LEADER ETHICAL DECISION-MAKING IN ORGANIZATIONS: STRATEGIES FOR SENSEMAKING

Abstract

Organizational leaders face environmental challenges and pressures that put them under ethical risk. Navigating this ethical risk is difficult given the dynamics of contemporary organizations, and increased awareness of ethical guidelines or moral principles appears to be insufficient for preventing misconduct. The focus of this article is on proposing and describing four strategies (emotion regulation, self-reflection, forecasting, and information integration) for leader ethical decision-making (EDM). These strategies aid leaders in making sense of complex and ambiguous ethical dilemmas, as sensemaking is the underlying process through which EDM occurs. The implications for strategy application under circumstances facing contemporary leaders are discussed.

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