ABSTRACT

Much of a leader’s work has moral and ethical implications. Leadership situations often involve aspects that are characteristic of an ethical dilemma, defi ned as an apparent confl ict between moral imperatives in which obeying one would result in transgressing another. Recognizing ethical dilemmas when they occur, understanding various courses of action and their relative implications, and acting in the most appropriate manner that is consistent with core values and beliefs requires a fairly sophisticated level of moral reasoning. Thus, developing moral reasoning and ethically grounded behavior is critical for all leaders. Moral courage and ethical behavior can be strengthened through the moral development of “growing” leaders, which may ultimately depend on individual self-awareness and refl ection (May, Chan, Hodges & Avolio, 2003). The failure of moral courage and the problematic ethical standards exercised by some of the most successful companies in the world (e.g., Enron, Siemens, Worldcom) argues for greater attention to the moral development of all organizational leaders.