1-5th June 2011

COTRUGLI
Business School
 Day 1 Leading in Context
Day 2 Understanding Leadership
Day 3 Whole Leadership
Day 4 Leading Teams
Day 5 Leading Innovation & Growth

COTRUGLI
Business School
 STOP
AND
THINK

Write down 2 things you learned/heard

yesterday
Why were they interesting?
How will you use them

COTRUGLI
Business School
High
CREATING MOVEMENT
Managing ambiguity,
complexity, diversity,
DISAGREEMENT

pace of change,
Challenging the paradigm
Managing across cultures
and different business
practices
MAINTAINING STABILITY
Managing performance
Measuring & monitoring
Controlling
Planning & budgeting
Based on R. Stacey & B. Critchley

Low UNCERTAINTY High

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Business School
 The ability to influence others to do
something they would not have done
themselves, to work toward a collective
goal or vision, without recourse to
authority, control or coercion

COTRUGLI
Business School
 COTRUGLI
Business School
 Todays successful business leader must be
a whole leader

Heart
Head
Understand, work with,
Provide clear purpose, and develop others.
direction, and strategy.

Guts
Do the right thing
based on clear values.

COTRUGLI
Business School
Short-term success Potential risks

Use analytical and They fail to understand the

logical expertise to impact of their actions,
dominate a business. and undervalue the people
side of the business.

COTRUGLI
Business School
Short-term success Potential risks

Inspire people through They may lose sight of

personal connectivity to tough choices that need to
obtain loyalty and be made for success in
commitment. the marketplace.

COTRUGLI
Business School
Short-term success Potential risks

Make bold moves that They become too caught

excite their people and up in the drama of bold
attract the attention of moves, or stay the course
shareholders. long after it is relevant.

COTRUGLI
Business School
Companies appear to have the
greatest supply of leaders who are
strategic, analytical, and purposeful.

In shortest supply are leaders who

have emotional intelligence
and can develop talent,

and who have clear values and the

courage to do the right thing.

COTRUGLI
Business School
 Head
10

0
5
5

Guts 10 10
Heart

COTRUGLI
Business School
Partial leaders cannot succeed in a complex, diverse, and
uncertain world. Future leaders will need the following:

1. Broader understanding of complex systems by exposure to

the external world on a global basis (cognitive intelligence).
2. Expanded sensitivity to generational, organizational and
cultural diversity by interacting with people from different
backgrounds, beliefs and values (emotional intelligence).
3. Clearer values about their purpose and mission in developing
an ethical, moral approach to a challenging world (moral
intelligence).

COTRUGLI
Business School
10% Distinguishing competencies
Set star performers apart

90% Threshold competencies

Required to get the job done and
be considered generally effective

COTRUGLI
Business School
 Researchers studied 286 organizations
from all over the world and all levels of
management. They identified 21 generic
competencies that distinguished high
performers from average performers.

At the most senior level of management,

18 were emotional competencies
2 were intellectual competencies
1 was a technical competency

The proportion of competencies

that were emotional in nature
increased with the level of
management.
Source: Lyle Spencer, Jr.Hay McBer

COTRUGLI
Business School
 Emotional Intelligence refers to the
capacity for recognising our own
feelings and those of others, for
motivating ourselves, and for managing
emotions well in ourselves and our
relationships.
Daniel Goleman, 1998

Daniel Goleman, What Makes a Leader,

Harvard Business Review, (NovDec 1998)
COTRUGLI
Business School
Self-mastery
Self-awareness The inner rudder
Self-regulation Self-control
Motivation What moves us

People skills
Empathy Social radar
Social skills The arts of
influence

Daniel Goleman, What Makes a Leader,

Harvard Business Review, (NovDec 1998)
COTRUGLI
Business School
Emotional intelligence is important.
It has a real business impact
It is more critical as you move up.

The higher you move through the management ranks

of a large organisation, the more emotional
intelligence contributes to success.

