws, values, or principles that tell people how to act that are accepted by the majority of people and nations as a comprehensive basis for the common good of all people. These ethical values include fairness, respect, integrity, honesty, transparency, and trust to name a few. There are several reasons why being an ethical leader is important personally and professionally. From a global view and a professional level, leaders who behave ethically consistently can inspire those around them to do the same. leaders set the example and tone for an organization. They also provide the direction for ethical behavior within an organization, while others within the organization will watch and act accordingly. This is a clear example of how ethical leaders can positively influence those around them and show them what “right” looks like through a set of actions that they can mimic for the greater good. “A rational person should be committed to the task of earnestly searching for the truth or at least the most defensible position on the issue at stake” (Damer, 2013, pg27).An ethical leader ensures the values an organization upheld and are their behavior is now expected of all that they have been charged to lead. “The employees are doing what they are rewarded for, or held accountable for, in the systems the managers have put into place” (Bahadori et al., 2021). From a personal level and different view, being an ethical leader is vital for trustworthiness and reputation. If anyone looks to be a leader, it is a long game of consistency that build credibility and ultimately a reputation. Acting unethically can almost guarantee that a leader will be taken out of the “primetime” and can be devastating to any personal legacy or corporate brand that was trying to be established. Here are some ways leader can become ethical and maintain that status.

Research Paper: Ethics 5 First a leader must know and define their own ethics and align their values with the organizations and ensure it is a match. Second, leaders must hire people with similar values to their own and that match that of the organization. Third, leaders must encourage open and honest communication and promote an environment where transparency is vital. Leaders must take steps to encourage honesty among team members who may feel the need to be dishonest in order to protect themselves, fearing their weaknesses might be exploited (Johnson, 2019, pg179). Have mentors that embody ethics and ethical leadership and utilize them as your own moral compass at times. And lastly, lead by example, lookout for bias and care for other as if they were you. The Ethical Leader and Organizational Culture The correlation between ethics and organizational culture is that the organizational culture leads and directs employees when they come across ethical dilemmas. If the organizational culture doesn’t line up with what members of the organization are required to do ethically, personnel may put the company at risk by not behaving ethically. The analysis of an organization’s culture can tell us the unspoken and unwritten ethical values that influence workers in their decision-making. utilizing this data, organizations can avoid ethical behavior that is unnecessarily risky by changing the culture of the organization. Organizational culture is a company’s values and beliefs. It characterizes the intangible force that guides leaders and workers alike. Organizational culture is a look into the internal psychology of an organization (Geue, 2018). It shapes the attitudes and beliefs of those who work there. It not only includes how the staff interacts with each other, but also how they interact and communicate with personnel outside of the organization. Ethical standards or an organizations code of conduct is a set of values that are mandatory and required by the organization for the personnel to follow.

Research Paper: Ethics 6 Sometimes the culture within an organization pushes their personnel in the direction of unethical practices like bribing clients, stealing money or products, or even sharing company secrets. When a worker is confronted with a choice that others in the company deem as appropriate, though it is by far unethical, the worker can also observe what is suitable ethically based on what is acceptable according to social norms as in line with the way of life. “The whole matter speaks to the human limitations of leaders. One may lead a movement to crown the new king but not any good at administrating the vision to repair the temple” (Merida, 2015, pg269). For instance, if the corporation rewards personnel for gaining the maximum contracts at any cost, a worker can also additionally begin making side deals and bribing customers to be able to gain an advantage and closes extra deals. If the company way of life is to take advantage and close the maximum amount of contracts at any cost instead of utilizing techniques that are in line with organizational ethics, workers might not see this behavior as a problem and be persuaded to do something unethical. it is these types of situations that can get organizations and leaders in trouble. An organizational culture that supports risky decisions and unethical behavior will need to change its culture (Lee & Chang, 2021). Changing a company’s organizational culture is difficult but it starts with good, firm leadership. It is often needed when a business is running into trouble with its personnel making ethical decisions. Organizational ethics and culture are both psychologically linked, so personnel need to change the way they think in order to accept the new direction of the organization and see the value of the change. This is many times challenging due to employees have worked within the organization that has unethical tendencies for a long time or were never provided with an alternate way of doing business ethically (Lee & Chang, 2021). For example, if an organization would like its employees to stop bribing clients in

