Leadership Effectiveness: Style and Ethics

Target’s mission statement: “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less brand promise.” (target.com)

Company Profile Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates general merchandise and food discount stores in the United States. It operates as two reportable segments: Retail and Credit Card. The company offers household essentials, including electronics, music, and toys; apparel and accessories; home furnishings as well as seasonal merchandise. It also sells its merchandise under private-label brands, such as Archer Farms, etc. Target Corporation operates in-store amenities, such as Target Caféand Target Clinic as well. Its marketing strategy includes selling its products on its online shopping site Target.com and its network of

Culture is an observable, powerful force in any organization. “Made up of its members’ shared values, beliefs, symbols, and behaviors, culture guides individual decisions and actions at the unconscious level. As a result, it can have a potent effect on a company’s well-being and success” (One Page, n.d.).

Headquartered in Minneapolis Minnesota, Target Corporation is one of the largest chains of retail stores in United States and Canada (Stone, 1995). Founded in 1902, the chain now has more than 360,000 employees worldwide. The company operates nearly 1925 stores out of which 1795 stores are in the US and 130 stores are in Canada (NASDAQ, 2014). The business prides itself in a diverse portfolio of merchandise that their outlets houses, ranging from dry groceries to electronics, furniture, apparel and much more. Its distribution networks make use of third party vendors, direct shipping as well as distribution centers. It also operates a successful e-store target.com which offers customers a virtual one-stop shop for their needs.

This paper will first discuss briefly what ethics are and provide the definition for an ethical issue. An ethical leadership issue is identified and explained for this author’s practice area. We will then identify and discuss key strategies for leadership that are pertinent to the ethical issue. Next, empirical evidence which supports the strategies discussed will be analyzed. Then, the impact and importance of the strategies will be stated. The final step will be to provide a conclusion to the reader that summarizes the content and strategies.

Ethical leadership is commonly connected with characteristics like fairness and honesty, that can enable a person within an organization to do the right thing. In responding to the lack of attention to the ethical dimensions of positive leadership Brown and colleagues designed a definition for ethical leadership. They would define it as “the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships, and the promotion of such

The Target Corporation is a general merchandise retailer that opened up in in 1962 under the parent company of Dayton Corporation. This parent company was renamed the Target Corporation in 2000 and are based out of Minneapolis. There are over 1,800 Target stores throughout the United States which includes Targets and Super Targets. In 2005 Target began expansion in India and in 2011 to Canada however this expansion into Canada did not fare well and all Target Canada stores were closed by 2015. According to Forbes in 2005 they we ranked amongst the highest cash-giving companies in America with 2.1% given and they donate about 5% of its pre-tax operating profit. In 2010 Target was ranked number 22 by Fortune magazine’s World's Most Admired Companies.

“Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading figures. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization's culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Ethics are significant for all people, especially for someone in a leadership role. Frequently, some leaders turn to immoral and unethical behaviors and decisions. Defining and applying an ethical decision to a difficult situation can make a huge difference between positive and negative consequences for organizations (University of Oklahoma College of Liberal Arts, n.d.). Ethics in Leadership offers a general idea of applied ethics related to leadership situations in society and organizations. For a leader, it is a challenge to exercise power wisely, without unnecessary selfishness and keeping moral integrity. The study of ethics allows individuals to examine and view ethical issues from several prospectives, identify the problem for a better understanding, and to practice ethical thinking in developing a useful solution (University of Oklahoma College of Liberal Arts,

The Hofstede Centre (n.d.) defines culture as the “collective mental programming of the human mind which distinguishes one group of people from another.” Chipulu, Ojiako, Gardiner, Williams, Mota, Maguire, Shou, Stamai, and Marshall (2014), note that “culture can be at once tangible and observable; latent and unobservable; or even an abstraction altogether” (p. 367). Culture therefore has many dimensions. Some aspects of culture can be observed by analyzing symbols, ceremonies, dress, and other aspects. On the other hand, some aspects are not observable from the outside, but have to be experienced. Looking only from the outside gives us only a glimpse into the culture values. A large part of culture is the unwritten rules of how things are done. This part of culture is not necessarily observable to an outsider. To fully understand the cultural values of an organization, you need to be inside the organization with access to those with years of work experiences.

It is only during moral lapses and corporate scandals that interest groups and the broader public ask themselves the fundamental ethical questions, who are the managers of the organization and were they acting with the ethical guidelines. For a long time, the issue of ethics was largely ignored, with organizations focusing on profit maximization. However, this has changed, and much attention is now focused on ethics management by researchers and leaders. The issue of ethics has arisen at a time when public trust on corporate governance is low, and the legitimacy of leadership is being questioned. Leaders are expected to be the source of moral development and ethical guidance to their employees.

An effective leader is someone who is passionate about their goals and knows how to motivate, inspire, and influence others to come together and work as one to reach a common goal and conduct compelling and important changes. The realization of some kind of qualitative or quantitative result because of the actions and influences of an organizations leader is essentially how to evaluate their effectiveness. The characteristics of effectiveness, of course, depend on the goals of the leader and the organization. The fundamental characteristics of what makes an effective leader are mostly universal, however, the characteristics of leader effectiveness from one organization to another may have unique

This broader concept of ethical leadership empowers leaders to incorporate and be explicit about their own values and ethics. The following list provides a framework for developing ethical leadership. It is based on the observations of and conversations with a host of executives and students over the past 25 years, and on readings of both popular and scholarly business literature. Written from the perspective of the leader, these ten facets of ethical leaders offer a way to understand ethical leadership that is more complex and more useful than just a matter of “good character and values.”

Leadership is by all means a special talent that not all people possess. A leader must also have ethics to be effective for the long term in the corporate world. These leaders generally implement ethical programs in order to influence an organizations climate (Yukl, 2010). I will evaluate the importance of ethical leadership and the role it plays into today’s organizations. In addition, I will discuss the repercussions a company may have when its leadership allows and even rewards unethical business practices. Lastly, I will apply my personal leadership perspective. My perspective will include the path-goal theory and ethical practices that I find important to