At the most senior levels of the organisation, 80% of a

managers success is driven by his or her emotional
capabilities.

COTRUGLI
Business School
The inner rudder
Knowing ones internal states, preferences, and intuitions

Emotional awareness recognising ones emotions and

their effects

Accurate self- knowing ones strengths and limit

assessment
Self-confidence a strong sense of ones self-worth
and capabilities

COTRUGLI
Business School
Self-control
Managing ones internal states, impulses, and resources

Self-control keeping disruptive emotions and impulses

in check
Trustworthiness maintaining standards of honesty and
integrity
Conscientiousness taking responsibility for personal
performance
Adaptability flexibility in handling change and
innovation; being comfortable with novel
ideas, approaches, and new information

COTRUGLI
Business School
 In times of change, the pressure on leaders is ever increasing
Pressure from above to meet change objectives
Pressure from subordinates to alleviate anxiety
Your own pressure on yourself to perform
Under pressure, leaders derail more frequently.
Awareness of ones leadership derailers helps avoid this and
creates a more effective leader.
Leadership derailers are many times very visible in 360
results and therefore the assessment is a good supplement to
a 360 evaluation.

COTRUGLI
Business School
Derailer
the tendency to engage in a particular set of
behaviours that can limit or undermine your
effectiveness as a leader
They occur most often under stress
All adults have them theyre part of ones
personality.
Some derailers create more problems than others.

COTRUGLI
Business School
Behaviours that normally are strengths
become derailers when taken too far.

A strength when taken to an extreme is

Volatile
Responsive Distrustful
Sceptical Overly cautious
Careful Aloof
Self-sufficient Passive resistant
Questioning Arrogant
Bold Mischievous
Creative Melodramatic
Expressive Eccentric
Imaginative Perfectionistic
Conscientious Pleaser
Dutiful COTRUGLI
Business School
 Short-lived focus on
projects and people
Overreacting to difficult
situations
Tensing up under
pressure
Easily becoming
annoyed by others
Being prone to explosive
outbursts

COTRUGLI
Business School
Healthy Potential for failure

Exploding over minor mistakes

Showing strong emotions over
or for reasons you cant
major mistakes and problems articulate

Behaving calmly most of Having a reputation for Jekyll

the time and Hyde unpredictability

Consistently generating energy Creating energy one day and

and enthusiasm intimidating others the next

Changing the way you act in Feeling that events or your

order to achieve a specific moods create changes in how
effect you normally act

COTRUGLI
Business School
 Being habitually skeptical
and argumentative
Pessimism; always looking
for flaws
Suspicion of others
intentions
Taking offense easily
Constantly questioning
decisions and new ideas
Failing to inspire or trust
others
Defensiveness
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Business School
Healthy Potential for failure

Assessing potential downside Never taking action because

before making a decision you always see downside

Being alert for people whose Constantly looking for

actions are motivated by politics confirmation that people are
or self-interest acting out of self-interest

Dismissing all negative

Tolerating and learning from information as tainted by
occasional negative feedback ulterior motives

Mixing criticism with positive Only criticising when giving

comments during feedback feedback

COTRUGLI
Business School
 Risk-aversion
Being slow to make
decisions
Over-studying problems
Being motivated not to fail,
rather than to succeed
Reluctance to take the
initiative
Performing unnecessary
tasks
Resistance to change
COTRUGLI
Business School
Healthy
Analysing a situation before
making a decision
Looking at worst-case
scenarios before moving
forward
Turning down requests for
projects and resources when
you have hard evidence that
flaws exist
Potential for failure
Requiring second and third
opinions before making any
decision
Obsessing about what might go
wrong and eventually getting
stuck
Not giving people the go-ahead
because of your fears that a
proposed project is flawed
COTRUGLI
Business School
 Preferring to work alone
Avoiding confrontation
Failing to communicate
Having distant relationship
with colleagues
Not speaking up at
meetings
Lacking interpersonal
sensitivity
Discomfort around
strangers
COTRUGLI
Business School
Healthy Potential for failure

