2. The Impact of Global Ethics on Leadership Decision-Making One of the challenges leaders face in the global environment is that are no global ethical standards. Robbins and Judge (2010) suggested that leaders of global organizations must establish ethical principles for decision-makers and modify them to reflect cultural norms if high standards are to be upheld and consistent practices are to be achieved. Global leaders must be both ethical and legal. International business leaders will frequently face ethical dilemmas such as corruption, bribery, and abuse of power. Ethics, according to Cavusgil, Knight, and Riesenberger (2013), are a consideration in all international business decisions and should be considered when making financial decisions. Bribery is very common in many countries and payments to gain favors are also legal and expected in some countries. Cavusgil et al. (2013) provided a list of countries with low corruption levels. These include Canada, Denmark, Finland, and New Zealand. They also provided a list of countries with high corruption levels, including several nations in Africa and the former Soviet Union states. Review some of the ethical issues a global leader will face: Falsifying/misrepresenting contracts or financial statements Paying/accepting bribes, kickbacks, or inappropriate gifts Tolerating sweatshop conditions, labor, or other employee abuses Employing false/deceptive marketing practices Engaging in deceptive, discriminatory, or predatory pricing Deceiving/abusing intermediaries in international channels Engaging in activities that harm the natural environment Review some examples of unethical behavior: Companies polluting the air, water, or land with factories Employing workers, even children, in conditions or for long hours at very low wages
universal. These standards are believed to be those that organizational leaders should uphold around the world. Most global business leaders of international firms strike a balance between these two. Global leaders must make decisions based on a set of values and standards that address the many dilemmas they will encounter due to cultural differences. Conclusion As we have examined in the previous modules, ethical considerations are very important to organizational leader. Virtually everyone would agree that business affairs on behalf of the organization should be conducted with the highest level of personal and professional integrity. However, how do we define ethics? How do we react when there is a conflict of ethics? These will be ongoing questions that you may have as an organizational leader who is faced with the task and challenge of leading your organization with impeccable integrity and with a high level of ethical conduct. Module 13: The Decision Leader Learning Outcomes Describe leadership theories. Evaluate the impact of leadership approach (style) on decision-making. 1. Overview of Leadership Theories Researchers throughout Saudi Arabia have sought to deepen our understanding of effective leadership practices amid a wide array of organizational structures (AlHarthi, Al Shehri, & 2013). Moreover, being able to identify effective leadership and management practices has played a key role in helping organizations to reach their maximum potential (Daft, 2012). Further, leadership studies throughout the Middle East have sought to establish highly effective leadership and management practices within transactional environments as well as fluid organizations (AlHarthi et al., 2013). Current research has established that leadership and management theories developed over the last several decades have proven to be effective regardless of the characteristics of the organization (AlHarthi et al., 2013). As organizational