Abstract
This paper reviews the relationship between organisational leadership, corporate governance and business ethics, and considers the implications for management. Business ethics is defined, and the causes and consequences of unethical behavior are discussed. Issues pertaining to leadership, subordinate and organisation responsibility for business ethics are considered. The changing role of business leaders and the new concept of 'corporate governance' are examined, with an increasing importance being placed on ethical and socially responsible attitudes towards business. Organisational effectiveness and organisational efficiency, formerly central issues for practising managers, with directors thinking in terms of goal achievement for their respective organisations, have now been augmented by an awareness of issues in business ethics, and a requirement for members of the corporate governance to behave in more socially responsible ways. A secondary aim of the paper is to introduce an approach which illustrates how corporate governance and management could deal with some of the moral dilemmas that they may have to face.
Similar content being viewed by others
References
Allinson, Robert E.: 1993, Global Disasters: Inquiries into Management Ethics (Prentice Hall, Simon and Schuster, Asia, Singapore).
Allinson, Robert E.: 1995, 'A Call for Ethicallycentered Management' Academy of Management Executive 9(1).
Badaracco, Jr. Joseph L.: 1989, Leadership and the Quest for Integrity (Harvard Business School Program, Boston, Mass).
Badaracco, Jr. Joseph L.: 1995, Business Ethics Roles and Responsibilities (Irwin, Chicago).
Bennis W. and B. Nannus: 1985, Leaders: The Strategies for Taking Charge (Harper & Row, New York). p. 186.
Bosch, Henry: 1996, 'Speech to the Institute of Chartered Accountants (W A Branch)' (University of Western Australia), 14 June, 1996.
Crainer, Stuart (ed.): 1995, The Financial Times Handbook of Management (Pitman, London).
De George, Richard T.: 1995, Business Ethics, 4th ed. (Prentice-Hall, Englewood Cliffs, NJ).
Donaldson J.: 1989, Key Issues in Business Ethics (Academic Press, London).
Hitt, W. D.: 1990, Ethics and Leadership: Putting Theory into Practice (Battelle Press, Columbus).
Kanter, Rosabeth M.: 1977, Men and Women of the Corporation (Basic Books, New York).
Kanter, Rosabeth M.: 1989, When Giants Learn to Dance (Simon and Schuster, London), p. 362.
Kouzes J. M. and B. L. Posner: 1987, The Leadership Challenge (Jossey-Bass, San Francisco).
Kouzes J. M. and B. L. Posner: 1992, 'Ethical Leaders: An Essay about Being in Love' Journal of Business Ethics 11, 479–484.
Machiavelli, N.: 1532/1949, The Prince (Oxford University Press, London).
Metzger M. D., R. Dalton and J. W. Hill: 1993, 'The Organisation of Ethics and The Ethics of Organisations' Business Ethics Quarterly 3(1), 27–35.
Minkes, A. L.: 1987, The Entrepreneurial Manager: Decisions, Goals and Business Ideas (Penguin, Harmondsworth).
Minkes, A. L. and C. S. Nuttall: 1985, Business Behaviour and Management Structure (Croom Helm, London).
Mitchell, R.: 1987, 'Jack Welch: How good a Manager?' Business Week, 14 December, pp. 92–103.
Murphy P.: 1989, 'Creating Ethical Corporate Structures' Sloan Management Review 30(2) (Winter), pp. 81–87.
Pastin, M.: 1986, The Hard Problems of Management: Gaining the Ethics Edge (Jossey-Bass, Los Angeles).
Pinchot, G.: 1992, 'Can We Afford Ethics?' Executive Excellence 9(3) (March), pp. 3–4.
Reidenbach, R. E. and D. P. Robin: 1991, 'A Conceptual Model of Corporate Model Development, Journal of Business Ethics 10, pp. 273–284.
Rosow, Jerome M. (ed.): 1987, Views from the Top: Establishing the Foundation for the Future Business (Sphere Books, London, First published by Facts on File Publications: 1985), see pp. 166–167 and p. 185.
Small, M. W. (ed.): 1995, 'Research on Business and Public Sector Ethics: An Australasian Perspective' Journal of Business Ethics 14(8) (August).
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Minkes, A.L., Small, M.W. & Chatterjee, S.R. Leadership and Business Ethics: Does It Matter? Implications for Management. Journal of Business Ethics 20, 327–335 (1999). https://doi.org/10.1023/A:1005741524800
Issue Date:
DOI: https://doi.org/10.1023/A:1005741524800