Creating an environment where Creating a cold culture where

decisions are made objectively expression of feeling is
and non-politically frowned upon

Remaining calm during crisis Withdrawing during crisis and

and controversy controversy

Maintaining outward reserve Remaining stoic to the point

but connecting with people that you never open yourself to
when necessary others or show vulnerability

Being willing to forge key Being unable to work in teams

alliances in crucial situations or creative alliances

COTRUGLI
Business School
 Appearing outwardly
supportive, but silently
resisting
Resenting or defying agreed-
upon decisions or direction
Blaming others for failure
Saying one thing but doing
another
Failing to live up to
commitments
Being a reluctant team player
Stubbornness

COTRUGLI
Business School
Healthy Potential for failure

Saying one thing and doing Saying one thing and doing
another only when theres no
another most of the time
other option

Not being overly public about Having a private agenda that

what drives you you share with no one

Avoiding conflict except when Avoiding conflict and

its necessary disagreement at all costs

Having a sense of what other Not knowing or caring what

people expect of you others expect of you

COTRUGLI
Business School
 Self-centeredness and
self-promotion
Overestimating your talents
and accomplishments
Having a strong sense of
entitlement
Taking credit for the
accomplishments of others
Putting your personal agenda
ahead of your teams
Not admitting to your mistakes
Resisting feedback
COTRUGLI
Business School
Healthy Potential for failure
Never giving up a fight, no matter
Fighting for what you believe in
what

Believing your view is correct Believing your view is correct in

after evaluating the facts and spite of the facts or before
other points of view evaluating other points of view

Holding yourself accountable Refusing to take responsibility

when your strategy or idea when your strategy or idea
doesnt work doesnt work
Having a powerful ego that Having a powerful ego that
makes an impact on others makes you dominate others

COTRUGLI
Business School
 Unwillingness to conform to
organisational norms
Pushing the limits for the sake
of the challenge
Exceeding authority
Betraying trust by constantly
violating the rules
Taking ill-advised risks without
considering the implications
Ignoring commitments
Inability to learn from past
mistakes

COTRUGLI
Business School
Healthy Potential for failure

Testing limits and boundaries to Breaking rules because you find

foster innovation them dull and pointless

Being impulsively creative Being destructively impulsive

Taking calculated risks and not Taking risks without considering

dwelling on mistakes consequences

Using your charm and creativity Using your charm and creativity
to achieve organisational goals as a matter of personal style

Making provocative statements Being provocative for your own

to foster debate amusement

COTRUGLI
Business School
 Being overly dramatic and
expressive
Having poor listening skills
Seeking attention
Not following through on
commitments
Being domineering
Not developing others
effectively
Missing social cues regarding

others behavior
COTRUGLI
Business School
Healthy Potential for failure

Commanding attention when Dominating meetings by

you speak speaking constantly

Using charisma to involve and Using charisma to create

motivate people unquestioning compliance

Creating the impression that

Knowing when to be charming your leadership style is the
and eloquent to achieve a goal
issue for discussion

Being able to turn off the style Always being on stage and
and listen to and learn from rarely reflecting on what youre
others trying to achieve

COTRUGLI
Business School
 Acting and thinking in
unusual ways
Being viewed as creative
or peculiar
Failing to adapt to cultural
standards
Dressing or behaving in
unconventional ways
Making off-the-wall remarks
Being unaware of your impact
on others
Having difficulty influencing
and persuading others

COTRUGLI
Business School
Healthy Potential for failure
Having a million great ideas that
Having a million great ideas rarely get executed
Keeping people on their toes with
Confusing and confounding
your unpredictable and offbeat people with your style
style
Launching many important Launching many initiatives, but
initiatives rarely following up on them

