Abstract
Corporate ethical scandals, the financial and economic crisis of the past several years, and examples of misuse of power by prominent leaders have shocked the business world. They have not only called into question the role of the economic system design at large, but have also raised questions about the role of leaders in influencing ethics and ethical behavior in organizations. It is hardly controversial to state that aspects of management and leadership are crucial in determining the strategical direction and daily operations of an organization. Few would doubt that leaders are key figures in shaping ethical conduct. However, little is known about what constitutes ethical leadership. What are the relevant competencies leaders should acquire? The behavior of leaders and the extent to which they behave with moral integrity has also become a topic of high interest in the media and public discussion. Yet, many people believe that ethical leadership is simply a matter of having good character or having the “right values. “Although character and values are obviously important, the concept of ethical leadership is far more complex than those factors and there is little consensus on what precisely characterizes ethical leadership.In our contribution, we first want to highlight some typical features of the empirical and normative approaches to exploring ethical decision-making and behavior, and to sketch out how ethics and psychology can learn and benefit from each other. Second, based on previous empirical research and our own perspectives, we wish to shed light on some important components and competencies of ethical leaders. While discussing important characteristics of ethical leaders, we also aim to discover some unresolved key questions about ethical leadership. We argue that these questions reflect important points of intersection between empirical and normative approaches, and points where it appears beneficial that normative reflection comes in. These questions and their implications for the practice of moral behavior and leadership will be discussed in the final section.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Audi, R. 2010. The Place of Ethical Theorie in Business Ethics. In The Oxford Handbook of Business Ethics, ed. G.G. Brenkert and T.L. Beauchamp, 46–69. Oxford: Oxford University Press.
Bandura, A. 1986. Social foundations of thought and action: A social cognitive theory. Englewood Cliffs: Prentice Hall.
Bass, B.M., and P. Steidlmeier. 1999. Ethics, character, and authentic transformational leadership behavior. The Leadership Quarterly 10: 181–217.
Beauchamp, T.L. 2010. Relativism, Multiculturalism, and Universal Norms: Their Role in Business Ethics. In The Oxford Handbook of Business Ethics, ed. G.G. Brenkert and T.L. Beauchamp, 235–266. Oxford: Oxford University Press.
Beauchamp, T.L., and J.F. Childress. 1979/2001/2008. Principles of Biomedical Ethics, 5/6th ed. New York/Oxford: Oxford University Press.
Bleisch, B., and M. Huppenbauer. 2011. Ethische Entscheidungsfindung. Ein Handbuch für die Praxis. Zürich: Versus Verlag.
Bowie, N. 1999. Business Ethics. A Kantian Perspective. Malden: Blackwell Publishers.
Brehm, J.W.A. 1966. A theory of psychological reactance. New York: Academic.
Brown, M.E., and L.K. Treviño. 2006. Ethical Leadership: A review and future directions. The Leadership Quarterly 17: 595–616.
Brown, M.E., L.K. Treviño, and D.A. Harrison. 2005. Ethical Leadership. A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes 97: 117–134.
Ciulla, J.B. 1999. The importance of leadership in shaping business values. Long Range Planning 32: 166–172.
Ciulla, J.B. 2003. The Ethics of Leadership. Balmont: Wadsworth.
Ciulla, J.B. 2006. Ethics. The heart of leadership. In Responsible leadership, ed. T. Maak and N.M. Pless, 17–32. Oxon: Routledge.
Crane, A., and D. Matten. 2010. Business Ethics. Managing Corporate Citizenship and Sustainability in the Age of Globalization, 3rd ed. Oxford: Oxford University Press.
Damasio, A.R. 1994. Descartes' error: Emotion, reason and the human brain. New York: Harper Perennial.
Dane, E., and M.G. Pratt. 2007. Exploring intuition and its role in managerial decision making. Academy of Management Review 32(1): 33–54.
Dunfee, T.W., and T. Donaldson. 2002. Untangling the Corruption Knot. Global Bribery through the Lens of Integrative Social Contract Theorie. In The Blackwell Guide to Business Ethics, ed. N.E. Bowie. Malden/Oxford: Blackwell.
Fazio, R.H. 1990. Multiple processes by which attitude guide behavior: The mode model as an integrative framework. Advances in Experimental Social Psychology 23: 75–109.
Fraedrich, J., O.C. Ferrell, and L. Ferrell. 2011. Ethical Decision Making for Business, 8th ed. South-Western/Cengage Learning: Mason/Andover.
Freemann, R.E., J.S. Harrison, A.C. Wicks, B.L. Parmar, and S. de Colle. 2010. Stakeholder Theory. Cambridge: The State of the Art.
Gardner, W.L., B.J. Avolio, F. Luthans, D.R. May, and F.O. Walumbwa. 2005. “Can you see the real me?” A self-based model of authentic leader and follower development. The Leadership Quarterly 16: 343–372.
Goleman, D. 1995. Emotional Intelligence. New York: Bantam.
Goodpaster, K.E. 2002. Teaching and Learning Ethics by the Case Method. In The Blackwell Guide to Business Ethics, ed. N. Bowie, 117–141. Malden: Blackwell.
