Leadership and Business Ethics: Does It Matter? Implications for Management

• Published in: Journal of business ethics Vol. 20; no. 4; pp. 327 - 335
• Main Authors: Minkes, A. L., Small, M. W., Chatterjee, S. R.
• Format: Journal Article
• Language: English
• Published: Dordrecht Kluwer Academic Publishers 01.07.1999; D. Reidel Pub. Co; Springer Nature B.V
• Subjects: Attitudes; Boards of directors; Business ethics; Business structures; Company management; Corporate governance; Corporate responsibility; Employees; Ethical behavior; Ethical codes; Ethical dilemmas; Executives; Leadership; Management; Manager behavior; Managers; Morality; Organizations; Social ethics; Social responsibility; Stockholders; Studies; Values
• ISSN: 0167-4544; 1573-0697
• DOI: 10.1023/A:1005741524800

This paper reviews the relationship between organisational leadership, corporate governance and business ethics, and considers the implications for management. Business ethics is defined, and the causes and consequences of unethical behavior are discussed. Issues pertaining to leadership, subordinate and organisation responsibility for business ethics are considered. The changing role of business leaders and the new concept of 'corporate governance' are examined, with an increasing importance being placed on ethical and socially responsible attitudes towards business. Organisational effectiveness and organisational efficiency, formerly central issues for practising managers, with directors thinking in terms of goal achievement for their respective organisations, have now been augmented by an awareness of issues in business ethics, and a requirement for members of the corporate governance to behave in more socially responsible ways. A secondary aim of the paper is to introduce an approach which illustrates how corporate governance and management could deal with some of the moral dilemmas that they may have to face.