This chapter discusses the dark side of leadership and identifies seven types of toxic leaders: incompetent, rigid, intemperate, callous, corrupt, insular, and evil. It explains how leaders can cast shadows by abusing power, hoarding privileges, mismanaging information, acting inconsistently, misplacing or betraying loyalties, and failing to assume responsibilities. The chapter also examines the ethical challenges of using power and managing impressions as a leader.

1. CASTING LIGHT OR SHADOW
FIFTH EDITION
CRAIG JOHNSON
GEORGE FOX UNIVERSITY
Meeting the Ethical Challenges
of Leadership

2. © 2015 SAGE Publications, Inc.
Chapter 1. The Leaders Light or Shadow
This chapter introduces the dark (bad, toxic) side of
leadership as the first step in promoting good or
ethical leadership.
Toxic leaders can be described as those who engage in
destructive behaviors and who exhibit dysfunctional
personal characteristics.
Tyrannical leaders reach organizational goals while
abusing followers.
 Supportive-disloyal leaders care for the welfare of
subordinates at the expense of organizational goals.

3. © 2015 SAGE Publications, Inc.
Casting Shadows
Immoral leaders cast dark shadows when they
 (1) abuse power,
 (2) hoard privileges,
 (3) mismanage information,
 (4) act inconsistently,
 (5) misplace or betray loyalties, and
 (6) fail to assume responsibilities.

4. © 2015 SAGE Publications, Inc.
7 Types of Bad Leaders
Incompetent
Rigid
Intemperate
Callous
Corrupt
Insular
Evil

5. © 2015 SAGE Publications, Inc.
Incompetent
These leaders:
 Lack motivation or ability to sustain effective action
 May lack educational or emotional intelligence
 May not function well under stress

6. © 2015 SAGE Publications, Inc.
Rigid
These leaders:
 May be competent but unyielding
 Unable to accept new ideas
 Inflexible
 Do not accept new information or changing conditions

7. © 2015 SAGE Publications, Inc.
Intemperate
These leaders:
 Lack self-control
 Example of Marion Barry, Jr.
 Political career but also was cheating on his wife and
taking drugs
 Widespread corruption in his administration

8. © 2015 SAGE Publications, Inc.
Callous
These leaders are:
 Uncaring or unkind
 Ignore or downplay the needs, wants or wishes of their
followers
 May yell, berate or belittle followers

9. © 2015 SAGE Publications, Inc.
Corrupt
These leaders will:
 Lie, cheat or steal
 Put self interest ahead of public interest
 Example of United Way of America chief William
Aramony
 Used United Way funds to support his girlfriend and pay for trips
 His top officials helped him hide his spending and behavior

10. © 2015 SAGE Publications, Inc.
Insular
These leaders:
 Draw a clear boundary between the welfare of his or her
immediate group or organization and outsiders
 Example of former President Bill Clinton
 Rwandan genocide that took the lives of 800,000–1 million people
in 1994
 President Clinton was insular and did not intervene
 He later went to Rwanda to apologize

11. © 2015 SAGE Publications, Inc.
Evil
These leaders:
 Commit atrocities, using their power to inflict severe
physical or psychological harm
 Example of Foday Sankoh
 He started a civil war in Sierra Leone in 1991 and had his army kill
and rape
 His rebels chopped off limbs of innocent citizens under his
command

12. The Shadow of
Power
5 Power Bases:
6 1. Coercive Power
7 2. Reward Power
8 3. Legitimate Power
9 4. Expert Power
10 5. Referent (role
model) Power
Power is the foundation for
influence attempts.
The more power we have, the
more likely others are to comply
with our wishes.
Power comes from a variety of
sources.
Leaders typically draw on more
than one power source.
There are advantages and
disadvantages of using each
power type.

13. © 2015 SAGE Publications, Inc.
Leadership Ethics at the Movies: Lincoln
Discussion Questions based on synopsis:
 What types of power do Lincoln and Seward use to secure
passage of the 13th
amendment? Were any of these
strategies unethical?
 Did the end (the passage of the amendment) justify the
means (the use of patronage, delaying the peace process)?
 What aspects of Lincoln’s character do you admire?
What character weaknesses do you note?

