VAC 25

Value-driven leadership
 Table of contents

01 Morals and Values 05 Character

02 Ethics 06 Civility and Community

03 Trust and Integrity 07 Conflict

04 Justice and Fairness

 COURSE SYLLABUS
Unit 1: Introduction and Resolving Conflicts of Values within and between other Stakeholders

Introduction to Concepts like Morals, Values, Ethics, Trust, Integrity, Justice, Fairness, Community, Civility and Community, Conflicts, and
Stakeholders. Issues of Conflicts. Resolving Conflicts of Values within and between other Stakeholders.

Unit 2: Workforce Diversity and Corporate Social Responsibility

Diversity, Types of Diversity, Benefits of Workforce Diversity. Corporate Social Responsibility. Milton Friedman's Approach, Companies
Act and Corporate Social Responsibility

Unit 3: Managing Values through Incentives and Informal Mechanisms

Managing Values, Incentives, Material Incentives, Informal Mechanisms, Managing Values through Incentives and Informal Mechanisms

Unit 4: Speaking the Truth and Values Based Marketing

Truth, Unethical Behaviour, Situations where Truth is dangerous for the organization, Importance of Speaking the Truth. Ethical
implications of Marketing Values, Importance of Values Based Marketing. Thomas Donaldson's Ethical Algorithm

Unit 5: Building Social Capital

Social Capital, Constituents of Social Capital, Importance of Social Capital for an Organization, Use Organizational Intellectual Capital to
Create Value
UNIT 1
Morals and According to Charles Colson, “Morality describes what is, whereas Ethics describes what
Values ought to be”.

Morals and values are a part of a person’s behaviour.

Ethics

Trust and Fundamentally, morals refer to a set of rules defining what is considered to be right or wrong
and accepted without questions. They are formed from inborn values, a system of beliefs
Integrity
typically defined by society’s rules. If someone breaks such a rule then he is typically

Justice and considered to have been “bad” or “immoral.”

Fairness
Values, on the other hand, provide direction in the determination of right versus wrong or

Character good versus bad. Values are personal beliefs that worth and importance to an individual.
These are emotionally related for deciding right or wrong.
Civility and
Community Morals have more social value and acceptance than values, therefore a person is judged more
for his moral character than the values. A person without moral is considered immoral but no
such term exists for a person without values.
 While morals are generally the same for a culture, values, due to their individuality, tend to be
Morals and highly subjective. Morals are often driven by values but governed by the rules of a particular
Values culture.

Ethics

Trust and
Integrity

Justice and
Fairness

Character

Civility and
Community
Morals and Ethics are a set of beliefs or understanding of a morally right philosophy dictating behaviors

Values that are encouraged or discouraged. These work as practical motivators for people to take up
what is commonly believed to be the right or ideal path. The concept of ethics reflects the
evolution of morals into a socially and professionally accepted category.
Ethics
The etymology of the word can be traced to the Greek word ethos, which translates into
Trust and
'custom', thus conveying the social value attached to it ever since. The academic study of ethics
Integrity
has a historic study, ranging from mythology to the serious accounts of Aristotle, scholars have
critically differentiated right from wrong in this domain.
Justice and
Fairness Ethics is a moral and normative science. It covers the following dilemmas:
• How to live a good life
Character
• Our rights and responsibilities
Civility and • The language of right and wrong
• Moral decisions - what is good and bad?
Community
 Ethics have evolved into
Morals and
concepts beyond their academic
Values or philosophical study.

Ethics They are now looked at as

pragmatic and morally defined
Trust and expected/unexpected behaviors
Integrity of people in various professions
and walks of life.
Justice and
Fairness As such, there are various types
of ethical codes –
Character

Civility and
Community
Morals and MAJOR PRINCIPLES OF ETHICS –
Values
1. Beneficience – Decision makers should prioritize doing what is right and what is good.

