When TD Bank’s executives signed off on a $3 billion fine for money laundering failures, they joined a growing list of business leaders who discovered that ethical shortcuts cost far more than ethical solutions. The Lamar University Master of Business Administration (MBA) in Management Online is built on proven Franklin Covey leadership principles. It is designed to develop your capabilities as a leader who can build trust, drive results and uphold ethical standards when the pressure to compromise is highest.
According to the Graduate Management Admission Council (GMAC), applications to graduate business programs in the U.S. increased by 8% from 2023 to 2024. This surge reflects professionals witnessing corporate scandals unfold and recognizing they need training in ethical decision-making before facing similar crossroads in their own careers.
The Trust Crisis Hitting Corporate America
Recent headlines paint a sobering picture of ethical leadership failures. Ethisphere reports that McKinsey & Company paid $650 million to resolve investigations into its opioid consulting work and Boeing continues to face federal scrutiny after safety failures costing lives and billions in settlements, among many other scandals.
Too many organizations have fallen into governance by social media, making defensive moves to manage reputational risk rather than building genuine stakeholder trust. This communications-heavy defensive strategy often backfires because it focuses on messaging rather than addressing underlying problems. The damage extends beyond regulatory fines to lost customer trust, employee loyalty and market credibility.
When Stakeholders Demand More Than Profit
Business leader expectations have fundamentally shifted, driven partly by generational change. Today, 55% of university students are Gen Z, bringing different workplace values. They expect employers to take a stand on social issues, demonstrate environmental responsibility and create inclusive cultures.
Modern stakeholders also expect reciprocity and transparency from business leaders. As ethics expert and author Alison Taylor notes in a McKinsey & Company interview, there is an expectation that leaders can be trusted to act in ways stakeholders wish to be treated, which goes beyond traditional reputational risk management. Social media has created hyper-transparency, making every decision subject to public scrutiny.
Most ethical business dilemmas are not clear-cut cases of right versus wrong. As Harvard Business School Professor Nien-hê Hsieh explains, “Many of the decisions you face will not have a single right answer. Sometimes, the most viable answer may come with negative effects.”
The Society for Human Resource Management also emphasizes that ethical decision-making starts with self-accountability and requires holding both leadership and employees to consistent standards. HR and company leaders must demonstrate that ethics apply equally at every organizational level.
Learning From Leaders Who Got It Right
When cyanide-laced Tylenol killed seven people, Johnson & Johnson immediately pulled 31 million bottles from shelves nationwide, costing $100 million, per HBS. They partnered with law enforcement and developed the first tamper-resistant packaging, ultimately strengthening the Tylenol brand.
When Starbucks faced criticism after a racially motivated arrest at a Philadelphia location, CEO Kevin Johnson fired the responsible manager, apologized directly to affected individuals and closed 8,000 locations for racial bias training. Per HBS, the decision cost $12 million but preserved customer trust. These examples illustrate a crucial principle: admitting imperfection can build more trust than defensive messaging.
The Skills That Set Ethical Leaders Apart
Ethical practice is a core behavioral competency requiring professionals to maintain high personal integrity. Effective ethical leaders understand that discussing ethics means nothing if high-level decision-makers are not held to these foundational ethical standards:
- Integrity: Doing the right thing with or without surveillance
- Accountability: Taking ownership of decisions and consequences
- Transparency: Communicating honestly about challenges and progress
- Fairness: Ensuring equitable treatment for all
- Responsibility: Empowering others to act ethically
- Environmental concern: Considering business impact on society
How MBA Training Transforms Your Moral Compass
Business schools employ the case study methodology to present real-world ethical dilemmas, allowing students to practice decision-making where they can learn from mistakes without real-world consequences. These discussions reveal how seemingly straightforward situations often involve complex trade-offs and competing priorities.
MBA programs also excel at building stakeholder analysis and ethical reasoning skills. Students learn to identify all parties affected by business decisions and develop solutions addressing multiple concerns. Lamar University integrates proven leadership frameworks directly into MBA core courses, providing systematic approaches to ethical decision-making. This combination creates leaders who appreciate ethics as a fundamental aspect of corporate responsibility, building stakeholder trust through authentic actions.
Your path to ethical leadership excellence may begin with Lamar University’s MBA in Management online program, which directly addresses the growing demand for ethically-trained business leaders. The program’s curriculum develops both technical competencies and ethical reasoning while its AACSB International accreditation ensures that training meets the gold standard for business education.
Learn more about Lamar University’s online MBA in Management program.
