What is ethical leadership? Why practice ethical leadership? When and by whom should ethical leadership be practiced? How do you practice ethical leadership? Specific components of ethical leadership Consider a dilemma: You are the director of a community-based human services organization with sites in several communities. A major funding reduction means you may no longer be able to operate all of them at the same level. Closing one site could preserve services elsewhere, but it would also affect employees, participants, partners, and a community that has relied on your organization. How do you decide? Or consider this: You learn about a grant opportunity that your organization could pursue alone or with a longtime partner. Applying alone might bring your organization more funding, while a joint proposal could support broader community work and help sustain a partner that is experiencing financial difficulty. What responsibilities do you have to your own organization, to your partner, to the funder, and to the community? These are ethical questions. They do not necessarily have one obvious answer. Ethical leadership involves both the decisions leaders make and the processes through which they make them. Whether you direct an organization, supervise a team, serve on a Board, coordinate volunteers, lead a coalition, manage a project, or exercise informal influence, your decisions can affect other people's resources, opportunities, safety, privacy, employment, services, and ability to participate. This section discusses what ethical leadership means, why it matters, and how individuals and organizations can build ethical decision-making into everyday leadership. What do we mean by ethical leadership? Ethics concerns how people decide what they ought to do when their choices affect other people, organizations, communities, or the public. Ethical decisions may involve questions of: Honesty Fairness Human dignity Rights Harm and benefit Responsibility Professional obligations Law and policy Conflicts of interest Privacy and confidentiality Stewardship of resources Accountability Public and community benefit People may draw ethical guidance from philosophy, culture, religion, professional standards, law, lived experience, organizational mission, community expectations, and other sources. These sources do not always point toward the same answer. A difficult ethical decision may involve competing responsibilities rather than a simple choice between something clearly right and something clearly wrong. Some approaches to ethical reasoning Several ways of thinking can help leaders examine an ethical problem. Consequences. Who may benefit or be harmed, and how serious are those effects? Rights and duties. What responsibilities, rights, legal obligations, professional standards, or promises apply? Fairness. Are similar situations being treated consistently? Are relevant differences being considered? Care and relationships. How will the decision affect trust, vulnerability, dependence, and relationships among the people involved? Public or community benefit. How does the decision affect the organization's mission and the people or communities it exists to serve? Professional ethics. Does a professional code, licensing obligation, fiduciary responsibility, or other standard apply? Organizational values. Is the decision consistent with the organization's stated commitments and responsibilities? No single approach answers every question. Ethical leadership often requires examining the situation from several perspectives. Law and ethics also are not identical. Something may be legally permitted but still raise serious ethical concerns. At the same time, personal beliefs or organizational values do not excuse violating legal duties. Questions for examining an ethical decision Before making a significant decision, ask: Who will be affected? Who may be affected but is not represented in the discussion? What rights, responsibilities, laws, policies, or professional standards apply? What benefits and harms are reasonably foreseeable? Who will bear the greatest burden of the decision? Do any decision-makers have a personal, financial, family, political, professional, or other conflict of interest? What information is uncertain or missing? What alternatives have we considered? Are we treating comparable situations consistently? Can we explain the reasoning honestly to the people entitled to understand it? Does any information need to remain confidential? Who has authority and accountability for the final decision? Is there a way to review or appeal the decision where appropriate? A transparency test can also be useful: Would you be able to explain the decision and the process used to reach it if the people affected asked how it was made? That does not mean every detail should be public. Personnel information, health information, investigations, legal advice, participant records, and other sensitive information may require confidentiality. Ethical leadership Ethical leadership has two closely connected parts. First, leaders should make decisions responsibly. Second, they should exercise authority responsibly in everyday practice. Ethical leadership therefore includes: Making decisions through fair and appropriate processes Treating people with dignity and respect Using authority for legitimate organizational purposes rather than personal advantage Listening to concerns and disagreement Protecting people from retaliation for appropriately raising concerns Disclosing and managing conflicts of interest Maintaining appropriate confidentiality Protecting organizational and personal