Ethics Ethical theories should strive to achieve the greatest amount of good (over evil).
2. Non-maleficence or Least Harm – In situations where there is no clear ethical solution,
decision makers should seek to choose to do the least harm possible.
Trust and
3. Respect for Autonomy – Decision making should focus on allowing people to be able to
Integrity
make decisions that apply to their lives. People should have control over their lives as much
as possible. Other principles that spring from autonomy include – informed consent,
Justice and
honesty, and confidentiality.
Fairness
4. Justice – Decision makers should focus on actions that are fair to those involved and be
consistent with the ethical theory unless extenuating circumstances can be justified.
Character
5. Accountability – Decision makers should accept responsibility and consequences for their
Civility and own actions.
6. Fidelity – Decision makers should abide by their promises and be faithful.
Community
7. Veracity – Decision makers should be true to themselves and to others.
Morals and THEORIES OF ETHICS –
Values
Deontology - Immanuel Kant, W.D. Ross
Ethics People should adhere to their obligations and duties when engaged in ethical decision making,
i.e, they should uphold their duty. However, the flaw in this theory is that there is no rationale
Trust and or logical basis for deciding ones individual duties. Further, duties might bring conflict,
especially when professional and personal lives clash.
Integrity

Justice and Rights Theory – Aristotle, Confucius

In ethical theories based on rights, the rights established by a society are protected and given
Fairness
the highest priority. Rights are considered ethically correct and valid since they are endorsed

Character by a large population. Individuals may also bestow rights upon others if they have the ability
and resources to do so. A major complication of this theory on a larger scale is that we must
Civility and decipher the characteristics of a society’s rights. The society has to determine what rights it

Community wants to uphold and give to its citizens and to do that, it must decide what the society’s goals
and ethical priorities are. Therefore, for the rights theory to be useful, it must be used in
conjunction with another ethical theory that will consistently explain the goals of the society
Morals and Utilitarianism- Jeremy Bentham, J.S. Mill
Values According to this theory, ethical decision making is based on one’s ability to predict
consequences of an action. The choice that yields the greatest benefit to the most people is
Ethics considered ethically correct. There are 2 types of utilitarianism – ACT and RULE. Act
Utilitarianism conforms to the idea that one should perform an act that benefits most people,
Trust and regardless of personal feelings or societal constraints such as laws. Rule Utilitarianism seeks to
benefit most people through the fairest and most just means available. A disadvantage of
Integrity
utilitarianism is that although people can use their life experiences to predict outcomes, no

Justice and one can ascertain the accuracy. Uncertainty tends to lead to unexpected results, making the
decision maker appear unethical.
Fairness

Character Virtue
The virtue ethical theory judges a person by his/her character rather than by an action that
Civility and may deviate from his/her normal behavior. It takes the person’s morals, reputation, and

Community motivation into account when rating an unusual and irregular behavior that is considered
unethical. One weakness of virtue ethical theory is that it does not take into consideration a
person’s change in moral character.
Morals and Care Ethics - Carol Gilligan, Virginia Held
Values The theory states that what makes something good or bad, right or wrong, is that it involves
caring for another, and supports relationship with other people. Care Ethics functions on the
Ethics basic principle of caring towards those who are vulnerable or need support. One should chose
the action which supports or nurtures other people, particularly those who are most
Trust and vulnerable (e.g. children, economically unstable households etc.). However, this theory is
often viewed as supplement to other ethical theories, rather than as comprehensive theory in
Integrity
its own right.

