Ethical Leadership in NGOs

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CCRDA-AMBO UNIVERSITY PARTNERSHIP

POSTGRADUATE DIPLOMA PROGRAM IN DEVELOPMENT MANAGEMENT

Student Name Fikre Fikadu Fufa

Student ID Number 0040/2015

Title of Course Development Ethics

Course Code

PGDM 642

Title of Assessment A term paper as part of requirement for the fulfillment

of the course Development Ethics

Type of Assessment Individual Assignment Report Group Assignment Report Case Analysis Article Review Essay Other (Please specify _______________________)

Tutor’s Name Mr. Worku Tuffa Birru

Submission to Mr. Chala Beyesa

[email protected]/

[email protected]

or 0913305897

Date Assessment Due Addis Ababa

May, 2015

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I. Table of Contents

No Title Pages

I Table of Contents

1

Introduction 2

1 Ethical Leadership in NGOs 2

1.1 A Definition of Ethics 2

1.2. Ethical Theories 3

1.3. Ethical Leadership: 4

1.4. Ethical Leadership Principles 6

1.5. Basic Concepts of Ethical Leadership in NGOs/CSOs 7

1.6.

Roles of Ethical Leadership in NGOs 8

1.7. Characteristics of Ethical Leadership 9

1.8. Importance of Ethical Leadership in NGOS 11

1.9. How Organizations Produce Ethical Leadership 14

1.10. Ethical Leadership In Relation To My Practical Experience 16

2. FOUNDATIONS AND PARADIGM SHIFTS OF DEVELOPMENT ETHICS 17

2.1. Theories of Development Ethics 17

2.2. The Development Ethics Paradigm Shifts 18

2.3. Contributions, Strengths & Limitations of Theories of Development Ethics & Its

Paradigm Shifts

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3 GLOBALIZATION AND DEVELOPMENT ETHICS 20

3.1. Impacts of Globalization 21

3.2. Economic Impacts of Globalization 22

3.3. Political Impacts of Globalization 23

3.4. Social Aspect of Globalization 24

3.5. Technological Impacts of Globalization 25

3.6. Comments on Globalization 26

4 ETHICAL DECISIONS MAKING IN MANAGEMENT OF NGOs 28

4.1. Basic Principles of Ethical Decisions Making 28

4.2. Ethical Theories as Criteria for Ethical Reasoning 28

4.3. Ethical Decisions Making inNGOS/CSOs 29

4.4. Challenges and Opportunities of Ethical Decisions Making in my Practical Work

Environment

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REFERENCES 31

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Introduction

Non-governmental or ‗third sector‘ organizations (NGOs) have grown rapidly in number, size and

influence in recent decades. The third sector is made up of ―not-for-profit organizations governed

by private law and with independent legal status, pursuing programs of general interest for the

improvement of society in the fields of social welfare and sustainability: community action,

education, healthcare, environmental protection, development cooperation and sustainable

development‖ (Aenor 2004: 1). NGOs have proven to be excellent instruments for promoting a

wide range of causes and contribute to the achievement of important objectives; they have shown

themselves to be disinterested and effective; and their organizational flexibility has enabled them to

address new tasks. As a result, they are generally held in high public esteem.

Despite the advancements in science and technology, humanity is facing serious challenges that

cannot be resolved without effective ethical systems. During centuries of human intellectual

activities, ethics and morality was a preferred area of debate for philosophers. Most of the

philosophic debate was normative in nature, which means it was tried to identify, what humans

should do, or in other words: what is right and what is wrong? What are the best rules to guide

ethical judgment? Organizations at present are facing various personal, interpersonal,

professional, and institutional and socio cultural challenges in their professional performance.

The lack of one correct approach in addressing different contextual issues may lead to ethical

dilemmas. Responding to this complex issues demand organizations to acquire comprehensive

ethical knowledge and skills in various decision making process.Promoting an ethical workplace

begins with an honest and assessing an organization‘s existing ethical culture. The aim of the term

paper is mainly to review different theories of development ethics and link them with practical work

environment.

The next section of this term paper explains ethical leadership in NGOs, foundations and paradigm

shifts of development ethics, globalization and development ethics and ethical decision making in

management of NGOs.

1. Ethical Leadership in NGOs

1.1. A Definition of Ethics

In the Western world, the definition of ethics dates back to Plato and Aristotle. Ethics comes from

ethos, a Greek word meaning character, conduct, and/or customs. It is about what morals and

values are found appropriate by members of society and individuals themselves. Ethics helps us

decide what is right and good or wrong and bad in any given situation. With respect to leadership,

ethics is about who leaders are—their character and what they do, their actions and behaviors.

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1.2. Ethical Theories

As suggested above, ethical theories fall into two broad categories: those theories related to

leaders‘ behavior and those related to leaders‘ character. For those theories related to conduct,

there are two types: those that relate to leaders‘ conduct and their consequences and those that

relate to the rules or duty that prescribe leaders‘ conduct.

Those theories related to consequences are called teleological theories (telos being a Greek word

for purposes or ends). These theories emphasize whether a leader‘s actions, behavior, and/or

conduct have positive outcomes. This means that the outcomes related to a person‘s behavior

establish whether the behavior was ethical or unethical.

Those theories related to duty or rules are called deontological theories (deos being a Greek word

for duty). These theories focus on the actions that lead to consequences and whether the actions

are good or bad. Those theories related to character are described as virtue-based approaches.

A. Teleological Approaches

There are three approaches to assessing outcomes and whether they are viewed as ethical. First,

ethical egoism describes the actions of leaders that are designed to obtain the greatest good for

the leader. Second, utilitarianism refers to the actions of leaders that are designed to obtain the

greatest good for the largest number of people. Third, altruism describes the actions of leaders that

are designed to demonstrate concern for others‘ interests, even if these interests are contrary to

the leader‘s self-interests.

B. Deontological Approach

This approach is derived from deos, a Greek word meaning duty. It argues that whether or not an

action is ethical depends not only on its outcome but also on whether the action, behavior, or

conduct is itself inherently good. Examples of actions and behaviors that are intrinsically good,

irrespective of the outcomes, are ―telling the truth, keeping promises, being fair, and respecting

others‖ (Northouse, 2013). This approach emphasizes the actions of leaders and their ethical

responsibility to do what is right.

C. Virtue-Based Approach

Virtue-based theories are related to leaders and who they are and are grounded in the leader‘s

character. In addition, these virtues can be learned and retained through experience and practice.

This learning occurs in an individual‘s family and the various communities with which an individual

interacts throughout his or her lifetime. This perspective can be traced back to Plato and Aristotle.

Aristotle believed that individuals could be helped to become more virtuous and that more attention

should be given to telling individuals what to be as opposed to telling them what to do (Velasquez,

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1992). Aristotle suggested the following virtues as exemplars of an ethical person: generosity,

courage, temperance, sociability, self-control, honesty, fairness, modesty, and justice (Velasquez,

1992). Velasquez argued that organizational managers should learn and retain virtues ―such as

perseverance, public-spiritedness, integrity, truthfulness, fidelity, benevolence, and humility‖

(Northouse, 2013).

D. The Centrality of Ethics to Leadership

Ethics is central to leadership because of the nature of the relationship between leaders and

followers. Leaders influence followers—this means they affect followers‘ lives either negatively or

positively (Yukl, 2012). The nature of the influence depends on the leaders‘ character and behavior

(particularly the nature and outcome of behaviors). Leaders have more power—interpersonal

and/or formal hierarchical power—and therefore have a greater responsibility with respect to their

impact on their followers. Leaders influence followers in the pursuit and achievement of common

goals. It is in these situations that leaders need to respect their followers and treat them with

dignity. In other words, leaders need to treat their followers as individuals with distinctive identities.

Finally, leaders are instrumental in developing and establishing organizational values. Their own

personal values determine what kind of ethical climate will develop in their organizations.

