Chapter 7: Ethical Leaders: Trust, Work–Life Abundance, and Treating Individuals as Unique

The Ethics Resource Center reports that two major drivers of ethical culture are senior executives and supervisors (Ethics Resource Center, 2012). According to the Ethics Resource Center’s 2011 National Business Ethics Survey, employee perceptions of both groups has declined, with one third of employees reporting that their managers do not display ethical behavior, the highest percentage ever reported. In addition, confidence in senior leadership was at a historic low.

Schein (1985, p. 2) stated that the “only thing of real importance that leaders do is to create and manage culture.” Prior research demonstrates that leaders influence company culture by focusing the organization’s way of thinking and taking action (Gilley, Anderson, & Gilley, 2008). However, when leaders and managers also employ an ethical focus, the result can improve the overall long-term performance of the company (Caldwell, Hayes, Karri, & Bernal, 2008; Longenecker, 1985).