Blending your unconventional Refusing to change who you are

style with a more conforming by conforming in any way to
approach when necessary organisational norms

COTRUGLI
Business School
 Being meticulous and
precise
Inflexibility about rules
and procedures
High need to control
Tendency to micro-manage
(delegating reluctantly)
Setting unreasonably
high standards
Struggling to relate to the
big picture
Resisting change
COTRUGLI
Business School
Healthy
Focusing on the details
Feeling uncomfortable with
uncertainty and ambiguity
Managing processes with skill
and determination
Being conscientious about your
responsibilities
Potential for failure
Failing to see the big picture
Trying to impose structure in
every situation to get rid of
uncertainty and ambiguity
Managing processes to the
extent that peoples needs
become secondary
Not letting go of any task, no
matter how small, until its
completed exactly as you want
COTRUGLI
Business School
 Compliance
Depending on others for approval
Reluctance to act independently
Unwillingness to challenge the
status quo
Failing to stand up for others
Focusing on your relationship with
your boss rather than on your
relationships with your associates
and colleagues
Withdrawing from politically
charged situations

COTRUGLI
Business School
Healthy Potential for failure

Believing that happy workers are Believing one unhappy worker

good workers can spoil the whole company
Being so flexible that no one
Adapting to new events and (including you) is sure where you
circumstances
stand on the issues

Confronting with compassion Confronting without backbone

Not liking conflict and Communicating that conflict is

disagreements to disrupt unacceptable, so that strong
meetings and the flow of work emotions are rarely expressed

COTRUGLI
Business School
What moves us
Emotional tendencies that guide or facilitate reaching goals

Achievement drive striving to improve or meet a

standard of excellence
Commitment aligning with the goals of the group
or organisation
Initiative readiness to act on opportunities
Optimism persistence in pursuing goals
despite obstacles and setbacks

COTRUGLI
Business School
Social radar
Awareness of others feelings, needs, and concerns

Understanding others sensing others feelings and

perspectives, taking an active interest
in their concerns
Developing others sensing others development needs
and bolstering their abilities
Service orientation anticipating, recognising, and meeting
customers needs
Leveraging diversity cultivating opportunities through
different kinds of people
Political awareness reading a groups emotional currents
and power relationships
COTRUGLI
Business School
 Think of an experience at work that you found satisfying

What Was The Why was it satisfying? What was the underlying cause?
Experience?

COTRUGLI
Business School
 Think of an experience at work that you found dissatisfying

What Was The Why was it dissatisfying? What was the underlying cause?
Experience?

COTRUGLI
Business School
HYGIENE FACTORS SATISFIERS

company policy achievement

pay recognition
working conditions work itself
management responsibility
fringe benefits advancement

COTRUGLI
Business School
 SELF
FULFILMENT THE SATISFACTION OF DOING WELL

Secondary
ESTEEM PRAISE, RECOGNITION TO
NEEDS SHOW SOMEONE THEY ARE
VALUED

BELONGING GROUP SUPPORT TO DEMONSTRATE

NEEDS A TEAM MEMBER'S ACCEPTANCE

Primary
SECURITY REASSURANCE TO RELAX
NEEDS SOMEONE WHO FEELS UNSAFE

BASIC
FOOD TO MEET HUNGER NEEDS
NEEDS

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Business School
 Funded by General Electric
Conducted by The National Research Council (NRC) of the
National Academy of Sciences with engineers from MIT
Measured Light Intensity vs. Worker Output

Result Each change (including decreases) resulted in

higher output and reported greater employee satisfaction

Conclusions:
Light intensity has no conclusive effect on output
Productivity has a psychological component Researchers
interaction with the workers influenced higher performance

Concept of Hawthorne Effect was created

COTRUGLI
Business School
 Western Electric wanted more information
Harvard researchers brought in to analyze the results Elton Mayo & Fritz
Roethlisberger
Group of 6 Women (5) Assemblers and (1) Layout Operator
Manipulated factors of production to measure effect on output:
Pay Incentives
Length of Work Day & Work Week
Use of Rest Periods
Company Sponsored Meals