1.3. Ethical Leadership:

What Is Ethical Leadership?

Leaders spend most of their time learning how to do their work and helping other people learn how

to do theirs, yet in the end, it is the quality and character of the leader that determine the

performance and results.

—Frances Hesselbein1

We say these are the values of the organization, and we all live them. Then, no matter what the

situation, we never think, ―Well, I can be slightly unethical today, but tomorrow I‘ll be better.‖ It

doesn‘t work that way. No matter how difficult the circumstances become, we stand and we act on

principle.

—Frances Hesselbein2

One typical response to the ―ethics crisis‖ in business is a clarion call for more ―ethical leadership,‖

yet there are few explanations of what exactly is meant by the term. Many executives and business

thinkers believe that ethical leadership is simply a matter of leaders having good character. By

having ―the right values‖ or being a person of ―strong character,‖ the ethical leader can set the

example for others and withstand any temptations that may occur along the way. Without denying

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the importance of good character and the right values, the reality of ethical leadership is far more

complex and the stakes are much higher.

Over the past 25 years, in talking to executives in a number of industries about the problems of

how to lead in a world of great change—globalization, democratization, and incredible tech-

nological advances—we have identified a number of touchstones for the idea of ―ethical

leadership.‖ Our experience is often contrary to the picture of business executives one finds in

public discussion where they are often seen as greedy, competitive, and only concerned with

compensation. In fact most executives want to be effective in their jobs and to leave their

companies and the world a better place, creating value on both fronts for those whose lives they

affect.

Our view of ethical leadership takes into account not only the leader but also his constituents

(followers and key stakeholders), the context or situation that the leader and constituents face, the

leader‘s processes and skills, and the outcomes that result. Leaders are first and foremost

members of their own organizations and stakeholder groups. As such, their purpose, vision, and

values are for the benefit of the entire organization and its key stakeholders.

Leaders see their constituents as not just followers, but rather as stakeholders striving to achieve

that same common purpose, vision, and values. These follower and stakeholder constituents have

their own individuality and autonomy which must be respected to maintain a moral community.

Ethical leaders embody the purpose, vision, and values of the organization and of the constituents,

within an understanding of ethical ideals. They connect the goals of the organization with that of

the internal employees and external stakeholders.

Leaders work to create an open, two-way conversation, thereby maintaining a charitable

understanding of different views, values, and constituents‘ opinions. They are open to others‘

opinions and ideas because they know those ideas make the organization they are leading better.

The Perspectives of Several Leadership Scholars

In this section, we review the perspectives of two prominent leadership scholars as these

perspectives relate to leadership and ethics. We focus on Heifetz (1994) and Burns (1978).

Heifetz and Ethical Leadership

Heifetz (1994) emphasized conflict and the responsibility of leaders to assist followers in dealing

with conflict and effecting changes that come from conflict. He focused on the values of followers,

the values of the organizations in which they work, and the values of the communities in which they

live. For Heifetz, the paramount responsibility of leaders is to create a work atmosphere

characterized by empathy, trust, and nurturance and to help followers to change and grow when

faced with difficult situations (Northouse, 2013; Yukl, 2012).

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Burns and Ethical Leadership

Like Heifetz (1994), Burns (1978) argued that leadership (especially transformational leadership,

as described in Chapter 9) is about helping followers achieve higher ethical standards when

differing values conflict—especially when conflict is confronted during difficult situations. He argued

that the interaction of leaders and followers should raise the ethical behavior and character of both.

Leaders would do this by assisting followers to emphasize values such as equality, justice, and

liberty (Burns, 1978; Ciulla, 1998).

Both perspectives emphasize the relationship between leaders and followers and argue that this

relationship is at the heart of ethical leadership. The ideas presented by these scholars are similar

to and in agreement with Gilligan‘s (1982) ethic of caring. This has become a central principle in

ethical leadership research and is considered of paramount importance to organizations because it

is of critical importance in developing collaboration and trust among leaders and followers (Brady,

1999).

1.4. Ethical Leadership Principles

In this section, we present five principles that are believed to lead to the development of ethical

leadership. These are respect for others, service to others, justice for others, honesty toward

others, and building community with others (DuBrin, 2010; Northouse, 2013).

Respect for Others

Ethical leaders treat others with dignity and respect. This means that they treat people as ends in

themselves rather than as means to their own ends. This form of respect recognizes that followers

have goals and ambitions and confirms followers as human beings who have worth and value to

the organization. In addition, it leads to empathy, active listening, and tolerance for conflicting

viewpoints.

Service to Others

Ethical leaders serve others. They behave in an altruistic fashion as opposed to behaving in a way

that is based on ethical egoism. These leaders put followers first—their prime reason for being is to

support and nurture subordinates. Service to others is exemplified through behaviors such as

mentoring, building teams, and empowering (Kanungo & Mendonca, 1996).

Justice for Others

Ethical leaders ensure that justice and fairness are central parts of their decision making. This

means treating all subordinates in very similar ways, except when there is a very clear need for

differential treatment and there is transparency about why this need exists. In addition to being

transparent, the logic for differential treatment should be morally sound and reasonable.

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Honesty Toward Others

Ethical leadership requires honesty. Dishonesty destroys trust—a critical characteristic of any

leader–follower relationship. On the other hand, honesty increases trust and builds the leader–

follower relationship. Honesty means to be open with others by expressing our thinking and our

reality as fully as we can. This means balancing openness with disclosing only what is appropriate

in a given scenario. Dalla Costa (1998) says that honesty for leaders means the following:

Do not promise what you can‘t deliver, do not misrepresent, do not hide behind spin-doctored

evasions, do not suppress obligations, do not evade accountability, do not accept that the ―survival

of the fittest‖ pressures of business release any of us from the responsibility to respect another‘s

dignity and humanity. (p. 164)

We would argue that leaders need to ensure that what they believe, what they think, what they say,

and what they do are internally consistent. This internal consistency, along with openness, will

build trust among followers toward the leader.

Building Community With Others

Ethical leaders build community with others. This is crucial because leadership is about influencing

others to achieve a communal goal. This means that leaders develop organizational or team goals

that are appropriate for the leader and his or her followers. These goals need to excite as many

people as possible, and ethical leaders achieve this by taking into account the goals of everyone in

the team or organization.

1.5. Basic Concepts of Ethical Leadership in NGOs/CSOs

Particularly NGOs/CSOs view of ethical leadership should take into account not only the leader but

also their constituents (followers and key stakeholders), the context or situation that the leader and

constituents face, the leader‗s processes and skills, and the outcomes that result.Many executives

and development ethicist's thinkers believe that ethical leadership is simply a matter of leaders

having good character. By having the right values or being a person of strong character, the ethical

leader can set the example for others and withstand any temptations that may occur along the

way. Without denying the importance of good character and the right values, the reality of ethical

leadership is far more complex and the stakes are much higher.

Leadership plays an effective role in upbringing of any organization. A good or effective leader is

one that has leadership qualities and does good deeds and does not do any evil acts. A leader is

considered as effective, ethically sound based on his/her good deeds and qualities and traits.

Several researchers have seen leadership concept based on individual‘s personal traits, honesty,

moral acts, trust among colleagues and overall in the organizations, market repute and integrity.

Transformational leadership has been seen from its four components: idealized influence or

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charisma, inspirational motivation, individualized consideration and intellectual stimulation (Brandt,

R.B. 1979)

Each of these four components has its own characteristics. Charismatic leaders have traits and

qualities through which they inspire their peers and followers. In inspirational motivation, followers

get an opportunity to work on common goals. Intellectual stimulation component helps the

followers to ask further questions, collect information and on the basis of facts and information

identify solutions. Its individualized consideration treats every employee in the organization

individually based on his/her needs, and the support they need.