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Research Paper: Ethics 7 order to close deals and gain additional contracts, the organization needs to provide ways for employees to achieve similar or the same results in an ethical manner. The Ethical Leader and the Impact on Organizational Performance There are many studies that discuss how the ethical atmosphere of an organization plays a vital role in determining how organizational excellence is accomplished. When organizations provide an environment that encourages trust and commitment, it leads to positive leadership, and builds a high performing workforce that is built to improve organizational performance and navigate through adversity. “The investigations on Wells Fargo’s ethical issues led to suspension of business relationships with the Sates of California and Illinois” (Viray, 2017). In this case, a high-pressure sales atmosphere led personnel to create in upwards of two million fake accounts. The Wells Fargo investigation uncovered that the bank large and impart had ignored and punished personnel who attempted to state concerns about their internal unethical practices (Viray, 2017). Additionally, many allegations from former employees stated that the managers and leaders of the company perpetuated a culture of fear and daily intimidation and that “we will win at all costs”. We live in an environment where high performance has become a more important and a benchmark of organizational survival and sustainability. Conversely, the Wells Fargo case undoubtedly displays how an unethical culture and climate can lead to catastrophic consequences in relation to organizational success (Viray, 2017). As we attempt to understand where a leaders viewpoint lies between ethics and organizational performance we have to go back to individual morals and how they align with those of the organization. Leaders must try to embody a culture of ethics within their organizations by following some simple guidelines. First, leaders must clearly communicative

Research Paper: Ethics 8 the organizational ethical values, standards, and codes of conduct. Additionally, leaders must also communicate what is ethically unacceptable practices and can result in termination or disciplinary action. Organizational ethical values must be shared with every employee and constantly reinforced through every possible medium to get the message across. Instill it in every process and procedure, which includes initial employee and highlights where individuals are appreciated, trusted, and fairly treated across the board. Second, leaders must promote a full proof whistle-blowing policy which must be taken extremely seriously by the organization with causes of disciplinary action for reprisal (Lee & Chang, 2021). A policy that is actionable protects the employees and gives them the comfort to do the right thing and it echoes the purity of the process that all voices are being heard and will be taken in high regards. Employees must be free to blow the whistle without the fear of risking their jobs. And whistle blowers need to be well protected in every organization. Third, leaders need to make sure that their personnel are informed of all ethical requirements during any operational challenges and times of adversity. These need to be reinforced constantly and leaders can use training programs to cement processes. This will help create a culture where compliance with rules and procedures is taken seriously and unethical behavior is severely disciplined. Leaders need to showcase and behave according to high ethical standards at all times. Leaders must walk the walk and talk the talk of ethics always. They can accomplish this by following laws and codes of ethics and consider them while making decisions. They also need to incorporate performance improvement strategies with strong ethical values and practices. Lastly, leaders must mentor and coach personnel who are unwilling to report ethical violations. Many employees fall under this category because the fear of reprisal. This must be a way of organizational life and all employees must be comfortable living this way.

Research Paper: Ethics 9 Organizations that promote ethical environments produce teams that embody trust and integrity and safeguard against ethical failure. Research proves the belief that when organizations provide their personnel with the opportunity to work in an ethical environment, they are better off in dealing with misconduct, defending against corruption and in turn improving organizational performance (Lee & Chang, 2021). Ethical environments produce healthy working conditions which lead to an increase job commitment and job satisfaction in a fearless atmosphere. Thus, leaders must put tons of effort into creating an ethical environment that does not emerge and operate in a vacuum but in an organizational culture by which it is greatly influenced and shaped by leadership. Methods The information gathered during the research of this topic was obtained from Internet sources, photos and graphs from various reports. All information in this report is unclassified and was obtained from open-market sources. Additional research was conducted to see the direct relationship between ethics, organizational values, organizational performance, and what role the leader had to play in either the success or the failure of the organization. Results The researched conducted revealed that there a lot of views on what good ethics are. Ethics vary based on nationality, cultural backgrounds, upbringing, world history and even different perspectives on biblical references. The United States Army utilized a model that was designed to have their members reflect ethically when making decisions. This model is the Ethical Triangle, which was first presented by James Svara and shown in figure 1 below (2007). This model highlights three views of ethics which are the : virtuous view, principle-based view, and the utilitarian view or consequences. But, because the United

