Business ethics report assignmentcase 16 ethical leadership at cardinal ig the foundation of a cultureof diversity

MINISTRY OF EDUCATION AND TRAINING NATIONAL ECONOMICS UNIVERSITY Business ethics report assignment Case 16: Ethical leadership at Cardinal IG: the foundation of a culture of diversity Name : Đoàn Phương Dung Student ID: 11221434 Class : International Business Management 64C Lecturer : Dr Nguyen Bich Ngoc Hanoi, 2023 This is a preview Do you want full access? Go Premium and unlock all 20 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in Table of Contents A ABOUT CARDINAL IG I BACKGROUND .3 II THE CARDINAL IG STORY III MISSION AND VISION IV VALUES, PRINCIPLES AND BEHAVIOUR V LEADERSHIP THRUOGH A MULTI-LEVEL TEAM STRUCTURE VI A CULTURE OF DISCIPLINE AND RESPECT VII ETHICAL EXPECTATION .6 VIII ALIGNED INCENTIVES, REWARDS, AND RECOGNITION IX SYNERGY THROUGH DIVERSITY X CONCLUSION B QUESTIONS .7 How has David Pinder embraced ethical leadership to create an ethical culture at Cardinal IG? How has Cardinal’s principles and values shaped the ethical behavior of employees? .10 How has Cardinal empowered its employees to practice responsible and accountable leadership? 12 A ABOUT CARDINAL IG I BACKGROUND - Cardinal Glass Industries, Inc., is a corporation that specializes in the design and manufacture of high technology in insulating and solar glass Cardinal Glass is the largest company of its kind in the world Its 5,500 employees serve customers throughout the United States, Canada, Latin America, Europe, Asia and the Middle East - One of its manufacturing plant, Cardinal Insulating Glass (Cardinal IG) in Fargo, North Dakota, consistently outperforms all others in Cardinal subsidiary - This case study explores the main factors contributing to the Fargo plant’s success through the story of plant manager, Dave Pinder, his leadership team, and the Cardinal IG employees II THE CARDINAL IG STORY - Dave Pinder, the newly hired plant manager of Cardinal IG, arrived in Fargo, North Dakota, in 1998 He had been hired to start the plant from the ground up – build the new factory, hire and train new employees, and develop relationship with his customers - Getting started was a daunting task, beginning with building the leadership team Pinder did not hire glass experts He couldn’t find any Instead he hired people with leadership potential, a positive attitude, and a passion for learning the business and teaching others - The Fargo plant became a leadership training center for other Cardinal plants, and Pinder’s Responsibilities expanded to include troubleshooting and leadership coaching at other manufacturing sites III MISSION AND VISION - Before hiring anyone, Pinder had a good idea of what he wanted to create: “I wanted my employees to love to come to work every day because the work was challenging, meaningful and fun; the plant was clean and well lit, they felt like they had ownership and a say in the business, they were treated with dignity and respect” - Cardinal IG’s mission melds the business purpose with Pinder’s vison of how how that purpose will be achieved To make money, by thrilling our customers with our product and service, and by taking care of our people - The mission influences the hiring process, reward system, leadership Team control and work processes The company is intentional in keeping all traditions objectives (profitability, customers and employees) paramount and visible IV - VALUES, PRINCIPLES AND BEHAVIOUR Company values include loyalty, duty, respect, selfless service, honor integrity and personal and moral courage Values are the foundation of culture but remain abstract unless they are lived in day-to-day actions The values are future translated into specific expectations, in Cardinal’s Guiding Principles, statements that serve as a code of conduct for the way employees their work and treat one another  Safety (their #1 priority)  Quality  Service  Training  Leadership/Teamwork/Communication  Cost awareness  Respect for Others  Care for Families  Integrity  Attitude  Keep a sense of humor and have fun V LEADERSHIP THRUOGH A MULTI-LEVEL TEAM STRUCTURE - Structures is the is the process of aligning work through tasks Responsibilities Departments and divisions Cardinal IG Has a hybrid-type Structure that includes our traditional hierarchy – using basic centralized administrative functions that include accounting sales, and marketing Yet the heart of the company is an integrated team network embedded in this organizational This is a preview Do you want full access? 