This is done through individual coaching, guidance, mentoring, and support and growth

opportunities. Transformational leaders are considered to be not only doing good deeds but also

demonstrate high ethical standards. Transformational leaders have their positive influence on

others, they act as inspirational source for their followers, and they look beyond their self-interest

and focus on group benefits.Not all leaders are ethical or unethical. It is the level of motivation that

makes a transformational leader ethical or unethical. They consider ethical values for themselves,

as well as for others.

Ethical leaders are honest and trustworthy in and outside the organizations. They follow social

norms, values and are fair in their dealing with their work and people. Their decisions are

professional and ethical.They have attributes of altruisms, trustworthiness and justice. Authentic,

transformational, and ethical leadership is at the heart of all organization. Indeed, leaders are often

the most important source of information that subordinates look to for guidance in their behaviors.

1.6. Roles of Ethical Leadership in NGOs

Leaders play an important role, ensuring a positive culture in organizations, which promotes ethical

values at all levels. Charismatic leaders in organizations as managers and mentors with high moral

values strongly contribute sustaining high performers. Leaders have to play their due role in

promoting ethical practices within organizations. This would contribute effectively by increasing

both organizational and employee performance. Leaders in organizations have to demonstrate and

enforce ethical leadership from top to bottom. Human resource policies including employee code of

conduct supports ethical values and behavior in organization. However, leaders have to send clear

and precise messages to employees on reward and punishment as associated with their moral and

non-moral behavior.

How Does Ethical Leadership Work?

We are hoping that this chapter will enable you to better understand yourself as you develop your

leadership skills, knowledge, and abilities. Use the thinking on ethical leadership in this chapter as

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a guide in making your decisions. Remember that the relationship between you and your followers

is at the heart of ethical leadership and requires that you show sensitivity to others‘ needs, treat

others in a just manner, and have a caring attitude toward others. Being an ethical leader will be

easier if you entrench the following questions into your thinking (Northouse, 2013):

Is this the right and fair thing to do?

Is this what a good person would do?

Am I respectful to others?

Do I treat others generously?

Am I honest toward others?

Am I serving the community?

Ethical leaders must be concerned with more than running their businesses. They must be con-

cerned with their employees, their customers, their suppliers, their communities, their

shareholders, and themselves. Leadership is influencing people to achieve communal goals;

ethical leadership is achieving those goals in a way that is fair and just to your employees, your

customers, your suppliers, your communities, your shareholders, and yourselves (Daft, 2011;

Phillips, 2006).

1.7. Characteristics of Ethical Leadership

In today‘s turbulent world, ethics and values are present at a number of levels for executives and

managers leaders who devote their time and energy to leading the process of value creation. This

broader concept of ethical leadershipempowers leaders to incorporate and be explicit about their

own values and ethics. The following list provides a framework for developing ethical leadership.

Articulate and embody the purpose and values of the organization.

It is important for leaders to tell a compelling and morally rich story, but ethical leaders must also

embody and live the story. This is a difficult task in today‘s business environment where everyone

lives in a fishbowl on public display. So many political leaders fail to embody the high-minded

stories they tell at election time, and more recently, business leaders have become the focus of

similar criticism through the revelations of numerous scandals and bad behaviors.

Focus on organizational success rather than on personal ego.

Ethical leaders understand their place within the larger network of constituents and stakeholders. It

is not about the leader as an individual, it is about something bigger—the goals and dreams of the

organization. Ethical leaders also recognize that value is in the success of people in the

organization.

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Create a living conversation about ethics, values and the creation of value for

stakeholders.

In organizations that have a live conversation about ethics and values, people hold each other

responsible and accountable about whether they are really living the values. And, they expect the

leaders of the organization to do the same. Bringing such a conversation to life means that people

must have knowledge of alternatives, must choose every day to stay with the organization and its

purpose because it is important and inspires them. Making a strong commitment to bringing this

conversation to life is essential to do if one is to lead ethically.

Take a charitable understanding of others’ values.

Ethical leaders can understand why different people make different choices, but still have a strong

grasp on what they would do and why.

Make tough calls while being imaginative.

Ethical leaders inevitably have to make a lot of difficult decisions, from reorienting the company‘s

strategy and basic value proposition to making individual personnel decisions such as working with

employees exiting the organization. Ethical leaders do not attempt to avoid difficult decisions by

using an excuse of ―I‘m doing this for the business.‖ The ethical leader consistently unites ―doing

the right thing‖ and ―doing the right thing for the business.‖

Know the limits of the values and ethical principles they live.

All values have limits, particular spheres in which they do not work as well as others. The limits for

certain values, for instance, may be related to the context or the audience in which they are being

used. Ethical leaders have an acute sense of the limits of the values they live and are prepared

with solid reasons to defend their chosen course of action

Frame actions in ethical terms.

Ethical leaders see their leadership as a fully ethical task. This entails taking seriously the rights

claims of others, considering the effects of one‘s actions on others (stakeholders), and

understanding how acting or leading in a certain way will have effects on one‘s character and the

character of others. There is nothing amoral about ethical leaders, and they recognize that their

own values may sometimes turn out to be a poor guidepost.

The ethical leader takes responsibility for using sound moral judgment.

Connect the basic value proposition to stakeholder support and societal legitimacy.

The ethical leader must think in terms of enterprise strategy, not separating ―the business‖ from

―the ethics.‖ Linking the basic raison d‘être of the enterprise with the way that value gets created

and society‘s expectations is a gargantuan task. But, the ethical leader never hides behind the

excuse of ―It‘s just business.‖

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The following ten facets of ethical leaders offer a way to understand the characteristics of ethical

leadership for all organizations, which is more complex and more useful than just a matter of good

character and values. Hence, Ethical leaders:

Articulate and embody organizational purpose and values:

Focus on organizational success rather than on personal ego:

Find the best people and develop them

Create a living conversation about ethics and values

Create mechanisms of dissent

Take a charitable understanding of others‘ values and create value for stakeholders

Make tough calls while being imaginative

Know the limits of the values and ethical principles they live:

Frame actions in ethical terms

Connect the basic value proposition to stakeholder support and societal legitimacy

1.8. Importance of Ethical Leadership in NGOS

Leadership plays an effective role in upbringing of any organization. A good or effective leader is

one that has leadership qualities and does good deeds and does not do any evil acts. A leader is

considered as effective, moral, ethically sound based on his/her good deeds and qualities and

traits.Development ethics enable individuals/groups and organizations/institutions to make moral

judgments concerning development activities of their institutions.Decisions taken within an

organization may be made by individuals or groups, but whoever makes them will be influenced by

the culture of the institution. The decision to behave ethically is a moral one; employees must

decide what they think is the right course of action. Unethical behavior or a lack of effective social

responsibility, by comparison, may damage an organization's reputation and make it less

appealing to stakeholders. Development ethics are important because they keep development

planners, academicians, theoreticians and practitioners to operate within a moral and legal

pedestal with increased social responsibilities. It is a way of thinking about development, and

ultimately a way of living. Development ethics support development institutions and actors to

pursue ‗transformational development‘ by integrating moral theories and normative approaches in

development planning, execution and evaluations.transformational‗ development could be defined

as development that not only raises living standards and reduces poverty, but also transforms

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countries through far-reaching, fundamental changes in institutional capacity, human capacity, and

economic structure

Development ethics encourage quality political and organizational leadership, a deeper and more

inclusive democracy.Development ethics offer many moral theories and approaches that might

guide NGOs/CSOs policy and practices.it is obvious that the transformation of any society to a

more developed level depends on the quality of that society‗s leadership–the political will to pursue

what is called good governanceDevelopment ethics provide mechanisms to hold leaders

accountable to a country‘s citizens and their development partners and establish a metric under

which the commitments and performance of political leadership fulfill their obligations.Leaders and

citizens have a moral duty to attend to these obligations and to demonstrate consistent progress

towards their satisfaction.

