Ethics in Transformational Leadership

Payne, D., Trumbach, C., & Soharu, R. (2022). The Values Change Management Cycle: Ethical Change Management. Journal of Business Ethics, 1–12. https://discovery.ebsco.com/c/4ax45t/viewer/pdf/vtkjeihvtb

Summary of "The Values Change Management Cycle: Ethical Change Management":

1. Introduction to Change Management:

   • Efficient changes are crucial for organizational success, particularly in the context of globalization and increased competition.

2. Leadership Styles in Change Management:

   • Transformational leadership, focused on vision and empowerment, is essential for effective change management, while transactional leadership provides the necessary foundation.

   • Transformational leaders influence organizational culture, attitudes, and behaviors, fostering innovation, learning, and higher performance.

3. Stakeholder Management and Ethics:

   • Organizations should balance stakeholder interests and exercise ethics based on mutual dependence.

   • Stakeholders include various groups such as investors, employees, suppliers, customers, and society at large, and their welfare should be considered in change management efforts.

4. Understanding Ethics and Business Culture:

   • Ethics involves moral principles governing behavior and decision-making, particularly within a business context.

   • Ethical business practices contribute to financial benefits, including higher profit margins and returns on assets.

   • Organizational culture is exhibited through artifacts, policies, and values, with ethical norms contributing to a positive culture conducive to change.

5. Types and Processes of Change:

   • Change can be developmental, transitional, or transformational, impacting organizational relationships, structures, and processes.

   • Change processes involve exploration, planning, action, and integration, and may be planned, emergent, or contingent.

6. Overcoming Resistance to Change:

   • Resistance to change can be addressed through change-oriented leadership, readiness for change, and overcoming obstacles such as uncertainty and fear.

   • Effective change leaders accept the possibility of resistance and focus on building trust, transparency, and employee engagement.

7. Ethical Decision-Making and Leadership:

   • Ethical leadership is based on moral character, ethical values, and a moral framework for decision-making, focusing on accountability, humility, and the welfare of others.

   • Transformational leaders employ ethical principles such as consistency, integrity, respect, and utility in driving change initiatives.

8. The Values Change Management Cycle:

   • The Values Change Management Cycle integrates ethical principles into change management processes, ensuring effective and ethical change initiatives.

   • It involves a series of checkpoints for leaders to reference, emphasizing accountability, stakeholder management, and ethical decision-making throughout the change process.

9. Future Research Directions:

   • Future research could explore the efficacy of ethical change management, the interplay between leadership styles and ethical principles, and the nature of change in relation to ethics and accountability.