Ethical Leadership and Decision Making in Governance
Ethical Leadership and Decision Making in Governance
Decision Making in
Governance
Prepared by Group 3
Introduction
Ethical leadership and decision-making in governance mean
acting in a fair, honest, and responsible way when running an
organization, business, or government. It’s all about making
choices that benefit everyone involved, not just a select few, while
staying true to core values like integrity, accountability, and
respect.
What is Ethical Leadership?
This is about making choices that align with moral principles and
values. In governance, these decisions affect not just the
organization but also employees, customers, shareholders, and
society as a whole.
Key Principles of Ethical Decision-Making
Utilitarianism: Choosing actions that provide the greatest
good for the greatest number of people.
Deontology: Making decisions based on rules, duties, and
obligations, regardless of outcomes.
Justice: Ensuring decisions are fair and equitable, providing
equal treatment to all parties.
Key Principles of Ethical Decision-Making
Care: Considering the well-being of individuals and
addressing the needs of the vulnerable.
Respect for Autonomy: Honoring individuals’ rights and
freedoms in the decision-making process.
Ethical Challenges in Governance
Conflict of Interest: Balancing personal interests with public
or organizational responsibilities.
Resource Allocation: Deciding how to distribute limited
resources fairly and equitably.
Globalization: Navigating cultural and ethical differences in
multinational governance.
Ethical Challenges in Governance
Corruption: Combating bribery, favoritism, and unethical
influence in decision-making.
Environmental Impact: Making decisions that consider long-
term environmental sustainability.
Frameworks for Ethical Decision-Making
A. The PLUS Model
Policies: Does the decision comply with policies and regulations?
Legal: Is it lawful?
Universal: Does it align with universal ethical values like honesty
and respect?
Self: Does it satisfy personal and professional ethical standards?
Frameworks for Ethical Decision-Making
B. The Four-Way Test
1. Is it the truth?
2. Is it fair to all concerned?
3. Will it build goodwill and better relationships?
4. Will it be beneficial to all concerned?
Frameworks for Ethical Decision-Making
C. The Stakeholder Approach
New Zealand is known for being one of the least corrupt countries.
Its government focuses on honesty, openness, and making
decisions that involve and benefit its citizens.
Why Ethical Leadership Matters
Builds Trust: People feel safe supporting leaders who act ethically.
Boosts Reputation: Ethical organizations attract more customers
and employees.
Supports Long-Term Success: Acting fairly builds loyalty and
stability.
Reduces Risks: Staying ethical means fewer legal or financial
problems.
Thank you