Rethinking Ethical Leadership in the C‐suite

Abstract The author is a clinical associate professor at NYU Stern School of Business, and the executive director at Ethical Systems. She writes that “behavioral ethicists agree that while leading by example is important, it’s crucial to focus on building employee capacity for ethical decision‐making. ” She further contends that “Companies… they must also manage the full spectrum of ethical commitments in practical ways. This poses particular challenges when you’re dealing with an increasingly vocal yet divided workforce. ” She also discusses the nuances of sustainability and ESG Environmental, Social, and Governance within organizational ethics. Quotes are presented from such experts as Hui Chen, “a former prosecutor who became the first in‐house compliance counsel expert in the US Department of Justice”; Klaus Moosmayer, chief ethics, risk, and compliance officer at Novartis; and Nell Minow, described as “one of the leading corporate governance specialists in the United States. ” For instance, according to Chen, “I’ve been baffled by the complete lack of interaction between the ethics and compliance community and the ESG community, because to me they’re really the same thing. ” The author concludes: “Organizations don’t just need tone at the top; they need to solicit and support awareness, accountability, and voice at all levels. ”