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Leadership Stress Affecting Ethical Decision Making

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Leadership Stress Affecting Ethical Decision Making
Ethical Decision Making in Organizations: The Role of Leadership Stress

Summary of Journal

This journal tested the effects of leadership stress towards ethical decision making in organizations. This research assessed on the identification of ethical problems and ethical behaviours. Two hypotheses have been developed in this research and were tested through the use of survey and participants are from 3 sites of Swedish multinational civil engineering company. The survey can be divided into four parts, which measured the recognition of ethical problems, perceived undesired stressful conditions, effects of stress, and some personal data.

The study suggested that stressful situations would impair leader’s ability to recognize ethical dilemmas. Moreover, it would lead to more frequent unethical acting. In addition, stressful situations tend to bring larger impact on the ethical behaviour especially when there are punishment and lack of rewards in the organization. However, stress does not necessarily lead to poorer management decisions where some leaders must be able to work under constant stress in their professional capacity. Thus, stress is reducing our concentration on a current task and ability to gather information, which then affects our ability to analyze using the working memory. Organization should look into the seriousness of stressful situation faces among employees because the stressors will influence managerial work and its implications for ethical behaviour. It is important to have ethical decision making among organization leaders to work along with their Corporate Social Responsibility (CSR).

Definition of concept

Ethical decision making related to moral issues. According to Jones (1991, p.367), a moral issue is concerned when actions of individual may bring harm or benefit towards others. An ethical decision can be defined as ‘a decision that is both legally and morally acceptable to the larger community whereas an unethical decision may be

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