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Log in framework Teams operate both at the top level and within many manufacturing divisions within the plant, assuring everyone is working toward the same purpose - The sixth manufacturing divisions of the company are responsible for specialized components of production, such as glass cutting/tempering, spacer fabrication insulating glass production shipping and receiving There are three teams, each has a supervisor, in each of six categories Theme leaders serve at the front of production, managing the day-to-day operations and maintenance of the plant, and also take on a major part of the human resources functions of the employee Cardinal IG Does not have a human resource department, although it does maintain a centralized function for the technical administration of payroll and benefits to assure compliance with laws and regulations and internal consistency Duties such as hiring firing personnel problems, scheduling and training are done by the team leaders and department supervisors Pinder comments that the team leaders are considered the most crucial part of the organization - All Cardinal IG employees are considered leaders, accountable for their individual behavior and performance as team members Pinder meets with all new employees and make sure it is understood that if they choose to work at Cardinal they must meet four criteria: First be willing to work hard Second, have a good attitude Third be a team player Fourth, be willing to support the mission - The leadership training program established a Cardinal IG is extensive, continual, formal and informal It includes quarterly leadership training sessions, reinforced by the Cardinal IG Leadership Handbook Leadership development is a key part to building confidence and competent leaders and ensures a ready bench for people prepared to lead VI - A CULTURE OF DISCIPLINE AND RESPECT In the book, Good To Great (2001), Jim Collins Describes companies that outperformed others as having a “culture discipline” They had a freedom and responsibility within a defined framework, they have a fanatical adherence to doing what they best - Pinder models what it means to balance affection and discipline Stories are characteristics of Pinder’s leadership style and they contribute to Cardinal’s strong control and identity VII ETHICAL EXPECTATION - Employees are rarely terminated, but certain actions can result in dismissal First, if employers are not living up to the four criteria (Work hard, good attitude, team player, support the mission), they can be terminated Second, Pinder has no tolerance for resist or sexist comments and jokes, stealing, fighting, drugs or alcohol in the factory The balance of discipline and respect/carring of the individual team members is discussed often by the management and the team members VIII ALIGNED INCENTIVES, REWARDS, AND RECOGNITION - All employees are part of Cardinal’s profit sharing plan Cardinal IG pays their employees well but, in addition, they can receive anywhere up to 52% additional each month if they meet the target profit goal Cardinal IG in general does not advertise or recruit outside of the company for new employees - An important part of the Cardinal IG control is the award program for recognizing exceptional team members and exceptional teams Since January 2000 the company has given 140 Employee of the Month awards The new Americans received 80 those awards for 57% Employee of the Month awardees are eligible to compete for the Employee of the Year award The Employee of the Year award is presented at the company’s annual employee banquet held at the Ramada Plaza & Suites in Fargo with all employees and spouse present In the past 11 years, night of the Employee of the Year awards have been received by New Americans IX - SYNERGY THROUGH DIVERSITY Pinder’s leadership style breakthrough communication and control barriers through the universal language of love, respect and authenticity By knowing his employees, their families and their stories, he honors, their dignity and makes it a powerful force in the country and success of “the Big story” X - CONCLUSION How effective is the Cardinal IG plant in Fargo? It excels at being a great company, not just a good company The financial performance of the companies as the top performer within the organization of 29 different plants is evidence of this along with the overall success of the corporation, Cardinal Glass Industries Inc It is an exceptional plant in taking care of its employees - As we examine the company from a holistic and systems perspective it is evident many of the elements of the organization are interrelated They fit together to achieve a share gold, a great example of an organization “designed” to accomplish its purpose The elements that make this happen are the strength of its leadership, specific goals and objectives, a team-based structure, strong values and culture, and international and discipline procedures throughout the organization - The Cardinal IG plant also exemplifies ethical leadership The firm developed solid principles that are non-negotiable, such as respect for employees The firm lives and breathes its values Cardinal’s strong ethical leadership enables the company to thrive while providing it with the opportunity to become a positive force in its community B QUESTIONS How has David Pinder embraced ethical leadership to create an ethical culture at Cardinal IG? Ethical leadership