+

Ethics and Leadership

in a VUCA World
May 2016

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Table of Contents
Attributes
Ethics

of a VUCA World

in a VUCA World

Leadership
The

in a VUCA World

Ethics of Leadership in a VUCA World

Attributes
of
aa VUCA
World
Attributes
of
VUCA
World
+
New
Internet
Landscape &
Information
Technology

Ethical
Concerns

Health & Education

Emerging
Emerging
Challenges
Challenges
Changing
World
Economy

Globalization

+Ethics in a Changing
World
Section A

+
Definitions of Ethics
[ethos]

Greek word for custom or habit, the characteristic

conduct of an individual human life.

A Dictionary of Philosophical Terms and Names

Why is Ethics important?

Ethics is a requirement for human life. It is our

means of deciding on a course of action.

Sense of Life Objectives. The importance of philosophy

Definitions of Ethics

Moral philosophy.
Determining rights and wrongs, selecting actions to
achieve good results, evaluating motives.
The achievement of wisdom, choosing actions that are
benefical and acceptable long term; or sustainable.
This implies a societal focus.
It refers to actions that correspond to the dignity of
the human person

Why ethics for organisations?

* A basis for values and visions
* To motivate employees
*

Perhaps demanded by customers

For good relationships to stakeholders

* An overall check on plans

* To avoid various exposures and risks
*

Part of governance

Sustainability

Why ethics II
* The finance crisis
A number of crimes, near-crimes and transgressions
* Management not contributing to organisation growth/health
* Not contributing to society
* Money only management
* Greed is good
*

Short term and limited plans

Greed is good. Embrace it. Love it. Live it. In fact, greed
may be the one thing that can save us. Dont believe me?
Greed was the foundation for this country. The brave souls
who risked their life to settle in a new country did so out of
self interest. Our forefathers recognized the importance of
self-interest in the Declaration of Independence where they
emphasized our inalienable right to pursue happiness.
Robert Pagliarini blog, Moneywatch 2010

Why ethics III

Self-interest is a pervasive economic idea
* Country differences, in Japan a negative personality trait
Other personal goals, sometimes more important:
*

Family and friends

Personal development (e.g. Maslow)

* Aesthetics, a nice place to live

*

Contribution to society

Categories of ethical problems

Crimes
Greed
Poor quality
Incompetence
Others

Ethical problem in ICT

Texas University found inaccuracy

problem in 2003.
The supplier Dell answered that
machines were overtaxed.
Later, leaky motherboards were found to
be the cause.
Dell attempted to hide the problems

Consequences of Dell problem

Motherboard production was outsourced, what
responsibility remained with Dell?
Non-openness may have contributed to problem.
No big fine, no repercussions from professionals, is that
ethical?
Dell was also fined for accounting fraud.
Dell boss was replaced.

Conclusion from many ICT problems

Many ethical challenges within ICT
Many unreflected projects
Knowledge is sometimes incomplete or missing
ICT as a knowledge discipline needs refinement
Philosophy may have a major positive effect on ICT

Damning BP verdict points to cost cuts

Years of cost-cutting and lack of investment led to
BP's Texas City refinery fire that killed 15 workers,
a watchdog has said
An ad from 1999:

BP Alaska
BP fined in 1999 for offshore dumping, agreed to probationary
action
Pipe corrosion widespread, formal warnings in 2002 and 2004
Oil leak in Prudhoe Bay 2006, inspectors found several miles of
bad corrosion.
Engineer fired for corrosion warning, case pending 2010
Four more accidents 2008-2009

BP Macondo field
Explosion 20 April 2010, 11 persons died
Blowout preventer did not work, remote blowout
preventer not installed.
BP was in charge of the drilling, Transocean owned the
drill, Halliburton cemented well. Uncertainty about
accountability.
Several decisions regarding drilling, cementing and
technology solutions influenced by cost and time
considerations.

BP Norway
Fire 13 July 2011. Nobody hurt, but work stalled for
weeks.
Petroleum Safety Authority Norway says reason was
poor maintenance, 10 issues were outstanding and not
amended.
A general problem in the North Sea is ageing equipment.

Major impact on BP brand hate logos

Major impact on BP brand hate logos

General consideration, perhaps valid outside oil:

Safety deemphasized (and not even well understood)
Maintenance not done till too late
Prioritizing cost (and time)
Short term perspective, little reflection
A pervasive culture, that is difficult to change
Regulations weak and sometimes not observed

Fake medical journals

In a law suit in Australia 2009 it became known that the
publisher Elsevier, and the Pharma company Merck had
cooperated to publish the Australasian Journal of Bone and
Joint Medicine (AJBJM).The journal is apparently dedicated
to promote Merck products.
The AJBJM was distributed to 20000 doctors, it is unclear to
what extent they believed the journal was authentic.
Later 8 further fake journals were found. Elsevier refuses to
inform who paid.

Elsevier's viewpooint
Elsevier has officially regretted the incidents, and have
apparently reformed:
We are committed to ensuring that advertising, reprint or other
commercial revenue has no impact or influence on editorial
decisions. (www.elsevier.com January 2011)
In addition, Elsevier will work closely with other publishers
and industry associations to set standards for best practices on
ethical matters, errors and retractions--and are prepared to
provide specialized legal review and counsel if necessary.

