Virtuous Leadership: The Character Secrets of Great Leaders

By Ray Williams

Although they may leave a lasting impression on the world, autocratic, toxic and destructive leaders are rarely held in high regard. Great leaders win the respect and admiration of their followers based on their good character. People today want to follow leaders who not only exhibit the necessary leadersh

• Language: English
• Publisher: Aurelias Publishing
• Release date: Oct 1, 2022
• ISBN: 9781734897975

Ray Williams

Ray Williams is a best-selling author, executive coach and leadership trainer and former CEO and HR Executive for the past 35 years.

Book preview

Preface

"Ninety-nine percent of leadership failures are failures of character."

—General Norman Schwarzkopf

Although they may leave a lasting impression on the world, autocratic, toxic and destructive leaders are rarely held in high regard. Great leaders win the respect and admiration of their followers based on their good character. People today want to follow leaders who not only exhibit the necessary leadership competencies, but also leaders who exhibit qualities and virtues of good character, such as integrity, emotional intelligence, compassion and service.

My previous books, Toxic Bosses: Practical Wisdom for Developing Wise, Ethical and Moral Leaders; Macho Men: How Toxic Masculinity Harms Us All and What To Do About It; I Know Myself and Neither Do You; and Eye of the Storm: How Mindful Leaders Can Transform Chaotic Workplaces examined both the dark and light sides of leadership in organizations.

Virtuous Leadership: The Character Secrets of Great Leaders, is the last book in this series and examines in dept how the qualities of good character and virtuous behavior should be the cornerstone of good leadership, with suggestions on leadership development initiatives that will build on that cornerstone.

Virtues, ethics, good character and morality are cited as being crucial to good leadership in numerous theories of leadership. Yet there has been insufficient attention to understanding how to develop or embed these virtues and notions of good character in practice.

In bookstores and libraries you will find numerous books on leadership style, and leadership competencies, but very few that focus on leadership character. For some reason we have lost sight of character and virtuous behavior. One reason may be that our education system and organizations have focused on practical competencies. Or perhaps it’s because good character seems like an old fashioned idea. Or that focusing on ethical and virtuous behavior is much more difficult to do than focusing on concrete procedures, execution and technical expertise. Or perhaps it’s because designing and implementing a leadership development program based on virtues and good character is more difficult than current typical programs.

Yet character is such a central, important element of leadership. In many ways character defines how we engage the world around us. It reflects our values, our behaviors, and attitudes.

The current trend referred to as The Great Resignation or Great Reset refers to the reluctance of workers returning to work after the COVID pandemic abatement because they no longer wish to work in organizations with toxic leaders and in toxic work environments. They look to organizational cultures that value workers well-being, mental health and personal fulfillment. And it’s clear that few leadership development programs address these needs and a structure that focuses on leaders’ good character and virtuous behaviors.

My consulting and coaching firm has delivered leader training and coaching to hundreds executives and their associates for over 30 years. With this experience, I discovered a few truths:

People who choose to rise to the challenge of leadership desire to be virtuous leaders and are hungry to be taught how to be of good character in a culture they can be proud of.

People desire to work for leaders whose virtues are modeled in their daily behavior.

There is an understandable level of new generational cynicism developed as a result of well-publicized ethical lapses of self-centered short-term management, be it business or government.

Far too often, executives are recruited and promoted based on what I would call an external demonstration of ability—financial success for shareholders, organizational strategies and plans with little or no consideration for the character, ethics and virtues of leaders.

In the book I use the term morality, ethics, virtues and character. While they are not the same, they do overlap.

Morality can be defined as a set of standards that enable people to live cooperatively in groups in a way that is right and acceptable. Sometimes, acting in a moral manner means individuals must sacrifice their own short-term interests to benefit society. Individuals who go against these standards may be considered immoral. Morality isn’t fixed. What’s considered acceptable in one culture might not be acceptable in another culture although some morals such as honesty seem to transcend across the globe and across time. Researchers have discovered that these morals are somewhat universal: courage, fairness, cooperation, love, and respect.

Ethics refers to a community or organization’s moral values, principles or rules as opposed to personal values. As such, it is concerned with rights and responsibilities and how moral decisions are made.

Virtues can be defined as moral excellence, goodness, admirable qualities or traits. They are universal and recognized by all cultures as basic qualities of well-being.

Character can be defined as a combination of mental characteristics and behaviors that distinguishes a person. In the context of this book, character refers to good character, which reflects moral strength and ethical qualities, and reflects a number of virtues.

In this book, I make reference to two leaders with whom I was engaged as their executive coach. My approach to coaching leaders has always had a focus on leadership character, and the two individuals exhibited vastly different characters and behaviors, which had a direct connection to their success in their organizations.

Much of leadership in the past can be described as reorganizing the deck chairs on the Titanic. It focused a great deal on the minute detail of how an organization ran while it was steaming ahead into chaos. Despite the expectations of the general public that leaders act in a moral, virtuous and ethical manner, and demonstrate good character, we’ve seen the opposite at great cost to people and institutions.

While it may seem like a simplistic argument for returning to focus on the values and behaviors of leaders that amount to doing the right thing, doing no harm, and serving people and society, I believe those ancient philosophical beliefs are worth embracing again.

Each chapter of the book examines in detail the various elements of good character and virtuous leadership as well as some practical suggestions for robust leadership development strategies for organizations. At the end of each chapter there is also questions to consider as a follow-up.

It is my hope that this book provides a cogent argument for reevaluating the current state of leadership in organizations and institutions and an impetus for recruiting and promoting virtuous leaders of good character.