Justice and
Egoism Theory – Ayn Rand, Adam Smith
Fairness
According to this theory, what makes something good or bad, right or wrong, is that it satisfies

Character one’s desires, or meets one’s needs. The theory propagates the principle of Self-interest of the
decision maker. doing, considering, or affected by the action. One should chose the action
Civility and which most realizes or conduces to one’s own self-interest. A variation to this theory asks if

Community the person should look simply to self-interest, or to enlightened or rational

self-interest? Conception of Rational Self-Interest is basic component of capitalist economy
and business models.
Morals and ETHICS AND VALUES IN THE INDIAN CONTEXT – KAUTILYA’S
Values ARTHASHASTRA

Evidence of the modern administrative character of the Arthashastra comes most through
Ethics
Kautilyas’ expressions of efficiency, described in a unique imagery of corrupt officials
improperly eating the wealth of the state.
Trust and
Integrity
Kautilyas’ concept of efficiency depends on an extensive elaboration of efficiency-
guaranteeing techniques. He creates makes a clear link between civil service malfeasance and
Justice and
the reduction in wealth. Contravening the standards of efficiency was among the highest ills
Fairness
that a civil servant could commit in his state. Kautilya believed that “men are naturally fickle
minded” and are comparable to “horses at work who exhibit constant change in their temper”.
Character
This means that honesty is not a virtue that would remain consistent life long and the
Civility and temptation to make easy gains through corrupt means can override the trait of honesty any
time. Similarly, he compared the process of generation and collection of revenue by officials
Community
with honey or poison on the tip of the tongue, which becomes impossible, not to taste.
Morals and Vigilance and Transparency – Kautilya prescribed a strict vigil even over the superintendents

Values of government departments in relation to the modus operandi of work. He reflected serious
concerns about opacity in the operations of the world of the corrupt. Illegal transactions were
so shrouded in mist that he compared embezzlers to fish moving under water and the virtual
Ethics
impossibility of detecting when exactly the fish is drinking water. He also noted that while it is
possible to ascertain the movements of bird flying in the sky, it is difficult to gauge the corrupt
Trust and
activities of government officials.
Integrity
40 kinds of embezzlement – In all these cases, the concerned functionaries such as the
Justice and
treasurer, the receiver, the payer, the person who caused the payment and the ministerial
Fairness servants were to be separately interrogated. In case any of these officials were to lie, their
punishment was to be enhanced to the level meted out to the chief officer mainly responsible
Character
for the crime. After the enquiry, a public proclamation was to be made asking the common
Civility and people to claim compensation in case they were aggrieved and suffered from the
embezzlement.
Community
Morals and
Values

Ethics

Trust and
Integrity

Justice and
Fairness

Character

Civility and
Community
Morals and ETHICS IN THE WORKPLACE –

Values
• Workplace ethics – often called business ethics – are the set of moral principles, values, and
standards that both employees and employers follow in the workplace.
Ethics
• At its core, ethics in the workplace is the moral code that guides employees concerning what
is wrong and right conduct.
Trust and
• Companies should publish in-house codes of ethics to be strictly followed by all their
Integrity associates and employ people with a reputation for high standards of ethical behaviour at the
top levels.
Justice and
• Incorporate consideration of ethics into performance reviews. Reward ethical behaviour.
Fairness • SEBI, CII and such other organizations representing corporations issue codes of best
practices and enjoin their members to observe them.
Character
• Ethics-based curriculum.
• Conduct an ethics audit.
Civility and
Community
Morals and Integrity means doing the right thing in the right way; it means adhering to values strongly
Values held. Trust is a belief that someone is honest and credible; trust is earned by being honest,
having a positive intent, having strong competencies, and a track record of results.
Ethics
Integrity in leadership is often equated with courage- courage to speak up when your point of
Trust and view is at odds with a manager’s perspective or with a commonly held belief about how things
should be done. Integrity may also be interpreted as work ethic- in early, staying late to get the
Integrity
right things done for the company.

Justice and
Trust may be based on a feeling that you have the other person’s back when he or she is not in
Fairness
the room. It may be the confidence you will advocate the other person’s point of view with

Character clarity and understanding. Or, trust may be gained as you’re seen to act in the best interest of
the team or organization rather than acting primarily to advance your personal agenda.
Civility and
Community The combination of the two creates character, both good and bad.

