Running head: ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 1
Ethical Leadership and Ethical Decision Making
BUSI 710
Degree and Cognate: PhD and Leadership
Liberty University
Author Note
I, XXXXXXXX, have no known conflict of interest to disclose. Correspondence concerning this
article should be addressed to: XXXXXXXXX. Email: @liberty.edu
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 2
Ethical Leadership and Ethical Decision Making
Introduction
It appears that there is rarely a day that passes that an incident is reported of an individual
or organization that has violated the coveted code of ethics. Ethical leadership and ethical
decision making are essential in today’s business sector as there is increased scrutiny on the
actions and behaviors of individuals and organizations. Ethical leadership involves setting an
example and fostering an environment in which others want and desire to be a part of. This is
accomplished through ethical behavior by creating a courteous, respectful, and trustworthy
environment. Ethical decision making, on the other hand, is a product of a leader’s principles
and values of honesty, integrity, and responsibility. Ultimately, the leader who strives to conduct
themselves in an ethical manner and makes a conscious effort to make ethical decisions will
most likely develop strong relationships with customers, employees, and stakeholders that is
based on trust and respect.
Problem Statement
The problem to be addressed is the steady decline in ethical leadership and ethical
decision making over the past five years as it relates to age, generation, culture, and gender.
Research shows that leaders that are younger than 297years of age rated their leadership
behaviors below that of leaders in older age groups (Larsson, et al., 2023, p. 19). It is widely
recognized that organizational managers and leaders are the primary starting point for creating an
ethical climate within their organization” (Klopotan, et al., 2020, p. 34). A reduction in ethical
leadership and ethical decision making is not limited to an individual’s age or generation.
“One’s generation as defined by age is not always a predictor of personal value orientations or
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 3
cognitive moral reasoning, at least when considered in tandem with one’s national or geographic
culture” (Weber, & Urick, 2023, p. 129-130). A leader who lacks ethics or is making unethical
decisions can have a wide range of consequences for an organization. The short term effects can
vary from a loss of trust and confidence to decreased profits, while the long term effects can
stifle innovation and tarnish the reputation of an organization. Addressing this problem will add
to the overall understanding of the problem and will provide a simplistic and practical benefit to
any organization by enhancing brand reputation, aiding in leadership development, improving
employee morale, and reducing legal consequences.
Framework and Diagram
The four primary ethical theories are deontology, utilitarianism, rights, and virtues. It is
believed that these four primary theories fall into one of two different categories consequential or
nonconsequential ethics. The four ethical theories are uniquely different and provide a basic
understanding of ethical decision making and ethical actions. Each theory has been thoroughly
studied and researched to the point that it is universal knowledge that they all lack certain
elements and have discrepancies which prevent them from standing on their own accord and
merit.
This framework will consist of a mixture of analyzing the previously mentioned theories
as well as exploring any outlying personal or organizational factors that may contribute to what
is known and available on the topic of ethical leadership. On the surface, deontology is centered
around individuals’ duty and obligation while utilitarianism is rooted in the belief that people
choose their actions. The theory of rights is grounded in the belief that individuals have inherent
rights that are universal and apply to all and virtue theory is based on individual qualities and
character traits. Is it possible that there are many truths to each theory? Are an individual’s
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 4
culture, religion, age, or gender a mitigating factor? Does one’s personal values differ or change
when faced with an ethical situation or ethical decision while in the presence of friends or
colleagues? “In contrast, when the level of ethical leadership is low, employees may feel
confused about which values are dominant in the organization as well as how to react to the
moral issue” (Kim, Kim, & Kim, 2021, p. 3). Does training and development programs have any
bearing on ethical leadership? “Managers can create a mastery climate through providing
specific training and development programs which can facilitate employees to obtain work-
related skills, value cooperation, and identify the criteria for success and failure during task
execution. Also, managers may provide institutionalized platforms or channels for
communication and knowledge exchange” (Men et al., 2020, p. 470). Was a worldview
considered in the hypothesis when these primary theories were conducted? Does the
organizational climate play a factor and role in one’s ethical decision making? “It is the leaders
who perform the leading role in developing and preserving ethical climate in the organizations
through the introduction and application of healthy value system and morals, which results into
employee organizational commitment” (Sharma, Agrawal, & Khandelwal, 2019, p. 724).
The following is a proposed conceptual framework that reviews the theories of
deontology, utilitarianism, rights, and virtue. Personal, societal, and organizational values will
be researched. Religion, age, gender, culture, and worldview will be evaluated to see if they
have an impact on ethical leadership.
