VAC 25

Value-driven leadership
 Table of contents

01 Morals and Values 05 Character

Civility and

02 Ethics 06 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
Values Ethics describes what ought to be”.

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

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

Civility
Character Values, on the other hand, provide direction in the determination of right
and versus wrong or good versus bad. Values are personal beliefs that worth and
Communit importance to an individual. These are emotionally related for deciding right
y or wrong.

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.
 Morals While morals are generally the same for a culture, values, due to their
and individuality, tend to be highly subjective. Morals are often driven by values but
Values governed by the rules of a particular culture.

Ethics

Trust and
Integrity
Justice
and
Fairness
Civility
Character
and
Communit
y
 Morals
and Ethics are a set of beliefs or understanding of a morally right philosophy
Values dictating behaviors that are encouraged or discouraged. These work as
practical motivators for people to take up what is commonly believed to be
Ethics the right or ideal path. The concept of ethics reflects the evolution of morals
into a socially and professionally accepted category.
Trust and
The etymology of the word can be traced to the Greek word ethos, which
Integrity
Justice translates into 'custom', thus conveying the social value attached to it ever
and since. The academic study of ethics has a historic study, ranging from
mythology to the serious accounts of Aristotle, scholars have critically
Fairness
differentiated right from wrong in this domain.
Civility
Character
and Ethics is a moral and normative science. It covers the following
Communit dilemmas:
y • How to live a good life
• Our rights and responsibilities
• The language of right and wrong
• Moral decisions - what is good and bad?
 Morals
Ethics have evolved into
and
concepts beyond their
Values academic or philosophical
study.
Ethics
They are now looked at as
Trust and pragmatic and morally
Integrity defined
Justice expected/unexpected
and behaviors of people in
Fairness various professions and
walks of life.
Civility
Character
and
As such, there are various
Communit types of ethical codes –
y
 Morals
and MAJOR PRINCIPLES OF ETHICS –
Values
1. Beneficience – Decision makers should prioritize doing what is right and
Ethics what is good. Ethical theories should strive to achieve the greatest
amount of good (over evil).
Trust and 2. Non-maleficence or Least Harm – In situations where there is no clear
Integrity ethical solution, decision makers should seek to choose to do the least
Justice harm possible.
and 3. Respect for Autonomy – Decision making should focus on allowing
Fairness people to be able to make decisions that apply to their lives. People
should have control over their lives as much as possible. Other principles
Civility
Character that spring from autonomy include – informed consent, honesty, and
and confidentiality.
Communit 4. Justice – Decision makers should focus on actions that are fair to those
y involved and be consistent with the ethical theory unless extenuating
circumstances can be justified.
5. Accountability – Decision makers should accept responsibility and
consequences for their own actions.
6. Fidelity – Decision makers should abide by their promises and be
faithful.
 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
Trust and flaw in this theory is that there is no rationale or logical basis for deciding
Integrity ones individual duties. Further, duties might bring conflict, especially when
Justice professional and personal lives clash.
and
Fairness Rights Theory – Aristotle, Confucius
In ethical theories based on rights, the rights established by a society are
Civility
Character protected and given the highest priority. Rights are considered ethically
and correct and valid since they are endorsed by a large population. Individuals
Communit may also bestow rights upon others if they have the ability and resources to
y do so. A major complication of this theory on a larger scale is that we must
decipher the characteristics of a society’s rights. The society has to
determine what rights it 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
 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
Ethics benefit to the most people is considered ethically correct. There are 2 types
of utilitarianism – ACT and RULE. Act Utilitarianism conforms to the idea that
Trust and one should perform an act that benefits most people, regardless of personal
Integrity feelings or societal constraints such as laws. Rule Utilitarianism seeks to
Justice benefit most people through the fairest and most just means available. A
and disadvantage of utilitarianism is that although people can use their life
Fairness experiences to predict outcomes, no one can ascertain the accuracy.
Uncertainty tends to lead to unexpected results, making the decision maker
Civility
Character appear unethical.
and
Communit Virtue
y The virtue ethical theory judges a person by his/her character rather than by
an action that may deviate from his/her normal behavior. It takes the
person’s morals, reputation, and 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
Ethics people. Care Ethics functions on the basic principle of caring towards those
who are vulnerable or need support. One should chose the action which
Trust and supports or nurtures other people, particularly those who are most
Integrity vulnerable (e.g. children, economically unstable households etc.). However,
Justice this theory is often viewed as supplement to other ethical theories, rather
and than as comprehensive theory in its own right.
Fairness
Egoism Theory – Ayn Rand, Adam Smith
Civility
Character According to this theory, what makes something good or bad, right or wrong,
and is that it satisfies one’s desires, or meets one’s needs. The theory
Communit propagates the principle of Self-interest of the decision maker. doing,
y considering, or affected by the action. One should chose the action which
most realizes or conduces to one’s own self-interest. A variation to this
theory asks if 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