Therefore, from the perspective of human rights-based moral theory, it would be morally wrong–

and inconsistent with one‗s commitment to respect human dignity–not to do what is morally

obligatory. It would be reasonable, to establish a metric under which the commitments and

performance of political leadership fulfill these obligations. In turn, this measure of good

governance should be applied to citizens and their enterprises.Development ethics strengthen

social arrangements for securing human freedoms and promote good character in

leadership.Development ethics is to strength social arrangement for securing human freedoms by

promoting good character in leadership. Good character in leadership – civic virtue – is not simply

the absence of bad desires or evil actions. Nor is it the fortuitous occurrence of wholesome habits

or a benign personality. Instead, character formation is a matter of intentional self-development,

and good governance is ruling justly, promoting economic freedom, and making sound investments

in people, evidenced by actual policies and institutional performance.

Development ethics help to develop a specific strategy for the assessment of democracy and

governance in the design and implementation of effective programs to strengthen democracy and

good governance.The other relevance of development ethics is to help to develop governance

assessment strategy for the design and implementation of effectiveprograms to strengthen

democracy and good governance. Particularly, NGOs/CSOs need to develop a specific strategic

assessment framework to help their field missions in the design and implementation of effective

programs–sensitive to the particular context of each country –that will strengthen democracy and

good governance.

Development ethics enjoins NGOs/CSOs to play influential roles in the process of building a

transitional justice, it also helps citizens and other stakeholders to play an appropriate role in the

identification of problems (and opportunities) confronting democracy or good governance and

forging answer to these challenges.Development ethics enable NGOs/CSOs to correctly affirm the

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philosophical basis for democracy, popular sovereignty and development by justly describing the

importance of socio-political and economic competitions.

1.9. How Organizations Produce Ethical Leadership

1.9.1. Becoming an Ethical Leader

We have been privileged to know many executives that we would classify as ethical leaders. What

these executives have in common is a profound and deep sense of ethical principles, values, and

character at the core of their leadership. They see their job as making others better, and enabling

them to pursue their own hopes and dreams. They are able to get things done in complicated

organizations and societies. But, it is their ethical core which pervades their relationships with

followers, the skills and processes which they use in leading them, their analysis of the contexts,

and their own sense of self.

Becoming an ethical leader is relatively simple. It requires a commitment to examining your own

behavior and values, and the willingness and strength to accept responsibility for the effects of

your actions on others, as well as on yourself. A ―responsibility principle‖ is a necessary ingredient

for ―managing for stakeholders‖ to be useful in today‘s business world. Ethical leaders must

consider and take responsibility for the effects of their actions on customers, suppliers, employees,

communities and other stakeholders. If business were simply concerned with shareholder value,

then this ―responsibility principle‖ would be unnecessary, other than the responsibility to

shareholders.

To become an ethical leader, commit to asking yourself the following types of questions:

(1) What are my most important values and principles?

(2) Does my calendar—how I spend my time and attention—reflect these values?

(3) What would my subordinates and peers say my values are?

(4) What mechanisms and processes have I designed to be sure that the people who work for

me can push back against my authority?

(5) What could this organization do or ask me to do that would cause me to resign for ethical

reasons?

(6) What do I want to accomplish with my leadership?

(7) What do I want people to say about my leadership when I am gone?

(8) Can I go home at the end of the day and tell my children (or a loved one) about my

leadership, and use my day‘s work to teach them to be ethical leaders?

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1.9.2. Developing Ethical Leaders

The best way for organizations to develop ethical leaders is to engage in some of these

questions. Viewing business simultaneously in economic and ethical terms helps to send the

message that ethics isn‘t just an important set of rules not to violate, but that it is an integral

part of what it means to work at your organization.

There are some concrete steps about how best to develop ethical leaders within the framework

that most global businesses find themselves. The first step is to bring life to a conversation

about how the organization benefits its stakeholders and about understanding the

organization‘s values.

This doesn‘t need to be a formal program. It could be as elaborate as town hall meetings. Or,

as one executive suggested to us, we simply could have an ―ethics‖ or ―stakeholders‖ moment

at most meetings. Such moments, analogous to ―safety moments‖ at companies like DuPont,

set aside a brief time to raise concerns about the effects of the meeting on key stakeholders, or

on a company‘s values and ethics. Equally, the ―ethics‖ moment could elaborate on how the

conversations and decisions of the meeting were aligned with company values.

Many companies have leadership development programs. These programs need to be

strengthened by adding the idea of ―ethical leadership.‖ It is not necessary to use the specific

principles we have developed, but companies can make themselves better by engaging

participants in a conversation about what they see as ―ethical leadership.‖

Executives can develop shared conversations and conceptions of how ―ethical leadership‖ can

be implemented in their particular company.

Executives need to figure out how to have ―challenge meetings,‖ routine processes where

anyone in the organization can raise a challenge to whether or not the company is living its

values, or its enterprise strategy approach. Without the ability to challenge authority, there can

be no such thing as true ethical leadership.

Many fear that anarchy would be the result of such a process. Our experience is just the

opposite. Values, purposes, principles, an enterprise approach—all deliver a disciplined way to

think about how to make the business better and more effective, and help to develop pride in

the organization.

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The following mechanisms and strategies are important to produce ethical leaders so that deliver a

disciplined, better and more effective development, and increase pride in an organization.

By demonstrating and exercising ethical leadership everyday

First of all employees at all levels throughout the organization must demonstrate and exercise

ethical leadership every day.Better and more effective development and increase pride in an

organization.Each one must work to provide value for all beneficiaries and shareholders. In some

respects the term ethical leaders is redundant we really are just developing leaders that are

focused on delivering value to our shareholders every day.

By encouraging a culture of pushback within organization

This is when all employees share in the responsibility for creating and maintaining an ethical

culture. That effort, of course, starts with the mangers and the Board of Directors demonstrating

their commitment to the organization‗s values and principles in consistent and concrete ways. All

people need to recognize the importance of organizational values, about how employees want to

treat each other, and about what all people stand for as an organization. Organizational culture

can‗t just be individualists; it has to be all of the common. Employees must be free to push back, to

report ethical violations, and to suggest changes all without fear of retribution.

By articulating, creating and embodying key principles of ethical leadership in the

purpose and values of an organization

Organizations should articulate and create key principles of ethical leadership and integrate into

their values and purposes. Organizations need to feel a particular empathy and compassion for the

wellbeing of their key stakeholders. Thus, they need to build-up on relevant principles of ethical

leaders to respond quickly, generously, and with compassion to aid their employees, beneficiaries,

donors, customers and fellow citizens, just as individual would assist their friends and neighbors in

a time of crisis.

By creating and examining connection between managers, compensation and ethical

leadership:

In a free market society, people are valued for their contributions. Some people in a society value

one thing and others value another thing.Thus, organizations need to use a common sense,

values-basedapproach to determine what is right for their shareholders by creating and examining

connections between managers, compensation and ethical leadership.

By distinguishing between Ethics and Morals, and Incorporating Ethics into

Development Decisions:

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Ethics are behaviors inspired by right and wrong, and morals tend to have more of a religious

overtone. As we all are products of our upbringing and our religious teaching, we also ought to

have ethics as the undergirding rules of development. It comes down to the basics of law: don‗t

steal, don‗t cheat, no fraud. All of the rules and laws that have been passed are simply expressions

or variations on those themes.

By assessing the ethical leadership within an organization.

In the today‗s‗ world, easy and free movement of people through career transitions looks more

risky or be treated dissimilarly due to deficiency in ethical leadership. In this case, many

organizations and individual scholars did a lot of research about various organizations, and their

employees. Generally, their study indicated that the pendulum has swung all the way over from

really complacent management or leaders/managers to a situation where these positions are filled

with people who may or may not understand their organizations; that may or may not understand

development and the laws and the financial rules.

