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What Is the Moral Responsibility of a Business Leader?

What Is the Moral Responsibility of a Business Leader?

Business leaders cannot afford to overlook the ethical challenges posed by technological advances, as even a single misstep can be enough to undo a reputation

Online discussion boards are unique, though, in the way they make one's private side anonymous; the public side is all that's visible. People will say and view things online that they would never do in more conventional social settings. In other venues, it seems that the private/public Mackey were one and the same: His personal values (such as promoting natural foods) aligned seamlessly with his public, corporate stance. But online, he used the anonymity of the Web to follow a different set of rules. These different rules landed him in controversy.

"Character" is a key idea in ethics that relates closely to this "private/public" distinction. Often ethics is thought of as decision making according to principles and rules. But it is also true that ethics is fundamentally a matter of character, which refers to the dispositions, qualities and habits of the person who makes the decision. An ethic of character says it matters first who we are as a person; decisions and actions will follow from our character.

Integrity refers to human character that is consistent, dependable and sound. One can't act honourably in one setting and dishonourably in another, and claim to be a person of integrity. This fact explains the importance of reputation — the kind of person we are reputed to be should carry through various situations.

But what happens to character and reputation in online forums where one's private side is anonymous? Mackey seems to have thought that different rules applied there, so that he could act differently online than he did in more conventional social situations. But the widespread negative reaction to his online conduct suggests that we are not ready to assign different rules of discourse to online forums.

Business will always need to pay attention to ethics and leadership. We've learned hard lessons over the years about how best to promote ethics through exemplary leadership. But these lessons are continually challenged by new developments, including technological advances that promote new kinds of communication online. Business leaders cannot afford to overlook these challenges, as even a single misstep can be enough to undo a reputation for ethical leadership.

David Schmidt is the chief ethicist for iDNA, a strategic communications and technology company that specializes in producing corporate meetings, ethics training, orientation modules and sales training. He is also the co-author of Wake Up Calls: Classic Cases in Business Ethics, and an associate professor of business ethics at Fairfield University's Charles F Dolan School of Business.

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