Introduction
Enterprising is a venture that involves resilience and determination. It is an endeavor that requires strategy and firm judgments that have to be supported by logic and finances (J. Gregory Dees, 2002, p. 32). In the corporate world of the United States, it has always been a challenge for companies to stay untarnished in the highly competitive battle for superiority. Large businesses these days try their best to stay afloat despite the threatening resurfacing of the recession which can happen at any given time (Frank Smets, 2007, p. 69). However difficult it may be to stay afloat in the corporate world, many still manage to remember their responsibilities to the public whom they serve. This just proves the fact that corporations are leaders and that they should be the one to spearhead any mode of improvement, even if it means targeting its own system. There is nothing more humbling than to look at one’s own actions, aiming to improve them, knowing that doing so will yield to a better future.
There are many companies in the US performing well in their industry as they contribute to the betterment of society. Their leaders make sure that they give back to their consumers through better products and services. They also see to it that they become models of what their companies truly represent. However, there have been times when several corporation leaders lose track of their ethical boundaries and responsibilities and perform tasks that are beyond their authority. This yields to trouble for them and for their company. Business leaders who overstep their limitations bring down the ethical standards of all corporations in general. That is why consumers have to keep an eye on how they use and misuse their powers. The overall image of a company heavily relies on the actions of the leaders that put it in motion. Consumers have always been attracted to brands that have upstanding reputations, which is why corporate leaders have to be conscious about their decisions as well.
This paper aims to look at the ethical aspect of powerful corporations in the United States. It aims to gauge the performance of companies with ethical and unethical leaders, analyze the consequences of engaging in unethical business practices, evaluate the impact of social responsibility programs on the performance of the organization involved, and assesses the qualities of an ethical business leader and how they impact on organizational performance as well.
Ethical and Unethical Corporate Leaders
Leading ethically means that the leader respects the dignity and the rights of others. This includes the subordinates in the company. They are considered to be in a position of a person or group of persons with a high degree of social power. Ethical leaders utilize their power in making decisions, performing tasks, and influencing others. These leaders demonstrate a level and type of integrity vital in stimulating trustworthiness, which is important for their followers. The integrity and the character of a leader have always provided the foundations for the traits that perfectly describe a leader’s ethical decisions, values, and beliefs. Ethical leaders are very people-oriented. They also have a high degree of awareness of how their decisions affect others. The greater good comes first to them instead of their own interests. They also give importance to motivating and inspiring other people, which are valuable factors in transformational leadership. Here, they actually help their followers gain personal competence resulting to a higher level of empowerment and self-sufficiency (Shelby D. Hunt, 1989, p. 82).
Unethical leadership is a collection of decisions and behaviors made and conducted by company leaders, which are classified as violations of moral and legal standards. It is also made of structures and processes that encourage unethical subordinate conduct. Unethical leadership can happen because of greed. It may even inspire harming others in achieving financial gain. This kind of unethical leadership has always been known as tyrannical leadership or toxic leadership, in which the leader undermines, manipulates, oppresses, and abuses people. This type of leadership results to intentional harm and inevitable legal actions by subordinates against their employers. Unethical leadership can also inspire illegal or corrupt acts within the company itself. The choices that the leaders make influence the outcome of the entire company’s efforts.
Unbelievably, getting to know unethical companies has been the best way to come up with better followers, leaders, and institutions. Ethical leaders have grown to be more sensitive to others’ needs and prioritize the greater good than unethical leaders. However, thanks to the unethical ones, the good leaders have been obtaining more ideas on how to improve their service to their people.
Companies with ethical leaders perform well in their fields. This has been a proven fact. They also garner many patrons and followers, allowing them to improve their products and services more so that their influence and overall message can reach more people. On the other hand, companies with unethical leaders rise to success at the expense of other people. They use other people to gain financial security and in the long run this would not go well for the company’s image, clients, and employees.
Analysis of the Consequences of Unethical Leadership
Corporations cannot run without knowledgeable and dependable leaders. However, there have been times when the appointed leaders of such powerful and influential companies have overstepped their boundaries and did whatever was necessary to achieve their goals, even if it meant going against the boundaries of ethics and morality. According to the references studied, many unethical corporate leaders use their positions and influences to perform illegal actions. The power that went with their titles enabled them to embezzle money, give away money, participate in conspiracies, or leak out information without any second thought.
The powers and influence given to these unethical leaders have been abused to a point where their reputations and the reputations of their offices consequently eroded. This destruction has definitely affected their client pools and overall integrity. Any company of any size does not have to get involved in bad publicity. Try as they might to cover up the bad, it always comes out to declare its presence (Michael E. Brown, 2010, p. 596).
Impact of Social Responsibility Programs
Even if a company or a corporation is a private one, it has a responsibility to the members of society, specifically, their respective consumers. The main reason for this is that the members of society are the ones that patronize their products and services. It is only appropriate for a lucrative business in any given field to give back to the people through social responsibility programs what they deserve. One good example of an ideal company that embodies true social responsibility is Whole Foods.
Whole Foods was co-founded by John Mackey, who also happens to be the company’s co-CEO. It is a company that turned a single organic and natural grocery store into a Fortune 300 company worth 11 B USD. Now, Whole Foods has 70,000 team members and 340 stores worldwide. As part of its social responsibility program, Whole Foods established the Whole Planet Foundation that has been helping in trying to put a stop to poverty in developing countries. Mackey also came up with the Local Producer Loan Program to aid food producers and local farmers in expanding their small businesses. He also founded the Global Animal Partnership program so that standards can be set for the humane treatment of farm animals. Mackey also established the initiative called Health Starts Here to encourage wellness and health among the company’s team members and loyal customers.
With all these programs on social responsibility, John Mackey and Whole Foods have been able to instill the company’s message on a global scale. They have also earned him and the company much recognition that embodies hard work mixed with unselfish values.
These social responsibility programs definitely leave a great positive impact to clients and to employees as well. The programs make them see that there are a lot of ways how corporate power can have the ability to elicit positive change. It would truly be an honor and a privilege for anyone to work for companies such as Whole Foods because of the reputation that they earn and the image they project as they work for the company.
Ethical Leadership and its Impact on Organizational Performance
Ethical leadership stands by the virtue of greater good. It does not allow selfish intentions cloud any corporate decisions because doing so will just result to the company’s demise. As long as a company’s management does not derail into unethical corporate practices, the performance of the entire company will almost always move to a higher degree. The main reason for this is the people who witness and experience the good intentions of the leaders. People who see that their rights are recognized and uplifted will be prompted to patronize and believe in the company and what it has to offer even more. Even if prices go higher, clients will still opt to purchase from companies with ethical leaders, knowing that they will be taken into consideration when it comes to the improvement of goods and services. They also know that there will always be helpful programs for them to look forward to.
Conclusion
References
Frank Smets, R. W. (2007). Shocks and Frictions in U.S. Business Cycles: A Bayesian DSGE
Approach. CEPR , 69.
J. Gregory Dees, J. E. (2002). Strategic Tools for Social Entrepreneurs: Enhancing the
Performance of Your Enterprising Non-Profit. New York: John Wiley & Sons, Inc.
Michael E. Brown, M. S. (2010). Ethical and Unethical Leadership. Business Ethics Quarterly ,
583-616.
Shelby D. Hunt, V. R. (1989). Corporate Ethical Values and Organizational Commitment in
Marketing. Journal of Marketing , 79-90.