information Using resources responsibly Maintaining professional and organizational competence Accepting accountability Correcting mistakes Building systems that support ethical behavior throughout the organization Ethical leadership should be evaluated through actions and systems, not only through a leader's stated intentions or personal character. Leaders will sometimes make poor decisions. Ethical leadership includes acknowledging mistakes, correcting them where possible, examining why they occurred, and changing practices that allowed them to happen. Why practice ethical leadership? There are several reasons ethical leadership is essential. Ethical leadership helps establish organizational norms. People notice how leaders respond to conflicts, mistakes, confidential information, financial pressure, complaints, and people who disagree with them. Ethical leadership can strengthen trust. Trust develops when people see consistency between stated values and actual conduct, and when decisions are made through fair and understandable processes. Ethical leadership supports credibility and accountability. Organizations that respond honestly to problems and manage conflicts responsibly are better positioned to earn confidence over time. Ethical leadership can support healthy partnerships. Partners are more likely to work together effectively when responsibilities, resources, information, and commitments are handled reliably. Ethical leadership supports a healthier organizational climate. People are better able to contribute when authority is used fairly, concerns can be raised, responsibilities are clear, and misconduct is addressed. Ethical leadership protects people and organizational resources. Good processes can reduce the risk of fraud, harassment, discrimination, retaliation, privacy violations, conflicts of interest, unsafe practices, and other harm. Ethical leadership supports the organization's mission. Community organizations depend on trust and responsible stewardship to accomplish work that affects other people's lives. Ethical leadership is part of responsible leadership itself. Authority creates obligations. The more power a role carries, the greater the responsibility to use it carefully. When and by whom should ethical leadership be practiced? Ethical responsibilities apply whenever people exercise authority or influence that affects others. That includes: Executive directors Supervisors Board members Program managers Coalition and committee leaders Volunteer coordinators Project leaders Professional staff People exercising informal leadership Ethical responsibility generally increases with a person's authority, access to information, control over resources, or ability to affect other people's employment, services, safety, rights, privacy, or opportunities. Ethical leadership becomes especially important when: Resources are scarce People may lose services, employment, or opportunities Confidential or sensitive information is involved Leaders have a personal or financial interest in the outcome Serious misconduct has been alleged Safety is involved A vulnerable or less powerful group may bear the consequences The law or professional standards impose particular duties Public trust is at stake Ethical leadership is an ongoing responsibility, but it does not mean leaders must be continuously available or personally make every decision. Organizations should distribute responsibility appropriately and create systems that continue to function when individual leaders are absent. How do you practice ethical leadership? Ethical leadership develops through practice. Individuals need judgment, but organizations also need structures that make ethical behavior easier and misconduct harder to ignore. Develop a practical ethical framework Leaders should understand the principles, obligations, and responsibilities that guide their work. These may come from: Organizational mission and values Governing documents Law and regulation Professional standards Contracts and grant requirements Community commitments Evidence and professional knowledge Ethical reflection and lived experience A useful ethical framework should help identify relevant questions without pretending that every conflict has an easy answer. Leaders should periodically reconsider their assumptions as laws, evidence, organizational responsibilities, communities, technology, and circumstances change. Align leadership with mission without treating mission as absolute The organization's mission should inform major decisions, particularly decisions about programs, funding, partnerships, and resource allocation. But mission does not excuse conduct that violates law, professional obligations, safety requirements, human dignity, financial responsibility, or other legitimate duties. If an organization's existing practices are unethical or inconsistent with its stated mission, leadership may have a responsibility to change them rather than simply preserve tradition. Make ethics part of organizational discussion Ethical questions should not appear only after a scandal or crisis. Discuss ethics when planning: Programs Partnerships Fundraising Technology Data collection Staffing Research or evaluation Public communication Community engagement Major financial decisions Encourage people to ask not only, "Can we do this?" but also, "Should we do this, under what conditions, and what responsibilities would it create?" Be appropriately transparent People affected by important decisions should generally receive enough information to understand what was decided, why, and what happens next. Transparency has