is directed by respect for ethical values and beliefs and for the rights and dignity of others (Waluchow, 2003) Honesty, trust, charisma, consideration and fairness are the key attributes of ethical leadership (Avery & Bergsteiner, 2011) Significance of ethical behavior is recognized by ethical leaders and they know what their values Encouraging their followers to take leadership roles and mentoring them in the process is the uniqueness of ethical leaders (Zerbe, et al., 2008) This unique strength of ethical leaders fosters their development within the organizations Ethical leaders ensure that they develop future leaders who are 10 trained effectively to take up leadership roles whenever required They increase the 11 overall functioning of the organization ensuring large number of resources is 12 available in times of crisis and challenges (Armstrong & Stephens, 2005) David 13 Pinder embraced this unique characteristic of ethical leadership to create ethical 14 culture at Cardinal IG plant in Fargo Since the very beginning Pinder focused on 15 hiring individuals with a positive attitude, leadership potential, and a passion for 16 learning the business and teaching others, rather than hiring glass experts He just 17 emphasized on developing future leaders who values their employees’ well-being, 18 growth and development more than anything else Pinder’s vision for the 19 organization and its culture was very clear and he had a plan to develop that culture 20 and maintain it He recognized that culture of an organization plays a very vital role 21 in achieving its vision 22 Ethical leadership is directed by respect for ethical values and beliefs and for 23 the rights and dignity of others (Waluchow, 2003) Honesty, trust, charisma, 24 consideration and fairness are the key attributes of ethical leadership (Avery & 25 Bergsteiner, 2011) Significance of ethical behavior is recognized by ethical leaders 26 and they know what their values Encouraging their followers to take leadership 27 roles and mentoring them in the process is the uniqueness of ethical leaders (Zerbe, 28 et al., 2008) This unique strength of ethical leaders fosters their development within 29 the organizations Ethical leaders ensure that they develop future leaders who are 30 trained effectively to take up leadership roles whenever required They increase the 31 overall functioning of the organization ensuring large number of resources is 32 available in times of crisis and challenges (Armstrong & Stephens, 2005) David 33 Pinder embraced this unique characteristic of ethical leadership to create ethical 34 culture at Cardinal IG plant in Fargo Since the very beginning Pinder focused on 35 hiring individuals with a positive attitude, leadership potential, and a passion for 36 learning the business and teaching others, rather than hiring glass experts He just 37 emphasized on developing future leaders who values their employees’ well-being, 38 growth and development more than anything else Pinder’s vision for the 10 39 organization and its culture was very clear and he had a plan to develop that culture 40 and maintain it He recognized that culture of an organization plays a very vital role 41 in achieving its vision 42 Ethical leadership is directed by respect for ethical values and beliefs and for 43 the rights and dignity of others (Waluchow, 2003) Honesty, trust, charisma, 44 consideration and fairness are the key attributes of ethical leadership (Avery & 45 Bergsteiner, 2011) Significance of ethical behavior is recognized by ethical leaders 46 and they know what their values Encouraging their followers to take leadership 47 roles and mentoring them in the process is the uniqueness of ethical leaders (Zerbe, 48 et al., 2008) This unique strength of ethical leaders fosters their development within 49 the organizations Ethical leaders ensure that they develop future leaders who are 50 trained effectively to take up leadership roles whenever required They increase the 51 overall functioning of the organization ensuring large number of resources is 52 available in times of crisis and challenges (Armstrong & Stephens, 2005) David 53 Pinder embraced this unique characteristic of ethical leadership to create ethical 54 culture at Cardinal IG plant in Fargo Since the very beginning Pinder focused on 55 hiring individuals with a positive attitude, leadership potential, and a passion for 56 learning the business and teaching others, rather than hiring glass experts He just 57 emphasized on developing future leaders who values their employees’ well-being, 58 growth and development more than anything else Pinder’s vision for the 59 organization and its culture was very clear and he had a plan to develop that culture 60 and maintain it He recognized that culture of an organization plays a very vital role 61 in achieving its vision 11 This is a preview Do you want full access? 