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CHAPTER 6: COURAGE AND MORAL LEADERSHIP 167

Exhibit 6.1 Comparing Unethical Versus Ethical Leadership

The Unethical Leader The Ethical Leader
Is arrogant and self-serving Possesses humility
Excessively promotes self-interest Maintains concern for the greater good
Practices deception Is honest and straightforward
Breaches agreements Fulfills commitments
Deals unfairly Strives for fairness
Shifts blame to others Takes responsibility
Diminishes others’ dignity Shows respect for each individual
Neglects follower development Encourages and develops others
Withholds help and support Serves others
Lacks courage to confront unjust acts Shows courage to stand up for what is right

Source: Based on Donald G. Zauderer, “Integrity: An Essential Executive Quality,” Business Forum (Fall 1992),
pp. 12–16.

and promoting his own favored executives rather than basing advancement on
merit. 17
Unethical leaders tend to take all the credit for successes, but they blame
others when things go wrong. By taking credit for followers’ accomplishments,
failing to allow others to have meaningful participation in decision making,
and generally treating people with discourtesy and disrespect, they diminish the
dignity of others. They see followers as a means to an end, and they show little
concern for treating people as individuals or helping followers develop their own
potential. Whereas ethical leaders serve others, unethical leaders focus on their
own personal needs and goals.
Finally, one of the primary ways leaders contribute to an unethical and po-
tentially corrupt organization is by failing to speak up against acts they believe
are wrong. A leader who holds his tongue in order to “fi t in with the guys” when
colleagues are telling sexually offensive jokes is essentially giving his support for
that type of behavior. If a leader knows someone is being treated unfairly by a
colleague and does nothing, the leader is setting a precedent for others to behave
unfairly as well. Peers and subordinates with lax ethical standards feel free to act
as they choose. It is often hard to stand up for what is right, but this is a primary
way in which leaders create an environment of integrity.

Acting Like a Moral Leader
Many leaders forget that business is about values, not just economic performance.

Moral leadership doesn’t mean ignoring profit and loss, stock price, production
costs, and other hard measurable facts. But it does require recognizing the im-
portance of moral values, human meaning, quality, and higher purpose. Henry
18
Ford’s century-old comment seems tailor-made for today’s poor ethical climate:
“For a long time people believed that the only purpose of industry was to make a
profi t. They are wrong. Its purpose is to serve the general welfare.” 19
Despite the corporate realities of greed, competition, and the drive to achieve
goals and profi ts, leaders can act from moral values and encourage others to
develop and use moral values in the workplace. The single most important fac-
tor in ethical decision making in organizations is whether leaders show a com-
mitment to ethics in their talk and especially their behavior. Employees learn