Blog 1: Ethics and Leadership
Leadership is referred to as the ability of showing individuals a direction or a path, and help them in developing a vision that encourages them in achieving their goals with zeal and zest. It is the practice that involves social influences in which an individual gets support and aid to accomplish common tasks (Katja, 2010).
It is significant to understand ethical leadership; however, the blog will study, examine and scrutinize the procedure and process that leads to ethical leadership. Ethical leadership is defined in numerous different ways, however the most famous one defined by Brown. He defines ethical leadership as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement and decision making” (Dawn et al., 2010).
Ethical leadership is thus associated with concepts such as consideration, honesty, charisma, trust and fairness. I believe it is simply the distinction between what a leader can do and what a leader should do (Dawn et al., 2010).
Microsoft or MS is an American, multinational technological company based in Washington. Founded in 1971, the company now works with more than 114000 employees serving worldwide. The company was started by one of the biggest hearted philanthropist of the country. He is a man who encourages ethical behavior and upholds a standard, therefore it is undoubted that the company does well in following his leadership. The company and its employees grant more than $1 billion to non-profitable organizations and charities annually. In addition to this, in 2012, Microsoft along with its employees donated more than $100 million and thousands of volunteer hours to the nonprofit organizations that included the YMCA, Boys and Girls club of America, schools, museums, Easter Seals and low income housing developments. Microsoft also makes its contribution in innovation, job creation and global economic growth. More than 100,000 employees are working full time with the company, including international employees numbered 41,000. Moreover, the company leaves no stone unturned and helps the new comers in the IT industry by running a program to aid startup software companies. The company states that it is dedicated to sustainable and responsible business practices that acknowledge environmental and social results of tier actions. The company is also involved in numerous carbon reduction and recycling programs (Jaffee, 2010). Moreover, Microsoft deals with law enforcement agencies, government and businesses to encounter cybercrime and find a solution to keep people secure on internet. To accomplish long term interest, Microsoft considers the need of all stakeholder around the world, including number of communities involved, customers, suppliers, partners and employees (Wright, 2014).
After evaluating the practices of the company, I have concluded that both teleological and deontological principles are followed by Microsoft as they have outlined definite rules and regulation that they follow strictly to ensure ethical leadership in the organization. However, they do maintain positive and flexible behavior with their customer to make sure that their customers are satisfies and pleased with the products and services they are given.
Microsoft is an ideal example that exemplifies the model of 4V in ethical leadership.
Bill Gates, the founder of the company, starts his journey of ethical leadership internally first; he discovered that his root Values are tenacity, intensity and passion. After determining his core values, he identified his vision that is to improve the world by reducing inequity and based on his Vision he aligns what is the legitimate thing to do. Rather than choosing to retire, Bill Gates pursues his personal Voice to express his vision through his management by putting all his resources, energy and time in making world a better place. Thus, he works for doing well for people, the Virtue (Monahan, 2012).
For instance, philanthropy plays a significant role in his established family foundation. Moreover, his ethical leadership has seriously improved the company’s globalization. Most of the competitors of Microsoft sacrificed humanity in the globalization process. By agreement, in his leadership, the importance of humanity has improved the company’s brand image and helped in market exploitation globally (Monahan, 2012).
Coca-Cola group is a widely known, multinational company which also happens to be the market leader of the beverage industry. Even then, coca cola is not included among the top ethical corporations of the world. Despite their tons of revenue and their vast market share, the company has been facing ethical concerns time to time.
All the activities of Coke were banned in 1977 by the Indian government due to their increasing environmental concerns regarding the company. One of the major concerns of the government was that the country’s resources were continuously exploited by Coca-Cola, by mining 1.5 million liters of water every day from the ground to make coke. Roughly, to purify a liter of coke, it takes approximately 9 liters of fresh drinking water. The company made its come back in the country in 1993, after 16 years. One of the company’s plant was setup in Kala Dera, an Indian village, where the water resources were over exploited as agriculture was major source of income for people in village. Due to this, farmers not only suffered due to insufficient water but also faced loss of income because of which their children had to leave school to become helping hand for their parents to meet the ends (Torres et al., 2012). This case concludes that Coca-Cola has been surviving on its teleological principles, which means that the company only cares about the result that is to satisfy consumer need of a soft beverage, without thinking how far they are going to achieve it.
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Dawn, B., Eubanks & D, A., 2010. Leadership identity and ethics. Special issues on leadership, identity and ethics.
Jaffee, D., 2010. Fair Trade Standards, Corporate Participation, and Social Movement Responses in the. FAIR TRADE IN DIFFERENT.
Katja, K. B. L. M. T., 2010. Ethical Leadership. International Journal of Management & Information Systems, 14(5), pp. 31-42.
Monahan, K., 2012. A review of the literature concerning ethical leadership in an organization.
Shavstava, A. (2016). India Resource Center – Controversial Coca-Cola Plant Shut down in India. [online] Indiasource.org. Available at: http://indiasource.org/news/2016/1003.html [Accessed 16 Sep. 2016].
Torres, C. et al., 2012. Four Case Studies on Corporate Social Responsibility: Journal of International Business Studies, 8(3), pp. 51-73.
Wright, H. B. R., 2014. Microsoft Manages Legal and Ethical.