Running Head: ANALYSIS OF ETHICAL LEADER’S DECISION TREE
NORTHWESTERN UNIVERSITY
Analysis of Ethical Leader’s
Decision Tree
481 DL-Leadership Assignment 1
Maria C Almacen
10/5/2013
ANALYSIS OF ETHICAL LEADER’S DECISION TREE
Table of Contents
Summary of Ethical Leader’s Decision Tree ................................................................................................ 2
Discussion of Concepts of Ethical Leader’s Decision Tree .......................................................................... 3
Appendix A ................................................................................................................................................... 4
References ..................................................................................................................................................... 5
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ANALYSIS OF ETHICAL LEADER’S DECISION TREE
Summary of Ethical Leader’s Decision Tree
The article written by Constance E. Bagley, an associate professor of business administration at
Harvard Business School, provided a simplified Ethical Leader’s Decision Tree. She finds that leaders,
most often, have difficulties in resolving conflicts or making decisions. She also declared that there
seems to be a lot of discussions on leadership ethics but still lacking in written guidelines to resolve issues
– at least ethically. In order to ease the process, Bagley (2003) shared a decision tree (as shown in
Appendix A) that leaders may refer to when faced with difficult decisions. From expansion of operations
to reduction in workforce, and all other areas in between, she hopes that the Ethical Leader’s Decision
Tree will aid leaders in answering the critical questions in decision making.
Often asked when confronted with needed decision making is the question “What is the right
thing to do?” It was suggested to always first ask whether the action is legal. If it is not legal, then
leaders are cautioned not to pursue the action.
What if legality is not the big issue? Or what if the action is legal? We then ask if it maximizes
shareholder value. If it maximizes shareholder value, we should ask whether it is ethical to move on. If it
is ethical, then we can perform the action. If it is not ethical owing to the effects on customers,
employees, community, environment, suppliers, the suggestion is not to pursue the action.
On the other hand, if it does not maximize shareholder value, we should ask if it is ethical not to
take the action by weighing the harm and cost imposed on shareholders versus the cost and benefit to
other shareholders. If it is unethical not to act, then it is suggested to take the action with disclosure to
shareholders of its effects. If it is ethical not to take the action, then it is suggested not to take action.
When money, success, power, and politics come into play, leaders sometimes forget the most
important ethical values. The ethical questions provided in the decision tree are simple and easy use.
They help the leader navigate the legal and ethical issues that come into play when making critical and
complicated decisions.
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ANALYSIS OF ETHICAL LEADER’S DECISION TREE
Discussion of Concepts of Ethical Leader’s Decision Tree
The use of ethics is vital to the organization’s survival and probably in the ultimate survival of
mankind. Without ethics when do we stop? Without ethics when do we act? An excellent leader needs
to have good ethical values. This will help him with his self-awareness. With self-awareness arises an
opportunity to improve on his beliefs and character. This will allow the leader see the importance of
upholding his core ethical values, values that define him as an individual and as a leader when dealing
with critical issues. Good ethical standards will help leaders display selflessness. These ethical standards
will promote greater awareness towards deeper caring for others, such as employees or subordinates,
customers, vendors, community, and environment at large. When a leader is fully aware of his ethical
stance, he will easily resolve conflicts and make better decisions
Whenever a leader resolves a major or minor issue, be it a marketing promotion, a budget cut,
expansion in another country, or staffing cuts, the same ethical questions posed by the Ethical Leader’s
Decision Tree can be useful. The Decision Tree can be employed in various scenarios or situations such
as the use of foul language, or obscene pictures in advertising in order to catch people’s attention. Free
speech may be allowed, but up to what extent? Regarding hospital staffing, it may be legal and beneficial
for shareholders to cut the budget even if it will compromise patients’ lives. Is it ethical not to hire more
people when leaders are aware that staffing will be tight or is already tight? Is it ethical not to act (hire) to
save more money in order to expand or upgrade the hospital? These questions may lead to hiring the
required number of people to care for patients. Is it ethical to recycle? It may not be illegal not to recycle,
but to recycle prevents harm (nonmaleficence) and benefits the (beneficence) environment. These
thought processes may direct the leader toward recycling projects. The example scenarios above may
indicate that the Ethical Leader’s Decision Tree can be utilized by leaders and even individuals to help
answer the most simple to complex decisions they have to make.
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ANALYSIS OF ETHICAL LEADER’S DECISION TREE
Appendix A
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ANALYSIS OF ETHICAL LEADER’S DECISION TREE
References
Bagley, C. (2003, 02). The ethical leader's decision tree. Retrieved 10, 2013, from
http://hbr.org/2003/02/the-ethical-leaders-decision-tree/ar/1
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