Merck's viewpoint
The journal promoted Merck's product Vioxx for uses
that it was not approved for.
This has caused personal problems and perhaps death
of patients.
Merck failed to share research showing the dangers of
Vioxx.
Merck lawyer became the new boss.

Book viewpoint:
In a new book, All The Justice Money Can Buy,
former National Public Radio reporter Snigdha
Prakash, who was embedded with a team of
plaintiffs lawyers for one of those trials, describes
legal machinations, strategies and battles that
eventually led Merck to reach a $5 billion
settlement

Professional viewpoint
Merck has been a generous supporter of medical personnel
especially nurses.
Merck paid nurses to provide potential patients for Vioxx
Merck apparently drew up a hit list to neutralize or
discredit personel criticizing Vioxx (The Independent 6 March
2010).
It is difficult to find criticism from professional organisations
Little media coverage, especially in the US

The Pfizer Trovan Trial Case Study:

After profits or to save lives?

Epidemic outbreak of
bacterial meningitis in Kano
Bacterial

(meningococcal) meningitis
epidemic in Tudun Wada, Kano, Nigeria in
1996

Overpopulated,

filthy and hot conditions

prevailing in Kano were ideal for the
spread of the infectious disease.

An

estimated 15 000 people died and

thousands of children were permanently
disabled

+
Treatment of patients and testing
of Trovan at Kano government
A non-governmental organisation (NGO) called
hospital
Medecins Sans Frontieres (MSF) provided free
emergency treatment at the government
Infectious Diseases Hospital in Kano.

Pfizer

team joined the government and the MSF

at the government hospital in Kano.

The

Pfizer team recruited children to test a drug

called Trovan, or Trovafloxacin.

At

least 200 children were recruited into the trial.

The

government hospital and the MSF were using

chloramphenicol for treatment of children.

Scientific rationale for

testing Trovan in children

Trovan

is a flouroquinolone, and other

similar drugs in the same antibiotic class
had been successfully tested in children
before.

Ciprofloxacin,

a flouroquinolone, was cited

as an example that had been used in
infants without any serious side effects.

The aftermath of the Trovan Trial

Pfizer

has been accused of conducting trial without

Approval from relevant regulatory authorities

Ethical approval
Informed consent

It

is alleged that Trovan maimed or killed some children

recruited into the trial, and that Pfizer left before the
epidemic was over

Pfizer

dismissed the accusations, and claimed that Trovan

lowered the mortality rate to 6%, while chloramphenicol
lowered the rate to 9.1%.

Pfizer

responded that it was invited to help fight the

epidemic; could not obtain informed consent because of
illiteracy; they were given permission by the authorities

The

case is now in the courts in the USA and Nigeria

Different schools of thought

(1)
Pfizer researchers took advantage of

The absence of a functional ethics committee (institutional one

at Kano or national committee).

The desperation of the affected poor, illiterate people.

The emergency situation that greatly facilitated recruitment of

participants at a single site.

Different schools of thought

(2)

Pfizer went to Kano to assist the Nigerian

government during a serious epidemic, and
they offered free treatment. Whereas some of
the 200 children they treated with Trovan may
have experienced some serious side effects
that in some cases led to death, some
participants in the trial responded well to
Trovan and thus benefited.

After

all, some patients in the government and

MSF camp responded poorly to
chloramphenicol treatment and died. Thus the
deaths would probably have occurred anyway
even if Pfizer had not come on board.

Different schools of thought

The trial was led by a local Nigerian physician,
(3)
with some local Nigerian nurses and doctors

participating. Thus even if there was no approval

and oversight from an ethics committee and/or
government, participants were afforded respect
and protection by the local Nigerian
collaborators. Pfizer merely provided the
antibiotic to be tested and other resources.

If

Pfizer team indeed left Kano before the

bacterial meningitis epidemic was significantly
contained then they were not in Nigeria on a
humanitarian mission in the first place but to
conduct a clinical trial.

Questions to guide reflection

(1)

Is it possible to conduct research ethically during

an epidemic?

(2)

Did Pfizer exploit the poor desperate people with

severely ill children?

(3)

Does illiteracy justify the fact that Pfizer

researchers did not obtain proxy consent for the
children they enrolled into their trial?

(4)

Did they help to fight the meningococcal

meningitis epidemic at all or they had their own
agenda?

(5)

Are the local health personnel who collaborated

with Pfizer researchers to blame for the unethical
recruitment of children into the Trovan trial?

Questions to guide reflection

(6)

Who had invited Pfizer to come to Nigeria in

the first place, and for what purpose?

(7)

The trial took place in Nigeria and the children

who were enrolled into the trial were Nigerians,
but Pfizer is an American company and the legal
battle is being fought in America, with American
lawyers representing the Nigerian families. Are
there no legal mechanisms of dealing with such
issues locally (i.e. in Nigeria or in Africa)?