limits. Leaders must also protect: Personnel information Participant records Health information Legal advice Investigation integrity Security information Other confidential information Ethical transparency means explaining what can appropriately be explained and being honest when confidentiality prevents disclosure. Connect ethical thought to action Ethical statements have little value if organizational behavior contradicts them. If an organization says retaliation is prohibited, managers should not punish people who appropriately raise concerns. If it values accessibility, meetings and services should not unnecessarily exclude people with disabilities. If it claims to value community participation, relevant community input should have a meaningful path into decisions. Create ways to question authority and raise concerns People should know how to raise ethical, legal, financial, safety, workplace, or program concerns. A useful system identifies: Where concerns may be reported What to do when the concern involves the immediate supervisor Who reviews different kinds of concerns What confidentiality can and cannot be provided How retaliation is prohibited and addressed When an issue must be referred outside the organization An informal "open door" can be useful but should not be the organization's only reporting mechanism. Build ethical leadership throughout the organization Ethical leadership should not depend on one person. Develop people who can: Recognize conflicts of interest Handle information responsibly Raise concerns Apply organizational policies fairly Exercise delegated authority Ask ethical questions about programs and decisions Take responsibility for mistakes Boards and governing bodies also have ethical responsibilities within their authority, including oversight of executive leadership, finances, conflicts, major risks, and organizational mission. Specific components of ethical leadership Manage personal interests and conflicts of interest Ethical leaders do not assume that good intentions make them immune from conflicts. A conflict may arise when a person's responsibilities to the organization intersect with: Personal financial interests Family relationships Outside employment Vendor relationships Board or political relationships Gifts or benefits Ownership interests Actual or potential conflicts should be disclosed through the organization's established process. Depending on the circumstances, the person with the conflict may need to leave the discussion, refrain from voting or deciding, or take another step required by policy or law. Consider the consequences to others and reduce unnecessary harm Many leadership decisions distribute benefits and burdens unevenly. Before making a high-impact decision, consider: Who receives the benefit? Who carries the cost? Who has the least ability to absorb that cost? Could another option reduce harm? Are short-term benefits creating long-term problems? Are we transferring risk to people who had little voice in the decision? A funding reduction may force an organization to consider layoffs, reduced hours, program cuts, waiting lists, or site closures. No option may fully avoid harm. Ethical leadership requires honest analysis of the alternatives, attention to who is affected, fair procedures, and a willingness to explain the reasoning behind the final decision. Treat people with fairness, honesty, dignity, and respect Every person has equal human worth, but fair treatment does not always mean identical treatment. A person with a disability may need an accommodation. A supervisor and a new employee may have different responsibilities. A person accused of serious misconduct may require a defined investigative process rather than the same informal conversation used for a minor misunderstanding. Ethical leaders use relevant distinctions rather than favoritism or prejudice. Use authority responsibly Leadership positions may control budgets, information, schedules, hiring, discipline, access, contracts, program decisions, or other resources. Authority should be used for legitimate organizational responsibilities, not personal status, retaliation, favoritism, intimidation, or private advantage. Sharing authority can be useful when other people have relevant expertise or responsibility, but ethical leadership also means exercising authority when necessary to protect safety, enforce legitimate standards, address misconduct, or fulfill legal and governance obligations. Maintain humility Leadership does not make someone automatically correct. Ethical leaders should be able to: Say when they do not know Ask for expert advice Admit mistakes Change a decision when new evidence warrants it Give others credit Receive disagreement without treating it as a personal attack Protect people who raise concerns People are unlikely to report wrongdoing if they reasonably expect punishment for doing so. Organizations should establish clear expectations against retaliation and take complaints seriously. Different concerns may require different channels. Financial misconduct, discrimination, harassment, safeguarding, privacy, safety, or other issues may need specialized review rather than being handled only by a direct supervisor. Address serious misconduct appropriately Ethical leadership does not mean resolving every problem privately or informally. Allegations involving matters such as: Abuse or safeguarding Harassment Discrimination Retaliation Fraud Theft Violence or threats Serious safety violations Significant privacy or data breaches may require formal reporting, investigation, legal review, disciplinary procedures, Board