Ethics Evidence of the modern administrative character of the Arthashastra comes

most through Kautilyas’ expressions of efficiency, described in a unique
Trust and imagery of corrupt officials improperly eating the wealth of the state.

Integrity
Justice Kautilyas’ concept of efficiency depends on an extensive elaboration of
and efficiency-guaranteeing techniques. He creates makes a clear link between
civil service malfeasance and the reduction in wealth. Contravening the
Fairness
standards of efficiency was among the highest ills that a civil servant could
Civility
Character commit in his state. Kautilya believed that “men are naturally fickle minded”
and and are comparable to “horses at work who exhibit constant change in their
Communit temper”. This means that honesty is not a virtue that would remain
y consistent life long and the 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
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
Values the superintendents of government departments in relation to the modus
operandi of work. He reflected serious concerns about opacity in the
Ethics 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

Trust and virtual 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
Integrity
Justice in the sky, it is difficult to gauge the corrupt activities of government officials.

and
40 kinds of embezzlement – In all these cases, the concerned
Fairness
functionaries such as the treasurer, the receiver, the payer, the person who
Civility
Character caused the payment and the ministerial servants were to be separately
and interrogated. In case any of these officials were to lie, their punishment was
Communit to be enhanced to the level meted out to the chief officer mainly responsible

y for the crime. After the enquiry, a public proclamation was to be made asking
the common people to claim compensation in case they were aggrieved and
suffered from the embezzlement.
 Morals
and
Values

Ethics

Trust and
Integrity
Justice
and
Fairness
Civility
Character
and
Communit
y
 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
Ethics
follow in the workplace.
• At its core, ethics in the workplace is the moral code that guides employees
Trust and
concerning what is wrong and right conduct.
Integrity
Justice • Companies should publish in-house codes of ethics to be strictly followed
by all their associates and employ people with a reputation for high
and
standards of ethical behaviour at the top levels.
Fairness
• Incorporate consideration of ethics into performance reviews. Reward
Civility
Character ethical behaviour.
and • SEBI, CII and such other organizations representing corporations issue

Communit codes of best practices and enjoin their members to observe them.
• Ethics-based curriculum.
y
• Conduct an ethics audit.
 Morals
and Integrity means doing the right thing in the right way; it means adhering to
Values values strongly held. Trust is a belief that someone is honest and credible;
trust is earned by being honest, having a positive intent, having strong
Ethics competencies, and a track record of results.

Trust and Integrity in leadership is often equated with courage- courage to speak up
Integrity when your point of view is at odds with a manager’s perspective or with a
Justice commonly held belief about how things should be done. Integrity may also
and be interpreted as work ethic- in early, staying late to get the right things
Fairness done for the company.

Civility
Character Trust may be based on a feeling that you have the other person’s back
and when he or she is not in the room. It may be the confidence you will
Communit advocate the other person’s point of view with clarity and understanding. Or,
y 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.