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Log in - Ethical leadership is directed by respect for ethical values and beliefs and for the rights and dignity of others (Waluchow, 2003) Honesty, trust, charisma, consideration and fairness are the key attributes of ethical leadership (Avery & Bergsteiner, 2011) Significance of ethical behavior is recognized by ethical leaders and they know what their values Encouraging their followers to take leadership roles and mentoring them in the process is the uniqueness of ethical leaders (Zerbe, et al., 2008) This unique strength of ethical leaders fosters their development within the organizations Ethical leaders ensure that they develop future leaders who are trained effectively to take up leadership roles whenever required They increase the overall functioning of the organization ensuring large number of resources is available in times of crisis and challenges (Armstrong & Stephens, 2005) David Pinder embraced his unique characteristic of ethical leadership to create ethical culture at Cardinal IG plant in Fargo Since the beginning, Pinder built the leadership team instead of hiring glass experts He prioritized people with leading potential, positive attitude and have passion for learning the business and teaching others Pinder’s vision for the organization and its culture was very clear and he had a plan to develop that culture and maintain it He recognized that culture of an organization plays a very vital role in achieving its vision - Ethical leadership is not just about motivating and encouraging followers but motivating them to what is right (Bonnici, 2011) Ethical leadership is not just about motivating and encouraging followers but motivating them to what is right (Bonnici, 2011) Pinder through his ethical leadership ensures that ever employee irrespective for their position or other 12 discriminations is treated with respect and dignity and they should also treat others with the same respect and dignity they receive He has zero tolerance for discrimination based on age, sex, jokes, ethnicity, culture, nationality or alcohol and drugs The non-negotiable aspects of behavior are communicated clearly to employees and have strict consequences or being terminated A team leader who was reported to make a racist joke was dismissed because racism is unacceptable in Cardinal IG workplace Pinder ensured that all employees were provided with equitable treatment, without any indication of preferential treatment towards any particular individual, from both his managers and team leaders In his leadership role, Pinder exemplified moral virtues by exhibiting transparency in sharing pertinent information about the business, practicing honesty and exhibiting loyalty to his organization Furthermore, he fostered a culture of integrity among his colleagues by inspiring them to follow his example Ethical leadership emphasizes on fostering a sense of team spirit within the organization (Fluker, 2009) Ethical leaders prioritize team and organizational goals over personal objectives, recognizing the critical significance of collective accomplishment Through their genuine efforts they ensure that both their teams and organization are benefited (Langlois, 2011) Pinder employed ethical leadership tactics in an effort to enhance collaborative efforts at the Cardinal IG establishment in Fargo Pinder underscored the importance of establishing an organizational framework from the outset to promote cohesive group functioning The enterprise established a hybrid organizational architecture that unified a conventional hierarchical structure with centrally-administered core functions such as sales, marketing, and accounting An 13 integrated team network is integrated within the organizational structure at the heart of the enterprise The individual in question established six distinct industrial sectors, each possessing a distinct set of responsibilities over specified manufacturing components Each department is managed by a supervisor who previously served as a team leader and was subsequently promoted to the position of supervisor based on their exemplary performance and perceived potential for leadership The supervisor is a salaried staff member who assumes responsibility for overseeing the operations within their respective department Pinder successfully formulated robust employment and promotion initiatives, which served to fortify his teams The aforementioned six divisions are subjected to further categorization, with each division being segmented into three distinct teams, each of which is under the purview of a designated team leader The Cardinal IG plant situated in Fargo does not maintain a distinct human resource department, owing to Pinder's belief that the supervisory and team leadership personnel are better equipped to proficiently deal with human resource-related matters due to their close proximity to the situation This statement posits that fostering a strong sense of camaraderie amongst members of a given team can lead to a reduction in bureaucratic obstacles, a guarantee of equitable treatment and heightened levels of accountability - David Pinder as an ethical leader ensures that both his people and organization benefit from his actions and efforts From the beginning, Pinder wanted to create a organization that every employee felt comfortable and close Claiming that the work is challenging, meaningful and fun, he wishes his employees were willing to work ev adherenceery day Pinder makes sure 14 This is a preview Do you want full access? 