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Trust Me!
Insights into
Ethical Leadership
Frank C. Bucaro, CSP,CPAE
www.frankbucaro.com
800-784-4476
Norman R. Augustine: Former
CEO of Lockheed Martin
Corporation
“I can think of no commitment more important to
a corporation or its survival than its commitment to
ethics.
That means not only conducting our business
affairs within the letter of the law, but also in the
spirit of the law.”
“ Business is a partnership
of people creating,
in many ways,
a better life for others as
well as ourselves.
If Aristotle Ran General Motors
-Tom Morris
Negative Ethics
 Tell us what not to do.
 Prevent harm.
 Imply the obligation to not do harm.
-Marvin T. Brown
Positive Ethics
 Give guidelines for what we should do.
 Promote a good.
 Imply a responsibility to do good.
 Rely on the power of the organization to
be responsive, and to love the ability to
respond.
-Marvin T. Brown
Ethics
 Focus
on action not behavior.
 Justify
action not behavior.
 Acknowledge
the gap between
“ought” and “is.”
“We are not disturbed by things, but
by the view we take of them….
When we meet with troubles, become
anxious or depressed, let us never
blame anyone but…..our opinion about
things.”
Epictetus - 60 A.D.
Americans’ outlook for U.S. Morality
remains bleak
Gallup Poll on 5/1/2010 found:
76% of Americans say moral values in
the U.S. are getting worse.
14% of Americans say moral values are
getting better.
Five top reasons for the moral decline:
-Gallup pollMay 17, 2010
1.
2.
3.
4.
5.
Declining moral values
Disrespect of others
Parents not instilling values in their
children
Dishonesty in government/business
Rising crime/violence
There are only four dilemmas for
humanity
1.
2.
3.
4.
Truth vs. Loyalty
Individual vs. Community
Short Term vs. Long Term
Justice vs. Mercy
-Institute for Global Ethics
Myths That Our
Culture Teaches…
1. PAIN
Must be avoided at all costs.
2. HAPPINESS
“Go For It!” “If it feels good, do it!”
3. “ME” ORIENTED SOCIETY
Money and materialism
4. COMPETITION
Winning isn’t the only thing, it is everything!
Decision Making Process
EXPERIENCE
REFLECTION
DECISION
Three Psychological Persons
CHILD
Go For It!
PARENT
No! No! No!
ADULT
Go Slow!
Five Emotions
1. Sad
2. Mad
3. Glad
4. Scared
5. Hurt
Four “C”s of getting it right
Conscience = intuition, moral code, “gut”
Choice = pros and cons of choosing
Culture = beliefs and practices
Compliance = What does the law say
Relationship Builders
TRUST
TIME
TOUCH
TALK
Effective Leaders Need To:
1. Deal with direction.
2. Deal with vision.
3. Focus on the top line.
4. Derive power from values and correct
principles.
5. Foster mutual respect and build a
complimentary team.
-Steven
Covey
8 Great Leadership Habits
1. Find every opportunity to practice the virtues of
integrity, trustworthiness, honesty and
compassion.
2. Ask yourself: How is my organization better
today because I am in it?
3. Weigh your actions toward creating more good
than harm.
4. Ask yourself: How am I a better person because
I am part of this organization.
Leadership Habits-2
5. Remember to treat each person with the
dignity and respect that every human being
deserves.
6. Find and name strengths of the organization
that can help you become more human.
7. Be aware of whom you benefit, whom you
burden and how that decision is made.
8. Practice getting beyond your own interests to
make the organization stronger.
Leadership Values
1.
2.
3.
4.
5.
Trustworthiness
Unity
Respect
Justice
Service and Humility
Four questions to measure
my trustworthiness
1.Is my behavior predictable or erratic?
2. Do I communicate clearly or carelessly
3. Do I treat promises seriously or lightly
4. Am I forthright or dishonest?
To be trustworthy requires:
1. Discerning right from wrong.
2. Acting on your discernment even at personal
cost.
3. Saying openly that you are acting on your
understanding of right and wrong.
Siemens CEO Peter Loescher
“You have to have your personal values
and then you build from there. Ethical
people are guided by a moral compass.
My father taught me that there is no
conflict between success and ethics,
indeed the only guarantee for a good life
is to live as a good person.”
USA Today – 2/15/2010
Decisions are Based on …
1. Intuition
2. Experience
3. Feelings
4. External Authority
Cowboy Ethics
1. Live each day with courage.
2. Take pride in your work.
3. Always finish what you start.
4. Do what has to be done.
Cowboy Ethics- 2
5. Be tough, but fair.
6. When you make a promise, keep it.
7. Ride for the Brand.
8. Talk less and say more.
Cowboy Ethics -3
9. Remember that some things are not for sale.
10. Know where to draw the line.
Mindfulness
Consider all implications of every
decision you make!
You Must Consider:

The Act

Circumstances

Criteria for Judgment

Communal Wisdom
Kolberg & Piaget
1.
2.
3.
4.
5.
6.
Punishment
Reward
“Good”
Rules and Regulations
Choice and Commitment
Internalization
Power
Authoritarian
 Empowers oneself at the
cost of the other.
 Self serving as one uses
fear to get obedience.
Must have power over
others.
 Commands, does not
invite. To command is
to settle for behavior
change. NO value
change or
understanding.
Authoritative
 Empowers the other
through service for the
other.
 They are chosen by their
peers, They don’t force
themselves, but gain our
trust.
 Invites, does not
command. To invite is
to recognize the value of
the other.
Leaders Must Ask:
How Will This Help Them…
 Feel
that they belong?
 Develop
 Feel
an unique identity?
significant?
Social Significance
Question
How Do I Fit In Here?
Ethical Considerations

On what foundation do we base our
ethical decisions?

People make decisions based on the
values they hold dear.

Ethical principles are not concerned with
how things do operate, but with how they
should operate!
Ethical Considerations
(continued)

The most difficult decisions to make, are
those in which there is a conflict between
two or more principles of which you deeply
believe in.

It is important that we determine in
advance what our priorities are, realizing
that a lot will depend on the situation.
Factors in Making a Decision
1. Is this in line with our company’s
objectives?
2. Will this decision result in the right
thing being done for the client?
Challenges for Leaders
1. Become involved in the culture, i.e.
managing the culture and assess if it
is properly serving the long term
goals.
2. Stop asking “CAN we do this” but
rather “SHOULD we do this?”
Challenges, cont’d 2
3. Focus on how your organization
does business, not just what it does.
“The high standards and values embedded in how
you do business are more powerful differentiators
to distinguish you in the marketplace.”
“Corporate Culture: The Ultimate Driver of Business Performance”
by Dov L. Seidman
Challenges, cont’d 4
5. Make your decision in the light of the
broader ecosystem.
Do the right thing, any time and all the time.
Challenges, cont’d 3
4. Reward ethical leadership, even when it hurts and
punish unethical behavior whenever you see it.
“If you lose dollars for the firm, I will be understanding;
if you lose reputation, I will be ruthless.”
-Warren Buffet
GIFT
Each
Day
Each
Person