We judge ourselves by our intentions, while people judge us by our actions.

Morals and
Values Leaders skilled in Integrity & Trust -

• Keep their promises

Ethics
• Have a reputation for being honest and forthright
• Do not present opinions as facts
Trust and
• Are consistent in words and actions
Integrity
• Trust and respect others
• Do respond to pressure to act in conflict with their ethics
Justice and
• Understand that trust must be earned
Fairness
• Keep information shared in confidence private
• Accept responsibility for their mistakes
Character
• Lead by example, not by dictates alone
Civility and • Maintain transparency
• Deliver amount and quality promised, or over deliver
Community
• Always try to do the right thing
Morals and What prevents Integrity & Trust?
Values
• Lack of actual commitment to keep promises

Ethics • Making excuses or blame others for their mistakes

• Inconsistency in following through
• Dishonesty, especially for gain
Trust and
• Blunt, compassionless frankness
Integrity
• Takes responsibility for mistakes
• Lack of transparency
Justice and
• Under-delivering on quantity or quality
Fairness
• Inconsistency between words and actions
• Gossiping and divulging information shared in confidence
Character
• Making unrealistic promises
Civility and • Demonstrated lack of faithfulness to stated values
• Selfishness
Community
• Inclination to judge others negatively
Morals and Justice means giving each person what he or she deserves or, in more traditional terms, giving

Values each person his or her due.

Justice and fairness are closely related terms that are often today used interchangeably. There
Ethics
have, however, also been more distinct understandings of the two terms. While justice usually
has been used with reference to a standard of rightness, fairness often has been used with
Trust and
regard to an ability to judge without reference to one's feelings or interests; fairness has also
Integrity
been used to refer to the ability to make judgments that are not overly general but that are
concrete and specific to a particular case. In any case, a notion of being treated as one deserves
Justice and
is crucial to both justice and fairness.
Fairness
The most fundamental principle of justice, as defined by Aristotle, is the principle that "equals
Character
should be treated equally and unequals unequally." In its contemporary form, this principle is
Civility and sometimes expressed as follows: "Individuals should be treated the same, unless they differ in
ways that are relevant to the situation in which they are involved."
Community
Morals and Character applies to the aggregate of moral qualities by which a person is judged apart from
Values intelligence, competence, or special talents.

Ethics The word comes from the Greek word kharakter for “engraved mark,” “symbol or imprint
on the soul,” and “instrument for marking,” and can be traced further back to the words for
“to engrave,” “pointed stake,” and “to scrape and scratch.”
Trust and
Integrity
Character is nature and nurture. It is nature cultured and disciplined, so that natural
tendencies are brought under the sway of the moral motive.
Justice and
Fairness
There are 3 qualities of true character –
1. Moral discipline
Character
2. Moral attachment
Civility and 3. Moral autonomy

Community
Character gains through its expression, and loses through its repression.
Morals and Civility represents the quality of our behavior with others in our communities. This is
Values important for business because how we treat others signals who we are and what we value.
Moreover, since the essence of ethics lies in how we are with others, civility and ethics are

Ethics intricately linked.

Civility is not peripheral to ethics, and essential to defining the culture and establishing a
Trust and
foundation of proper business behavior. It is an underlying value that successful
Integrity
organizations strive to achieve.

Justice and
There are 3 basic principles to create a civil workplace –
Fairness
1. Respect: Inherent in the belief that although another person’s beliefs may be different
than yours, you should still honor their viewpoint and accord the other person due
Character
consideration.
Civility and 2. Restraint: Exercising personal self-control at all times.
3. Refinement: For continual cultivation and improvement of relationships in the
Community
workplace.
 CONFLICT

Conflict is defined as a clash between individuals arising out of a difference in thought process, attitudes, understanding,
interests, requirements and even sometimes perceptions.

A conflict not only can arise between individuals but also among countries, political parties and states as well. Types of
conflict – task, relationship and process.