1.10. Ethical Leadership In Relation To My Practical Experience

I believe that employees at all levels throughout the organization must demonstrate and exercise

ethical leadership every day.Each one of us must work to provide value for our customers and

shareholders. At Office all employees share in the responsibility for creating and maintaining an

ethical culture. That effort, of course, starts with the Chief Executive Officer and the Board of

Directors demonstrating their commitment to the company values and principles in consistent and

concrete ways. I frequently speak to groups of employees about the importance of our

organization's values, about how we want to treat each other, and about what we stand for as an

institution.

The company culture can‘t just be a single person; it has to be all of ours.Every employee‘s

behavior is important to the organization's success. Every time someone has the fortitude to speak

up on behalf of our values, we need to show that this is something we encourage failure to

communicate that we value this feedback could have a chilling effect that does us all harm.In my

case, I did a lot of research about the people of the company, the employees of the company, and

then I insisted on meeting every single one of the directors.

Ethical behavior among workers in an organization ensures that employees complete work with

honesty and integrity. Employees who use ethics to guide their behavior adhere to employee

policies and rules while striving to meet the goals of the organization. Ethical employees also meet

standards for quality in their work, which can enhance the company‘s reputation for quality

products and service.

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2. FOUNDATIONS AND PARADIGM SHIFTS OF DEVELOPMENT ETHICS

2.1. Theories of Development Ethics

Ethical study of development emerges as a counter to the engineering approach of

economics.There exists a shift from old fashion ideas of equating economics with development.

Ethics has become a centerpiece of the theory and practice of development.David A. Crocker

identified four groups of scholars involved in the ethical study of development; the first group

include Mohandas Gandhi of India, RaúlPrébisch from Latin America, and Frantz Fanon in Africa,

the second includes the work of Denis Goulet and a French economist Louis-Joseph Lebret, the

third are Anglo-American moral philosophers to deepen and broaden philosophical debate about

famine relief and food aid, and the fourth is the work of Paul Streeten and Amartya Sen.

David A. Crocker (2001) highlighted four strands of works of scholars who contributed towards the

development of ethical study of development.Accordingly, the first strand is traceable to the

beginning of 1940s, by the activists and social critics such as Mohandas Gandhi of India,

RaúlPrébisch from Latin America, and Frantz Fanon in Africa criticized colonialism and orthodox

economic development.

A second source of development ethics dated back to the early 1960s, American Denis Goulet –

influenced by French economist Louis-Joseph Lebret and social scientists such as Gunner Myrdal

– has argued that development needs to be redefined, demystified, and thrust into the arena of

moral debate. Drawing on his training in continental philosophy, political science and social

planning as well as on his extensive grassroots experience in poor countries, Goulet was a pioneer

in addressing the ethical and value questions posed by development theory, planning, and

practice.

The third wave of thought is the effort of Anglo-American moral philosophers to deepen and

broaden philosophical debate about famine relief and food aid.

The fourth is the work of Paul Streeten and Amartya Sen. Both economists have addressed the

causes of global economic inequality, hunger, and underdevelopment and addressed these

problems with, among other things, a conception of development explicitly based on ethical

principles.Thus, the contribution of these four prominent groups of scholars on the theories and

practices of development has laid a foundation for the ethical study of development. Development

ethics is therefore a discipline that deals the normative dimensions of development.

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2.2. The Development Ethics Paradigm Shifts

The growth paradigms of development are widely criticized as anti-development because they

bring benefits too few while keeping the masses poor, and destroy valuable cultures. This has led

to the gestation of new paradigm which raises basic value questions about the good life, the just

society and the right stance towards nature.Modern conditions, characterized by large scale,

complex interdependences among all social systems, and the extreme rapidity of change, render

ancient answers to these normative questions obsoleteThe ancient answers were framed in static

environment marked by slow change, high degrees of isolation of one system from another and

small scale. Clearly, what is now needed to create a modern development ethics is a critical

dialogue between ancient wisdoms and modern sciences.

In the past, ethics has not successfully answered normative questions posed by economics.A new

approach paradigm is needed: an ethics as means of the means , that is, a strategy in which ethics

formulates its norms from within the constraints faced by those who wield economic policy

instruments. Thus, Ethics helps to lay bare value gains and losses attendant upon diverse policy

choices and establish criteria for determining which value sacrifice an affected population will

tolerate.

To sum up, the growing paradigm of development ethics poses development value dilemmas,

which people can encounter, as a basic point of discussion in both theories and practices of

development.

2.3. Contributions, Strengths & Limitations of Theories of Development Ethics & Its

Paradigm Shifts

Development ethics aspires to show the road towards a new development paradigm that

investigates development in light of fundamental ancient ethical queries on the meaning of the

good life, the foundation of justice in society and the human stance towards nature. The study of

development ethics attempts to discuss and codify the aforementioned ethical quires borrowing

scientific instruments from economists, political studies, anthropologists, environmental scientists

and others. Thus, it can be characterized as an interdisciplinary area.

To this effort, the contribution of Denis Goulet is distinctive. He offers the conceptual frame and

gives the dimensions of a relatively new field of study. The present analysis pays significant

attention toGoulet‘s life tribute and particularly to his theory on development goals and

strategicprinciples of achieving these goals as well as the concept of authentic

development.Regarding its origins, development ethics can be characterized as a relatively

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new field of study. Development ethics comes to fill the gap in the ethical study of developmentby a

holistic, defined in a macro level, normative and practical way.

Even though the ethical question of ‗what is a good life?‘ and the term ‗eudemonia‘ –a synonymous

of happiness trace back to ancient Greek philosophers and particularly to Aristotle‘s ‗Nicomachean

Ethics‘, the cultivation of moral andethical issues regarding development studies and the

formulation of development ethics such as came to the front with the rise of an economic and

humanistic movement in 1950s.This humanistic approach of the economy and society is

theoretically represented by the French economist Louis Joseph Lebret and his student American

Denis Goulet and defines development ―as the basic question of values and the creation of a new

civilization‖. Mohandas Gandhi in India and the Swedish economist Gunnar Myrdal could be

labeled as precursors of development ethics. Goulet's contribution to the interdisciplinary area of

development ethics has been significant by presenting a long distance tribute.

Goulet poses a conceptual frame of an ethical conflict in the process of development and his

contribution to the study of development is not only normative but also practical. He offers a

comprehensive analysis of development, from an ethical view, by formulating general principles in

almost all relevant aspects of development: technology for development, ecology and ethics,

culture and tradition, the ethic of aid, etc. From this angle, development is perceived as

manyaspects conjointly, simultaneously and inextricably an economic and political matter, a social

and cultural one, an issue of resource and environmental management, a question of civilization.

More precisely, according to Goulet, three ancient ethical questions should be incorporated in the

ethical concept of development: 1) what isthe good life? 2) What are the foundations of justice in

society? 3) What stance should human groups adopt towards nature?.Goulet identifies three

development goals, namely, life sustenance, esteem, and freedom, and demonstrates three ethical

strategies across the development effort, those of, i) universal solidarity, ii) abundance of goods as

a prerequisite to people‘s humaneness, and iii) populace representation to the matters of public

interest and people‘s control over their destiny.Goulet highlights a twofold ambiguity regarding the

concept of development and how it is accessed by development ethics. Initially, he ascertains that

development is used either descriptively or normatively. Then, the term ―development‖ usually

refers to the end of a social change.

Thus, in response to the question of whether ethics is associated with end or means of human

activity, Goulet purports that ―ethics is concerned both with ends and means of human action". He

advocated that authentic development aims toward the realization of human capabilities in all

spheres and that economic growth and technological modernity must be treated as, at best,

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potential means towards considered human values, not vice versa‖. In Goulet work, the meaning of

the development is given by the phrase ‗human ascent‘ which encompasses the ascent of all men

in their integral humanity including the economic, biological, psychological, social, cultural,

ideological, spiritual, mystical, and transcendental dimensions.

