Whether you are in human resources, corporate security, ethics and compliance or any management position, getting people to make ethical decisions is an important part of your job. Your organization’s performance and reputation depends on it. It’s up to leaders to set the tone so that ethics becomes ingrained in the company culture, but many of us don’t really understand what influences our decision making and how we can encourage ourselves and others to act ethically.

1. Ethical Leadership:
Influencing Ethical Decision Making
Judy Young, Executive Director, Rutgers Institute for Ethical Leadership
1
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

2. Judy Young
Judy Young is Executive Director, of the Rutgers
Institute for Ethical Leadership. She has more than 25
years of experience in leadership development,
organizational effectiveness, change management,
learning & development, consulting and human
resources.
Judy holds a Master’s degree in Corporate
Communication (MBA concentration), from Seton Hall
University, and a Bachelor of Arts in Communication
(English minor) from Montclair State University. Judy
earned a certificate from Rutgers University in the Mini
MBA Business Essentials Program and completed the
Executive Organizational Effectiveness Program at
Columbia University.
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

3. McFaul & Lyons Inc.
Adjunct Professor
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.
Judy Young
Mini-MBA™

4. We strengthen ethical leadership
to enhance civil society
Institute for Ethical Leadership -
Mission
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

5. Write down…
•An unethical situation you experienced…
• What happened?
• What did you do?
• What worked?
• What did not work?
• What would you do differently?
• What did you learn?
Getting started…
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

6. At the end of this session,
participants will:
1. Vote on Ethical Dilemmas
2. Discuss Why Focus on Ethical Leadership?
3. What Influences your Decision (to speak up) when
faced with an Ethical Dilemma?
4. Describe a Decision Making Model
5. Discuss Results of your votes…Ethical Dilemmas
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

7. Question 1
1. You are the BU Financial Director and the
Sales & Marketing VP wants you to report
earnings for this Quarter that are based on
sales, not revenue collected. Do you do what
the VP has asked you to do?
Yes or No
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

8. Question 2
2. Your organization is getting ready for a
Regulatory Agency site visit. Your boss asks you
to sign an attendance sheet that states you
conducted a class that you did not conduct. The
sheet is filled with employee names and false
signatures…do you sign the attendance sheet?
Yes or No
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

9. Question 3
3. Susan approaches you (her manager) and tells
you she is being sexually harassed by John.
John is your top Regional Sales Director who will
close a $250,000 deal within the next 30 days.
Do you inform Human Resources immediately?
Yes or No
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

10. Question 4
4. You are in another country and you know the
custom is to give gifts to the client you are
hoping to do business with. Your company’s
policy is not to give gifts to prospective business
clients…do you give a gift?
Yes or No
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

11. Question 5
5. You learn that your company is in the final
stages of a merger and acquisition (M&A) that
will positively affect the company’s stock price.
Do you tell family members to buy the stock?
Yes or No
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

12. Why Focus on Ethical
Leadership?
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

13. Non-profits
•American Red Cross
•Stevens Institute of
Technology
•John Paul Getty Trust
Business
•Enron
•Madoff
•Capital One
•BP
•MF Global
•GM
•NFL – Ray Rice
Government
•NJ Corruption Sweep
•NY Governor Spitzer
•NJ Governor Chrissy: Bridge-
gate, Dallas Cowboys
Education
•Sayreville HS Football Team
•Penn State
•Harvard University
•Rutgers University
Journalism
•Brian Williams
Why Focus on Ethical Leadership?
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

14. What influences your decision
to speak up when faced with an
ethical dilemma?
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.
Ethical Leadership:
Influencing Ethical Decision Making

15. You
Organizational Culture
Your Frame of Reference
Past Experiences
Fear/Courage
Your Values
Your Ethics
Your Home Situation
Your Financial Situation
The Law
Your Gut
The Stakes
What influences your decision to speak up
when faced with an ethical dilemma?
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

16. 6. Evaluate Consequences
of Decision post implementation
and engage others
7. Re-affirm the Ethical Issue and
the results of the Decision
solved, not solved re-define
Leadership
Meeting the Ethical Challenges of Leadership Craig E. Johnson, SAGE Publications, Inc . 2009
4. Evaluate Alternatives (short/long term effects)
Evaluate effect on various stakeholders/stakeholder analysis
Engage others - turn to trusted advisors to discuss (do not decide in a vacuum)
Ask Yourself… Does it comply with the organization’s values? How will this
decision make me feel about myself? Will I be proud if it is represented in the
media? Does it support my personal values?
3. Create Alternatives brainstorm
options
2. Clarify the Facts & develop a
complete understanding of the ethical
dilemma. What influences your decision
when faced with an ethical dilemma?
1. How to Recognize Is this or is this not an ethical dilemma? If so…Define the
ethical dilemma from all perspectives. Test with your Gut, Your Values, Organization
Values.
This could be an ethical dilemma or business problem – Black, White, Gray
Is the action illegal? If yes, do not proceed. Illegal what would you do? Report it…
Authorities, Human Resources, Law
5. Decide & Implement Decision
Courage, Involve all who need to be engaged
Your Personal
Values
CultureEthics
Re-define as needed
IEL’s Decision Making Process
for Ethical Dilemmas
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

17. Discuss the Results of Your
Votes: Ethical Dilemmas
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.
Ethical Leadership:
Influencing Ethical Decision Making

18. Write Down…
• One thing you will do differently…
• One thing you learned…
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

19. Sources
Brubaker, Dale L., and Larry D. Coble. The Hidden Leader : Leadership Lessons on the
Potential Within. Minneapolis: SAGE Publications, Incorporated, 2004.
Ethics Resource Center - National Business Ethics Survey: An inside view of private
sector ethics. (2007). Arlington: Ethics Resource Center, (p. ix)
Gentile, Mary. Giving Voice to Values: How to Speak Your Mind When You Know What’s
Right. New Haven and London: The McGraw-Hill Companies, Inc., 2010.
Howard, Ronald A. & Korver, Clinton D. Ethics (for the real world). Massachusetts:
Harvard Business Press, 2008.
Johnson, Craig E., Meeting the Ethical Challenges of Leadership - Casting Light or
Shadow. California: SAGE Publications, Inc, 2009.
Klein, Merom, and Napier Rod, The Courage to Act. California: Davies-Black Publishing,
a division of CPP, Inc, 2003.
© Copyright 2015 Institute for Ethical Leadership, Rutgers Business School
May not be copied or used without Permission from the Institute.

20. Thank-you for participating
If you have any questions, please feel free to
email:
Judy Young, Executive Director, Institute for Ethical Leadership,
Rutgers Business School
young@business.rutgers.edu
Joe Gerard, Vice President Marketing and Sales
j.gerard@i-sight.com