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Chapter 11. Ethical Crisis Leadership
Crisis: An Overview
A crisis is any major unanticipated event that poses a significant threat.
Such events are rare (making them difficult to prepare for), they generate a good deal of uncertainty (their causes and effects are unclear), and they are hard to resolve (there is no set formula for determining how to act).
Decisions about how to deal with the crisis need to be handled quickly.
The second stage commences with a “trigger event.” It ends when the crisis is resolved. Ethical leaders play a critical role during this stage. Leaders are also responsible for speaking on behalf of the
organization. Those directly impacted by the crisis have particularly
important information needs and should take top priority.
Responsibility is the foundation of ethical crisis leadership. Preventing, managing, and recovering from crises all
depend on the willingness of leaders and followers to accept their moral responsibilities.
In addition to engaging in, and fostering, ethical behavior, the responsible crisis leader fights against complacency, human biases, institutional weaknesses, special-interest groups, and other obstacles to crisis prevention.
Like responsibility, transparency is another requirement placed on groups and organizations operating freely in society.
Failure to disclose information spawns abuses of power and privilege and makes it impossible for individuals to act as informed members of the community.
Transparency begins with openness. Transparency also involves symmetry.
Maintaining transparency is particularly difficult when a crisis is triggered. First, there are privacy concerns. Second, admitting fault can put the organization at a disadvantage
in case of a lawsuit. Third, there may be proprietary information about, say,
manufacturing processes and recipes, which should not be released to competitors.
Fourth, uncertainty makes it difficult for an organization to determine what its course of action should be, and, as a result, to communicate concrete details to the public.
Fifth, being specific may offend some stakeholders who feel that they have been treated unfairly.
Sixth, making a commitment to a single course of action too soon may limit the group’s ability to deal with the crisis.
Some observers suggest that leaders in a crisis situation use strategic ambiguity as an alternative to transparency. In strategic ambiguity, communicators are deliberately vague, which allows them to appeal to multiple audiences.
More often than not, however, strategic ambiguity is unethical, used to shift the blame and to confuse stakeholders while providing them with biased and/ or incomplete information.
While the amount and type of information to be shared will vary with each crisis, the goal should always be to be as open as possible.
In order to be ethical, the group’s explanation of events and response to public criticism must have the right manner and content.
Manner refers to the form of the communication, which needs to: (1) be truthful (2) be sincere (3) be timely (4) be voluntary (5) address all stakeholders (6) be in the proper context
The content of the message is just as important as the form it takes. The ethical story of events: clearly acknowledges wrongdoing; accepts full responsibility for what happened; expresses regret for the offense, the harm done, and failure
to carry out responsibilities; identifies with the injured asks for forgiveness; seeks reconciliation with injured parties; fully discloses information related to the offense; offers to carry out appropriate corrective action; and offers appropriate compensation.
Demonstrating concern has practical as well as ethical benefits.
While it is in the interest of leaders and organizations to act in a compassionate manner for image and financial reasons, it is even more important to do so for ethical reasons. i.e. Altruism
Showing concern during a crisis goes well beyond addressing the physical and financial needs of victims. Emotional and spiritual needs as well
Rational thought, problem solving, and other cognitive skills and strategies are important complements to care and compassion in ethical crisis management.
Moral leaders respond with their heads as well as their hearts.
Ethical crisis leaders, in addition to paying heedful attention themselves create mindful cultures.
Aircraft carrier exampleNavy leaders encourage five mindful practices:
Carrier crews are preoccupied with failure. Those who work on carriers are reluctant to simplify. Third, carrier crews sustain continuous sensitivity to
operations. Fourth, people on carriers share a commitment to
resilience. Fifth, carrier personnel demonstrate deference to expertise.
Leaders responding to crises also need to employ ethical rationality.
Rationality is defined as “a firm’s ability to make decisions based on comprehensive information and analysis.”
Ethical rationality serves firms well in crisis management. Ethically rational companies (and nonprofits) are more likely to make sound moral choices during a crisis because leaders are in the practice of incorporating ethical principles into routine decision making.
The ability to ethically improvise is critical in a crisis because no amount of planning and practice can totally equip individuals for the specific challenges they will face during the crisis event.
Successful improvisation requires that employees be empowered to act on their own initiative.