Transformational Leadership Ethics

(adapted from work by John Frank in 2005 at the University of North Florida):

Transformational leaders:

1. Model the behavior they seek.
2. Are at home with their beliefs.
3. Listen to others.
4. Elicit feedback.
5. Walk around/know their place of business.
6. See opportunities to create a space for new adventures.
7. Inspire the use of moral imagination in even ordinary events.
8. Know when the time is right for bringing in the critical point.
9. Know when to discuss core values.
10. Recognize that rights don’t trump everything; we have responsibilities.
11. Set the stage in which everyone can be raised up in motivation and moral discourse.
12. Are careful not to be manipulative or exploitative.

From a study of 397 CEO’s,  conducted by the Rutland Center for Ethics at Clemson University, in January of 2005:

Principal causes of unethical conduct in business (Number 1 is the top cause.)

1. Failure of the organization’s leadership to establish ethical standards and culture
2. Personal greed
3. Weakness of personal character
4. Pressure to meet unrealistic performance or financial goals
5. Desire to advance career
6. Inadequate training and communication
7. Indifference or low morale
8. Pressure to meet deadlines and schedules
9. Failure to establish an effective compliance program
10. Lack of understanding about the ethics code or policies

Top 10 ethical issues facing the general business community (Number 1 is the top issue.)

1. Improper accounting practices
2. Deceptive sales practices
3. Misleading the public or the media
4. Lying on reports/falsifying records
5. Dishonesty with customers
6. Conflicts of interest
7. Theft
8. Drug/alcohol abuse
9. Producing low quality or unsafe products
10. Unfair treatment of employees

Top 10 issues facing “your” business (Number 1 is the top issue.)

1. Conflict of interest
2. Theft
3. Lying on reports
4. Dishonesty with customers
5. Drug/alcohol abuse
6. Deceptive sales practices
7. Improper accounting practices
8. Lying/exaggerating on resumes and job applications
9. Violations of privacy
10. Bribes and kickbacks

Top motivating factors for implementing corporate ethics initiatives (Number 1 is the top factor.)

1. Provide guidance for employee conduct.
2. Ensure legal compliance.
3. Improve/protect the company’s reputation.
4. Be socially responsive.
5. (tie) Improve profits/shareholder value.
   (tie) Retain/motivate employees.

To the question: Should CEO’s be the moral leader of the organization,
97% of respondents answered “yes.”

A report on the entire study can be seen at http://www.clemson.edu/caah/rutland/se_survey_followup.html

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