Who are the players who should be

involved in preventing unethical
health research from taking place
in developing countries?

+
Some stakeholders and
gatekeepers
a.

Collaborating researchers from the developed

countries
b. Local collaborating researchers
c. Ethics committees in the developed countries
d. Local ethics committees in the countries where the
research is taking place
e. Institutions where the research is based
f. Local drug regulatory authorities
g. Ministries of Health
h. The participants themselves once they know their
human and civil rights

Stakeholders

have complementary roles to play

Summing up
* Many transgressions (only few covered here)
* Money considerations very important (Financial Times
uses the expression greed in Capitalism in Crisis
January 2012)
* Risk and safety downprioritized, sometimes ignored
* Professionalism and Reputation apparently not important
* Reflection not widespread, perhaps even in academia.
* Enormous losses, even financially, and sometimes
a threat to society.

+Leadership in a Changing
World
Section B

+
What is Leadership?

Leadership involves:

Establishing a clear vision

Sharing that vision with others so that they will follow

willingly

Providing the information, knowledge and methods to

realize that vision

Coordinating and balancing the conflicting interests of all

members and stakeholders

A leader steps up in times of crisis, and is able to think

and act creatively in difficult situations

+
Most Important Leadership
Skills for the Future

A study by the Center for Creative Leadership of over 2200

leaders from 15 organizations in the U.S., India and
Singapore identified the following skills as most important
for the future:

Leading people

Strategic planning

Inspiring commitment

Managing change

Resourcefulness

Participative management

Being a quick learner

Employee development

Balancing personal life and work

+
Globalization and Leadership
Implications
Key Trends/ Business
Implications

Implications for Leaders

Virtual and self-managing

teams and decentralized
decision making.

Be more empowering and less

controlling, and connect with
people using new
technologies.

Frequent interruptions;
increases stress and burnout;
and puts pressure on
processes, structures and
systems.

Maintain focus and

concentration on the task at
hand; balance priorities; create
fluid structures and flexible
processes and systems.

Need for perpetual innovation

Nurture and leverage diversity,

imagination and creativity

Rapid, disruptive change;

increasing complexity and
uncertainty

Learn to handle environmental

complexity; remain focused
under considerable pressure

+
Effective Leadership Models
Charismatic
Convey a clear vision of
the groups goals
Convey a strong sense of
enthusiasm for the work
of the group

Shared
Share leadership with
others in the group
Create a supportive
environment of shared
purpose and trust

Authentic
Demonstrate a clear
understanding of your own
strengths and weaknesses
Openly share information
and feelings as appropriate

E-Leadership
Clarify roles, objectives and
expectations
Communicate honestly and
openly
Effectively monitor progress
as a group
Leverage team member
diversity

+
Leadership Actions in a
Changing World [1/2]
Work

with your organizations to establish effective

purpose, vision and values statements that are
inspiring and life-enhancing. Return to these often
as guidance when key decisions are being made.

Develop

flexible structures, systems and processes

that enable people to collaborate more effectively
and can adapt quickly to new ways of doing
things.

Show

that you care about the people that you

work with and empower them to take action.

+
Leadership Actions in a
Changing World [2/2]
Facilitate,

encourage and nurture rather than

command, control and direct.

Foster

cross-cultural understanding and

relationships.

Build

trust by being as transparent, authentic and

as honest as you can be consistent with the
situation.

Help

create organizational cultures that embrace

the stated organizational values and are adaptive
to new situations and demands make rapid
adaptation a cultural value.

+
The Ethics of Leadership
Conclusion

+
7 Steps to Ethical Leadership

Face the complexity involved in making ethical

choices:

Don't separate ethics from day-to-day business:

Be a leader who talks about the difficult ethical choices, and help
others learn to take responsibility for making ethical decisions
carefully.

Every activity, whether it is a training program, a client meeting or

an important top management strategy session, should include
conversations about ethics.

Don't allow negative interpersonal behaviors to erode

trust:

Cultivate a respectful environment in which people can speak up

about ethics and share the responsibility for living it.

+
7 Steps to Ethical Leadership

Don't think about ethics as just following laws

and regulations:

Don't exempt anyone from meeting ethical

expectations:

Prove that you are committed to ethical issues, including

human rights, social justice and sustainability

Hold everyone, particularly senior leaders and high profile

managers, accountable. No exceptions

Celebrate positive ethical moments:

Talk about what positive ethics looks like in practice as

often as they talk about what to avoid.

+
7 Steps to Ethical Leadership

Talk about ethics as an ongoing learning journey,

not a once-a-year training program:

Integrate ethics into every action of the organization

everything people do, touch or influence.

Talk about ethics as an ongoing learning journey, not

something you have or don't have.

Recognize that the world changes constantly, and that

ethical conduct requires that everyone remain vigilant.

+
Conclusion

When it comes to ethics, we look to leaders to lead

on ethics, and take responsibility for the results

Leaders who lead ethically are role models responsible

for:

Communicating the importance of ethical standards,

Holding their employees accountable to those standards,

Designing environments in which others work and live

Leadership may therefore be the most important

lever in an ethical system designed to support
ethical conduct