Ethical Leadership in Crisis Management: The Role of University Education

Abstract

Ethical leadership is a necessary ingredient for successful crisis management. The study outlines generalizable prescriptive remedial steps that can be taken by business leaders faced by crises. But these remedial steps are simply the "bricks and mortar" of effective crisis management. The "pulsating soul" of ethical leadership is required to give such remedial steps the necessary moral compass for the initiation and sustained directional focus required for successful crisis management operationalization. The study's objective and purpose are twofold. First, it outlines a model of crisis management derived from recent case studies of best practice and briefly indicates how such practices reduce financial losses to the organizations concerned if correctly implemented by ethical leaders. Second, the study aims to show how ethical leadership required for effective crisis management might be nurtured through specific ethics-oriented postgraduate university instruction. The study suggests that these two aspects, ethical leadership and prescriptive steps to follow in the event of a crisis, are not only mutually reinforcing but also indispensable in effective crisis management.

Crisis Management: A Historical and Conceptual Approach for a Better Understanding of Today’s Crises

“…Coldwell confirms that recent financial and business crises have indicated repeatedly the poverty of ethical and responsible leadership behavior in high places [42]. A most recent example of this phenomenon with global repercussions was the Volkswagen (VW) Crisis, which was largely brought about through the unethical Business Behavior of its leaders."…”

“…The ethical aspect of crisis management is one of the most important components that recent studies emphasize upon, knowing that the ethical element is crucial to the mental image rebuilding process, and to regain the confidence of the public opinion as well [41,42]. "Engaging in ethical communication in times of crisis seems to be the ongoing theme in today's stakeholders communication research and practice" [41].…”

“…This ethical rationality involves the careful management of the organization's internal and external stakeholders throughout the duration of the crisis. Moreover, many recent studies emphasize on the correlation between the moral aspect and the practical elements such as credibility, objectivity, and the accurate knowledge in the field of public relations [42].…”

Adoption of Team Coaching Competencies for Innovative Translation and Foreign Language Instruction: Polylingual and Polycultural Dimensions in Higher Education

“…Thus, Coldwell (2017) sees ethical leadership as a necessary ingredient for successful crisis management. His work 'Ethical Leadership in Crisis Management: The Role of University Education' outlines remedial steps that can be taken by university and high school administration when faced by crises [4].…”

Team adaptation in dynamic environments

“…Yet, it is important to note that team adaptation in certain contexts may require the transition to other relevant leader-and followership styles. For instance, when a company experiences a crisis due to an ethical scandal (e.g., the recent VW crisis; Mansouri, 2016), teams may adapt by transitioning to an ethical leader-and followership style to foster teams' ethical decision-making and to rebuild the organizations' credibility (Coldwell, 2017). Thus, next to passive and 166 167 Chapter 5…”