Ethics matters a great deal in business. MBA graduates often carry great power – and as a result great responsibility – on their shoulders. Before they head into the C-suite, someone has to teach them how to keep that power in check and refrain from letting it go to their head. Ultimately, leaders of organizations should be models of positive behavior.
Over the years, many people have debated whether business schools should carry the burden of teaching ethics to their students. Some argue that graduate business school students, who tend to be older, have already developed their own sense of morality. There’s no changing them now. But I disagree. (See my blog, “The Importance of Teaching Ethics at Business School.”)
Business professors can give students a framework for deciphering between right and wrong. Indeed, we should think of ethics as yet another skill in the toolbox of an MBA (or anyone with power for that matter). That’s why I am sharing these suggestions on ways to be an ethical leader:
Weigh the consequences of your actions
Certainly, business school students should learn how to make decisions in an ethical manner. In other words, they should consider the implications their plans have on the bottom line, but also the greater society. Many case studies at top business schools ignite the kind of debate that will spark such deliberation.
For example, a professor might bring up a case of a pharmaceutical company’s pricing strategy for a life-saving medication. Executives must consider all the usual aspects of deciding what to charge for a product. But if the medication is too expensive, some people who need it might not be able to afford it. In that case, price could influence who gets to live and who dies. Therefore, the decision makers at that company must not only think of their earnings. After all, their business serves more than one purpose; it’s not just about the money.
Consider the opinions and suggestions of others
Of course, the boss is the ultimate decider. If you’re the CEO or the top executive in your department, then you have to be willing to call the shots. But wise leaders take into consideration the advice of others and all the available data, so they can make informed decisions. They should keep an open mind about the opinions of those with whom they traditionally disagree.
Just think about the halls of government in democracies. The leader always has a board of advisors to help make big decisions on the economy, war and peace, the environment, matters of public safety, education, and so on. Ideally, these governments are made up of two or more political parties that must find ways to compromise and work together to enact and enforce the rule of law.
Your gut may serve you well. Also, your passionate stance for one side or the other might win you followers. But only after you have all the facts and expert opinions in front of you can you make an informed decision for the greater good. An ethical leader always seeks and finds as much information about a problem as possible for that very reason. Nowadays, every inch of data you could imagine is within reach, making it easier than ever to make the most responsible decisions possible.



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