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Research Paper: Ethics 10 States Army wanted to utilize the model during times of war, it didn’t completely prepare members to make ethical decisions that were in line with Army values and the values of the United States Constitution. Figure 1. The Ethical Triangle (Svara, 2007). The Ethical Pyramid, which has several variations, however this model was created by United States Army and outlined in their core document, Army Leadership , is shown below in Figure 2. This document encompasses both Svara’s model and a theoretical model on ethical dimensions. Victor and Cullen hypothesized that there are three ethical criterion dimensions, which are egoism or the consequences to the self, benevolence or the consequences to others, and principles or the application of ethical standards” (1988).

Research Paper: Ethics 11 Figure 2. The Ethical Pyramid (Department of the Army 2012). The Ethical Pyramid joins the ideas of Victor and Cullen and Svara. It provides leaders a visualization of various worldviews on ethics by showing how someone’s personal morals can align with the Army’s or any organizations values and ethics. Discussion Throughout my career I have tried to operate through a lens of ethics. Being in the United States Air Force, ethics and ethical leadership have been taught for early on. Now in the latter half of my career I have learned that not all leaders operate ethically, even in the military. Even when the organization has good values and ethics. In the "self" assessment 12.2, I marked highest in the fairness and reciprocity section and in the harm and care categories. I believe that good organizational values are founded through the organizations mission, vision, and purpose. When these are clearly communicated it gives the workforce purpose and when the workforce doesn’t have purpose is when ethical issues occur. There is nothing worse than to work for an organization that doesn’t know why they exist or where they are going. The mission represents a

Research Paper: Ethics 12 brief statement by which an organization explains the reason for its existence. Based on the organization’s mission statement, its strategic goals are articulated in practice. Mission statements have been realized as a vital strategic management tool in recent years, while the mission itself is perceived as an asset for public sector organizations (Dobrinic & Fabrac, 2021). Additionally, because mission and vision statements embody an organization’s character and soul, they are many times inspirational. The inspiration that these statements provide, gives the employees of the organization purpose and meaning to accomplish the goals and objectives set out by the management team. This purpose and meaning through inspiration are the foundational steps in changing a broke culture. However, if not planned correctly, it could all be for not. If these vital components are not applied through an effective and efficient communication strategy, the organization can establish these vital pieces and the employees will not know or care to know. This will result in a lack of employee retention where the employee’s values do not match with the organizations. The Great Resignation is a good example of when the people have decided that they will not comprise their personal values to make a buck. Most employees don’t leave organizations, they leave bad supervisors. Bad supervisors mismanage organizations and do not put priorities on making sure the people are bought in to the mission, vision or values of the organization or revamp them when necessary or when outdated. These are the root causes of the issues caused by not having clear organizational structure and planning. The mission, vision and values of the organization provide the structure and planning necessary for organizations to establish culture and climate which would improve morale and retention. However, with putting the proper measures in place things can take a turn in the right direction. Giving purpose to your people is essential through establishing organizational values we all can get behind and believe in. To pursue optimal performance, organizations are changing

