Organizations not only need good managers to take care of today’s business but also have to recognize influential leaders to accelerate their companies to reach the next level of business growth.
Here are more perspectives on how to manage the tensions of leadership - courage, ethics, and vision in a changing world.
Leadership Transitions: In the early phases of a social movement, a charismatic leader who embodies its values often exerts the strongest influence. Intellectuals contribute to the movement's ideology, while business leaders focus on practical matters of organization and strategy as the movement grows.
Membership Evolution: Initially, members are deeply committed to the movement's values. However, as the movement gains acceptance, individuals with different motivations or backgrounds may join, leading to heterogeneity and potential internal conflict.
Skills for Technical Professionals: Scientists and engineers require up-to-date knowledge, communication skills, problem-solving abilities, and group decision-making skills to work effectively in cross-functional project teams. Organizational leaders play a crucial role in motivating, leading, and coordinating team members while advocating for the team's interests within the larger organization.
What ethical dilemmas do leaders often face? Leaders often face ethical dilemmas that require navigating complex and conflicting interests. These dilemmas can arise in various contexts, such as crisis management, stakeholder relations, and corporate governance.
-Crisis Management: In crisis management, leaders face the challenge of balancing the technical aspects of coping with the crisis and the GRC dimensions, which involve intense public scrutiny and controversy. Ethical dilemmas in this context include:
-Accountability: Accountability needs to be well embedded in the organizational culture, to encourage responsible communication, decision-making, and action, with the intention to build on morale and real productivity.
-Transparency: Balancing the need for transparency with the need to protect strategic decisions and maintain a sphere of autonomy can be challenging.
-Stakeholder Management: Stakeholder theory highlights the instrumental and normative aspects of incorporating stakeholders' participation in organizational management. Ethical considerations include:
-Balancing Stakeholder Interests: Leaders must identify, analyze, and prioritize the often-conflicting interests of various stakeholders, such as employees, shareholders, customers, and communities.
-Corporate Social Responsibility: Balancing the maximization of shareholder benefits with the ethical considerations of corporate social responsibility and the interests of all stakeholders is a key dilemma.
Corporate Governance: In corporate governance, leaders must ensure transparency, accountability, and ethical conduct to maintain trust with stakeholders. Ethical dilemmas include:
-Transparency vs. Confidentiality: Balancing the need for transparency with regulatory or legal constraints on disclosing information can be challenging.
-Conflicts of Interest: Certain professionals may face conflicts of interest when representing multiple clients or when their personal interests conflict with their duty to their clients.
How can leaders promote ethical behavior? Leaders can promote ethical behavior by fostering a culture of transparency, accountability, and ethical leadership.
-Transparency: Transparency builds trust between companies and their stakeholders. Corporate governance transparency involves providing clear, accurate, and timely information about financial performance and key risks, such as disclosures about business practices, supply chain relationships, and how well the company meets its operational goals.
Accountability: Publishing information allows shareholders and stakeholders to hold companies accountable for their stated goals. Shareholders can push for ESG-related performance metrics, to help ensure company leaders follow through on what they’ve promised.
Ethical Leadership: Ethical leadership, paired with robust oversight and internal controls, demonstrates a company’s commitment to effective risk management and long-term strategy. Strong cultures reinforce values through rituals, symbols, rules, and expectations for behavior, which are internalized throughout a person’s membership in the organization.
Organizations not only need good managers to take care of today’s business but also have to recognize influential leaders to accelerate their companies to reach the next level of business growth and maturity.
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