The document discusses how leadership power can become corrupted through both intentional and unintentional actions influenced by human emotions. It provides examples of how leaders may abuse their power and authority through arrogance, greed, or a threat to their control. Specifically, the document describes a personal account of a once humble leader who gradually shifted his morals and engaged in immoral acts like abusing his schedule and finding petty reasons to terminate employees. Failed leadership can have consequences like poor financial results, low employee morale, and high turnover. The health insurance company discussed as an example ultimately went under due to corrupt leadership practices.

1. Alfreda Josephine Lopez
December 8, 2013
MGT615-1304
Dr. Laura Pouge
Corruption of Power
.

2. Abstract
We discuss the role of leadership role and the many ways the role can be tainted by a
leader’s personal feeling. Although it at many times unintentional, we evaluate many ways a
leader can be swayed utilizing the various leader models and theories presented; including using
real life scenarios when this can occur.

3. Introduction
Leadership is a position that comes with major responsibilities. All actions performed by
a leader can either make or break a team. One of the most difficult things that a leader can ever
face is abusing his or her power; both through intentional and unintentional actions. There are
various ways a leader can get swayed in position due to human emotions; however a true leader
knows when to put emotional feelings aside to continuously be a leader one looks to instead of
despise due to selfish and unethical actions.
How the Foundation Can Be Rotted
Many successful CEO’s carry five important characteristics: they have a relentless
pursuit for the right team, the focus on aptitude for a “side bet”, they have a commitment to
learning, they can build a a self-reliant organization, and they have empathy for customers
(Solomon, 2013). Although this is very noble and necessary characteristics to have; depending
on a leaders ability of self-control; can lead to corruption of a leader through arrogance and
pride. One with high integrity can find it hard to believe that anyone would have the capability
of doing such a thing; especially since one in a leadership position usually is thought to set an
example to everyone on a team. The reality of it is that other motives can drive a leader to such a
situation; especially when greed, envy, or a threat to their power is involved. According to
psychologist the reason why many leaders become corrupt because of their power is the fact that
leaders delude themselves to the fact that they are working for the greater good (Ronald E.
Riggio, 2009). One prime example of this is one of my personal accounts dealing with a very
humble individual who became a leader. For the first year of leadership, this acquaintance was
very well respected and always tried to do the right thing. During my time working with him he
gradually started shifting his morale, engaging in very immoral acts; such as abusing his salary

4. schedule and coming in late to work, distributing all responsibilities so he could have free time
for personal engagements at work, and finding petty reasons for terminating employees such as
using questioning as insubordination and using clocking in at the exact scheduled shift time as a
late occurrence. The pattern that I stated to notice was that every individual who was “bullied”
showed great leadership qualities and also expressed stronger qualities that this individual once
showed. As Riggio indicates in his article; “Absolute power corrupts absolutely” (Ronald E.
Riggio, 2009).
Consequences with Leadership Corruption
Many of us have dealt with a situation when we have dealt with an unethical leader,
especially when it comes to dealing with one in absolute power. Failed leadership experiences
the following repercussions; poor financial results, no synergy, low morale from employees, and
high turnover (Kokemuller, 2013). One of the major consequences that a unethical leader will
face is no a unresponsive team of employees. This can be detrimental to the productivity of the
business and cause other conflicts including jeopardizing your leadership position.
Some of us don’t see firsthand the corruption that takes place, but many of us have seen
the ripple effect it has caused through the company. A very accurate account of this is my time
working as a claim processor for a health insurance company. To assure the privacy of the
parties involved I will not go into too much detail about situation; however the primary concern
throughout the company was that the company was so much in the hole they were purposely
trying to find reasons to not pay medically necessary claims. After a while, we began to receive
a high rate of litigation claims and state appeals regarding the denied claims, especially since
these were legitimate cases that were initially deemed medically necessary. The end
consequence was that the health insurance company went under and was bought out by another

5. health insurance company who made money due to the philanthropy and non-profit supporters
all over the nation. The ultimate price that this leader faced was finding it difficult to obtain
another leadership role due to the reputation left from their previous duties with the other
company.
Conclusion
One of the many things that we have to consider especially when we are in such power is
to assure that we keep our integrity at hand. Regardless of the power that we obtain, we must
remember where we came from and what we are representing. We represent the company as a
whole; whether we are a store manager, a district manager, or even a CEO. Our actions are
always watched and we must know that our actions can affect the company as a whole.

6. References
Kokemuller, N. (2013). Poor Leadership & Its Effects on the Staff and Company.
Retrieved from BUSINESS & ENTREPRENEURSHIP: http://yourbusiness.azcentral.com/poor-
leadership-its-effects-staff-company-21754.html
Ronald E. Riggio, P. (2009, August 9). How Power Corrupts Leaders. Retrieved from
Psychology Today : http://www.psychologytoday.com/blog/cutting-edge-
leadership/200908/how-power-corrupts-leaders
Solomon, G. (2013, March 25). 5 traits of the best growth-stage CEOs. Retrieved from
CNN Money : http://finance.fortune.cnn.com/2013/03/25/5-traits-growth-stage-ceos/