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
Justice
• Do respond to pressure to act in conflict with their ethics
and
• Understand that trust must be earned
Fairness • Keep information shared in confidence private
Civility
Character • Accept responsibility for their mistakes
and • Lead by example, not by dictates alone
• Maintain transparency
Communit
• Deliver amount and quality promised, or over deliver
y
• Always try to do the right thing
 Morals
and What prevents Integrity & Trust?
Values
• Lack of actual commitment to keep promises
• Making excuses or blame others for their mistakes
Ethics
• Inconsistency in following through
• Dishonesty, especially for gain
Trust and
• Blunt, compassionless frankness
Integrity
Justice • Takes responsibility for mistakes
• Lack of transparency
and
• Under-delivering on quantity or quality
Fairness
• Inconsistency between words and actions
Civility
Character • Gossiping and divulging information shared in confidence
and • Making unrealistic promises

Communit • Demonstrated lack of faithfulness to stated values

• Selfishness
y
• Inclination to judge others negatively
 Morals
and Justice means giving each person what he or she deserves or, in more
Values traditional terms, giving each person his or her due.

Ethics Justice and fairness are closely related terms that are often today used
interchangeably. There have, however, also been more distinct
Trust and understandings of the two terms. While justice usually has been used with
reference to a standard of rightness, fairness often has been used with
Integrity
Justice regard to an ability to judge without reference to one's feelings or interests;
and fairness has also 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
Fairness
any case, a notion of being treated as one deserves is crucial to both justice
Civility
Character and fairness.
and
Communit The most fundamental principle of justice, as defined by Aristotle, is the
y principle that "equals should be treated equally and unequals
unequally." In its contemporary form, this principle is 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."
 Morals
and Character applies to the aggregate of moral qualities by which a person is
Values judged apart from 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

Trust and traced further back to the words for “to engrave,” “pointed stake,” and “to
scrape and scratch.”
Integrity
Justice
and Character is nature and nurture. It is nature cultured and disciplined, so that
natural tendencies are brought under the sway of the moral motive.
Fairness
Civility
Character There are 3 qualities of true character –
and 1. Moral discipline
Communit 2. Moral attachment

y 3. Moral autonomy

Character gains through its expression, and loses through its repression.
 Morals
and Civility represents the quality of our behavior with others in our
Values communities. This is 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 intricately linked.
Ethics
Civility is not peripheral to ethics, and essential to defining the culture and
Trust and
establishing a foundation of proper business behavior. It is an underlying
Integrity
Justice value that successful organizations strive to achieve.

and
There are 3 basic principles to create a civil workplace –
Fairness
1. Respect: Inherent in the belief that although another person’s beliefs
Civility
Character may be different than yours, you should still honor their viewpoint and
and accord the other person due consideration.
Communit 2. Restraint: Exercising personal self-control at all times.
3. Refinement: For continual cultivation and improvement of relationships
y
in the 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. Triggering Event - No when the conflict has the phase when the
Conflict leads to nowhere.
Lack of coordination, conflict can arise on its already begun. Heated individuals voice out their
Individuals must try to
differences in interests, own. There has to be an arguments, abuses, verbal differences against each
compromise to some extent
dissimilarity in cultural, event which triggers the disagreements are all other. The reasons for the
and resolve the conflict
religion, educational conflict. 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

Intrapersonal •Conflict experienced by a single individual, when his or

conflict her own goals, values or roles diverge

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

Interpersonal
between two or more people who are required to
conflict
interact.

Intragroup •Conflict within a group or team, where members conflict

conflict over goals 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 intergroup conflict.
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
outcom ideas, resulting in a better, stronger
es 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 Negativ Increased stress and anxiety among

e individuals, which decreases
outcom productivity and satisfaction
Communication Problems es
Feelings of being defeated and
demeaned, which lowers individuals’
Contrasting Styles morale and may 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