Management Visits / Special Attention

Result Most changes resulted in higher output and reported greater
employee satisfaction

Conclusions:
Experiments yielded positive effects even with negative influences
workers output will increase as a response to attention
Strong social bonds were created within the test group. Workers are
influenced by need for recognition, security and sense of belonging

COTRUGLI
Business School
Achievement
The need for achievement is characterized by the wish to take responsibility
for finding solutions to problems, master complex tasks, set goals, get
feedback on level of success

Affiliation
The need for affiliation is characterized by a desire to belong, an enjoyment
of teamwork, a concern about interpersonal relationships, and a need reduce
uncertainty.

Power
The need for power is characterized by a drive to control and influence
others, a need to win arguments, a need to persuade and prevail.

According to McClelland, the presence of these motives or drives

in an individual indicates a predisposition to behave in certain
ways. Therefore recognizing which need is dominant in any
particular individual affects the way in which that person can be
motivated

COTRUGLI
Business School
 COTRUGLI
Business School
Myers Briggs Type Indicator

Extraversion Introversion

Sensing Intuition

Thinking Feeling

Judging Perceiving

COTRUGLI
Business School
Extraversion Introversion Where do you prefer to focus your
E - I Dichotomy attention and get your energy?

Sensing Intuition How do you prefer to take in

S - N Dichotomy information?

Thinking Feeling How do you make decisions?

T - F Dichotomy

Judging Perceiving How do you deal with the outer world?

J - P Dichotomy

COTRUGLI
Business School
 Words used to describe preferences in psychology do not
mean the same thing as they do in everyday life

Extravert does not mean talkative or loud

Introvert does not mean shy or inhibited

Feeling does mean emotional

Judging does not mean judgmental

Perceiving does not mean perceptive

COTRUGLI
Business School
 Most people who prefer
Extraversion
Prefer action over reflection
May act quickly w/out
thinking
Attuned to external
environments
Prefer to communicate by
talking
Learn best through doing or
discussing
Sociable and expressive
Enjoy working in groups
Most people who prefer
Introversion
Prefer reflection over action
May not take action at all
Attuned to inner world
Prefer to communicate in
writing
Learn best through
thorough mental practice
and reflection
Private and contained
Enjoy working alone or in
pairs
COTRUGLI
Business School
 Most people who prefer Most people who prefer
Sensing Intuition
Emphasize the pragmatic Emphasize the theoretical
Prefer facts & details/ Prefer general concepts/
specific information high-level plans
Oriented to future
Oriented to present realities possibilities
Value realism Value imagination
Observe and remember See trends and patterns in
specifics through 5 senses specific data
Build carefully and Use a sixth sense
thoroughly to conclusions Move quickly to conclusions,
Trust experience follow hunches
Trust inspiration

COTRUGLI
Business School
 Most people who prefer Most people who prefer
Thinking Feeling
Analytical Empathetic
Use cause-and-effect Guided by personal values
reasoning Assess impact of decisions
Solve problems with logic on people
Strive for objective standard Strive for harmony and
of truth positive interactions
Reasonable Compassionate
Search for flaws in an Search for point of
argument agreement in an argument
Fair want everyone treated Fair want everyone treated
equally as an individual

COTRUGLI
Business School
 Most people who prefer
Judging
Scheduled/Organized
Strive to finish one project
before starting another
Like to have things decided
May decide things too
quickly
Try to avoid last-minute
stresses; finish tasks well
before deadline
Try to limit surprises
See routines as effective
Most people who prefer
Perceiving
Spontaneous/Flexible
Start many projects but may
have trouble finishing them
Like things loose and open
to change
May decide things too
slowly
Feel energized by last-
minute pressures; finish
tasks at the deadline
Enjoy surprises
See routines as limiting
COTRUGLI
Business School
 With similar types on a team:
The team will understand each other easily and quickly
Will reach decisions quickly, but will be more likely to make
errors due to not taking in all viewpoints
May fail to appreciate gifts of the outlying types