2. GLOBALIZATION AND DEVELOPMENT ETHICS

Development ethics faces the new and pressing task of understanding and ethically evaluating

globalization and proposing ethically appropriate institutional responses to this complex and

contested phenomenon. It must be pointed out; however, that globalization is not a new

phenomenon. It has happened before, probably even on a larger scale, as was the case over a

century ago. Towards the end of the nineteenth century, trade flows were roughly the same

proportion of national income as they are today, while capital transfers were relatively even larger,

and movements of people far greater than they are today, when immigration is much more

restricted.

The term is used to describe the economic, political, social and cultural changes of the world in the

last fifty years, which was accelerated by the scientific revolution to the diminishing of national and

geopolitical boundaries in an expanding transnational movement of goods, services and capital.

The debate about globalization in the last few years reminds one of earlier controversies about

development. Like the term development' in the 60‗s through mid-90‗s, globalization' has become

a cliché and buzzword that the mainstream celebrates and dissenters condemn. Moreover, like

`development' earlier, globalization challenges ethicists to move beyond simplistic views such as

globalization is good or globalization is bad and analyze leading interpretations of the nature,

causes, consequences, and value of globalization.(Rachel's, J. 1999)

No single definition exists, when we talk about the ‗definition‘ of globalization, as it is with all other

core concepts in the social sciences; its precise meaning remains contested. Let‘s take few

definitions into consideration here. One can talk about Globalization as the widening and

deepening of international flows of trade, finance and information in a single, integrated global

market. An alternative would be to describe it as the increasing linkages between the world‘s

people (including the international spread of cultures as well as diseases and crime) as natural and

artificial barriers fall. Or, one can refer to it as the transformation (shrinking) of the world into a

global village, as borders disappear, distances shrink, and time shorter.

Globalization is an important worldwide change that development ethicists and others have been

ethically assessing with respect to its causes and consequences. This is because ethically-justified

globalization promotes and is promoted by the sort of robust local, national, and global democracy.

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In a globalizing world, development ethics takes on the additional task of offering an ethical

appraisal of the global order and suggest ways of managing new and evolving global

interconnectedness.

Globalization is thus an ongoing syndrome. Globalization is not only about interplays between

local, regional, national and global scales, but also about the interconnectedness, flows and

uneven development in the world. The strategic keys that accelerated the growth of globalization

were transnational corporations, technical change, governments etc. Globalization has brought not

only advantages to the globe by providing large range of imported products or by raising the basic

standard of living of people. But also has major impacts on the socio-political- economic and

cultural realms of life by diminishing the role of state, challenging the unique culture of every

society, attacking the social structures, much diversity in the global society etc. However, despite

of identification of risks and opportunities of globalization, the whole phenomenon is still very

difficult to predict.

3.1. Impacts of Globalization

Globalization is a complex and multifaceted phenomenon. It has positive and negative as well as

economic, social, political and technological impacts. The technological and political change that

drive the process of economic globalization has massive noneconomic

consequences.Globalization is political, technological and cultural, as well as economic aspects.

Globalization means different for different people. For some it creates positive political, economic

and technological progress. For few there are empirical, conceptual, and normative aspects of

inquiry or ethical appraisal of the global, but, unfortunately, this diversity is often unheeded.

Globalization‗s multiple, often uneven, and frequently changing influences on individuals and

communities require empirical investigation, while deciding which consequences are ethically

significant and which are the best future options requires the application of ethical criteria and

judgments about global as well as national justice. Even empirical investigation on the effects of

globalization, however, is not disconnected from conceptual and even normative considerations.

Most kinds of globalization, such as open trade, financial liberalization, foreign direct investments,

outsourcing of work, migration, labor mobility, development of international law, and multinationals,

are a mixed blessing. A globalizing world weakens some states and strengthens others, and all

states find themselves interconnected in various ways. Globalization has many positive, innovative

and dynamic aspects, all related to the increased market access, increased access to capital, and

increased access to technology and information which have led to greater income and employment

opportunities. The world as a whole is definitely more prosperous and healthier, with average

percapita incomes tripling in the last fifty years, child mortality rates halving and life expectancy

increasing. While the world as a whole has benefited from globalization, there are negative and

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marginalizing aspects of globalization. These are what have led to a backlash, as reflected to a

certain extent in the demonstrations by civil society accompanying recent international

conferences, and by increasing expressions of dissatisfaction at the governmental level.

Here are further discussions on the Economic, Political, Social, technological and Cultural impacts

of globalization. Globalization is hegemonic and antagonist to local and national economies.

3.2. Economic Impacts of Globalization

Globalization is expansion of economic activities across the boundaries of nation states. It is

marked with increasing economic integration and growing economic interdependence between

countries of the world. There is an increased cross border movement of goods, technology, people,

information etc. There were very large flows of capital from European to other parts of the world.

As mentioned above, globalization, greater economic openness, foreign direct investment, and

transfer of technologies offer potential opportunities for economic growth. Free trade allows

specialization between different regions, allowing them to produce according to their own

comparative advantages; it also expands the consumption choices of citizens by providing

increased opportunities to buy goods and services from other countries. In this respect, it is very

important to keep in mind that international trade is not a zero-sum game where some countries

are winners and others are losers. Economic globalization has provided opportunities for

developing countries in that it expands the size of their markets for export and attracts foreign

capital, which aids development. Foreign investment is conducive to a transfer of technologies and

knowhow, which increases productivity. Another positive effect of globalization is greater

competition among firms, which benefits consumers who have access to products at increasingly

lower prices. Those who gain most from free trade in both developed and developing countries are

very often the poorest since they can buy goods at more affordable prices, and therefore have a

higher standard of living. In this sense, free trade can be seen as an indirect way to reduce

poverty.

The goal of globalization is to meet the need of people thereby increasing their standard of living,

freedom and liberty and there by a prosper life. But today, globalization has increased the gap

between rich and poor and has led to the marginalization of certain sections of the society.Thus the

economic impacts of globalization can be very diverse in different areas of the world giving rise to

concentration and marginalization phenomena. As there is a skill biased technological change, the

increased import of capital goods will lead to increased inequality. Increased trade was meant to

foster economic growth but today what we see is a one sided benefitting deal.One of the one

negative aspects of globalization is that its gains are not equally distributed, both between and

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within countries. The benefits of globalization are also badly skewed within countries, both

developing and developed. Income inequality is rising in many countries. Worse, job and income

insecurity is increasing, particularly for unskilled labor, although corporate restructuring has also

meant job insecurity for professionals.

Unbalanced benefit flows are not the only negative aspects of globalization. Globally integrated

markets have financial volatility as a permanent feature, the frequency of financial crises increasing

with the growth in international capital flows. The human costs of such financial volatility can be

very high, poverty increase, rising unemployment, reduced schooling, reduced public services, and

increased social stress and fragmentation – in short, a reversal in human development.

3.3. Political Impacts of Globalization

One of the major impacts of political globalization is that it reduces the importance of nationstates.

Many have organized themselves into trade blocs. Emergence of supranationalinstitutions such as

the European Union, the WTO, the G8, and The International Criminal Court etc. replaced or

extended the national functions to facilitate international agreement. This hasreduced the

sovereignty of nation states in taking important decisions with respect to theircountry where we see

massive intervention of these organizations in all fields. It should benoted that the executive body

of all these organizations are from USA and European countrieswhich was reflected in their

decisions as all of them were pro West legislations.

Another major political impact of globalization is the increased influence of Non-Governmental

Organizations in public policy like humanitarian aid, developmental efforts etc. Many organizations

have come forward with the mission of uplifting the most unprivileged societies of the world where

there is massive funding of millions of dollars. Globalization has also lead to the growth of

terrorism. Terrorism can be seen as a response from certain groups of people who were neglected

and humiliated for centuries which lead to the wide spread terrorist networks across world which

was accelerated with the ultra-modern technology helping them to strengthen their network and

activities.