14. © 2015 SAGE Publications, Inc.
“Brutal” bosses
“Brutal” bosses regularly engage in the following
behaviors:
 Deceit
 Constraint
 Coercion
 Selfishness
 Inequity
 Cruelty
 Disregard
 Deification

15. © 2015 SAGE Publications, Inc.
Power
The greater a leader’s power, the greater the
potential for abuse.
Power makes it easier for impulsive, selfish people to
pursue their goals without considering the needs of
others.
Those in power protect their positions by attacking
those they perceive as threats.
Powerful leaders are prone to biased judgments.

16. © 2015 SAGE Publications, Inc.
Wise Use of Power
Leaders consider what types of power they should
use and when and for what purposes.
Need to determine how much power to keep and
how much to give away.
Leaders must recognize and resist the dangers posed
by possessing too much power while making sure
that followers aren’t corrupted by having too little

17. © 2015 SAGE Publications, Inc.
The Shadow of Privilege
The greater the leader’s power, generally the greater
the rewards he or she receives.
Over the past 30 years, the average pay for chief
executives of large U.S. firms skyrocketed to $10.5
million (including salary, bonuses, stock, and stock
option grants).
 The typical U.S. worker now makes less, when adjusted for
inflation, than her or she did in the 1970s.

18. Leader excess
Leader excess is
not a new
phenomenon.
However, the
passage of time
hasn’t lessened the
problem but made
it worse.
There are an estimated 950
billionaires in the world, with a
combined wealth of $3.5 trillion.
 At the same time, the poorest of the
poor are deprived of such basic
necessities as food, shelter, clean water,
and health care.
 The AIDS epidemic is fueled in large
part by poverty.

19. © 2015 SAGE Publications, Inc.
The Leader’s Light or Shadow
Americans are divided over such questions as:
“How many additional privileges should leaders
have?”
“What should be the relative difference in pay and
benefits between workers and top management?”
“How do we close the large gap between the world’s
haves and have-nots?”

20. The Shadow of
Mismanaged
Information
Leaders cast shadows
not only when they lie
but also when they
mismanage information
and engage in deceptive
practices.
Unethical Leaders:
 Deny having knowledge that is in their
possession,
 Withhold information that followers
need,
 Use information solely for personal
benefit,
 Violate the privacy rights of followers,
 Release information to the wrong
people, and
 Put followers in ethical binds by
preventing them from releasing
information that others have a
legitimate right to know.

21. © 2015 SAGE Publications, Inc.
The Shadow of Mismanaged Information
Leaders must also consider ethical issues related to
the image they hope to project to followers.
 Impression management is integral to effective leadership
because followers have images of ideal leaders called
prototypes.
 Impression management can be used to reach immoral ends.

22. © 2015 SAGE Publications, Inc.
The Shadow of Mismanaged Information
Ethical impression managers:
 Meet group wants and needs, not just the needs of the
leaders,
 They spur followers toward highly moral ends, and
 Use impression management to accurately convey
information, to build positive interpersonal relationships,
and to facilitate good decisions.

23. © 2015 SAGE Publications, Inc.
The Shadow of Mismanaged Information
Unethical impression managers:
 Produce the opposite effects of ethical impression
managers,
 They subvert group wishes and lower purpose and
aspiration,
 Use dysfunctional impression management of to send
deceptive messages, to undermine relationships and to
distort information, and
 This leads to poor conclusions and decisions.

24. © 2015 SAGE Publications, Inc.
The Shadow of Inconsistency
The Leader-Member Exchange (LMX) theory is
based on the notion that leaders develop closer
relationships, with one group of followers.
 “In-Group”-High levels of trust, mutual influence, and support
characterize their exchanges with the leader.
 “Out-Group”-Expected to carry out the basic requirements of
their job.
 LMX theorists have begun to explore ways in which leaders can
develop close relationships with all of their followers.

25. © 2015 SAGE Publications, Inc.
The Shadow of Inconsistency
Issues with inconsistency
 Situational variables
 Diverse followers
 Varying levels of relationships
 Elements of the situation
 Relationships with those outside the immediate group or
organization

26. © 2015 SAGE Publications, Inc.
The Shadow of Misplaced and Broken Loyalties
Leaders must weigh a host of loyalties or duties
when making choices.
 Obligations to their families
 Their local communities
 Their professions
 The larger society
 The environment

27. © 2015 SAGE Publications, Inc.
The Shadow of Misplaced and Broken Loyalties
Loyalties can be broken as well as misplaced.
 Many of history’s villains are traitors: Judas Iscariot,
Benedict Arnold, etc.
 Leaders who violated the trust of followers: Enron
CEO Kenneth Lay, the leaders of Lehman Brothers

28. © 2015 SAGE Publications, Inc.
The Shadow of Misplaced and Broken Loyalties
Employees are often victimized by corporate betrayal
motivated by the bottom line.
 Slashing salaries and benefits
 Laying off even the most loyal workers
 Shutting down domestic plants and research facilities
 Opening new operations overseas

29. © 2015 SAGE Publications, Inc.
The Shadow of Irresponsibility
Followers: responsible for their own actions or, in
the case of a self-directed work team, for those of
their peers
Leaders: they are held accountable for the
performance of their entire department or unit
 How do we determine the extent of a leader’s
responsibility?