Prelude to conflict - It
involves all the factors Initiation Phase - Initiation
which possibly arise a phase is actually the phase Differentiation Phase - It is
Resolution Phase - A
conflict among individuals. when the conflict has the phase when the
Triggering Event - No Conflict leads to nowhere.
Lack of coordination, already begun. Heated individuals voice out their
conflict can arise on its own. Individuals must try to
differences in interests, arguments, abuses, verbal differences against each
There has to be an event compromise to some extent
dissimilarity in cultural, disagreements are all other. The reasons for the
which triggers the conflict. and resolve the conflict
religion, educational warning alarms which conflict are raised in the
soon.
background all are indicate that the fight is differentiation phase.
instrumental in arising a already on.
conflict.
TYPES OF CONFLICT

• Conflict experienced by a single individual, when his or her own

Intrapersonal conflict
goals, values or roles diverge

• Conflict due to differences in goals, value, and styles between two

Interpersonal conflict
or more people who are required to interact.

• Conflict within a group or team, where members conflict over goals

Intragroup conflict
or procedures.

• Conflict between groups inside and outside an organization

disagree on various issues. Conflict can also arise between two
groups within the same organization, and that also would be
considered intergroup conflict.
Intergroup conflict
• Within those types of conflict, one can experience horizontal
conflict, which is conflict with others that are at the same peer level
as you, or vertical conflict, which is conflict with a manager or a
subordinate.
CAUSES OF CONFLICT OUTCOMES OF CONFLICT
Organizational Structure Positive Consideration of a broader range of ideas,
outcomes resulting in a better, stronger idea

Limited Resources Surfacing of assumptions that may be

inaccurate

Task Interdependence Increased participation and creativity

Incompatible Goals Clarification of individual views that build

learning

Personality Differences Negative Increased stress and anxiety among individuals,

outcomes which decreases productivity and satisfaction

Communication Problems
Feelings of being defeated and demeaned,
which lowers individuals’ morale and may
Contrasting Styles increase turnover

A climate of mistrust, which hinders the

Cultural and Gender Differences teamwork and cooperation necessary to get
work done
CONFLICT MANAGEMENT - Thomas-Kilmann Conflict Mode Instrument
ACCOMMODATING Forsake own needs or desires in exchange for those of others.

Put concerns of others before your own. This style usually takes place when you simply give in or are persuaded to give in.

Appropriate when others care more about the issue than you do, want to keep the peace, feel you are in the wrong, or have no choice
but to agree with the other person’s point-of-view.

AVOIDING To completely evade the conflict. You would neither pursue your beliefs nor those of the other people involved. Simply, you would
continuously postpone or completely dodge the conflict whenever it comes up.

Appropriate to use when the conflict seems trivial, you don't have the time, you need more time to think, you feel as though you have
no chance of winning, or you're afraid of being met with resentment.

COMPROMISING Attempts to find a solution that will at least partially please all parties. You work to find a middle ground between all the needs, which
would typically leave people unsatisfied or only satisfied to a certain extent.

Appropriate when it's more important to reach a solution than for the solution to be great, a deadline is rapidly approaching, you're at
an impasse, or you need a temporary solution for the moment.

COLLABORATING Attempts to find a solution that will meet the needs of all parties. Rather than trying to find a middle ground solution, you would aim
for a solution that satisfies everyone and ends up being a win-win situation.

Appropriate when multiple perspectives need to be addressed, there is an important relationship between the parties, the final
solution is too important for anyone to be displeased, or the beliefs of multiple stakeholders must be represented.

COMPETING Takes a firm stance and refuses to see the perspectives of the other parties. You would keep pushing your viewpoint or rejecting other
people’s ideas until you get your way.

Appropriate when you have to stand up for your rights or morals, need to make a quick decision and force others to get on board, need
to end a long-term conflict, or have to prevent a terrible, opposing decision from being made.
THANK
YOU