Haidt, J. 2001. The emotional dog and its rational tail: A social intuitionist approach to moral judgment. Psychological Review 108: 814–834.
Hanselmann, M., and C. Tanner. 2008. Taboos and conflicts in decision making: Sacred values, decision difficulty, and emotions. Judgment and Decision Making 3: 51–63.
Hogarth, R.M. 2001. Educating intuition. Chicago: University of Chicago Press.
James Jr., S.H. 2000. Reinforcing Ethical Decision Making Through Organizational Structure. Journal of Business Ethics 28: 43–58.
Kanungo, R.N. 2001. Ethical values of transactional and transformational leaders. Canadian Journal of Administrative Sciences 18: 257–265.
Kennett, J., and C. Fine. 2009. Will the Real Moral Judgment Please stand up? The Implications of Social Intuitionist Models of Cognition for Meta-ethics and Moral Psychology. Ethical Theory and Moral Practice 12: 77–96.
Kohlberg, L. 1984/2003. Moral stages and moralization: The cognitive developmental approach. In Essays on moral development, Vol. 2. The psychology of moral development: The nature and validity of moral stages, ed. L. Kohlberg, 170–205. San Franciso: Harper & Row.Langan-Fox & Shirley.
Lapsley, D.K., and D. Narvaez. 2005. The psychological foundations of everyday morality and moral expertise. In Character psychology and character education, ed. D.K. Lapsley and F.C. Power, 140–165. Notre Dame: University of Notre Dame Press.
Leisinger, K.M. 2006. On corporate responsibilty for human rights. http://www.novartisfoundation.org/. Accessed 15 July 2010.
Lennick, D., and F. Kiel. 2005. Moral Intelligence: Enhancing Business Performance and Leadership Success. Upper Saddle River: Wharton Business Press.
Loewenstein, G., and J.S. Lerner. 2003. The role of affect in decision making. In Handbook of affective sciences, ed. R.J. Davidson, K.R. Scherer, and H.H. Goldsmith, 619–642. Oxford/New York: Oxford University Press.
Lord, R.G., and D.J. Brown. 2001. Leadership, values, and subordinate self-concepts. The Leadership Quarterly 12: 133–152.
Luce, M.F., J.R. Bettman, and J.W. Payne. 1997. Choice processing in emotionally difficult decisions. Journal of Experimental Psychology: Learning, Memory, and Cognition 23: 384–405.
Maak, T., and P. Ulrich. 2007. Integre Unternehmensführung. Ethisches Orientierungswissen für die Wirtschaftspraxis. Stuttgart: Schäffer-Poeschel Verlag.
Manz, C.C., V. Anand, M. Joshi, and K.P. Manz. 2008. Emerging paradoxes in executive leadership: A theoretical interpretation of the tensions between corruption and virtuous values. The Leadership Quarterly 19: 385–392.
Marquardt, N., and R. Hoeger. 2009. The effect of implicit moral attitudes on managerial decision-making: An implicit social cognition approach. Journal of Business Ethics 85: 157–171.
Martin, D.E., and B. Austin. 2010. Moral Competency Inventory Validation: Content, Construct, Convergent and Discriminant Approaches. Management Research Review 33(5): 437–451.
May, D.R., A.Y.L. Chan, T.D. Hodges, and B.J. Avolio. 2003. Developing the moral component of authentic leadership. Organizational Dynamics 32: 247–260.
Mepham, B. 2008. Bioethics. An Introduction for the Biosciences, 2nd ed. Oxford/New York: Oxford University Press.
Metzger, M., D.R. Dalton, and J.W. Hill. 1993. The Organization of Ethics and the Ethics of Organizations: The Case for Expanded Organizational Ethics Audits’. Business Ethics Quarterly 3(1): 27–43.
Miller, D. 2008. Grundsätze sozialer Gerechtigkeit (übersetzt von Ulrike Berger). Frankfurt/New York: Campus Verlag.
Miner, M., and A. Petocz. 2003. Moral Theory in Ethical Decision Making: Problems, Clarifications and Recommendations from a Psychological Perspective. Journal of Business Ethics 42: 11–25.
Monin, B., D.A. Pizarro, and J.S. Beer. 2007. Deciding versus reactiong: Conceptions of moral judgment and the reason-affect debate. Review of General Psychology 11: 99–111.
Musschenga, A.W. 2005. Empirical Ethics, Context-Sensitivity, and Contextualism. The Journal of Medicine and Philosophy 30: 467–490.
Musschenga, A.W. 2009. Moral intuitions, moral expertise, and moral reasoning. The Journal of Philosophy of Education 43: 597–613.
Narvaez, D. 2005. The neo-Kohlbergian tradition and beyond: Schemas, expertise and character. In Nebraska Symposium on Motivation, Vol. 51: Moral motivation through the lifespan, ed. G. Carlo and C. Pope-Edwards, 119–163. Lincoln: University of Nebraska Press.
Nichols, S. 2004. Sentimental Rules: On the Natural Foundations of Moral Judgment. New York: Oxford University Press.