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Log in that all staff are treated with dignity and respect, and they feel like they are part of disciplined team That’s why Pinder wrote leadership philosophy before hiring anyone, and it is guidance for all what they - Pinder spreads love and discipline through his leadership style He possesses a remarkable memory for names, effortlessly recollecting the names of his team members, their kin, and their individual hobbies Additionally, he is accessible around the clock to all his staff members Workers Pinder welcomes communication with an open door policy and promptly attends to any issues He consistently stresses the importance of leadership by both coaching and providing structured education As he roams the factory, he halts to pay a visit Characteristic gestures include handshakes and hugs By maintaining regular contact, he stays attuned to the organization and is knowledgeable about its state What is the current status of the team members as individuals He expects his leadership team to meet the same standards How has Cardinal’s principles and values shaped the ethical behavior of employees? B Ethical behavior is defined as acting in ways that are consistent with what individuals and C society typically recognize as good values (Sreedharan & Wakhlu, 2010) Ethical behavior is D essential for the development of an ethical organization where every member demonstrates E respect and commitment for moral principles such as fairness, honesty, dignity, equality, F diversity and individual rights G Values are defined as essential and lasting beliefs or ideas that are shared by members of a H culture to define what is good or bad and what is acceptable or unacceptable (Erll, et al., 2008) 15 I Values play a very vital role in attitude formation and determine how people respond to J different people and situations Principles enforce values; they are the rules, ideas and beliefs K that guide individual behavior - Ethical behavior is defined as acting in ways that are consistent with what individuals and society typically recognize as good values (Sreedharan & Wakhlu, 2010) Ethical behavior is essential for the development of an ethical organization where every member demonstrates respect and commitment for moral principles such as fairness, honesty, dignity, equality, diversity and individual rights Values are defined as essential and lasting beliefs or ideas that are shared by members of a culture to define what is good or bad and what is acceptable or unacceptable (Erll,et al, 2008) Values play a very vital role in attitude formation and determine how people respond to different people and situations Principles enforce values; they are the rules, ideas and beliefs that guide individual behavior - Values and principles at Cardinal IG plant in Fargo play a vital role in shaping the ethical behavior of employees at workplace Values and principles at Cardinal IG plant in Fargo, including loyalty, duty, respect, selfless service, honor integrity and personal and moral courage, play a vital role in shaping the ethical behavior of employees at workplace The company's conduct guidelines, which encapsulate its beliefs and principles, direct staff members on appropriate behavior both in their interactions with colleagues and during work duties The statements include:  Safety: Pinder is of the opinion that nothing is more important than safety, so he aims at developing a workplace that all employees and leadership team be ensured about health and safety That’s the reason security is Cardinal’s 1st priority 16  Quality: Cardinal’s workforce always make progress in production process, pay attention on details such as washer quality, unit thickness or coating color, to make sure that all products and services they deliver to customers are flawless  Service: “Customer is God”, so they treat their customers as the most important people in the world Cardinal IG puts their customers first and always receive their feedback  Training: They develop, implement, and maintain a top-notch training program Employees are expected to be passionate about learning new skills and training others in order to develop a knowledge sharing culture  Leadership/Teamwork/Communication: The core values that underpin the success of Cardinal IG's Fargo plant are Leadership, Teamwork, and Communication Working together as a cohesive unit, the team is devoted to making Fargo IG the company's premier outpost It is anticipated that personnel display qualities of leadership, work collaboratively and express their opinions