Moral Leadership in Business: The Role of Structure

TLDR: In this paper, the authors distinguish between three levels of moral leadership in business, the first, the minimal level, the second, and the third, the moral agency of the individual.

Abstract: I would like to call attention to three levels of moral leadership in business, only the second of which gener illy goes by that name. I will distinguish these levels by the profundity of the effect that the leader has upon the led, and suggest that the first and third levels of leadership are at least as important as the obvious, leader-focused kind of leading we are used to. Leadership involves (at least) influencing followers to modify their behavior in directions that suit the purposes of the leader; if such is not the case, "leadership" is not what we would call what is going on. At the minimal level, then, leadership is accomplished by creating conditions that induce people to change behavior even if nothing else changes-in short, to persuade people to do things that they do not want to do and would not do, absent those conditions. The easiest way to accomplish such persuasion is to issue rules, or orders, and enforce compliance by reward and punishment; this form of leadership we will call "rule," or "control" leadership. A next level modifies the actions by changing the dispositions to act of the actors involved, by instilling the opinions or attitudes that will result in the appropriate behavior. Such change, when deliberately brought about by an individual, is brought about by persuasion and, more importantly, by acting out the desired behavior-by precept and example, as we say. This form of leadership, most recognizable as such, we will call "inspirational" leadership. A third level modifies act and attitude by changing the actors themselves-by making it possible for them to formulate precepts of their own and act autonomously upon self-determined rules. This kind of change can only be brought about by careful support, encouragement, some coaching, but mostly, a good deal of liberty, created by conditions supplied by the leader. With luck the result of such conditions should be changed people, people who do not merely conform in behavior or thought but who are able to think their way through to a reasonable conclusion and act on their own. This kind of leadership we call "empowering" leadership. The object of the first kind of leadership is correct action, of the second, correct attitudes and belief, of the third, the full moral agency of the individual.