EG Summary - HowtoDevelopEthicalGovernanceandLeadership...

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How to Develop Ethical Governance and Leadership Pauchant, T.C. Main Idea “Governance could contribute to the creation of value, both economic and ethical. However, it depends on many factors, including the modes of governance, leadership, management but also the profound nature as well as the culture and the structure fo organizations” (p.9) Definitions Moral traditions state basic assumptions, hypotheses, paradigms, action logics, which influence people in what they consider paramount (e.g. law and order, profit, efficiency, ecological health, etc.) (p.1) Key Ideas Boards have 3 inter related roles: (p.1) o Fiduciary – assuring a transparent, law abiding accouting in the financial statements o Strategic – assisting in the growth of the organization by ensuring productivity, effectiveness abd stock value o Ehtical – encourages “better living”: integrity, health, respect, liberty, abundance, prudence, equity, solidarity, etc. Can one define what is ethical or not? (p.2) No clear answer, of course! o Pluralistic view suggest that the basis for an ethical decision depends on the various moral traditions that are embraced, explicitly or not, by the individuals and the communities and the each tradition has its strengths and its weaknesses.” o Or one way” view where basic assumptions or action logics, require the implementation of specific processes that support these moral traditions 1. e.g. GM performed poorly in the late 70s and was surprised by the rise in oil prices, Toyota which had a different set of action logics was not much affected. Moral Traditions: different or complementary? (p. 3 4) o Scientists who adopt a pluralistic view of ethics suggest that allegiance to a particular tradition depends on the moral and cognitive level mastered by the individual. A mature adult should progress farther down the list; here they are with the second level applied to the concept of solidarity as an example: 1. Centered on short term, primary needs Members must help me where needed 2. Moral conceptions bsased on contractual exchanges, “give and take” logic Helping a person or group creates a debt that must later be repaid to me 3. Seek reciprocity in a clan, group or community following a desire for social belonging
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Structuring for the identity of the community, thereby making it isolated from the outside world 4. Moral development, seek harmony in an extended community, developing empathy to different existences I must promote decisions taken in a democratic way even if they go against my interests 5. Transcend need for autonomy or social recognition (e.g. sustainable economic value, global ecological health of present and future generations) The need for reverence towards all creatures living on this plant Emerging theories in Leadership Development (p. 5 6) o Most , 85%, leaders have mastered levels 1 to 4 – defending interests (1), preserving status quo (2), problem solving (3) and innovating with the aim of increasing value (4). These are necessary to achieve the fiduciary ans strategic parts of the roles of
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EG Summary - HowtoDevelopEthicalGovernanceandLeadership...

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