Principled leadership: a framework for action

Abstract

In this chapter we address a question that is fundamental to principled leadership: How can leaders lead with their principles in organizational situations that challenge their ability to act on those principles? Principled leadership is not simply about having the right values or principles, but also about being able to act on these principles when leaders find themselves in situations that may work against those principles and values. To introduce these ideas, we offer an example that some might see as curious or even ironic: that of Kenneth Lay at Enron. Enron's recent collapse and scandalized image, along with the impending trial of its former CEO (Lay), suggest that it may not always be easy for leaders to put their principles into play. According to voluminous news reports, books, and articles about Enron, Lay's tenure with the company seemed to have been marked by his repeated attempts to communicate to both internal and external stakeholders that he was a “good” and “thoughtful” man. Likewise, he repeatedly expressed that part of his role at Enron was to guard and embody the central values of the company, namely respect, integrity, honesty, and sincerity. He claimed that, in his role of leader, he expected that Enron would reflect some of his own values and principles, particularly that of the “Golden Rule,” i.e., Enron would “treat others as we want to be treated,” and that the company had “absolute integrity” (as quoted in McLean and Elkind, 2004, p. 89).

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