Summary
Contents
Subject index
“A brilliant and comprehensive introduction to the most seminal component of leadership: wisdom. The diversity of the readings and wisdom of the authors make this a most original and valuable addition to the management canon.”—Warren Bennis, Distinguished Professor of Management, University of Southern California and author of On Becoming a Leader“This wonderful compilation proves that management is as much art as science, and that deep thinking can inform and inspire practice to be more humane, ethical, and, yes, wise.”—Rosabeth Moss Kanter, Harvard Business School Professor and best-selling author of Confidence: How Winning Streaks and Losing Streaks Begin and End“If you'll forgive a pun, this is a wise book about organizational and managerial wisdom. It shows what's possible when some of our best thinkers turn their collective attention to such timely subjects as EQ, negotiation, global politics, and individual and organizational ethics.”—Steve Kerr, Chief Learning Officer, Goldman Sachs, and Past President of the Academy of Management“One of the ‘most promising’ forthcoming management books.”—EUROPEAN ACADEMY OF MANAGEMENTOrganizes wisdom around the five primary philosophical branches—logic, ethics, aesthetics, epistemology, and metaphysicsApplies wisdom in organizations and management through international examples that synthesize a set of practical principles for academics and practicing managersOffers an outstanding collection of world-renowned scholars who give profound insights regarding wisdom
Organizational Ethics—Acting Wisely While Facing Ethical Dilemmas in Leadership
Organizational Ethics—Acting Wisely While Facing Ethical Dilemmas in Leadership
You have supervised the building of a water treatment plant in a South American country, the plant is ready, 300 people will be directly and indirectly employed as a consequence of the opening of the plant, and the only thing holding it up is the final approval of the secretary of utilities. Although all permits have been filed and all audits have been completed, he has yet to sign the official papers permitting the opening of the plant. It becomes clear that what really stands in the way of opening the plant is the appropriate payoff to the secretary of utilities. Although the laws of the land prohibit bribes, it does seem to be common practice in this country.
Although wisdom seems like a wonderful quality to have, its application J. is rarely straightforward given the complexities of most leadership decisions. In this chapter, we explore the challenges of applying wisdom and offer practical advice about acting wisely in the face of ethical dilemmas such as those mentioned in the opening vignette. Although leadership researchers exhort leaders to act wisely and ethically (e.g., Gardner, 1990; Rost, 1991; Turner, Barling, Epitropaki, Butcher, & Milner, 2002) and even see acting with moral purpose as an essential component of transformational leadership (e.g., Burns, 1978; Shamir, House, & Arthur, 1993), leaders in organizations face dilemmas where wise and morally correct solutions do not readily present themselves. This is especially true under the social entity model of the organization—where multiple stakeholders are considered—but is also true under today's shareholder model.
In this chapter, we explore how existing frameworks of wisdom can provide assistance to “ordinary” leaders in solving the real-life ethical dilemmas they face. Take the case of the leader in the opening vignette. What is the wise course of action for him? Should he just say no to providing bribes? Although this is a principled statement, it also means that many people will not get paid and many others will not get water. On the other hand, if he does provide a bribe, he could get himself and his company in trouble for violating the laws of his home country. Which of these two possible solutions has a higher ethical value? Although this case may seem extreme to some, it seems familiar to many others. It certainly seems familiar to readers in the sense that every year leaders face ethical dilemmas to which there are no easy answers and no obvious wise decisions.
In this chapter, we offer a definition of wisdom along with practical guidelines for acting wisely in the face of ethical dilemmas. We begin by adapting Sternberg's definition of wisdom to leadership contexts by focusing on its enhancement of an organization's viability over time. We then apply our adapted definition to two case studies. These cases illustrate the complexity of ethical dilemmas and the role of wisdom in making the “right” decision. Throughout the chapter, we draw attention to the fact that individual leaders will find it difficult to find wise solutions for many of the ethical dilemmas they face. Although we do not have easy recipes to assist individual leaders in finding wise solutions, we do provide individual and organizational guidelines that can enhance the percentage of wise decisions leaders make in the face of ethical dilemmas.
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