involvement, law enforcement, regulators, safeguarding authorities, or another appropriate process. Leaders should understand their role and avoid promising confidentiality that the organization cannot legally or practically provide. Protect privacy and confidential information Ethical leaders should not collect, access, or share sensitive information merely because their position allows them to. Organizations should determine: What information is genuinely needed Who should have access Where information may be stored When information may be shared How long it should be retained What happens when access is no longer needed Sector-specific privacy laws and professional standards may impose additional requirements. Use data and technology responsibly Technology can create ethical questions involving privacy, security, surveillance, automated decision-making, bias, accessibility, accuracy, intellectual property, and use of participant or employee data. Before adopting a significant technology or data practice, ask: What information will it collect? Who can access the information? Where will it be stored? What security risks exist? Could the system exclude or disadvantage some people? Can important decisions be reviewed by a responsible person? What happens if the system is wrong? What third parties receive organizational information? Treat other organizations ethically Partnerships, competition, fundraising, referrals, and advocacy create ethical responsibilities between organizations. Be clear about: Commitments Funding Credit and attribution Data Confidential information Conflicts of interest Responsibilities to participants What happens if the collaboration ends Ethical collaboration does not require agreeing to every partnership. Organizations should consider mission, capacity, risk, community benefit, and whether the proposed partner can meet the responsibilities involved. Communicate honestly and appropriately Ethical communication involves accuracy, clarity, timing, accessibility, and respect for confidentiality. Avoid: Deliberately misleading people Omitting important information in order to manipulate a decision Exaggerating program results Misrepresenting community support Promising confidentiality that cannot be guaranteed Sharing sensitive information with people who do not need it Communication should also be accessible to the people who need the information. Continue developing interpersonal and leadership skills Ethical intentions can be undermined by poor communication or weak leadership skills. Useful areas for continued development include: Active listening Clear spoken and written communication Giving and receiving feedback Conflict management Emotional regulation Facilitation Supervision Decision-making Cultural humility Accessibility and inclusive communication Understanding how your behavior affects other people Be cautious about assuming you can accurately determine someone's attitude or intent from eye contact, facial expression, body language, tone, or communication style alone. Practice cultural humility and inclusive leadership Ethical community leadership requires ongoing learning about the communities affected by the work. This may include: Building sustained relationships with community members and organizations Seeking direct input rather than assuming what a community needs Providing appropriate language access Understanding relevant community history Recognizing differences within communities Examining barriers to participation Questioning your own assumptions No individual can become an expert on every culture, and no community should be treated as homogeneous. Work to be inclusive and accessible Inclusion involves more than recruiting people from different backgrounds. Examine: Who has access to employment and volunteer opportunities Who receives leadership development Who receives information Who participates in decisions Whether meetings, materials, technology, and services are accessible Whether people can request accommodations Whether harassment or discrimination is addressed Whether compensation, transportation, scheduling, language, or other barriers exclude participation Take accountability seriously Leaders are accountable for the responsibilities attached to their roles. That does not mean one leader is personally responsible for every mistake made by every person in an organization. Individuals remain responsible for their own conduct and work. Leaders are responsible for matters such as: Providing appropriate supervision Establishing clear responsibilities Maintaining needed controls Responding when problems are reported Correcting known system failures Making decisions within their authority Escalating matters outside their authority When a mistake occurs, ask both who was responsible for the immediate action and whether organizational conditions made the problem more likely. Maintain and increase competence People affected by leadership decisions have a reasonable expectation that leaders understand the responsibilities they have accepted. Competence includes knowing your limits. Ethical leaders should be willing to: Obtain professional advice Delegate to people with stronger expertise Complete additional training Admit when a problem is outside their expertise Avoid accepting responsibilities they cannot perform responsibly Continuing development may include formal education, workshops, mentoring, coaching, professional reading, conferences, peer learning, after-action reviews, and reflection on experience. Document important ethical and governance decisions Some decisions require more than a verbal