Running head: MORAL ROLES IN LEADERSHIP EFFEECTIVENESS 1

The role of moral capacity, courage, and resiliency in leadership effectiveness

Elizabeth A. Sweigart

The Chicago School of Professional Psychology

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The role of moral capacity, courage, and resiliency in leadership effectiveness

In making the case for joining management and leadership together conceptually,

Mintzberg (2011) emphasized that there is no such thing as a flawless manager. All managers are

flawed, but can be successful as long as the flaw is not fatal under the circumstances (Mintzberg,

2011). Nowhere is this point more salient than in the study of management, leadership, and

morality. Leaders set the moral and ethical tone at the top and an organization and that becomes

its climate and culture (Day, Harrison, & Halpin, 2009). As such, moral capacity, courage, and

resiliency—all components of moral and ethical action—are integral to a leader's effectiveness

(Day et al., 2009).

Day et al. (2009) postulate that leadership development has an expansive timeline from

the early teenage years through to nearly end of life and that during this time, individuals gain

"leadership knowledge, skills, abilities, and mental models" (p. 31), including self-identity, self-

awareness, and moral judgment, or the ability to distinguish "morally ideal behavior" (p. 74).

Examples of immoral leadership in both business and government abound—from the Enron to

the Fat Leonard scandals—proving that corruption in organizations is detrimental to employees,

the general public, the capital markets, and many other stakeholders (Arbogast, 2008; Whitlock,

2006; Day et al., 2009).

Moral capacity

Moral capacity means the ability of a leader to be consistently ethical (Day et al., 2009).

Over time, however, if a leader becomes enthrall to one or more temptations to behave in an

unethical or immoral fashion in order to obtain rewards or avoid punishments, they can become

"embedded in corruption" (Day et al., 2009, p. 78). An example in my own career is the

embezzlement at the Episcopal Diocese of Texas (Bardwell, 2005). Although the Treasurer of the
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diocese appeared to be a moral actor in all aspects of his life, "socialization, and in particular, the

reciprocal processes of cooptation, incrementalism, and compromise" (Day et al., 2009, p. 78),

somehow drove him to corruption.

I learned many valuable lessons from the Treasurer that I still apply in my work and

career today. In many ways, he was a visionary and compassionate executive who taught me how

to manage the expectations of far more senior personnel, handle challenging discussions with

boards of directors, and see beyond the numbers on the financial statement to understand the

story behind them. Ultimately, he was successful as a guidepost for me, but not as a leader,

mentor, or role model. He could point the way, but he could not go on the journey himself.

Moral courage

Moral courage is the emotional strength to do the ethical thing even when an individual is

under pressure to do the opposite (Day et al., 2009). The Enron scandal provides a strong

rationale for considering moral courage a critical element of a leader's ability to be effective

(Arbogast, 2008). In the case of the downfall of Enron, numerous high-level executives within

the organization were complicit in falsifying records, misleading government regulators, and

lying to Wall Street analysts, among many other ethical, legal, and regulatory violations

(Arbogast, 2008). At every stage, these executives—individually and collectively—had an

opportunity to blow the whistle, but did not do so until the crisis within the company was so out

of control that its discovery was inevitable (Arbogast, 2008).

Within Enron, there were examples of leaders rationalizing corrupt behavior away by

creating self-serving ideologies and essentially gas lighting themselves (Day et al., 2009;

Arbogast, 2008). Similarly, the emphasis on winning at any cost aligned with outsized rewards

contributed to a corrupt climate (Day et al., 2009; Arbogast, 2008). Moral courage is critical for
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effective leadership because it lays the foundation for a culture that can withstand assaults to its

values and ethics (Day et al., 2009).

Moral resiliency

Moral resiliency means the ability of an individual to rebound and demonstrate agility

when confronted with adversity that could drive unethical behavior (Day et al., 2009). There may

be instances in an organization where setbacks erode morale or confidence in the ability of an

individual or team to achieve an objective or outcome. A leader's ability to continue to

demonstrate ethical and moral behavior in the face of these obstacles is key to their effectiveness.

An example of moral resiliency contributing to leadership effectiveness is the Fat Leonard

scandal (Whitlock, 2016).

In 2016, the US Navy uncovered and began prosecuting a major corruption scandal that

had been ongoing for many years (Whitlock, 2016). Known as Fat Leonard, because of the

nickname given to the defense contractor at the center of the case, the scandal showed how

quickly and easily corruption could be institutionalized, rationalized, and socialized—even in an

organization with high standards of values and ethics (Whitlock, 2016). In the end, it was the

moral resiliency of the leaders within the Navy Criminal Investigation Service (NCIS) who kept

pressure on senior officers, were not intimidated by threats and witness tampering, and believed

that the case was winnable, that led to its successful outcome for the US Government (Whitlock,

2016). These NCIS leaders demonstrated the key role that moral resiliency plays in leadership

effectiveness (Whitlock, 2016; Day et al., 2009).

Conclusion

As demonstrated by the Diocese of Texas, Enron, and Fat Leonard scandals, moral

capacity, courage, and resiliency each play a vital role in leadership effectiveness (Bardwell,
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2005; Arbogast, 2008; Whitlock, 2016; Day et al., 2009). At the same time, these attributes bear

the hallmarks of skills that are developed by leaders over time as they grow into their roles and

gain experience and perspective (Day et al., 2009). There are certainly innate qualities that every

leader brings, but I believe that moral and ethical understanding and behavior is learned,

developed, and grown over time.

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References

Arbogast, S. (2008). Resisting corporate corruption: Lessons in practical ethics from the Enron

wreckage. Salem, MA: M & M Scrivener Press. 

Bardwell, S. K. (July 24, 2005). Former Episcopal treasurer arrested. The Houston Chronicle.

Retrieved from https://www.chron.com/news/houston-texas/article/Former-Episcopal-

treasurer-arrested-1475925.php/.

Blustein, D. L. (2006). The psychology of working: A new perspective for career development,

counseling, and public policy. New York: Routledge.

Day, D. V., Harrison, M. M., & Halpin, S. M. (2009). An integrative approach to leader

development: Connecting adult development, identity, and expertise. New York:

Psychology Press.

Mintzberg, H. (2011). Managing. San Francisco: Berrett-Koehler.

Whitlock, Craig. (2016). The man who seduced the 7th fleet. Retrieved from

https://www.washingtonpost.com/sf/investigative/2016/05/27/the-man-who-seduced-the-

7th-fleet/