With a variety of types on a team:

Longer to establish communication between the members of
the team
Less likely to overlook possibilities and details
Longer to reach consensus

COTRUGLI
Business School
 Extraverted Types

Like variety and action

Are often good at greeting people
Are sometimes impatient with long slow jobs
Are interested in how others do their jobs
Often enjoy talking on the phone
Often act quickly, sometimes without thinking
Like to have people around in the working environment
May prefer to communicate by talking rather than writing
Like to learn a new task by talking it through with someone

COTRUGLI
Business School
 Introverted Types

Like quiet for concentration

Have trouble remembering names and faces
Can work on one project for a long time without interruption
Are interested in the idea behind the job
Dislike telephone interruptions
Think before they act, sometimes without acting
Work alone contentedly
May prefer communications to be in writing
May prefer to learn by reading rather than talking or experiencing

COTRUGLI
Business School
 Sensing Types

Are aware of the uniqueness of each event

Focus on what works now
Like an established way of doing things
Enjoy applying what they have already learned
Work steadily, with a realistic idea of how long it will take
Usually reach a conclusion step by step
Are not often inspired, and may not trust the inspiration when they are
Are careful about the facts
May be good at precise work
Can oversimplify a task
Accept current reality as a given to work with

COTRUGLI
Business School
 Intuitive Types

Are aware of new challenges and possibilities

Focus on how things could be improved
Dislike doing the same thing repeatedly
Enjoy learning new skills
Work in burst of energy powered by enthusiasm with slack periods in
between
May leap to a conclusion quickly
Follow their inspirations and hunches
May get their facts a bit wrong
Dislike taking time for precision
Can make a task over-complex
Ask why things are as they are

COTRUGLI
Business School
 Thinking Types

Are good at putting things in logical order

Respond more to peoples ideas than their feelings
Anticipate or predict logical outcomes of choices
Need to be treated fairly
Tend to be firm and tough-minded
Are able to reprimand or fire people when necessary
May hurt peoples feelings without knowing
Have a talent for analyzing a problem or situation

COTRUGLI
Business School
 Feeling Types

Like harmony and will work to make it happen

Respond to peoples values as much as to their thoughts
Are good at seeing the effects of choices on people
Need occasional praise
Tend to be sympathetic
Dislike telling people unpleasant things
Enjoy pleasing people
Taken an interest in the person behind the job or idea

COTRUGLI
Business School
 Judging Types

Work best when they can plan their work and follow the plan
Like to get things settled and finished
May decide things too quickly
May dislike to interrupt the project they are on for a more urgent one
Tend to be satisfied once they reach a judgment on a thin, situation, or
person
Want only the essentials needed to begin their work
Schedule projects so that each step gets done on time
Use lists as agendas for action

COTRUGLI
Business School
 Perceptive Types

Do not mind leaving things open for last-minute changes

Adapt well to changing situations
May have trouble making decisions, feeling they never have enough
information
May start too many projects and have difficulty finishing the
May postpone unpleasant jobs
Want to know all about a new job
Get a lot accomplished at the last minute under pressure of a deadline
Use lists as reminders of all the things they have to do someday

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Business School
 Spontaneous

Amiable Expressive

Analyst Driver

Self-Controlled

Easy going Dominant

COTRUGLI
Business School
 Spontaneous Amiable Expressive

Supportive Ambitious
Dependable Stimulating
Agreeable Enthusiastic
Helpful Amusing
People/
Team Analyst Driver

Serious Determined
Industrious Efficient
Persistent Decisive
Exacting Practical
Self-Controlled