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 5
Rights
Theory
Utilitarianism
Theory
Virtue
Theory
Deontology
Theory
Values
Personal
Societal
Organizational
Age
Culture
Gender
Generation
Worldview
Ethical
Awareness Ethical Action
Ethical
Reasoning
Ethical Leadership
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 6
Research Paradigm
This study will take a pragmatism paradigm approach to conducting research and
analyzing findings. The study will review previously studied theories to understand the
influence and impact that age, gender, generation, and culture have on ethical leadership and
ethical decision making. Additionally, this research will seek answers to how organizations can
encourage ethical behavior by creating an organizational setting that is inclusive, values
diversity, encourages open and honest dialogue, and respectful feedback. Finally, the study will
maintain the primary objective of finding answers and solutions to the problems addressed to
benefit individuals, society, and organizations.
Purpose Statement
The purpose of this qualitative study is to review previous research to investigate the
factors that contribute to the decline in ethical leadership and ethical decision making as it relates
to age, generation, culture, and gender. “Researchers and analysts across the world have
observed that people with compromised ethical behaviour [sic] are likely to focus on and achieve
their personal goals and desires at the cost of organisations [sic] or corporations” (Al Halbusi, et
al., 2021, p. 160). To understand this impact, a conceptual framework has been created which
will review previous theories and will focus on personal, organizational, and societal values.
The study will seek to identify if knowledge, experience, or society leads to differences in
ethical decision making or ethical leadership behaviors. The study will also investigate if
culture, gender, or age shape the leader’s situational perception, influence the leader’s decision
making process, and affect the leader’s action or inaction to a situation. “Women are more
subservient to men and their ability to assume leadership roles are often met with challenges that
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 7
are brought about by cultural beliefs and norms” (Makhutla, Naidoo, & Rugbeer, 2021, p. 159).
Additionally, the study will seek to determine if gender has a positive or negative influence of
ethical leadership and if gender has an impact on organizational structure and organizational
values.
Significance of the Study
This study will be significant as it will add to the body of knowledge on ethical
leadership and ethical decision making. The decay of societal and corporate ethics has forced a
need to review and evaluate ethical leadership and ethical decision making. It is important to
understand the underlying or contributing factors that affect ethical leadership and ethical
decision making that have a profound effect on personnel, teams, and organizations.
Understanding the factors of ethical leadership and ethical decision making as it relates to age,
generation, culture, and gender will help create a more diverse and culturally inclusive
workplace that fosters trust through courtesy and respect and inspires innovation by respectful
communication and the sharing of knowledge.
Leaders and leadership are critical components to any organization. “Ethical leadership
has been proposed at a dyadic level where a leader demonstrates appropriate ethical conduct
through personal actions and interpersonal relationships” (Abu Bakar, & Connaughton, 2022, p.
98). A leader’s character and traits are definitive elements that contribute to the success of an
organization. Ethical decision making and ethical leadership have been known to build customer
trust and loyalty, foster employee interaction that leads to innovation and improved performance,
reduces conflict and employee turnover, and improves job satisfaction. Therefore, understanding
the factors that impact ethical decision making and ethical leadership are essential to identifying
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 8
organizational problems and pitfalls and influencing and incorporating meaningful and effective
change within an organization.
Research Question Rationale
“All good business research is guided by a comprehensive and clear set of Research
Questions” (Moore, 2021). This statement has significant meaning as the need for research into
the topic of ethical leadership and ethical decision making is long overdue. Ethical leaders are
honest and altruistic. They sincerely care about their subordinates, they set the example, and
they make fair and timely decisions (Schwepker, 2019). With the number of reported ethical
situations and violations on the rise, this research will attempt to discover some of the factors
that contribute to this increase. The research questions presented will not necessarily ask the
proverbial “how” or “why” ethical leadership and ethical decision making has declined in recent
years. Instead, the questions will resemble an inverted pyramid by being broad and overarching
(Kross, & Giust, 2019) while remaining homed in on individual characteristics such as gender,
age, generation, and culture. The objective is to see if personal characteristics have an impact on
ethics. According to Kim (2021) employees may feel confused about organizational values
when ethical leadership is low. It should be noted that the questions listed are preliminary and
may be modified or changed as the research progresses.
Qualitative Research Questions
1. Does the decline in ethical leadership differ between generation and age groups, and what
are the contributing factors of the differences?
2. Does gender affect ethical leadership and decision making, and what can be used to
address these differences?
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 9
3. Does organizational culture play a role in ethical decision making, and how do personnel
of different cultures respond to ethical challenges?
4. What are the most common ethical challenges leaders encounter, and do these challenges
vary by generation, age, gender, and culture?
5. How does weakened ethical leadership and decision making affect organizational
performance, what can be done to address the problem?
Method Rationale
Design Rationale
Design Method Rationale
Using a phenomenological and ethnographical approach can facilitate and advance
research by uncovering the experiences of managers and workers and their roles and contribution
within an organization (vom Lehn, 2019, p. 189). Additionally, a phenomenological approach
can reveal if a leader’s age, generation, culture, and gender have an impact on how a leader
interprets, manages, and resolves ethical dilemmas and challenges. An ethnographical approach
can expose how different societal and cultural differences influence ethical leadership and
decision making.
Summary
ETHICAL LEADERSHIP AND ETHICAL DECISION MAKING 10
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