Introduction

Why We Need Virtuous Leaders of Good Character

"To dissolve the unholy alliance between corrupt business and corrupt politics, is the first task of the statesmanship of the day."

— President Theodore Roosevelt

The lack of moral behavior and good character are major themes in research on leadership failures.

The crisis and tragedy playing out in Ukraine are a reflection of Vladimir Putin and his government's lack of moral fiber and virtue. The worst in leadership is demonstrated by the Russian attack, which has killed and injured innocent civilians.

The deceit and dishonesty of the Bush administration during the invasion of Iraq, the corrupt actions of the Trump administration regarding the 2020 Presidential election, and the financial crisis of 2008–2009, all serve as examples of the urgent need for morally upright leaders in the United States.

Large egos, a lack of humility, and ignorance of potential harm done to others or the cultures in which they functioned are signs of a person's lack of moral character and virtue. In essence, all of these actions and behaviors were character flaws.

This dirty hands problem has affected the performance of CEOs at major firms like Enron, Volkswagen, Wells Fargo, Theranos, WorldCom, Global Crossing, Anderson Consulting, and Tyco. These businesses, along with others, were all susceptible to the leaders' avarice in various ways, from fraud to fabricating or obscuring financial data. These instances of dishonest leadership are caused in part by the character crises of the particular leaders. As a result, workers have lost their jobs, businesses have gone bankrupt, employee retirement plans have been eliminated, cynicism and distrust have increased, and the general public is mistrusting.

According to the Securities and Exchange Commission, Ernst & Young cheated on the ethical portion of the Certified Public Accountant test and suppressed proof of the activity from regulators. The SEC said that it has penalized Ernst & Young $100 million, the highest amount ever imposed on an accounting company. In addition to breaching accounting regulations, the corporation hindered the investigation into the wrongdoing by concealing information from the SEC, according to the regulator.

In 2019, the SEC penalized KPMG, another of the big four accounting firms, $50 million for falsifying internal training exams and altering earlier audit work after receiving stolen data from a sector watchdog organization.

According to a global report published by Transparency International, corruption is a serious issue around the world, and studies have revealed that the US rates poorly when compared to other Western nations. Some analysts contend that the US slide is caused by dwindling confidence in democratic institutions and, more lately, by poor oversight of the financial system related to the pandemic under the Trump administration. In the annual Corruption Perceptions Index (CPI), the United States dropped from a high of 76 in 2015 to a low of 67 out of a possible score of 100, far below other Western nations.

A major factor in the United States' decreasing ranking, according to Scott Greytak, the advocacy director for Transparency International's U.S. office, is what he calls a decay in its democratic institutions. Gretyak made the important claim that politics, the media, and organizations today appeared to be fertile with misinformation, fake news, and record-setting amounts of untraceable money in the 2020 elections, which contributed to the public's lack of faith in American elections.

Greytak cited a joint investigation by BuzzFeed News and the International Consortium of Investigative Journalists from last year that revealed how major banks had knowingly allowed trillions of dollars of suspect financial transactions to go ahead, enabling drug kingpins, kleptocrats, and terrorists, as examples of the series of really bombshell exposés by media outlets that are demonstrating how much dirty money is flowing into the United States' financial system.

The Payment Protection Program loans, which were supposed to support small businesses during the COVID pandemic but instead went to large corporations like defense contractors, the international fast food chain Shake Shack, and the Los Angeles Lakers. And the Trump administration funneled millions of dollars in coronavirus aid to companies with potential conflicts of interests, including some owned by Jared Kushner’s family and others housed in buildings operated by the president’s real estate company, according to records made public.

Jim Kouzes and Barry Z. Posner published an article in Leadership Excellence which states But somewhere along the way to the New Millennium notions of ethics, morality, honesty, character and personal discipline came to be viewed as quaint — at least by those from the me-first, free agent school of corporate strategy. People got sucked into the idea that leadership was all about extrinsic rewards, and they started offering very creative ways to attract talent to the good life. The intrinsic reasons for doing something important —really caring about the people and the purpose — too often got lost in the hyperbole.

They go on to say this about leadership: Leaders are judged by how they spend their time, how they react to critical incidents, the stories they tell, the questions they ask, the language and symbols they choose, and the measures they use. Nothing fuels the fires of cynicism more than hypocrisy, and leaders will need to be constantly vigilant about aligning what they practice with what they preach. If you dream of leaving a legacy then you’d better heed the Golden Rule of Leadership: DWYSYWD: Do What You Say You Will Do.

Corruption and Ethical Leadership Behavior are Mutually Exclusive

Toxic Bosses: Practical Wisdom for Developing Wise, Ethical, and Moral Leaders is the title of my book in which I argue: Research has indicated that for many years, the company's subpar financial performance was the primary factor in chief executives being fired. The year 2018 saw a shift in that. According to the survey, 39% of the 89 CEOs who left their positions in 2018 did so because of unethical activity that was connected to fraud, bribery, or insider trading, among other ethical transgressions.

I also reference Stephen Chen's research, which was published in the Journal of Business Ethics, which states that misreporting performance improves the CEO's confidence, which in turn raises the urge to misreport performance to feed an ever-increasing ego. Statements from independent financial analysts and the media that applaud their initiatives can encourage this expansion. And they are not only limited to financial information.

Chen continues: These ethical challenges include deceptive advertising, advertising to children, and the exploitation of women. Current techniques of analyzing commercials may not be adequate for some of today's contentious or innovative campaigns, as evidenced by the fact that potentially unethical advertisements are reaching the market.

According to financial analyst Steven Pearlstein, who wrote in The Washington Post, "maximizing shareholder value has meant doing whatever is necessary to boost the share price this quarter and the next. This practice