Moral Person and Moral Manager: How Executives Develop a Reputation for Ethical Leadership

TLDR

Executives cannot assume a reputation for ethical leadership; alternatives include unethical, hypocritical, or ethically neutral leaders whose values are not evident to employees. The article provides guidelines for cultivating a reputation for ethical leadership. Interviews with senior executives and ethics officers show that a reputation for ethical leadership rests on two pillars: visibility as a moral person and visibility as a moral manager. Developing a reputation for ethical leadership reduces legal problems and boosts employee commitment, satisfaction, and ethical conduct.

Abstract

Executives should not take a reputation for ethical leadership for granted. Based on interviews with senior executives and corporate ethics officers, this article reveals that a reputation for executive ethical leadership rests on two essential pillars: the executive's visibility as a moral person (based upon perceived traits, behaviors, and decision-making processes) and visibility as a moral manager (based upon role modeling, use of the reward system, and communication). Developing a reputation for ethical leadership pays dividends in reduced legal problems and increased employee commitment, satisfaction, and employee ethical conduct. The alternatives are the unethical leader, the hypocritical leader (who talks the talk, but doesn't walk the walk), and the ethically neutral leader (who may be an ethical person, but employees don't know it because the leader has not made ethics and values an explicit part of the leadership agenda). The article also offers guidelines for cultivating a reputation for ethical leadership.