The rise of global civil society is one of the major contributions of globalization. The

multivariategroups make up civil society which often protests against capitalism. This shows the

existenceof a social sphere above and beyond national, regional or local societies. Thus the

political impacts of globalization are immense and wide across the nation state. The modern

concepts of one government and showcasing democracy as the ultimate design for a stable

government etc has led to massive scale of corruption, inefficiency and lack of transparency in

these developing countries. The challenge lies in reforming global governance so that global

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competition and free market approaches can be harmonized with human development and human

rights in all countries. Always acknowledging, of course, that even with good global governance,

lack of good local governance a developing country will still find itself excluded and marginalized

from the benefits of globalization. In brief, good global and national governance go hand in hand,

with both placing people, not just profits, squarely in the center of policy and action.

3.4. Social Aspect of Globalization

The combination of increasingly advanced technology and complex social structure which were

sustained by the ideas of change as desirable progress accelerated social change being one of the

major spheres of impacts of globalization. The social and cultural aspect of globalization is

something which attained global attention recently. It is becoming increasingly evident that so far

globalization has benefited only a relatively small number of countries and that some regions of the

world are still not integrated into the world economy. Appropriate domestic conditions it can have

negative effects for many people. A significant part of humanity does not have the capacity to

influence its own living environment, let alone the international political arena. The impressive

technological advances only benefit a small proportion of the world‘s population. Despite

globalization, many of the poorest countries remain marginalized from world trade and investment.

Social and economic polarization is still widely spread. Therefore, it may be said that a

sophisticated, globalized, increasingly affluent world currently co-exists with a marginalized global

underclass. (Nigam, M. 2009, August 4).

The social dimension of globalization refers to the impact of globalization on the life and work of

people, families and societies. There are more social aspects for globalization beyond the

employment, working dimensions, income, social protection etc. the idea of social justice is been

now been a distant dream to be accomplished. The increased political and economic movement of

globalization has left the major aspect of society, i.e. people. The idea of social justice aims at

creating a society based on the idea of equality and solidarity, the values of human rights, the

dignity of every human being. When we talk about the gender aspect with reference to

globalization, we can see increased participation of women in all fields of life. But evidences prove

that women still work more as a casual labor.

Though globalization has expanded women‘s access to employment it has not done much

considerable to reduce the gender inequality. Also, due to the influence of media and other socio-

political- cultural aspects, the crimes against women have increased considerably Another major

social aspect is that globalization as deeply influenced the social structure of different

societies.(IMF Center. (2005).

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Every society used to have its own unique culture with respect to the language, social norms,

morality, civic sense etc. with the advent of media which has this special capability to influence

millions at the same time has challenged the social institutions of the society mainly family. A

particular society following their style of living without being much influenced by the western culture

is now seen as ‗uncivilized‘ which was a very cunningly designed propaganda of the west to

inculcate their culture into the rest of the world and thereby dominating the globe.

3.5. Technological Impacts of Globalization

IT is a driving factor in the process of globalization. IT drives the innovative use of resources to

promote new products and ideas across nations and cultures, regardless of geographic location.

Creating efficient and effective channels to exchange information, IT has been the catalyst for

global integration. Technological advancement, with no doubt, is such a huge impact in shaping

the world. Globalization accelerates the change of technology. Every day it seems that a new

technological innovation is being created.

Creators, inventors, experimenter, maker, founder, innovator, pioneer are what we call the people

behind every technology existing at present. Invention has made the world what it is today. It

absolutely helped our society develop into a much better world. This whole aspect of invention is

what we see as technology. Technology is the making, modification, usage, and knowledge

of tools, machines, techniques, crafts, systems, methods of organization; in order to solve a

problem, improve a pre-existing solution to a problem, achieve a goal or perform a specific

function. It can also refer to the collection of such tools, machinery, modifications, arrangements

and procedures. Technologies significantly affect human as well as other animal

species.Technological advancement is responsible for many changes as well in world population,

life expectancy, education levels, material standards of living, and the nature of work,

communication, healthcare, war, and the effects of human activities on the natural environment.

Technological developments are conceived as the main facilitator and driving force of most of the

globalization processes. Technology can be defined as the socialized knowledge of producing

goods and services. We can describe the term technology with five important elements:

production, knowledge, instruments, possession and change. The definition of technology as a

socialized knowledge can be better conceived with these elements. Now we shall briefly look

through them:

It has something to do with production (of goods and services). We need technology to produce

something either goods (ex: clothes, television set, cars etc.) or service (ex: banking, security,

teaching etc.) Technology improves our capacity to produce. Technology has something to do with

knowledge. Technology is a result of intellectual activities. Therefore technology is type of

26

intellectual property. Today technology is developed through research and development institutions

as integral parts of the universities. Technology has something to do with instruments. The

instruments are the extensions of the human body, whenever an instrument is used there is

technology involved. The instruments indicate the usage of technology by human beings.

Instruments are mostly physical such as computers, vacuum cleaners or pencils, but sometimes

there are immaterial instruments too, such as databases or algorithms in computer programming.

Digital technologies have opened the way towards global networks. Global networks are the

networks in which all information and knowledge – also the ideology- necessary for the realization,

maintenance and the reproduction of the system – basically the capitalist system. The term ―New

Economy‖ is the clearest explanation of how all these information, knowledge and ideology are in

close relation to capitalism. Information Technology (IT) is a driving factor in the process of

globalization. Improvements in the early 1990s in computer hardware, software, and

telecommunications have caused widespread improvements in access to information and

economic potential. These advances have facilitated efficiency gains in all sectors of the economy.

IT provides the communication network that facilitates the expansion of products, ideas, and

resources among nations and among people regardless of geographic location.

Recent advances in our ability to communicate and process information in digital form - a series of

developments sometimes described as an "IT revolution" - are reshaping the economies and social

lives of many countries around the world. Another set of advances that has been critical to the IT

revolution has occurred in fiber optics. Fiber optics technology enables data, including voices

captured in digital form, to be converted into tiny pulses of light and then transmitted at high

speeds through glass fibers wrapped into large capacity telecommunication cables. Hundreds of

thousands of miles of these cables have been installed over the past ten years, boosting the speed

and capacity of telecommunications. Advances in microprocessors, fiber optics, and a number of

other complementary technologies, such as telecommunications switching devices and memory

chips, have dramatically increased the speed, processing capacity, and storage space of

computers and dramatically increased the speed and carrying capacity of telecommunications

networks. A key reason why these advances in IT have spread so quickly is that they have

progressively reduced the cost of a unit of computing power or the transmission of a message.

3.6. Comments on Globalization

As to me Globalization affects everyone in many ways. Globalization probably affects every aspect

of our life. It affects the food we eat, the cars we drive, and the devices we use.. Any nation

involved in modern trade is globalized. The problem is that as our nation gets richer the nations at

the bottom only get poorer.There are many pros and cons of globalization, ranging from economic

benefits to a freer, more equal labor market. Globalization is the history of the world. Globalization

can be a good thing, but it also can be a bad thing. It's up to us decide what boundaries we want to

27

delimit to this huge wave of modernity. In this respect, it is very important to keep in mind that

international trade is not a zero-sum game where some countries are winners and others are

losers.

It is obvious that Globalization has affected every person on earth in one way or another and will

continue to influence their daily lives. We have gone from many independent nations working

separately, to a world full of communication and interaction due to the effects of globalization. The

world has come a long way in the past few decades and it is due in large part to information

technology. There is no way to measure the affect information technology has had on the global

landscape, but its influences are seen throughout the world on a daily basis. The ongoing process

of greater interdependence among countries and their citizens is complex and multifaceted. Many

of the problems that the critics of globalization point to are real. Some of them relate to economics.

Others relate to non-economic, but no less important, aspects of life. And while some of the

problems do stem from the process of global integration, others do not. As to me globalization has

enabled trade to grow, capital and education flows to increase, and a better allocation of resources

to be met around the world.

