Ethical Decision-Making in Leadership

This assignment delves into the crucial role of ethical decision-making in leadership. It emphasizes the significance of 'moral imagination' as a driver of innovative thinking and ethical conduct within organizations. The text argues that while unethical practices might offer short-term gains, long-term success hinges on ethical leadership and a commitment to moral development. It uses a case study of a CEO facing pressure from a major client to engage in unethical advertising to illustrate the complexities of ethical decision-making in real-world scenarios.

Running head: ETHICAL DECISION IN LEADERSHIP
ETHICAL DECISION IN LEADERSHIP
Name of the Student
Name of the University
Author Note

1ETHICAL DECISION IN LEADERSHIP
Leadership is an important aspect to investigate the potential outcome of a situation and
understands the projected decision that effectively mitigates the adverse condition. In case of
leadership, the moral development is also important as this is the source of innovative thinking
and new skills that has impacted over the modern business scenario (Moral Imagination, 2014).
Most of the leaders follow their ancestors but innovative thinking and implementation of those
processes create a new dimension in business and that helps to upgrade the standard of the
business as well (Shapiro & Stefkovich, 2016). The research thesis statement has established
ethical and unethical ways of business understating. Desired leaders have to choose ethical ways
for enhancing their moral imagination power.
There are some situations when people had got success by unethical behavior these will
not stayed as long as the business is dealing with unethical people and collapse of this business
will come sooner. There are three things that have mentioned for getting better than competitors
are fast, smarter and cheap (Moral Imagination, 2014). Revenue generation in business is not the
ultimate way to reach ethical footsteps rather there are some adverse situation will also come due
to maintain ethical consideration and then moral development of leader is needed (Kemp, 2017).
Moral imagination is the process to think out of the box and for that reason; innovative thinking
and ethics have maintained their position in the organization (Ferrell & Fraedrich, 2015). The
argumentative nature of the leader must admire good decision taken by some of their mature
employees; there are some un-sustainability has noticed in long-term business run, thus
implement of strategic theories is important for the growth of business (Moral Imagination,
2014). Leaders and employees have to accumulate that courage to step up and say no to unethical
reasons and this is the only way to run the organization in an ethical perspective.

2ETHICAL DECISION IN LEADERSHIP
In an instance, the case of published research of journal of advertising, CEO of a major
advertising company asking to do some unethical by a major client who had 130% of the
company shares (Moral Imagination, 2014). CEO objected to the deal was unethical but on the
next day after the meeting due to the fear of losing an important client the CEO complies with
the deal. However, the employees do not comply with deal and CEO made an argument with the
client and deal was not closed though the offer was increased. The revenue of the company
decreased and then new business ideas need to be formed as the CEO has the moral imagination
that has taken placed in that situation (Moral Imagination, 2014). New business ideas are the
encouragement factor that pursued by all the employees and leaders have to acquire in the
troublesome situation of the organization. This is the only reason to make an organization make
their ground by the credibility and reputation is in intact (Cianci et al. 2014). Moral imagination
encourages the business opportunity to act more ethically and also help to analyze the situation
and act as the courageous leader to handle the situation to sustain the business. There are lots of
companies are taken this initiative and getting success in their genre and that emphasize the
power of ethical binding in business and encourage people to believe in an ethical level of
business so that company can sustain in long term business relation (Moral Imagination, 2014).
More people are afraid to taking a risk in that situation as this is the most contrasting situation
where the innovative ideas are not coming but the leaders have to create their moral imagination
for the development of an organization and state some innovative business nature that can sustain
their business reputation and marketplace (Ford & Richardson, 2013). The determination of
problems and solve those problems in an ethical dimension is the major responsibility that a
leader has to do for the professional approach building an organization. A good number of

3ETHICAL DECISION IN LEADERSHIP
trustworthy employees and ethical shareholders are important for the new business to grow and
sustain.
Therefore, it can be concluded from the above findings, that leadership courage and
moral imagination power are important for the development of the organization. Most leaders
have the ability to be creative in their particular field and they trying to be imposed that for the
development of the organization. However, the honesty in work is most important and relevant
on that occasion to evaluate the moral imagination and organizations sustainable maintenance.
Leaders are doing those things in a different manner and stating a message to their employees
and making a path for the development of the organization and establish the moral development
process.

4ETHICAL DECISION IN LEADERSHIP
References
Cianci, A. M., Hannah, S. T., Roberts, R. P., & Tsakumis, G. T. (2014). The effects of authentic
leadership on followers' ethical decision-making in the face of temptation: An
experimental study. The Leadership Quarterly, 25(3), 581-594.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson
Education.
Ford, R. C., & Richardson, W. D. (2013). Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer
Netherlands.
Kemp, S. (2017). Ethical Decision-Making in Early Childhood Education. In Responsible
Leadership and Ethical Decision-Making (pp. 95-103). Emerald Publishing Limited.
Moral Imagination (2014) UT McCombs School of Business Received from:
https://youtu.be/j6EsLpZNgC4 [Accessed on 21st November, 2017]
Shapiro, J. P., & Stefkovich, J. A. (2016). Ethical leadership and decision making in education:
Applying theoretical perspectives to complex dilemmas. Routledge.