Palazzo, G. 2007. Organizational Integrity – Understanding the Dimensions of Ethical and Unethical Behavior in Corporations. In Corporate Ethics and Corporate Governance, ed. W.C. Zimmerli, K. Richter, and M. Holzinger, 113–128. Berlin: Springer.
Payne, L.S. 2006. A Compass for Decision making. In Responsible leadership, ed. T. Maak and N. Pless. London: Routledge.
Price, T. 2008. Leadership Ethics. An introduction. Cambrige: Cambridge University Press.
Rawls, J. 2005. Political Liberalism, expanded version. New York: Columbia University Press.
Resick, C.J., P.J. Hanges, M.W. Dickson, and J.K. Mitchelson. 2006. A cross-cultural examination of the endorsement of ethical leadership. Journal of Business Ethics 63: 345.
Rest, J.R. 1986. Moral development: Advances in research and theory. New York: Praeger.
Roberts, R. 2003. Emotions. An Essay in Aid of Moral Psychology. Cambridge: Cambridge University Press.
Russell, R.F. 2001. The role of values in servant leadership. Leadership & Organization Development Journal 22: 76–83.
Salovey, P., and J.D. Mayer. 1990. Emotional intelligence. Imagination, Cognition, and Personality 9: 185–211.
Schmidt, W.H., and B.Z. Posner. 1982. Managerial values and expectations: The silent power in personal and organizational life. New York: Amacom.
Schwartz, S.H. 1992. Universals in the content and structure of values: Theoretical advances and empirical tests in 20 countries. In Advances in experimental social psychology, vol. 25, ed. M.P. Zanna, 1–65. New York: Academic.
Sekerka, L.E., and R.P. Bagozzi. 2007. Moral courage in the workplace: moving to and from the desire and decision to act. Business Ethics: A European Review 16(2): 132–149.
Singer, M.S. 2000. Ethical and fair work behavior: A normative-empirical dialogue concerning ethics and justice. Journal of Business Ethics 28: 187–209.
Solomon, R.C. 1992. Ethics and Excellence. Cooperation and Integrity in Business. Oxford: Oxford University Press.
Solomon, R.C. 2003. Victims of Circumstances? A Defense of Virtue ethics in Business. Business Ethics Quarterly 13(1): 43–62.
Solomon, R.C. 2009. Business ethics and virtue. In A Companion to Business Ethics, ed. R.E. Frederick, 30–37. Malden: Blackwell.
Sparks, J.R., and Y. Pan. 2010. Ethical Judgements in Business Ethics Research: Definition, and Research Agenda. Journal of Business Ethics 91: 405–418.
Tanner, C., A. Brügger, S. van Schie, and C. Lebherz. 2010. Actions Speak Louder Than Words. The Benefits of Ethical Behaviors of Leaders. Journal of Psychology 218(4): 225–233.
Treviño, L.K. 2009. Business ethics and the social science. In A Companion to Business Ethics, ed. R.E. Frederick, 218–230. Malden: Blackwell.
Treviño, L.K., and M.E. Brown. 2004. Managing to be ethical: Debunking five business ethics myths. Academy of Management Executive 18(2): 69–83.
Treviño, L.K., L.P. Hartman, and M. Brown. 2000. Moral person and moral manager: How executives develop a reputation for ethical leadership. California Management Review 42: 128–142.
Treviño, L.K., G.R. Weaver, and S.J. Reynolds. 2006. Behavioral ethics in organizations: A review. Journal of Management 32: 951–990.
Van Thiel, G.J.M.W., and J.J.M. van Delden. 2010. Reflective Equilibrium as a Normative Empirical Model. Ethical Perspectives 17(2): 183–202.
Verplanken, B., and R.W. Holland. 2002. Motivated Decision Making: Effects of Activation and Self-Centrality of Values on Choices and Behavior. Journal of Personality and Social Psychology 82(3): 434–447.
Waterman, A.S. 1988. On the uses of psychological theory and research in the process of ethical inquiry. Psychological Bulletin 103(3): 283–298.
Weaver, G.R.M., and L.K. Treviño. 1994. Normative and empirical business ethics: Separation, marriage of convenience, or marriage of necessity? Business Ethics Quarterly 4(29): 129–143.
Weston, A. 2008. A 21st Century Ethical Toolbox, 2nd ed. Oxford: Oxford University Press.
Wheatley, T., and J. Haidt. 2005. Hypnotically induced disgust makes moral judgments more severe. Psychological Science 16: 780–784.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Huppenbauer, M., Tanner, C. (2014). Ethical Leadership – How to Integrate Empirical and Ethical Aspects for Promoting Moral Decision Making in Business Practice. In: Christen, M., van Schaik, C., Fischer, J., Huppenbauer, M., Tanner, C. (eds) Empirically Informed Ethics: Morality between Facts and Norms. Library of Ethics and Applied Philosophy, vol 32. Springer, Cham. https://doi.org/10.1007/978-3-319-01369-5_14
Download citation
DOI: https://doi.org/10.1007/978-3-319-01369-5_14
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-01368-8
Online ISBN: 978-3-319-01369-5
eBook Packages: Humanities, Social Sciences and LawPhilosophy and Religion (R0)