Cultural and Ethical Contingencies of Leadership

The industry was now being regulated by fierce competitive forces and various external and internal challenges and this change gradually faded the distinction between moral and immoral standards.

‘Survival of the fittest’ has become the rule of the game. It became the ultimate objective of the organizations. This led to the gradual erosion of the ethical concepts which was once the building blocks for the development of organizations. One of the main causes which have led to such changes and which can be considered as an obstacle to altruism is the change in the size of business structure and in ownership pattern. At the time of inception of most of the businesses, they were mostly run by a single person. However, in the present times, most of the organizations are run by a large management body consisting of heterogeneous members belonging to disparate cultures.

This leaves them with little knowledge about the culture or the society which had given rise to the organization once. With globalization setting in, businesses have stretched outside their domestic boundaries to explore international markets. Over the years, the domain of importance for the organizations has changed from performing acts in accordance with the ethical standards to deploying strategies intended for strengthening its competitive edge. Today, stress is given on the government regulations rather than personal standards of ethics. The prime concern of today’s organizations is to maximize profitability and productivity by ensuring optimum utilization of resources. The main factor which is responsible for such erosion of moral ethics is the weakening of the link between the community and the organization arising out of it (Exhibit I). Leaders of today are found to deviate from the moral standards of society and prioritize the business needs of the organization. In the present&nbsp.scenario, the growth of an organization is fueled by the unethical practices that managers are resorting to in order to ensure higher profits from their businesses.&nbsp.