This chapter is essentially about moral maturity and moral development. We begin with a discussion of Kohlberg’s moral development schema, and also highlight its shortcomings. We tie his schema to the ethics-morality distinction and discuss moral regression and moral intensity.

How to develop a principled conscience is explored followed by an explanation of how the corporation is personified and thus treated as an entity apart from its employees. This has significant moral implications which are explained. We move into another factor that plays a part in our moral behavior and that is the existence of our shadow and how it serves to derail us. The moral power of authority is examined along with the results of the Milgram and Stanford Prison experiments. We conclude with a discussion of how understanding these various elements is an essential requirement of an ethical manager.