Easy going Task/ Dominant

Results
COTRUGLI
Business School
 Spontaneous Amiable Expressive

Strength Weakness Strength Weakness

Supportive Soft Ambitious Manipulative

Dependable Submissive Stimulating Excitable
Agreeable Indecisive Enthusiastic Egotistical
Helpful Undisciplined Amusing Flippant
People/
Team Analyst Driver

Strength Weakness Strength Weakness

Serious Dull Determined Arrogant

Industrious Critical Efficient Hard
Persistent Pedantic Decisive Dominating
Exacting Over-detailed Practical Unsympathetic
Self-Controlled

Easy going Task/ Dominant

Results
COTRUGLI
Business School
 Spontaneous 100

75

Listen 50 I Tell

25

Self-controlled 0
0 25 50 75 100

Easy Going Dominant

COTRUGLI
Business School
Why would anyone choose to follow you?

COTRUGLI
Business School
The difference between success and failure in
leadership is not skill, technique, credentials,
networking, or even experience.
It is the clarity about who one is.

Joseph Badaracco, Questions of Character, 2006

COTRUGLI
Business School
Leading Ethics

COTRUGLI
Business School
 Leading Ethics
Situation:

You withdraw some money from an ATM. The ATM incorrectly

pays out an additional 50 Euros

What would you do?

Keep the money

Pay it back because you might get caught
Ask your friends
Pay it back because you know your family would not approve
Pay it back because the society you live in would expect you to
Pay it back because you believe it is wrong

Would your answer be different if the extra amount was 150

Euros

COTRUGLI
Business School
 You are a senior manager in a company producing generic drugs.

Your company has developed a process which will give you a competitive
advantage
The drug your company produces could also save thousands of lives in Africa
but is too expensive for these individuals to purchase
Your CEO identified an opportunity to attract positive media coverage by
supplying these drugs to charities in Africa at a reduced cost
The company still makes a profit from supplying these charities
There is no legal requirement to disclose the costs of producing these drugs
The companys share price has been falling over the last two quarters
You are asked by a representative of one of the charities to disclose the actual
cost of production

How would you respond? How should the company respond?

COTRUGLI
Business School
 Is it ethical to make facilitating payments to get things done in
foreign countries?
Facilitating Payment
The practice of low level bribery of public officials to move goods
through customs. These payments are relatively small, uniformly
assessed and are made to expedite services that would normally
be rendered.
Bribery
A company is competing for a bid in a foreign country and must
make a payment, not to a public official, but to the employee of
another private company for facilitation. It is however, obvious
that the employee will pass the money to others who will be
favorably influenced in their decision concerning the award of the
contract.

U.S. Foreign Corrupt Practices Act, 1977

COTRUGLI
Business School
 It is ethical not to invest $15 million in pollution
controls in a plant in India because the Indian
government does not require it?
(community/shareholders interests)

Constance E. Bagley, The Ethical Leaders Decision Tree

Harvard Business Review, 2003

COTRUGLI
Business School
 Is it ethical for a company to make the kind of professional
contract with its workers that strains their professional and
personal stamina, offers no job security beyond today, yet
rewards them handsomely, simply because the company is big
enough and profitable enough to operate in this manner?
(workers/shareholders interests)

Eileen Morgan, Navigating Cross-Cultural Ethics, 1998 .

COTRUGLI
Business School
 Is it ethical to leave a female co-worker in her hotel in the
evening when local customs dictate that evening social
activities are carried out in all-male venues.
(customer/employee interests)

COTRUGLI
Business School
 Human resource issues
Discrimination
Hiring and Work Assignment
Terminations
Diversity
Harassment
Local Human Right Abuses
Customer Confidence
Confidentiality
Product safety
Truth in advertising