and suggestions with transparency At the core of the organizational structure of Cardinal IG plant in Fargo lies the principle of collaboration, whereby leaders are required to reinforce it by means of efficient communication and approachability  Cost awareness: The category requires all staff spend money wisely as if the money is their own They are expected to use and allocate monetary resources in an efficient manner, because any impact they make influences directly on the company  Respect for others: Treating others with dignity and fairness is one of the disciplines Pinder trains for every staff He wishes workplace would be meaningful and fun to employees, so respect is the core that makes them feel home 17 This is a preview Do you want full access? 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Log in  Care for families: Cardinal IG encourages their employees to spend time with their families and balance work accordingly Balancing work and family motivates people to work every day  Integrity: When people are in doubt, they are encouraged to the right things Trust is one of the core elements that build their long lasting relationship Integrity influences ethical behavior of employees and make them chose the right course of action  Attitude: The feelings are contagious from person to person, so employees are required to keep positive attitude Funny and exciting to work can positive atmosphere in the workplace  Keep a sense of humor and have fun: Cardinal is serious about business but have fun working, training and growing together Their target has created an ideal working environment that every staff and company towards Cardinal IG in Fargo has the most diverse workforce It hires 183 people which is made up of 55% New Americans from different countries These values and principles minimize the discrimination and show respect for every ethnicity and nationality That helps developing and maintaining an ethical culture that support the mission How has Cardinal empowered its employees to practice responsible and accountable leadership? - Ethical leaders encourage their followers to take up leadership roles and practice responsible and accountable leadership which benefit both the organization and its people (Monahan, 2012) Pinder's leadership principles at the Fargo-based Cardinal IG facility went beyond just managing employees He believed that every member of his staff possessed leadership qualities, and was responsible for their actions as well as their 18 performance when working in a team He makes certain that each new employee joining the company is accountable for fulfilling four essential criteria: being diligent, possessing a positive attitude, being a collaborative player, and supporting the mission He insists that if they decide to work at Cardinal, they must take full ownership of their decisions and ensure that they meet all four of the specified criteria Pinder has implemented a variety of consistent and comprehensive training initiatives for leadership, including both formal and informal programs that are reinforced by the use of the Cardinal IG Leadership Handbook To embody responsible and accountable leadership, managers of all levels are anticipated and coached to act as coaches and mentors for their staff members At the Fargo-based Cardinal IG facility, managers hold responsibility for the effectiveness and output of their staff, while also being responsible for their interactions with employees According to the handbook for employees, the duty of managing the organization as a collaborative unit falls on the manager As the employees operate the plant, it is his responsibility to assume the role of a coach, offering guidance and insight into the overall strategy and objectives - Pinder has placed emphasis on establishing interactive channels of communication, promoting a culture where employees can freely express their ideas and perspectives, with the aim of enhancing operational efficiencies The workers were afforded plentiful chances to fully develop their capabilities and exhibit responsible and dependable leadership Encouraging a culture that values discipline and respect has enabled staff members to take on the role of responsible and reliable leaders The workforce is granted 19 autonomy and obligation within established guidelines, for which they must answer At the Cardinal IG plant in Fargo, ethical leadership is comprised of both strict discipline and compassion Pinder advises leaders to hold their lower-level leaders accountable and responsible, but emphasizes that cultivating a loving relationship with them is crucial in achieving this When employees know they are loved they act more responsibly and accountability as they not want to let down their leaders (Fluker, 2009) Cardinal has given its employees the authority to promote responsible and accountable leadership by fostering a culture centered on both discipline and affection - T here are three teams, each with a team leader, in each of the six categor 20