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Questions: Your textbook lists 5 ethical leadership behaviors. Please identify how you, as the leader in this ethical situation, will apply each of those behaviors to this case:

1. Be honest and trustworthy and have integrity in dealing with others. 2. Identify all stakeholders involved in this situation. Do-any-stakeholder groups have more to gain or lose than others? 3. Build a community with a common goal. 4. Respect the individual. 5. Provide healthy leadership through a supportive leadership style, organizing health- planning activities, and developing a health-promoting workplace.

11:38 AM Mon Sep 18 is 96% Q Five Ethical Leadership Behaviors Be Honest and Trustworthy and Have Integrity in Dealing with Others Continuing reports of frauds and scandals in the media have placed ethical behavior high on the priority list of many organizations. The problem is that ethical problems erode the trust of both leaders and organizations. Despite the importance of leaders who are trustworthy, evidence suggests that business firms have many ethical problems. The Global Business Ethics Survey of 2020 included over 14,000 employees in 10 countries. Five trends were identified, as follows: 0 Trend 1 was that the ethical culture remains high, with 14 percent of employees across the globe working in organizations with a strong ethical culture. 0 Trend 2 is that pressure to compromise standards is the highest ever, with 29 percent of employees globally reporting pressure. 0 Trend 3 is that observed misconduct is inching upwards. In the United States and internationally, the most frequently observed types of misconduct included favoritism, management lying to employees, and conflicts of interest. 0 Trend 4 is that more employees are reporting misconduct, with 80 percent of employees in the United States and globally reporting misconduct. 0 Trend 5 is that retaliation rates have skyrocketed, with 79 percent of U.S. employees and 61 percent of global employees report that they experienced retaliation.5 Retaliation would include a low performance evaluation or the denial of a salary increase. An ethical leader is honest and trustworthy and therefore has integrity. According to ethics researcher Thomas E. Becker, this quality goes beyond honesty and conscientiousness. integrity refers to loyalty to rational principles; it means practicing What one preaches regardless of emotional or social pressure. 0 For example, a leader with integrity would believe that employees should be treated fairly, and the pressure to cut costs would not prompt the leader to renege on a commitment to reimburse an employee for relocation 11:38 AM Mon Sep 18 a: 95% Q expenses. As another example, a leader who preaches cultural diversity would assemble a diverse team. Ron Wallace began his 38-year-long-career at UPS International as a delivery driver, and eventually became CEO. He said that survey after survey indicates that the No. 1 thing people want in a leader is integrity. \"It's doing the right thing when no one else is looking.\" 0 Pay Attention to All Stakeholders Ethical and moral leaders strive to treat fairly all interested parties affected by their decisions. To do otherwise creates winners and losers after many decisions are made. The traditional belief that a CEO's primary responsibility is to maximize shareholder wealth conicts with the principle of paying attention to all stakeholders. A leader interested in maximizing shareholder wealth might attempt to cut costs and increase profits in such ways as (1) laying off valuable employees to reduce payroll costs, (2) overstating profits to impress investors, (3) overcharging customers, and (4) reducing health benefits for retirees. Although these practices may be standard, they all violate the rights of stakeholders. Jim Goodnight, the CEO of software company SAS, is among the business leaders who contend that there is a strong link between employee satisfaction and increased productivity and profits. His commitment to work-life balance has led to SAS being consistently ranked as one of the best workplaces worldwide. Goodnight explains, \"Because we put employee-oriented measures in place long ago, we have the benefit of years of experience to show that the long- term benefits far outweigh the short-term costs. Most companies don't know how to represent that kind of return in their annual reports.\" 0 Another behavior of authentic leaders (see Chapter 2) is to perceive their role to include having an ethical responsibility to all of their shareholders. The welfare of others takes precedence over their own personal welfare (as in servant leadership). Authentic leaders have a deep commitment to their personal growth as well as to the growth of other stakeholders. 11:38 AM Mon Sep 18 a: 95% Q 0 Build Community A corollary of taking into account the needs of all stakeholders is that the leader helps people achieve a common goal. Leadership researcher Peter G. Northouse explains that leaders need to take into account their own and their followers' purposes and search for goals that are compatible to all. 0 When many people work toward the same constructive goal, they build a community. A business leader who works with many people to help poor schoolchildren is an ideal example of someone who builds a community. Respect the Individual Respecting individuals is a principle of ethical and moral leadership that incorporates other aspects of morality. If you tell the truth, you respect others well enough to be honest. If you keep promises, you also show respect. And if you treat others fairly, you show respect. 0 Showing respect for the individual also means that you recognize that everybody has some inner worth and should be treated with courtesy and kindness. An office supervisor demonstrated respect in front of his department when he asked a custodian who entered the office, \"What can we do in this department to make your job easier?\" Provide Healthy Leadership Social support for employees by the leader is known to have a positive effect on the physical health and wellbeing of subordinates. Approaches to leadership that provide social support can therefore be classified as strongly ethical behavior. A particularly important form of social support is provided by the immediate manager. The concept of healthy leadership encompasses many different ideas, yet the relationship-oriented behaviors described in Chapter 5 all contribute to healthy leadership. A broad point of view is that whatever a leader does that exerts a positive inuence on the health and well-being of group members is part of healthy leadership. To pin down a little the meaning of healthy leadership, three of its components are having a supportive leadership style, organizing health-planning activities, and developing a health- promoting workplace. 0 A CEO who practiced healthy leadership might therefore provide encouragement and recognition to as many employees as possible, and establish a wellness 11:38 AM Mon Sep 18 95% C program on-site. The latter would include physical exercise facilities, a stress-reduction and prevention program, and seminars teaching good nutrition.Ethical Leadership Behaviors As a bottler of natural spring water, your advertising department has recently launched a campaign that emphasizes the purity of your product. The industry is highly competitive. and your organization has been badly hurt by a lengthy strike of unionized employees. The strike seriously disrupted production and distribution. and it caused your company to lose significant revenues and market share. Now that the strike is over. your company will have to struggle to recoup lost customers and will have to pay for the increased wages and benets called for in the new union contract. The company's nancial situation is precarious to say the least. You and the entire senior management team have high hopes for the new ad campaign. and initial consumer response has been positive. You are shocked then, when your head of operations reports to you that an angry worker has sabotaged one of your bottling plants. The worker introduced a chemical into one of the machines, which in turn contaminated 120,000 bottles of the spring water. Fortunately, the chemical is present in extremely minute amounts - no consumer could possibly suffer harm unless he or she drank in excess of 10 gallons of the water per day over a long period of time. Since the machine has already been sterilized, any risk of long-term exposure has been virtually eliminated. But, of course, the claims made by your new ad campaign, emphasizing the purity of your product, could not be more false