Ethical Leadership and Organizational Challenges
Added on 2020-02-03
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Global Ethics on Leadership Decision-Making1
INTRODUCTION Ethics plays essential role in leadership and decision making process. With the help ofappropriate morale and values a leader can motivate his/her team members to perform well forachieving the objectives of organisation. Along with this, while decision making process it isessential for the leaders and manager to consider global ethics. The decisions and strategies of thecompany should be appropriate for local and global level as well. For the present file, Saudi Aramco, a company of Saudi Arab is taken into the consideration.The file includes ethical dilemma, its impact on global level and reaction of leader towards variouschallenges. TASK 1An ethical dilemma that Saudi Aramco could confront Saudi Armaco is one of the world's largest oil company which has world's singlehydrocarbon network, the Master Gas System. The organisation is working well and getting largeamount of profitability. Along with this, the leaders, managers and employees of firm are talented,skilled and experienced who give their best for its success and progress. Among these positivefactors, there is a ethical dilemma which Saudi Armaco can face in upcoming futur (SaudiaAramco, Energy is opportunity. 2015)e. As it is an oil firm, so due to the formation of various gases,oils there causes huge air and water pollution which is not good for global and local level. It isessential for the company to create various gases and oils for its profitability and progress. But thepollution causing due to this firm is harmful for the people and global environment. It can developvarious health problems or disorders due to impure water and air. It is a situation of ethical dilemmafor the organisation as if it thinks about the global environment than it will not able to workproperly and effectively. On the other hand, it is responsibility of the firm to take care of its diversecustomers and nation (Kouzes and Posner, 2006). Government of the various countries like UK, middle East are giving priorities to the cleanand safe environment. It helps in maintaining safe and secure atmosphere which also reducesnumber of different harmful diseases. Saudi Armaco needs to take care of this policy while takingdecisions for the growth and new strategies. The company is providing economic and social harm tothe society which can reduce the fuel and gas availability in the future. Company should takeappropriate decisions while focusing on the future needs and conditions as well (Theiss, 2012). Impact of organisation's value on ethical decision makingSaudi Armaco needs to consider its values and ethics while decision making process. It2
impacts positively on both local and global level. These impacts are as follows: Taking decisions by including ethics and values will help in improving the present situationof the environment. It will reduce the percentage of water and air pollution. Along with this, properdecisions will help in minimising the health problems which are occurring to the surroundingpeople due to impure air and water. It is true that, addition of ethics and values to the decisionmaking will create ethical challenges for the manager and leaders. The manner in which decisionsare taken by the companies represents the values and interests of that company and its employees. Itcan negatively affect the growth of the organisation as values and morale will create limitations andrestrictions (King and Nesbit, 2015). There are chances of reduction in profitability, sales, workingefficiency, performance, etc. But it will create a good brand image among the customers of globallevel. Along with this, company will gain competitive advantages due to international recognition(Schein, 2010). On the other hand, use of ethical approach while decision-making process will help inminimising the chances of oil and gas reduction in the future. It is responsibility of the company tothink about next generation and their situations while extracting oil from the land. It is not alwaysabout getting leading position and international recognition, sometimes it about social welfare. Withrespect to this, Saudi Armaco needs to talk appropriate decisions (Saudia Aramco, Energy isopportunity. 2015).Reaction towards the various challenges that Saudi Armaco could face. If I was the leader of Saudi Armaco than the different challenges that could be faced by meand my reaction towards them have been listed below such as: Resistance to change: For taking ethical decisions, company needs to make changes into itsworking environment. There are chances that employees resist to these changes. It was myresponsibility to help my team members in accepting changes (Beinecke and Spencer,2007). Managing internal working: Ethics and values changed the working style and process of theemployees and I face problem in convincing them to accept new working style. Lack of confidence- Cited firm when tries to implement the changes, few employees losstheir confidence level because they were habitual and familiar with old working styles and atthe time of change they were lack. In this situation I motivate them and also provide trainingto employees so that they can easily cope up with the changes (Saudia Aramco, Energy isopportunity. 2015).Managing coordination- At the time of implementing the changes at working environment,employees was not effectively coordinating with each other. At this time I was facing the3
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