understanding. Depending on the situation, appropriate documentation may include: Conflict-of-interest disclosures Board decisions Financial approvals Investigation findings Corrective actions Significant risk decisions Privacy or security incidents Program changes Follow applicable requirements for retaining and eventually disposing of organizational records. Know when leadership transition is appropriate Ethical leadership includes preparing the organization to continue when current leaders change roles or leave. Long-serving leaders and founders may hold valuable history and relationships, but problems can arise when too much authority, information, or identity remains concentrated in one person. Useful practices include: Succession planning Developing other leaders Delegating meaningful responsibility Documenting critical knowledge Periodically reviewing role fit and performance Establishing transition procedures Remaining in leadership indefinitely is not automatically evidence of commitment, and leaving a role is not automatically a failure. The relevant question is what arrangement best serves the organization and its responsibilities. Review major ethical decisions and failures After a significant ethical problem, crisis, investigation, or difficult decision, review what happened. Ask: What information was available? What assumptions influenced the decision? Who was involved? Whose perspective was missing? Were conflicts of interest identified? Were concerns raised? If so, how were they handled? Did reporting and accountability systems work? Were people treated fairly? Was confidential information protected? What harm occurred? What should change? The goal is not to eliminate individual accountability. It is to learn whether policies, culture, supervision, governance, or organizational systems also need to change. Continue reexamining ethics and leadership Ethical leadership is not completed by adopting a code of ethics or attending one training. Leaders and organizations should continue asking whether their practices remain consistent with their responsibilities, whether policies are producing fair results, whether people can raise concerns safely, and whether changing circumstances require a different approach. Ethical standards should be reflected in everyday decisions as well as major crises. In Summary Ethical leadership involves both the decisions leaders make and the way they exercise authority. It requires more than good intentions or a strong personal value system. Ethical leaders consider rights, responsibilities, fairness, consequences, conflicts of interest, law, professional standards, privacy, community benefit, and the effects of decisions on people who may have less power. Ethical organizations also build systems that support responsible behavior. These may include conflict-of-interest procedures, meaningful oversight, clear decision authority, reporting channels, nonretaliation expectations, appropriate confidentiality, financial controls, data protections, accessible communication, documentation, and processes for handling serious misconduct. Ethical leadership includes humility and accountability. Leaders should be able to receive criticism, admit mistakes, correct decisions, seek expertise, disclose conflicts, and recognize when another person should exercise responsibility. Finally, ethical leadership is an ongoing organizational practice rather than a quality possessed by one unusually principled person. Strong ethical cultures combine individual judgment with governance, policies, reporting systems, fair processes, competent leadership, and the ability of people throughout the organization to raise important questions without fear. Contributor Phil Rabinowitz Resources Online Resources Brochure for student organizations at the University of Nebraska at Omaha. Community Policing Center for Ethical Leadership,a non-profit corporation based in Seattle. Consulting, training, etc., for nonprofits, schools, government, business, etc.. Center for Ethical Leadership at the LBJ School of Public Affairs at the University of Texas at Austin. “Ethical Leadership in Turbulent Times”, Darden School of Business, University of Virginia. A Powerpoint presentation summarizing several styles of leadership. A Bridge Paper of the Business Roundtable Institute for Corporate Ethics, “Developing Ethical Leadership,” R. Edward Freeman and Lisa Stewart. ERIC Digest 107, June 1996: “Ethical Leadership,” by Larry Lashway, on ethical leadership in schools. Exploring Ethical Leadership. Instruction for volunteer leaders in ethical leadership from the West Virginia University Extension Service, developed by Patricia Pinnell and Shirley Eagan. Workforce, a management journal. Five Standards of Leadership Practiced by Ethical Leaders, Editor’s Choice article on ethical leadership of companies. Print Resources Community Links, Ph. VIII, No. 3, Issue 12, Summer 2000. Fromm, E., Holt H., Holt, R., & Wiston. (1941, 1969). Escape from Freedom. New York, NY. Kidder, R. (1995). How Good People Make Tough Choices. New York, NY: William Morrow. Lucas N. Global Leadership: A Turn of the Kaleidoscope. Chapter 4 of Concepts, Challenges, and Realities of Leadership: An International Perspective. MacGregor, B., Sorenson, G., & Matusak L. (edited) Selected Proceedings from the Salzburg Seminar on International Leadership. Rawls, J. (1971). A Theory of Justice. Cambridge, Massachusetts: Belknap Press of Harvard University Press. “What Exactly Does Ethical Leadership Mean These Days?” An interview with John Hawkins, Leadership Edge, a leadership consulting firm.