Economic globalization has also provided opportunities for developing countries in that it expands

the size of their markets for export and attracts foreign capital, which aids development. Foreign

investment is conducive to a transfer of technologies and knowhow, which increases productivity.

Another positive effect of globalization is greater competition among firms, which benefits

consumers who have access to products at increasingly lower prices. Those who gain most from

free trade in both developed and developing countries are very often the poorest since they can

buy goods at more affordable prices, and therefore have a higher standard of living. In this sense,

free trade can be seen as an indirect way to reduce poverty. At the national level, appropriate

economic and social policies are needed to capture global opportunities trade, capital flows and

migration, and to protect people against the vulnerabilities that globalization creates.

The State should intervene to help minimize the costs of globalization. Yet to adopt protectionist

policies on the basis that there will be losers may not be the best solution. Given this picture of

globalization, warts and all, is it worth keeping? What is to be done? As mentioned at the outset,

there are three alternatives: one is to maintain the status quo – that is to say, the present situation

is to continue, a globalization that is exclusive and marginalizing, that increases human insecurity

and vulnerability, even as it opens tremendous opportunities. Judging from the increasing volume

of protests heard around the world, this alternative is becoming more and more unacceptable.

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Summing all of the above, globalization does not necessarily bring a negative outcome to

developing countries. They have profited and develop into a more successful region due to

globalization. However, countries those are not able to successfully participate in the globalization

process because they are lacking crucial factors for globalization to develop and perform

beneficially. Some of the decisive factors they lack are good geographic location, institutions and

supporting policy. If a country has a bad geographic market location, it will not be able to trade

optimally, thus not profiting enough. Good institutions and supporting policies are needed to fight

against corruption and poverty in some other cases. When a country has a good geographic

location, good institutions and policies it is able to focus on its real competitive advantages.

4. ETHICAL DECISIONS MAKING IN MANAGEMENT OF NGOs

4.1. Basic Principles of Ethical Decisions Making

Ethical or unethical behavior and judgment usually occur in situations that raise ethical

considerations or issues. An ethical issue is a problem, situation or opportunity requiring an

individual or organization to choose among several actions that must be evaluated as right or

wrong, ethical or unethical. Ethical issues are equivocal, meaning that they can be interpreted in

more than one way, and are uncertain with regard to the future.

Ethics principles are essential to the integrity and accountability of the department and

fundamental to the ethical behavior of public officials. Each principle is strengthened by a set of

values which help describe the behavior that will demonstrate each principle. Integrity and

impartiality promoting the public good commitment to the system of government accountability and

transparency

4.2. Ethical Theories as Criteria for Ethical Reasoning

Ethical reasoning and judgment refer to the ways in which individuals determine whether a course

of action or a stance about an ethical issue is morally right by evaluating various courses of action

and taking into account ethical principles. Ethical reasoning is considered to be necessary for

moral decision making and behavior, and it represents the process involved in the second stage of

Rest's ethical decision-making model, i.e., judging what is morally right.

Another approach to the study of ethical reasoning focuses on the role of ethical philosophies in

ethical reasoning. According to this approach, the ethical explanations and reasons people use in

order to explain their decisions and behavior express ethical criteria grounded in some ethical

theory.

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4.3. Ethical Decisions Making in NGOS/CSOs

It is obvious that all managers and employees must consider the ethical dimensions of their

decisions. Ethical factors effecting managerial decisions and behavior are classified in various

levels into four categories: personal factors, inter-organizational factors, issue related factors and

extra-organizational factors. On the other hand, some development ethicists indicated the

multilayered cultural, ethical and legal norms that subsist at local, national, regional, international

and global level as ethical factors effecting managerial decisions and behavior.

A group of development ethicists/philosophers also developed a systematic method for making

ethical decisions, which is called communicative ethics‗, or discourse ethics. Communicative

ethics' 'is a systematic method for making ethical decisions. Communicative ethics reminds us of

the importance of the dialogic approach 'and subsequent give-and-take in an effort to be reciprocal

and therefore to reach balance. Communication that is oriented toward reaching understanding

inevitably involves the reciprocal raising and recognition of validity claims. The value of a

communicative ethic is to find commonly agreed upon ways of negotiating differences when we fail

to agree in binding principles and rules‗‗. It is important to note that all of these elements—

concepts, propositions, protocols, and decision making that includes using information,

deliberation, and negotiation are just starting points.(Douglas, P.C., Davidson, R.A. and

Schwartz,.2001)

4.4. Challenges and Opportunities of Ethical Decisions Making in my Practical Work

Environment

It is clear that the consequences of organizational actions can be great for all of us. Yet, at the

same time, the ethical demands on organizations are neither extraordinary nor excessive. It is also

important to remember that our organizational lives are not separate or distinct from other realms

of our lives. For example, it is increasingly difficult to distinguish between our public and private

lives, work and family, labor and leisure. As a result, it is crucial that we keep in mind that

organizations are a part of life. For better or worse, they are part and parcel of us. In an era of

widespread organizational scandals, it is appropriate that we study organizational ethics more

closely. In effect, many leaders have learned that ethics improves organizational performance and,

ultimately, the bottom line. Still others have decided that it is the right thing to do; they have

concluded that organizations should be fair, honest, respectful, responsive, trustworthy,

accountable, and responsible, regardless of whether it serves the organization‘s self-interest.

Ethics are the principles and values an individual uses to govern his activities and decisions. In an

organization, a code of ethics is a set of principles that guide the organization in its programs,

policies and decisions for the business. The ethics that leaders in an organization use to manage

30

employees may have an effect on the morale and loyalty of workers. When leaders have high

ethical standards, it encourages workers in the organization to meet that same level. A solid

reputation for ethics and integrity in the community may improve the company‘s business. Ethical

behavior among workers in an organization ensures that employees complete work with honesty

and integrity. Employees who use ethics to guide their behavior adhere to employee policies and

rules while striving to meet the goals of the organization. Ethical employees also meet standards

for quality in their work, which can enhance the company‘s reputation for quality products and

service. Leaders and employees adhering to a code of ethics create an ethical organizational

culture.

Ethics often stretches us and moves us to think beyond our own self to consider others, our family,

our work group, our organization, our country, our culture. At the least, when we consider our own

ethics, we have to ask ourselves: What is my own ethical position or stance? How is that similar to,

or different from, others‘? Willmy actions have the intended consequences? What unintended

consequences might arise from my actions? We must consider what we deem appropriate and

inappropriate, acceptable and unacceptable, right and wrong for ourselves. It is increasingly

difficult to distinguish between our public and private lives, work and family, labor and leisure. As a

result, it is crucial that we keep in mind that organizations are a part of life. For better or worse,

they are part and parcel of us. In an era of widespread organizational scandals, it is appropriate

that we study organizational ethics more closely.

Ethical conduct in the workplace encourages a culture of making decisions based on ethics. It also

enhances accountability and transparency when undertaking any business decisions. During

turbulent times, a strong ethical culture guides us in managing such conflicts by making the right

moves. It can help you to introduce change successfully in your organization, which can be a

challenge. Ethical conduct within the business sensitizes you and your staff on how to act

consistently even in difficult times.

In my Practical Work Environment a relationship between ethical decision making and managerial

performance is not formally proposed. However, the moral judgment development predicts

managerial performance in jobs where the manager is required frequently to resolve complex

ethical problems. So, corporate accountability for the ethical behavior of managers is receiving

increasing it has been suggested that a potential relationship exists between the ethical decision

making of managers and organizational effectiveness.

As a result of the unethical or illegal decisions of one or more managers, an organization could be

faced with lawsuits that possibly hold severe financial consequences and/or could badly tarnish its

public image.

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© 2006, Business Roundtable Institute for Corporate Ethics . www.corporate-ethics.org