Ethical Leadership
This kind of leadership puts doing the right thing before making a profit.
What is ethical / values-based leadership?
Stakeholder theory says leaders must care about more than just this group.
Who are shareholders?
Charismatic leaders gain influence through trust and communication, not just authority. True or false?
True
J&J recalled 31 million bottles of Tylenol even though they were not legally forced to. This shows what ethical principle?
What is putting public safety first?
Name two stakeholders affected by the Tylenol crisis besides J&J shareholders.
Consumers, doctors, families, retailers, FDA, media, public (any 2)
This kind of leadership is often most visible during a crisis, when people need certainty.
What is charismatic leadership?
This J&J document, written in 1943, says the company’s first duty is to patients and consumers.
What is The Credo?
TRUE OR FALSE: Stakeholder leadership always chooses long-term trust over short-term profit.
True (when practiced correctly).
The CEO of J&J held daily press briefings and spoke directly to the public. This built what key element of charisma?
What is credibility / public trust?
TRUE OR FALSE: Ethical leadership is only measured by what leaders say, not what they do.
False — it’s measured by actions, especially under pressure.
This leadership theory says companies should create value, not harm, for society.
What is responsible / stakeholder leadership?
Name one behavior charismatic leaders use to calm fear during uncertainty.
Ex: Clear communication, calm tone, visibility, confidence, honesty
Name the CEO who led J&J’s response and became the model for ethical crisis leadership.
Who is James Burke?
DAILY DOUBLE 💥: Name one action J&J took that showed stakeholder accountability.
Ex: Nationwide recall, press conferences, hotline, tamper-proof packaging, transparency with media, etc.
Charismatic leadership in this case helped restore public trust so much that Tylenol regained what percent of market share within a year?
70%