Name

Institution

Alan Mulally, CEO Ford

Mulally’s Ethical behaviors have played a significant role in achieving the company’s fortune. Ethical behaviors refer to behavior that is legally and morally accepted as good and right to in most communities. Ethics refers to code of moral principles and values that direct an organization behavior with respect to what is good or evil.

Integrity is the most rated value of all values for effective leadership. The integrity of profit making and other resource allocation has been a day-to to-day practice by Mulally, which has distinguished him from the rest of the competitors. The CEO always maintains honesty, with himself and his staff. He also learns from his mistakes and corrects them instantly. He also knows clearly that he is the company’s symbol; hence he has to set an example and expect his staff to follow the same trend (Reed, 2012). The Mulally appreciates the employees’ presence since they make the company, i.e. those companies that value their workers earn a lot of profit than those that do not. Researches indicate that profitable companies have enacted several measures such as providing labor security, a better pay package, employing self-driven teams, sharing information, training employees among others and this helps in maintaining the company’s image (Ford, n.d).

Mulally has created customer loyalty, which is a key to long-term success. This is because serving existing clients does not require market cost or advertisement cost compared to looking for new ones. The company has also uphold state regulations such as obeying environmental laws, workers safety measures, labor laws, among others to avoid the time and resource wastage in law courts. As a result, the company that disobeys any state regulation can be sanctioned or even fined and this can cause profit reduction (Reed, 2012).

Mulally has made several critical decisions, and among them is when he mortgage most the company’s assets to finance a turnaround. The decision saved Ford from falling in to bankruptcy and taking a government aid in 2009. He also changed global operations, and he restructured Explorer SUV and Fiesta subcompact. Therefore, he saved employees from losing their jobs, and avoided conflicts with creditors, which would otherwise tarnish the image of the company (Durbin, 2012).

Successful company has stronger organizational behavior features such as role clarity, performance feedback and information sharing.

Durbin, D.A. (2012). Ford CEO Alan Mulally pockets $34.5 million bonus. Retrieved from http://content.usatoday.com/communities/driveon/post/2012/03/ford-ceo-alan-mulally-345-million-richer-this-week/1#.ULe4X2eCzhE

Ford. (n.d). A Word About Diversity and Inclusion from CEO Alan Mulally. Retrieved from http://corporate.ford.com/careers/diversity/mulally-diversity-message-626p?&ccode=KE

Reed, T. (2012). 6 Leadership Tips From Ford CEO Alan Mulally. Retrieved from http://www.thestreet.com/story/11480044/1/6-leadership-tips-from-ford-ceo-alan-mulally.html