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Research Paper: Ethics 13 their attention away from an obsession on weaknesses to facilitating conditions that promote human flourishing based in organizational values and purpose (Geue, 2018). Establishing effective mission and vision statements motivate your employees and give them a sense of understanding and belonging. Creating strong organizational culture and structure is vital to its success. Consistency, balance, and planning that are founded in good organizational values and ethics are some tools that will help any manager in their venture to get any ship point back in the right direction. Conclusion How do Ethical Leaders Promote Ethical Organizational Culture and Impact Organizational Performance? Leader’s steer what direction organizations head in. These directions that are driven by leaders can be positive or negative. Good solid organizational ethics assist leaders and employees alike in making decisions and navigating through ethical dilemmas. The United States Army utilizes James Svara’s Ethical Triangle (2007) to assist their personnel and guide them through the ethical decisions that they may face on a daily basis. An ethical leader holds the line of good versus bad in an organization. They embody the values of an organization, and their actions are not only ethical, but they are also matched by the behavior expected of and demonstrated by employees. “The employees are doing what they are rewarded for, or held accountable for, in the systems the managers have put into place” (Geue, 2018). The analysis of an organization’s culture can uncover the unspoken or unwritten ethical values that guide a worker in their decision-making. Utilizing this data, organizations can prevent risky ethical behavior by altering their organizational culture before bad decisions are made. We operate in a world where superior performance has become a vital factor of organizational existence and sustainability. However, the above Wells Fargo case clearly shows how an

Research Paper: Ethics 14 unethical organizational climate can have a straight and devastating path to a destructive culture which leads to consequence in relationship of organizational success. In the end, leaders need to model the ethical behavior they expect form employees. This sets the tone for the organization and will resonate from the top to the bottom of the corporation. By setting clear values, establishing a meaningful mission and vision which support ethics and give the employees purpose, leaders can grow and sustain excellence within their organizations. References Bahadori, M., Ghasemi, M., Hasanpoor, E., Hosseini, S. M., & Alimohammadzadeh, K. (2021). The influence of ethical leadership on the organizational commitment in fire organizations. Humanomics, 37 (1), 145-156. https://doi.org/10.1108/IJOES-04-2020- 0043 Damer, T. E. (2013). Attacking Faulty Reasoning; A Practical Guide to Fallacy-Free Arguments, 7th ed. Boston: Wadsworth Publishing Co. Department of the Army, (2012). ADRP 6-22: Army Leadership . (Washington, D.C.: U.S. Government, 2012). 3-6. Dobrinić, D., & Fabac, R. (2021). Familiarity with mission and vision: Impact on organizational commitment and job satisfaction. Business Systems Research, 12 (1), 124- 143. https://doi.org/10.2478/bsrj-2021-0009 Geue, P. E. (2018). Positive practices in the workplace: Impact on team climate, work engagement, and task performance. The Journal of Applied Behavioral Science, 54 (3), 272-301. https://doi.org/10.1177/0021886318773459 Johnson, C. (2019). Organizational Ethics: A Practical Approach , 5th Edition. Los Angeles: SAGE. Karim, S., & Nadeem, S. (2019). Understanding the unique impact of dimensions of ethical leadership on employee attitudes. Ethics & Behavior, 29 (7), 572- 594. https://doi.org/10.1080/10508422.2019.1580582 King James Bible. (2017). King James Bible Online. https://www.kingjamesbibleonline.org/ (Original work published 1769)

Research Paper: Ethics 15 Koukl, G. (2017). The story of reality: How the world began, how it ends, and everything important that happens in between . Zondervan. Lee, C., & Chang, C. K. (2021). Exploring the assessment model of corporate ethics influencing organizational performance. Advances in Management and Applied Economics, 11 (2), 1- 11. https://doi.org/10.47260/amae/1121 Merida, T. (2015). Exhalting Jesus in Kings 1 & 2. Nashville, TN, United States: B & H Publishing Group. Serenko, A. (2022). The great resignation: The great knowledge exodus or the onset of the great knowledge revolution? Journal of Knowledge Management, https://doi.org/10.1108/JKM-12-2021-0920 Svara, J. (2007). “The Ethical Triangle.” In Combating Corruption, Encouraging Ethics: A Practical Guide to Management Ethics Second Edition, edited by William L. Richter and Fances Burke (Maryland: Rowman & Littlefield Publishers, Inc., 2007), 27. Victor, B., Cullen, J.B. (1988). The Organizational Bases of Ethical Work Climates. Administrative Sciences Quarterly , no. 33: 101. Viray, M. (2017). Wells fargo creates rebuilding trust, ethics offices. SNL Bank & Thrift Daily,

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BMAL 770 - Research Paper in Ethics

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