30. © 2015 SAGE Publications, Inc.
Shadows and Leadership
Now that we have looked at the common shadows
cast by leaders faced with ethical challenges of
leadership, it raises two questions:
 Why is it, when faced with the same ethical challenges,
that some leaders cast light and others cast shadows?
 What steps can we take as leaders to cast more light than
shadows?

31. © 2015 SAGE Publications, Inc.
Case Study: Rupert Murdoch
Discussion Questions based on this case study:
 How did leaders cast the shadow of power in this case?
 Can you think of other examples where corporate money and
influence has corrupted the political process?
 What other leadership shadows do you see cast in the phone hacking
and bribery scandal?
 Should Rupert Murdoch be held accountable for the phone hacking
and bribery scandal?
 Should there be limits on how many media outlets one company can
own?
 Should the News Corporation be prevented from purchasing more
newspapers or television networks in the United States?
 Is the scandal only a temporary, minor setback for Rupert Murdoch?

32. © 2015 SAGE Publications, Inc.
Case Study: The Gun Owner Next Door
Discussion Questions based on this case study:
 As a gun owner, how would you respond if your name and address
were published in a newspaper or on line? Would it make any
difference if this information was already available to the public?
 Did the publication of the database violate the privacy rights of gun
owners?
 Does the public have the right to know who owns guns? Would you
want to know if your neighbor owns a gun?
 By publishing the database, did the newspaper cross the line from
journalism to advocacy?
 Are there certain types of personal information that should never be
released to the public?
 Was the publication of the database ethical? Why or why not?

33. © 2015 SAGE Publications, Inc.
Case Study: Drug Compounding and the FDA
Discussion Questions:
 How much blame should be placed on the FDA for failing to prevent
the meningitis outbreak? How much responsibility belongs to the
state?
 Should FDA commissioner Hamburg have shut down the NECC
plant even though she lacked clear jurisdiction to do so? What might
have been the consequences had she done so?
 What principles should guide leaders when deciding whether or not
to act when their authority is unclear?
 Should the FDA be given more power to regulate the drug
compounding industry?
 Should doctors refuse patients who demand treatments that may not
work?

34. © 2015 SAGE Publications, Inc.
Focus on Follower Ethics
The Ethical Challenges of Followership
The Challenge of Obligation
 Fail to fulfill their minimal responsibilities
 Taking on too many obligations
 Ethical duties to outsiders

35. © 2015 SAGE Publications, Inc.
The Ethical Challenges of Followership
The Challenge of Obedience
 Cannot function if members refuse to obey orders or to
adhere to policies.
 Blindly following authority can drive followers to engage
in illegal and immoral activities that they would never
participate in on their own.
 Obeying orders is no excuse for unethical behavior.

36. © 2015 SAGE Publications, Inc.
The Ethical Challenges of Followership
The Challenge of Cynicism
 Unhealthy cynicism undermines individual and group
performance
 Followers darken the atmosphere when they become
organizational cynics
 Destroys commitment and undermines trust
 Collective performance suffers
 Cynical employees feel less identification with and
commitment to their employers while being more resistant to
change

37. © 2015 SAGE Publications, Inc.
The Ethical Challenges of Followership
The Challenge of Dissent
 Expressing disagreement is an important ethical duty of
followership
 Contribute to the shadowy environment when they fail to
speak up
 Can go too far by generating a constant stream of complaints
 Ethical followers know when to speak up and when to wait

38. © 2015 SAGE Publications, Inc.
The Ethical Challenges of Followership
The Challenge of Bad News
 Delivering bad news can sometimes cause followers to be
verbally abused, demoted, or fired.
 Failure to address serious deficiencies can destroy and
organization.
 Followers must deliver bad news and accept responsibility for
their actions.
 Need to pay close attention to how their deliver bad news.