COTRUGLI
Business School
Human Customer Use of Responsible Conflict of
resource issues confidence corporate technologies interest
resources
Discrimination Confidentiality Use of Environment Bribes and
corporate friendly kickbacks
Hiring and Product safety
reputation Sustainable Privileged
work Truth in
assignments Corporate information
advertising
Terminations financial
resources
Diversity
Proving
Harassment honest
Local human information
rights abuses

COTRUGLI
Business School
Knowledge without character
Science without humanity
Wealth without work
Commerce without morality
Politics without principles
Pleasure without conscience
Worship without self-sacrifice

Mahatma Gandhi

COTRUGLI
Business School
For every complex question
there is a simple answer
and
it is wrong

COTRUGLI
Business School
Making ethical decisions is easy when the facts are clear and the
choice black and white. But it is a different story when the situation
is clouded by ambiguity, incomplete information, multiple points of
view and conflicting responsibilities. In such situations which
managers experience all the time ethical decisions depend on both
the decision-making process (moral philosophy), and the integrity of
the decision-maker (moral development).

Kenneth R. Arrow. Ethics in Practice. Harvard Business Review, 1989

COTRUGLI
Business School
 Principled
Stage 6: Ethical principles
Principled
Level III:
Level III:
(Following self-chosen ethical principles of justice)

Stage 5: Social contract and individual rights

(Upholding rules due to social contract of a society)

Stage 4: Social accord and system maintenance

Level II:
Level II:
Social

(Fulfilling duties and obligations and contributing to society)

Social

Stage 3: Internal accord, conformity, and mutual expectations

(Living up to whats expected of you by others close to you)
Compliance

Stage 2: Instrumental purpose and exchange

(Following rules only when it is in one's own self interest)
Level I:

Stage 1: Obedience and punishment orientation

(Sticking to rules to avoid physical punishment)

COTRUGLI
Business School
Questions to ask:

RULES
What are the rules (corporate and government) (Rule Compliance)

INTEGRITY
How do our and my principles guide us? (corporate and personal) (Principled Conscience)

GOOD
Who would benefit and how? (various stakeholders) (Social Conscience)

HARM
Who could be harmed and how? (various stakeholders) (Social Conscience)

TRUTH
Am I being honest and accountable? (personal moral development) (Principled Conscience)

COTRUGLI
Business School
Leadership and ethical decision making

Ethical decisions require three qualities of individuals:

1. The competence to recognize ethical issues and to

think through the consequences of alternative
solutions (head)
2. The self-confidence to seek out different points of
view and then to decide what is right at a given time
and place (heart)
3. The willingness to
a. Set a climate where people are expected to speak
up on questionable ethical issues
b. A determination to make ethical values and
principles a key, transparent part of everyones
behavior (guts)

Kenneth R. Arrow, Ethics in Practice, Harvard Business Review, 1989

COTRUGLI
Business School
 Illegal behavior that violates the laws of a given country (Rule
Compliance).

Unethical behavior that violates deeply held cultural values or

moral codes of an individual, group or country (Principled
Conscience).

Unfair behavior that violates the principles of fair play as

understood by individualistic meritocracies (Social Conscience).

Inappropriate behavior that violates cultural or interpersonal ways

of acting in social or business situations.

Eileen Morgan, Navigating Cross-Cultural Ethics, 1998.

COTRUGLI
Business School
Life is like a game of cards.
the hand you are dealt
is determinism;
The way you play it
is free will.

Jawaharlal Nehru

COTRUGLI
Business School
The Role of the Ethical Leader

Ronald Heifetz Leadership Without Easy Answers

COTRUGLI
Business School
 What are your values?
What is important to you in your

life?
How do you express these things

at work?
Give examples

COTRUGLI
Business School
 What is trust for you?
When do you trust or not trust

people at work and why?

Give examples

COTRUGLI
Business School
 What is your vision for the work
that you do?
What motivates you?
What gives life a sense of

purpose?

COTRUGLI
Business School
 What is your personality profile?
What are your strengths and

weaknesses as a leader?

COTRUGLI
Business School