Topic of report ethical leadership atcardinal ig the foundation of a culture ofdiversity

How has David Pinder embraced ethical leadership to create an ethical culture at Cardinal IG?...6 2.. This case study explores the main factors contributing to the Fargo plant’s success

NATIONAL ECONOMICS UNIVERSITY

-*** -INDIVIDUAL ASSIGNMENT

TOPIC OF REPORT: ETHICAL LEADERSHIP AT

CARDINAL IG: THE FOUNDATION OF A CULTURE OF

DIVERSITY.

Ha Noi, 2023

Full name : Pham Dinh Hai Ngan Student ID : 11224595

Class : International Business Management 64A Course : Business Ethics

Lecturer : Dr Nguyen Bich Ngoc

TABLE OF CONTENT

A CASE SUMMARY 3

1 Background 3

2 The Cardinal IG Story 3

3 Mission and Vision 3

4 Values, Principles, and Behavior 3

5 Leadership through A Multilevel Team Structure 4

6 A Culture of Discipline and Respect 5

7 Ethical Expectations 5

8 Aligned Incentives, Rewards, and Recognition 5

9 Synergy through Diversity 5

10 Conclusion 5

B QUESTIONS 6

1 How has David Pinder embraced ethical leadership to create an ethical culture at Cardinal IG? 6

2 How has Cardinal's principles and values shaped the ethical behavior of employees? 7

3 How has Cardinal empowered its employees to practice responsible and accountable leadership? 9

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A CASE SUMMARY

1 Background

Cardinal Glass Industries, Inc., is a corporation that specializes

in the design and manufacture of high technology insulating and solar glass, which serve customers throughout the United States, Canada, Latin America, Europe, Asia, and the Middle East

One of its manufacturing plants, Cardinal Insulating Glass (Cardinal IG) in Fargo, North Dakota, consistently outperforms all others in production efficiency and financial performance with a diverse workforce

This case study explores the main factors contributing to the Fargo plant’s success through the stories of plant manager, Dave Pinder, his leadership team, and the Cardinal IG

employees

2 The Cardinal IG Story

In 1998, Dave Pinder had been hired to start the plant from the ground up-build the new factory, hire, and train new

employees, and develop relationships with his customers He began with building the leadership team Pinder hired people with leadership potential, a positive attitude, and a passion for learning business and teaching others instead of glass experts Today, Cardinal IG operates out of a state-of-the-art 500,000 square foot facility, supplying the majority of insulating glass found in Marvin Windows 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

3 Mission and Vision

Cardinal IG’s mission melds the business purpose with

Pinder’s vision is: “To make money, by thrilling our

customers with company’s product and service, and by taking care of their employees.”

The mission influences the hiring process, reward system, leadership, team culture, and work processes The company is intentional in keeping all three mission objectives (profitability, customers, and employees) paramount and visible

4 Values, Principles, and Behavior

Company values include loyalty, duty, respect, selfless service, honor, integrity, and personal and moral courage Specifically, they manifest through:

• Safety • Quality • Service

• Training

•Leadership/Teamwork/Communication

• Respect for Others

• Cost Awareness

• Care for Families

• Integrity

• Keep a Sense of Humor and Have Fun

• Attitude

5 Leadership through A Multilevel Team Structure

Cardinal IG has a hybrid-type structure that includes a

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 framework Teams operate both at the top level and within the many manufacturing divisions within the plant, assuring everyone is working toward the same purpose The six manufacturing divisions of the company are

responsible for specialized components of production Within each of the six divisions, there are three teams, each with its own team leader

Cardinal IG does not have a human resource department Duties such as hiring, firing, personnel problems, scheduling, and training are done by the team leaders and department supervisors

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 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

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The leadership training program established at Cardinal IG is extensive, continual, formal, and informal The entire

management team continually reinforce and model teamwork, communication, and accessibility A leader always trains his or her subordinates to be ready to take over their position at any time

6 A Culture of Discipline and Respect

Jim Collins describes companies that outperformed others as having a “culture of discipline.” They have a freedom (and responsibility) within a defined framework They have a

fanatical adherence to doing what they do best Pinder featured the balance of love and discipline Stories are characteristics of Pinder’s leadership style, and they contribute to Cardinal’s strong culture and identity

7 Ethical Expectations

The nonnegotiable aspects of behavior are clear, and they are backed by consequences First, if employees are not living up to the four criteria (work hard, good attitude, team player, support the mission), they can be terminated Secondly, Pinder has zero tolerance for racist or sexist comments and jokes, stealing, fighting, drugs, or alcohol in the plant

8 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 percent 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 culture is the award

program for recognizing exceptional team members and

exceptional teams

9 Synergy through Diversity

Pinder’s leadership style breaks through communication and cultural 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 culture and success of “the Big Story.”

10 Conclusion

How effective is the Cardinal IG plant in Fargo? It excels at being a great company, not just a good company From the research collected, success is evident in several areas It

accomplishes its mission well and it is an exceptional plant in taking care of its employees

The strength of its leadership, specific goals and objectives, a team-based structure, strong values and culture, and

intentional and disciplined procedures throughout the

organization are the elements that make this company

accomplish its purpose

The Cardinal IG plant also exemplifies ethical leadership The firm developed solid principles that are nonnegotiable, such as respect for employees 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

1 How has David Pinder embraced ethical leadership to create an ethical culture at Cardinal IG?

In any organization, ethical leadership is paramount to success Integrity, respect, trust, fairness, charisma, consideration,

transparency, and honesty are the key attributes of ethical

leadership Ethical leaders understand the value of acting

ethically and are aware of their own ideals The distinctive quality

of ethical leaders is that they mentor their followers as they take

on leadership roles David Pinder used this distinctive quality of moral leadership to instill ethical values at the Cardinal IG facility

in Fargo Instead of recruiting glass experts, Pinder has prioritized selecting people with a positive attitude, leadership potential, and

a desire to learn the industry and pass that knowledge on to others He recently focused on creating future leaders that place a high importance on the welfare, advancement, and development

of their workforce Pinder had a strategy to create and uphold the organization's culture, and he had a very clear vision for it He recognized that an organization's culture is crucial to realizing its vision

Moreover, ethical leadership involves inspiring and motivating people to act right things One of the fundamental characteristics

of ethical leadership is treating subordinates with respect and dignity Through his ethical leadership, Pinder makes sure that every employee, regardless of position or other forms of

discrimination, is treated with respect and dignity He also

encourages them to show others the same respect and dignity they have been shown Discrimination based on age, sex,

ethnicity, culture, nationality, or handicap is practically never tolerated by Pinder Employees are made aware of the

non-negotiable components of behavior, which have harsh

repercussions, they may be terminated Pinder displayed extreme intolerance for fighting, stealing, drinking, or using drugs in the plant, as well as jokes and remarks that were sexist or racist

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Ethical leadership is recognized for its value driven decision-making, all decisions made are analyzed to make sure it is

consistent with the guiding principles of the organization Pinder ensures that decisions related to hiring, rewards and recognition, team culture, leadership and work process are made in a way that they align with the overall organizational values Pinder meets all newly hired employees and informs them about the four criteria they must meet if they want to work at Cardinal IG plant in Fargo: First, be willing to work hard Second, have a good and positive attitude Third, be a team player Fourth, be willing to support the mission Pinder encourages two-way communication and

initiatives He, his supervisors, and team leaders are available to employees all the time Pinder has developed several leadership training programs to develop leadership skills in his employees who will be prepared to lead when required The company's ethical culture was significantly influenced by Pinder's ethical tales As a result, Pinder has adopted ethical leadership very successfully to create a climate of discipline and respect at the Cardinal IG facility in Fargo

2 How has Cardinal's principles and values shaped the ethical behavior of employees?

Ethical behavior is defined as acting in ways that are consistent with what individuals and society typically recognize as good values It is characterized by fairness, honesty, equality in

personal, professional, and interpersonal relationships Ethical behavior respects the dignity, rights and diversity of individuals and groups Ethical behavior is essential for the development if an ethical organization where every member demonstrates respect and commitment to moral principles such as fairness, honesty, dignity, equality, diversity, and individual rights It is important that organizations define their values and moral principles before defining expected standards of ethical behavior 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 Values have a significant influence

on individual behavior towards themselves, others, and their organization Values influence an individual’s attitude and attitude influence behavior Values play an extremely important role in attitude formation because they influence how people react to various persons and circumstances Principles are the guidelines that direct a person's behavior; they impose values

Values and principles at the Cardinal IG plant in Fargo play a vital role in shaping the ethical behavior of employees at the workplace Include duty, loyalty, respect, honor, integrity, selfless service, personal and moral courage are defined as the company values in the Cardinal IG Leadership Handbook The company values are further transformed into specific expectations as specified in the Cardinal’s Guiding Principles These values and principles serve as the company code of conduct that defines the way employees are expected to perform their work and treat each other The statements that serve as code of conduct for Cardinal

IG plant in Fargo employees include:

Safety,nothing is considered more important than that, which comes first on the list of priorities, Pinder wants to provide a safe and secure environment where workers feel at ease Employees

at the Cardinal IG facility in Fargo work together as a team and are concerned for both their own safety and the safety of their coworkers

Quality, every good and service that is offered to customers

must be flawless Due to the fact that consumers are the most significant stakeholders, employees are expected to never

compromise on product or service quality

Service, customers must be treated as though they are the

most important individuals in the world when they are provided service.Employees are expected to remain customer-focused and provide their clients with the best services possible

Training, is delivered through well-developed, implemented

and maintained top-notch training programs To foster a culture of knowledge sharing, every employees expect to be enthusiastic about developing new skills and mentoring others

Leadership/Teamwork/Communication, form the foundation

of Cardinal IG plant in Fargo as it is led as a team to make Fargo

IG the flagship of the company Employees are expected to have leadership potential, work well in teams, and express their

opinions freely The organizational structure of the Cardinal IG factory in Fargo is based on teamwork, and executives are

required to further improve it through good communication and accessibility

Cost Awareness, requires all employees to spend company’s

money wisely as if it’s their own money Employees are supposed

to feel like owners of the company and to understand that any issues the company has will directly affect them They are

therefore required to utilise and distribute financial resources effectively

Respect for Others, is at the heart of company’s ethical

culture where employees are expected to treat others with dignity and fairness and also encourage other employees to do the same The greatest asset of an ethical organization is respect and dignity, which also has a significant impact on employees' ethical behavior

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